James Dondero’s Highland Capital Management Look at Top 10 Holdings

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James Dondero’s Highland Capital Management recently made a quarterly filing dated 03/02/2016 showing that the hedge fund has a portfolio value of $3.42 billion. These numbers represent a decrease of $1.49 billion from $4.91 billion, which was reported in the previous quarter. The company’s new positions included Spdr S&P 500 Etf Tr (Call) (SPY) for $67.07 million, Eagle Pharmaceuticals Inc (EGRX) for $17.73 million, Amazon Com Inc (AMZN) for $23.35 million. Danaher Corp Del (DHR) for $17.24 million and Intra Cellular Therapies Inc (ITCI) for $15.90 million rounded out the top five biggest new positions. The hedge fund bought 69 new stocks in total wish lifted its stakes to gradually build positions.

Highland Capital Management Lp’s top three holdings are: American Airlines Group Inc (Call) (AAL), Salesforce Com Inc (CRM), and Ishares Tr (Put) (IWM). These three holdings made up the majority for the hedge fund’s long portfolio this quarter. The top 10 holdings make up about 29.55% of the 13F reported portfolio. The fund is now relying heavily on healthcare with 20% for $683.78 million and information technology with 18% for $615.40 million. Other sectors include finance, energy, consumer discretionary, transports, utilities and telecommunications, materials, and services.

As president and cofounder and current resident of Dallas, Texas, James Dondero has over 30 years of experience in equity and credit markets with a focus on high yield and distressed investing. His company has been a pioneer in the development of credit oriented solutions for institutional and retail investors worldwide. He is also responsible for being a pioneer in the development of the Collateralized Loan Obligation (CLO) market. Dondero is also chairman of CCs Medical, Cornerstone Healthcare, and Nexbank. He also serves as a board member of MGM Studios and American Banknote.

Dondero began his career in 1984 as a member of the Morgan Guaranty training program. He graduated with high honors, Beta Gamma Sigma and Beta Alpha Psi, from the University of Virginia with dual majors in finance and accounting. He is a certified management accountant and has earned the right to use the Chartered Financial Analyst (CFA) designation. From 1985 to 1989, he was a corporate bond officer and later a portfolio manager for American Express. From 1989 to 1993, he helped build the GIC subsidiary of Protective Life which experienced massive growth during this time. Dondero is also very active philanthropic ally, supporting initiatives in Veterans Affairs, education, and public policy.

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