Filing Summary: James Dondero’s Highland Capital Management Lp Just Disclosed New Rait Financial Trust Position

Filing Summary: James Dondero's Highland Capital Management Lp Just Disclosed New Rait Financial Trust Position

The New James Dondero’s Highland Capital Management Lp Holding in Rait Financial Trust

Highland Capital Management Lp filed with the SEC SC 13D/A form for Rait Financial Trust. The form can be accessed here: 000119312516766131. As reported in James Dondero’s Highland Capital Management Lp’s form, the filler as of late owns 6.1% or 5,577,647 shares of the Finance–company.

Rait Financial Trust stake is a new one for the for the hedge fund and it was filed because of activity on November 10, 2016. We feel this shows James Dondero’s Highland Capital Management Lp’s positive view for the stock. For a hedge fund managing $15.04 billion in assets and having 105+ active experts, we at Financialmagazine have no doubt the buy is a bullish signal.

The hedge fund is active investor in the Finance sector. In the manager’s last 13-F, we saw 25% of James Dondero’s Highland Capital Management Lp’s US equities portfolio is in this sector.

Reasons Why James Dondero’s Highland Capital Management Lp Bought – Rait Financial Trust Stock

Purpose of Transaction

On November10, 2016, NexPoint Real Estate Advisors, LP(“NexPoint”), an affiliate of Highland Capital, sent a letter (the “Letter”) to Mr. Michael J. Malter, the Chairman of the board of trustees of the Issuer (the “Board”), expressing strong disappointment with theIssuer’s lack of transparency to investors and failure to engage with NexPoint in connection with its proposal to (i) simplify the Issuer’s business; (ii) deleverage the Issuer; (iii) externalize management of the Issuer to NexPoint andits affiliates; and (iv) provide additional equity investments in the Issuer. The Letter reiterated NexPoint’s interest in engaging in discussions with the Issuer’s management and Board regarding the proposal. The foregoing description ofthe Letter is qualified in its entirety by reference to the full text of the Letter, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Rait Financial Trust Institutional Sentiment

Latest Security and Exchange filings show 115 investors own Rait Financial Trust. The institutional ownership in Q3 2015 is high, at 45.25% of the outstanding shares. This is decreased by 7910790 the total institutional shares. 41709607 were the shares owned by these institutional investors. In total 19 funds opened new Rait Financial Trust stakes, 46 increased stakes. There were 9 that closed positions and 36 reduced them.

David Dreman Dreman Value Management Llc is an institutional investor bullish on Rait Financial Trust, owning 1427332 shares as of Q3 2015 for 0.71% of its portfolio. Holt Capital Advisors Llc Dba Holt Capital Partners Lp owns 283333 shares or 0.59% of its portfolio. NJ Advisors Capital Management Llc have 1.22% of their stock portfolio for 2248732 shares. Further, Cetera Advisors Llc reported stake worth 0.70% of its US stock portfolio. The CA Orinda Asset Management Llc owns 316842 shares. Rait Financial Trust is 1.98% of the manager’s US portfolio.

Business Profile

RAIT Financial Trust (RAIT) is a self-managed and self-advised real estate investment trust (REIT). RAIT uses its vertically integrated platform and relationships to originate commercial real estate loans, acquire commercial real estate properties and invest in, manage and service commercial real estate assets. The Company’s segments are real estate lending, owning and managing segment, Independence Realty Trust, Inc. (IRT) segment and Taberna Securitization segment. The Company’s real estate lending, owning and managing segment concentrates on lending, owning and managing commercial real estate assets throughout the United States. The Company’s IRT segment concentrates on the ownership of apartment properties in opportunistic markets throughout the United States. The Company’s Taberna Securitization segment includes the ownership and management of approximately three real estate trust preferred securitizations.

SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.

James Dondero’s Highland Capital Management Lp website.

Insitutional Activity: The institutional sentiment increased to 1.51 in 2016 Q2. Its up 0.39, from 1.12 in 2016Q1. The ratio is positive, as 9 funds sold all RAIT Financial Trust shares owned while 28 reduced positions. 16 funds bought stakes while 40 increased positions. They now own 49.96 million shares or 4.49% less from 52.31 million shares in 2016Q1.

Bnp Paribas Arbitrage Sa holds 0% of its portfolio in RAIT Financial Trust (NYSE:RAS) for 4,175 shares. Exane Derivatives reported 1 shares or 0% of all its holdings. Foundry Limited Liability Corp, a Minnesota-based fund reported 1.43M shares. Bard Assocs holds 10,000 shares or 0.02% of its portfolio. Blackrock Ltd Co has 35,609 shares for 0% of their US portfolio. Zurcher Kantonalbank (Zurich Cantonalbank) has 0% invested in the company for 2,259 shares. Private Advisor Gru Ltd Liability reported 10,602 shares or 0% of all its holdings. Blackrock Fund has 4.38M shares for 0% of their US portfolio. Ballentine Partners Ltd Llc accumulated 0% or 14,534 shares. Moreover, Jacobs Levy Equity Mngmt Inc has 0.01% invested in RAIT Financial Trust (NYSE:RAS) for 85,000 shares. Voya Mngmt Ltd Co has 56,111 shares for 0% of their US portfolio. Citigroup has 0% invested in the company for 17,061 shares. California Public Employees Retirement System holds 613,900 shares or 0% of its portfolio. Barclays Public Ltd Company holds 597,387 shares or 0% of its portfolio. Stifel Financial Corporation reported 269,019 shares or 0% of all its holdings.

The stock decreased 0.37% or $0.01 during the last trading session, hitting $2.69. About 575,999 shares traded hands or 25.51% up from the average. RAIT Financial Trust (NYSE:RAS) has declined 5.26% since April 8, 2016 and is downtrending. It has underperformed by 10.91% the S&P500.

RAIT Financial Trust is a self-managed and self-advised real estate investment trust (REIT). The company has a market cap of $256.50 million. RAIT uses its vertically integrated platform and relationships to originate commercial real estate loans, acquire commercial real estate properties and invest in, manage and service commercial real estate assets. It currently has negative earnings. The Company’s divisions are real estate lending, owning and managing segment, Independence Realty Trust, Inc. (IRT) segment and Taberna Securitization segment.

RAIT Financial Trust (NYSE:RAS) Ratings Coverage

Out of 7 analysts covering RAIT Financial Trust (NYSE:RAS), 3 rate it a “Buy”, 0 “Sell”, while 4 “Hold”. This means 43% are positive. $7.50 is the highest target while $3.25 is the lowest. The $5.02 average target is 86.62% above today’s ($2.69) stock price. RAIT Financial Trust has been the topic of 9 analyst reports since August 3, 2015 according to StockzIntelligence Inc. The company was initiated on Friday, January 22 by FBR Capital. The stock of RAIT Financial Trust (NYSE:RAS) has “Buy” rating given on Monday, March 14 by Deutsche Bank. The stock has “Outperform” rating given by FBR Capital on Friday, February 26. The rating was downgraded by Compass Point to “Neutral” on Thursday, December 10. The firm has “Buy” rating by Ladenburg Thalmann given on Monday, August 3. The stock of RAIT Financial Trust (NYSE:RAS) earned “Mkt Perform” rating by JMP Securities on Wednesday, December 9.

More notable recent RAIT Financial Trust (NYSE:RAS) news were published by: Reuters.com which released: “BRIEF-RAIT Financial Trust files for non-timely 10-Q – SEC filing” on November 10, 2016, also Therealdeal.com with their article: “RAIT Financial sells Miami Gardens apartments for $36M” published on November 10, 2016, Reuters.com published: “BRIEF-Rait Financial Trust announces new independent chairman of the board…” on October 24, 2016. More interesting news about RAIT Financial Trust (NYSE:RAS) were released by: Businesswire.com and their article: “RAIT Financial Trust Announces Third Quarter 2016 Financial Results” published on November 03, 2016 as well as Businesswire.com‘s news article titled: “RAIT Financial Trust Declares Fourth Quarter 2016 Preferred Dividends” with publication date: November 02, 2016.

According to Zacks Investment Research, “RAIT Financial Trust is an internally-managed real estate investment trust. It provides debt financing options to owners of commercial real estate and invests directly into commercial real estate properties located throughout the United States. RAIT originates secured and unsecured credit facilities including bridge and mezzanine loans, preferred equity investments, trust preferred securities and subordinated debt for private and corporate owners of commercial real estate, REITs, and real estate operating companies and their intermediaries. The Company is also an asset and property manager of real estate-related assets. RAIT Investment Trust is based in Philadelphia, Pennsylvania.”

RAS Company Profile

RAIT Financial Trust (RAIT), incorporated on August 14, 1997, is a self-managed and self-advised real estate investment trust (REIT). RAIT uses its vertically integrated platform and relationships to originate commercial real estate loans, acquire commercial real estate properties and invest in, manage and service commercial real estate assets. The Company’s divisions are real estate lending, owning and managing segment, Independence Realty Trust, Inc. (IRT) segment and Taberna Securitization segment. The Company’s real estate lending, owning and managing segment concentrates on lending, owning and managing commercial real estate assets throughout the United States. The Company’s investment may range from first mortgage loans to equity ownership of a commercial real estate property. The Firm manages its investments in-house through its asset management and property management professionals. The Company’s IRT segment concentrates on the ownership of apartment properties in opportunistic markets throughout the United States. The Company’s Taberna Securitization segment includes the ownership and management of approximately three real estate trust preferred securitizations.

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