On October 12, 2016, Mark Okada of Highland Capital Management rang the closing bell at the NASDAQ in celebration of the listing of the company’s Highland iBoxx Senior Loan ETF. Okada is the co-founder and chief investment officer of Highland and the company’s retail arm, Highland Capital Management Fund Advisor, manages the iBoxx senior loan ETF.
A senior bank loan is any debt obligation that is paid before any other creditors. A senior loan secures a first lien claim on assets owned by a company and offers the potential for high yields based on the loan’s credit risk. Highland’s iBoxx senior loan ETF portfolio contains 100 of the most liquid leveraged loans available on the market today.
Highland Capital Management is one the most recognized alternative credit managers specializing in credit hedge funds, long-only funds and collateralized loan obligations. James Dondero and Mark Okada founded Highland Capital Management in 1993, and the company is based out of Dallas, Texas. Highland manages close to $18 billion in assets, including pension funds, endowments, foundations, high-net-worth individuals and financial institutions.
The sectors that Highland Capital Management holds for its institutional portfolio includes energy at 21.4 percent, financials at 19 percent, health care at 15.6 percent and technology at 24 percent, as of Dec. 31, 2016. The company holds 341 total positions with Twitter being the largest position in terms of the value of shares at $93 million. Highland holds $82 million in Loral Space & Communications and $44 million in Visa.