Dondero Group Boosts HFRO Stake to 9.6% Amid $100M Buyback, Challenging Saba
HFRO sits 41% above its 52-week low of $5.19.
Summary
The Dondero group raised its HFRO stake to 9.6% with $2.9M in open-market purchases, intensifying a control battle with activist Saba Capital (10.47%) as the fund launches a $100M buyback.
Key Events · Ownership and Investor Activity · HFRO
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Dondero Group Increases Stake to 9.6%
James Dondero and affiliates now hold 5,218,875.74 shares (9.6% of outstanding), up from a previously reported aggregate stake, after GAF purchased 470,400 shares for $2,927,625 in open-market transactions.
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New $100M Share Repurchase Program
The fund announced a $100 million share repurchase program on June 9, 2026, which could reduce shares outstanding and increase the proportional ownership of remaining shareholders, including both the Dondero group and Saba Capital.
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Activist Battle with Saba Capital
Saba Capital Management holds a 10.47% stake as of its last filing on June 4, 2026. The Dondero group's accumulation and the buyback may be defensive moves to counter Saba's influence.
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Insider Buying at Elevated Prices
GAF's purchases were made at prices between $6.50 and $6.74 per share, near the 52-week high of $7.69, signaling strong conviction in the fund's value despite the elevated price.
Analysis · HFRO · Unknown
James Dondero and affiliated entities have increased their aggregate stake in Highland Opportunities & Income Fund to 9.6%, purchasing 470,400 shares for $2.9 million since the last filing. This accumulation comes just weeks after the fund announced a $100 million share repurchase program and as activist Saba Capital holds a 10.47% stake. The Dondero group's buying signals confidence in the fund's value and may be a defensive move to consolidate influence against Saba's activism. The repurchase program could further tighten the float and amplify the impact of these insider purchases.
At the time of this filing, HFRO was trading at $7.34 on NYSE in the Unknown sector, with a market capitalization of approximately $406.1M. The 52-week trading range was $5.19 to $7.69. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.