Highland Capital Reports Their Top 10 Holdings

Highland Capital Management (HCM), founded by James Dondero, filed their quarterly report that shows the company’s portfolio to have lost $1.49 billion dollars. Last quarter’s report showed a total value of $4.91 billion dollars, but this one is down to $3.42 billion. It should be noted that this report only represents some 23% of HCM’s overall assets.

HCM manages over $15 billion dollars in assets. The hedge fund purchased 69 new stocks. The five new top stocks brought into their portfolio are: Spdr S&P 500 Etf Tr at $67 million dollars, Amazon Com at $23.35 million dollars, Eagle Pharmaceuticals at $17.73 million dollars, Danaher Corp Del at $17.24 million dollars, and Intra Cellular Therapies at $15.90 million dollars.

During this quarter James Dondero’s HCM sold all stakes in Spdr Series Trust, Nexpoint Cr Strategies, Mckesson Corp, Envision Healthcare Hldgs, and Laboratory Corp Amer Hldgs. Altogether these stocks added up to about 8% of the total portfolio. Much speculation has been flying about, as to why these were all sold. The main theory seems to be that HCM needed to raise capital. HCM also reduced its positions in 5 stocks, most quite significantly.

The top three holdings at HCM remain American Airls Group, Salesforce Com, and Ishares Tr. These three make up almost 14% of total value for HCM’s listed securities. Their top 10 stocks make up about 30% of what was listed on the 13F report.

In 1993, James Dondero founded HCM, which for 20 years has introduced alternative investment strategies and new innovations to the investments arena. Mr. Dondero has added many new services over the years, including mutual funds, hedge funds, real estate trusts, collateral loans, distressed equity, and private funds.

Many people were able to build up large nest eggs for retirement because of his new innovative vehicles that enable everyone to become an investor. Recently James Dondero had this to say: “We created our first collateralized loan obligation in 1996… It was quite challenging because there were only a few non-bank investors outside of ourselves and a few mutual fund investors. Since then, we have created 40 collateralized loan obligations and structured vehicles.” This information came from this HCM Top 10 Holdings article.

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