Nexpoint Credit Strategies Fund (NHF): Highland Capital Takes a Bullish Stance with Latest Move; See Fund’s Other Top Picks

Microsoft Corporation (NASDAQ:MSFT) was not only one of Highland Capital’s top picks last quarter, but is also a stock that is favored by numerous financial institutions. In fact, the company ranked amongst the five most popular tech stocks among hedge funds last quarter. Mr. Dondero’s fund currently holds 2.05 million shares, following a 102% increase during the fourth quarter. In addition to gaining 24.5% in 2014, Highland Capital is bullish regarding Microsoft Corporation (NASDAQ:MSFT) for a number of reasons. Not only is the company set to continue performing well this year, but it backed by major institutional investors, such as Jeffrey Ubben’s ValueAct Capital, which owns 74.23 million shares of Microsoft, being one of the largest shareholders of the company.

Finally, Highland Capital was also bullish on Anadarko Petroleum Corporation (NYSE:APC) last quarter, increasing its exposure to the stock by 171% to 999,300 shares. Whereas the oil & gas exploration and production industry fell by 15% last year, Anadarko performed rather well, gaining almost 4% in 2014. Furthermore, analysts believe the company is set to increase its bottom line performance, thanks to investments made in high-margin oil assets. In addition to Highland Capital, billionaire hedge fund manager Paul Singer is also bullish on this stock. Mr. Singer’s Elliot Management increased its exposure to the stock by 24% last quarter to 4.62 million shares.

Disclosure: none.