Highland Capital Doubles Down on Nexpoint

Highland Capital Management seems to have increased its position in Nexpoint Credit Strategies up to 793,036 shares, recent SEC filings confirm. This increase in shares boosts Highland’s stake in Nexpoint to $11.68 million, making Highland Capital the second most involved investor to date.

 

Nexpoint Credit Strategies spun away from Nexpoint Residential Trust and they became two separate entities in March of last year. The change forced Highland Capital’s hand in deciding how to hedge risks and increase equity, allowing them to take part in Nexpoint’s portfolio which is valued at an approximate $600 million.

 

Part of Nexpoint’s valuable profile is the strategies the company has chosen to follow since the split last spring. On its own, Nexpoint has continued to collect real estate assets though Highland Real Estate Capital REIT. This has placed a great deal of the fund’s holdings under Highland Capital or James Dondero himself.

 

Nexpoint’s year to date 5.92%. This is in spite of losses the company suffered in 2015, the result of setbacks in Texas Competitive Electronics which caused a decling in high yield credit markets. But growth seems to be the current track Nexpoint is on right now. Recently the company has increased dividends by $.24 a share, noting their increase in value to investors that will be payable at the end of the month.

 

About James Dondero:

 

James Dondero graduated form the McIntire School of Commerce at the University of Virginia with a double major in Accounting and Finance. This led to a certification as a Certified Management Accountant and a Chartered Financial Analyst, preparing him for a career in the financial sector.

 

After a time at Morgan Guearanty as an analyst, Dondero joined American Express as a Corporate Bond Analyst, then moved on to become a Portfolio Manager. Four years later Dondero found himself at Protective life, working as their Chief Investment Officer, placing him in charge of more than $2 billion in company assets. With this accumulated experience and knowledge in hand, Dondero went on to found Highland Capital Management, where he continues to serve as President of his firm, servicing clients in Austin, Texas with a team of qualified financial experts.

 

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