Third Quarter Changes James Dondego’s Highland Capital Management

James Dondero started out his days in finance at the University of Virginia. Jim double majored in Finance and Accounting. He graduated with some of the highest honors from the University of Virginia’s Mcintire School of Commerce. Since graduating, Jim has also achieved certification as a Chartered Financial Analyst, a Certified Management Accountant and a Certified Public Accountant.

After graduating, Dondero went on to work as an analyst for the Morgan Guaranty training program. A year later, Dondero moved to American Express and managed 1 billion dollars there as a corporate bond analyst and portfolio manager. Dondero did this for four years, until 1989 when he started working for a Protective Life GIC Subsidiary as the Chief Investment Officer. While in this role, Dondero helped to not only create the subsidiary but also to grow it to 2 billion dollars.

In 1993 James Dondero decided to found his own fund and Highland Capital Management was created. Dondero brought his more than 30 years of experience in distressed and high yield investing in the equity and credit markets. Because of his experience and his collaboration with the 35 other investment researchers and advisors who work at the fund, Dondero and his fund have been able to carve out their niche as experts in developing credit oriented solutions for world wide retail and institutional investors and development of the market for Collateralized Loan Obligation.

The fund changed some of their holdings in the third quarter of 2015. The fund sold out completely of Nexpoint Cr Strategies, Envision Healthcare Holdings and Disney Walt Co, among others. The fund also added some new positions to their holdings, including Intra Cellular Therapies, Jarden Corp and Extra Space Storage. While the fund increased its holding from 16 percent to 18 percent in the information technology sector, it decreased its holding in the health care sector by 20 percent and its holding in the finance sector by 38 percent. However, the firms holding in the health care sector is still fairly significant at 20 percent.

The value of the portfolio also changed from the second quarter to the third quarter. It went down by 1.49 billion dollars from 4.91 billion dollars to 3.42 billion dollars, according to the 13F filing by Highland Capital Management.

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