James Dondero, a reputable SEC-registered investment advisor residing in Dallas, TX increased Highland Capital Management’s stake in affiliate fund, NexPoint Credit Strategies. By the end of 2016, the investment advisory firm is managing more than $2 billion in assets for companies endowments, influential people, financial institutions, and others. Highland Capital and James Dondero are the second largest stakeholders in the fund, reporting $11.7 million in ownership. Morgan Stanley is the largest stakeholder, owning $16.7 million of the fund’s shares. Mr. Dondero is the owner of 3 million shares and NexPoint is the owner of 793,036 shares.
NexPoint Advisors, L.P. is an affiliate of Highland Capital and manages the NexPoint Credit Strategies Fund. James Dondero serves as President for NexPoint Advisors and Highland Capital. He co-founded Highland Capital, in 1990, as Protective Life Insurance Corporation which evolved to Protective Asset Management Company, in 1993. An acquisition of Protective Life resulted in the formation of Ranger Asset Management, four years later. Rangers Asset name was changed in 1998 to Highland Capital Management, L.P.
Highland’s SEC filing for the end of 2016 Third Quarter showed the firm acquired 20,286 new shares of NexPoint’s stock. NexPoint Credit Strategies Fund is the top 10 percent of CEFs (Closed End Funds). The fund has two public-traded companies, NexPoint Resident Trust, Inc. and NexPoint Credit Strategies, the end of March 2016. The fund’s portfolio is valued at $600 million and includes over $300 million in net assets. NexPoint Credit Strategies Fund was able to increase its real estate assets through Highland’s affiliates, Highland Real Estate Capital REIT, REITs, and Freedom REIT.
James Dondero is co-founder of NexPoint Residential Trust, Inc. and serves as Chairman of the Board, since 2015. NexPoint Residential Trust is a public-traded REIT and advised by NexPoint Real Estate Advisors. The company specializes in acquisition, disposition, and asset management of residential assets in Texas and southeast of the country. Mr. Dondero oversees the operations of Highland Capital Management and has ownership interest in all its affiliates, including NexPoint Credit Strategies, NexPoint Advisors, NexPoint Capital, and NexPoint Residential Trust. Library for Smart Investors reported NexPoint Credit Strategies Fund had five percent of outstanding common stock the end of 2016 Third Quarter.