Although it represents less that 25% of James Dondero’s Highland Capital Management Lp total assets listed in the US, the hedge fund portfolio decreased by $1.49 billion from the previous quarter, from $4.91 to $3.42 billion. Five biggest new purchases of the 69 new stocks are:
> SPY-SPDR S&P 500 ETF TR 350,000 shares for $67.07 million
> AMZN -Amazon Com Inc 45,515 shares for $23.35 million
> EGRX-Eagle Pharmaceuticals 239,508 shares for $17.73 million
> DHR – Danaher Corp Del 202300 shares for $17.24 million
> ITCI- Intra Cellular Therapies Inc 396,982 shares for $15.90 million
Highland Capital also increased its stakes in American Airlines by 60%, Patterson Companies by 16%, Kinder Morgan 173%, Corning Inc 18% and Salesforce Com Inc by 18% and decreased its stakes in Salesforce Com by 213%, Burlington Stores by 10% and LDR Holding by 69%. It also sold all its share in XBI-Spdr Series Trust (PUT), NHF-Nexpoint Cr Strategies Fd, EVHC-Envision Healthcare Hldgs, MCK-McKesson Corp, and LH-Laboratory Corp Amer Hldgs. Reduced positions include Ishares Tr by 52%, American Airline by 56%, American Express by 17.f4% Anadarko Pete Corp by 77% and NRG Energy by 21%.
Its top three holdings are American Airlines, Salesforce Com and IsharesTr, almost 14% of its US listed securities. Its sector allocations are 20% in Health Care, 18% in Information Technology, 18% in Finance, 12% in Energy and 10% for Consumer Discretionary. It is speculated that these changes represents a gradual building of positions, value, momentum or better results. An SEC registered investment adviser, Highland Capital Management’s Jim Dondero, co-founder and president has over 30 years of experience in investing and helped to pioneer Collateralize Loan Obligation (CLO) use. Since 1990 when Jim and Mark Okada formed the Protective Life Insurance Corporation joint venture to today, Highland Capital Management has become one of the industry’s most experienced and largest investment advisers and manages $21 billion of assets along with its affiliates. Jim is also a Certified Management accountant and a Chartered Financial Analyst. With his knowledge and experience at work, Highland Capital Management will continue to provide value to investors, protecting capital, offering unique products and pursuing new opportunities.
In addition to his role with Highland, James also serves on the board of directors on American Banknote Corporation, NexBank, Cornerstone Healthcare, CCS Medical and MGM studios among them. He has also won several awards including the HFM Award in 2012 for Best 40 ACT Fund and 2013 Rising Star of Mutual Funds as well as The Street’s 2011 Best Stock Mutual Fund, Long/Short Category. Many wise investors will continue to trust in his management skills and will reap the benefits. The 3rd quarter results for Highland Capital can be found on OCTAFinance.