On August 4, 2016, James Dondero, the president and co-founder of Highland Capital Management, reported an 11 percent stake in Pendrell Corporation. Highland Capital’s most recent 13G SEC filing lists the details of its most recent Class A common stock purchase, including ownership and voting rights of the purchasers.
Highland Capital Management’s recent 13G filing seems to support the idea that Pendrell most recent stock run may have seen its peak and that Dondero may be securing some of the profits before the stock levels off and returns to a more normal value. Highland still retains an 11 percent ownership of Pendrell outstanding common stock shares despite its recent sell-off, which has almost halved the firm’s stake in the company.
Highland Capital Management’s 13F filing, which came out at the end of March, showed that the firm held the company 45.6 million shares of Class A common stock as opposed to its most recent 13G filing, which reported a holding of 23.57 million shares. This does not mean, however, that Dondero and Highland Capital Management have lost faith in the stock, but rather may be just a strategic move to lock in some of the profits made during the stock’s rise in value over the past six months.
James Dondero is the co-founder and current president of Highland Capital Management, one of the largest global alternative credit management firms, responsible for over $18 billion of assets.
Before co-founding and managing Highland Capital Management, Dondero was instrumental in the creation of the GIC subsidiary of Protective Life where he held the position of Chief Investment Officer. He has also held the positions of Corporate Bond Analyst and Portfolio Manager at American Express. Mr. Dondero currently serves as Chairman of NexBank, Cornerstone Healthcare, CCS Medical, and is a board member of MGM Studios and American Banknote.
Last quarter Pendrell showed excellent progress and reported $45 million in revenue and $23.48 million in operating income. In the most recent quarter a Pendrell Corp. subsidiary Memory Technologies LLC signed a patent licensing deal with Toshiba.
To view more information about Highland Capital Management’s current stake in Pendrell Corp., as well as the details of the 13G SEC filing, visit: