Highland Opportunities & Income Fund 9.6% stake

Highland Opportunities & Income Fund has an updated ownership report from James D. Dondero and related entities.

Rhea-AI Filing Summary

Highland Opportunities & Income Fund has an updated ownership report from James D. Dondero and related entities. As of July 27, 2026, Dondero may be deemed to beneficially own 5,218,875.74 common shares, or 9.6% of the fund, through direct holdings, NexPoint, Highland Global Allocation Fund, Drugcrafters and a family trust.

Highland Global Allocation Fund and NexPoint each report 3,115,253 shares (5.7%), Drugcrafters holds 72,082 shares (0.1%), and a trust for Nancy Marie Dondero holds 2,029,796.34 shares (3.7%). Since the prior report, GAF purchased 470,400 shares in open‑market transactions for $2,927,625, using working capital. Percentages are based on 54,647,995 common shares outstanding.

Filing Explained

As of July 27, the 9.6% beneficial position includes shared voting and disposition power and a trust-related right to acquire ownership.

This Amendment No. 4 is a July 27, 2026 ownership update: it reports the reporting persons’ existing common-share position as beneficial ownership with shared voting and dispositive powers, rather than an issuer-side transaction.

Schedules 13D and 13G disclose ownership above 5%, while amendments track changes in stake or stated intent. Here, Highland Global Allocation Fund and NexPoint each report 3,115,253 shares with shared voting and dispositive power; a trust reports 2,029,796.34 shares on the same shared basis.

James D. Dondero reports sole voting and dispositive power over 1,744.39 shares and shared power over 5,217,131.34 shares. The filing also says he has the right to acquire beneficial ownership of all shares held by the trust, while Nancy Marie Dondero disclaims beneficial ownership of those trust shares.

Annex A covers transactions during the preceding 60 days, excluding 13,080.31 shares received by the trust through the fund’s dividend reinvestment program; except as otherwise noted, the transactions were conducted in the open market.

Key Figures

James D. Dondero beneficial ownership: 5,218,875.74 Common Shares Highland Global Allocation Fund holdings: 3,115,253 Common Shares NexPoint Asset Management holdings: 3,115,253 Common Shares +5 more

8 metrics

James D. Dondero beneficial ownership 5,218,875.74 Common Shares As of July 27, 2026, representing approximately 9.6% of outstanding Common Shares

Highland Global Allocation Fund holdings 3,115,253 Common Shares As of July 27, 2026, representing approximately 5.7% of outstanding Common Shares

NexPoint Asset Management holdings 3,115,253 Common Shares As of July 27, 2026, representing approximately 5.7% of outstanding Common Shares

Drugcrafters, L.P. holdings 72,082 Common Shares As of July 27, 2026, representing approximately 0.1% of outstanding Common Shares

Nancy Marie Dondero trust holdings 2,029,796.34 Common Shares As of July 27, 2026, representing approximately 3.7% of outstanding Common Shares

Recent GAF purchase 470,400 Common Shares Purchased in open market transactions since the last report

Aggregate price of recent GAF purchase $2,927,625 Total paid for 470,400 Common Shares using working capital

Shares outstanding baseline 54,647,995 Common Shares Common Shares outstanding as of July 27, 2026, used to compute ownership percentages

Key Terms

beneficially own, shared voting power, shared dispositive power, dividend reinvestment program

4 terms

beneficially own financial

"may be deemed to beneficially own 5,218,875.74 Common Shares"

Beneficially own means having the economic rights and risks of a security—such as the right to receive dividends, sell the shares, or profit from price changes—whether or not your name appears on the official share register. Think of it like renting a car: you use it and reap the benefits even if the title lists someone else. Investors care because beneficial ownership determines who truly controls value, must be disclosed under securities rules, and can signal potential influence or trading activity that affects a stock’s price.

shared voting power financial

"shared voting power and shared dispositive power with respect to 5,217,131.34"

Shared voting power occurs when two or more parties jointly have the right to vote or decide how a block of company shares is cast, like co-owners who must agree before moving a piece of furniture. Investors care because who controls voting rights affects board elections, major corporate decisions and takeover outcomes, and shared control can alter regulatory disclosures and the practical influence any holder has over a company’s direction and value.

shared dispositive power financial

"shared voting power and shared dispositive power with respect to 3,115,253"

dividend reinvestment program financial

"Common Shares received by a trust ... pursuant to the Issuer's dividend reinvestment program"

A dividend reinvestment program lets investors automatically use cash dividends to buy more shares of the same company instead of taking the money as cash. Think of it like an automatic savings plan that turns small payouts into additional ownership, often including fractional shares, which can speed up compound growth and reduce the need for manual buying decisions — a convenience that can boost long-term returns for shareholders.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What stake in HFRO does James D. Dondero report in this Schedule 13D/A?

James D. Dondero may be deemed to beneficially own 5,218,875.74 common shares of HFRO, representing 9.6% of outstanding shares. This stake is held through direct accounts and entities including NexPoint, Highland Global Allocation Fund, Drugcrafters and a family trust structure.

How many Highland Opportunities & Income Fund (HFRO) shares did Highland Global Allocation Fund buy?

Highland Global Allocation Fund purchased 470,400 HFRO common shares in open‑market transactions since the last report, for an aggregate price of $2,927,625. These purchases were funded with the reporting person’s working capital and increased GAF’s total reported holdings to 3,115,253 shares.

What are the reported HFRO holdings of Highland Global Allocation Fund and NexPoint?

Highland Global Allocation Fund and NexPoint each report 3,115,253 HFRO common shares, representing 5.7% of shares outstanding for each entity. Both report shared voting and dispositive power over these holdings, with GAF managed by NexPoint, which is ultimately controlled by James D. Dondero.

How many HFRO shares are held through the Nancy Marie Dondero trust?

A trust for which Nancy Marie Dondero serves as trustee holds 2,029,796.34 HFRO common shares, representing 3.7% of outstanding shares. The trust has shared voting and dispositive power, and James D. Dondero has the right to acquire beneficial ownership of these shares.

What total HFRO share count is used to calculate the ownership percentages in this filing?

All reported percentages are calculated using 54,647,995 HFRO common shares outstanding as of July 27, 2026. Each reporting person’s percentage—such as Dondero’s 9.6% and GAF’s 5.7%—is based explicitly on this stated outstanding share figure.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 07/29/2026 - 04:46 PM Accepted by SEC EDGAR 07/29/2026 - 04:46 PM Learn about SEC filing dates

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 4)

HIGHLAND OPPORTUNITIES & INCOME FUND

(Name of Issuer)

Common Shares, par value $0.001 per share

(Title of Class of Securities)

43010E404

(CUSIP Number)

Stephanie Vitiello, CCO
NexPoint Asset Management, L.P., 300 Crescent Court, Suite 700
Dallas, TX, 75201
214-453-6500

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

07/27/2026

(Date of Event Which Requires Filing of This Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

schemaVersion:

SCHEDULE 13D

CUSIP Number(s): 43010E404

1

Name of reporting person

DONDERO JAMES D

2

Check the appropriate box if a member of a Group (See Instructions)

(a)
(b)

3

SEC use only

4

Source of funds (See Instructions)

AF, WC

5

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

6

Citizenship or place of organization

UNITED STATES

Number of Shares Beneficially Owned by Each Reporting Person With:

7	Sole Voting Power 1,744.39
8	Shared Voting Power 5,217,131.34
9	Sole Dispositive Power 1,744.39
10	Shared Dispositive Power 5,217,131.34

11

Aggregate amount beneficially owned by each reporting person

5,218,875.74

12

Check if the aggregate amount in Row (11) excludes certain shares (See Instructions)

13

Percent of class represented by amount in Row (11)

9.6 %

14

Type of Reporting Person (See Instructions)

HC, IN

Comment for Type of Reporting Person:

The percentages used herein are calculated based upon 54,647,995 Common Shares outstanding as of 7/27/26.

SCHEDULE 13D

CUSIP Number(s): 43010E404

1

Name of reporting person

HIGHLAND GLOBAL ALLOCATION FUND

2

Check the appropriate box if a member of a Group (See Instructions)

(a)
(b)

3

SEC use only

4

Source of funds (See Instructions)

WC

5

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

6

Citizenship or place of organization

MASSACHUSETTS

Number of Shares Beneficially Owned by Each Reporting Person With:

7	Sole Voting Power 0.00
8	Shared Voting Power 3,115,253.00
9	Sole Dispositive Power 0.00
10	Shared Dispositive Power 3,115,253.00

11

Aggregate amount beneficially owned by each reporting person

3,115,253.00

12

Check if the aggregate amount in Row (11) excludes certain shares (See Instructions)

13

Percent of class represented by amount in Row (11)

5.7 %

14

Type of Reporting Person (See Instructions)

IV

Comment for Type of Reporting Person:

The percentages used herein are calculated based upon 54,647,995 Common Shares outstanding as of 7/27/26.

SCHEDULE 13D

CUSIP Number(s): 43010E404

1

Name of reporting person

Drugcrafters, L.P.

2

Check the appropriate box if a member of a Group (See Instructions)

(a)
(b)

3

SEC use only

4

Source of funds (See Instructions)

WC

5

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

6

Citizenship or place of organization

DELAWARE

Number of Shares Beneficially Owned by Each Reporting Person With:

7	Sole Voting Power 0.00
8	Shared Voting Power 72,082.00
9	Sole Dispositive Power 0.00
10	Shared Dispositive Power 72,082.00

11

Aggregate amount beneficially owned by each reporting person

72,082.00

12

Check if the aggregate amount in Row (11) excludes certain shares (See Instructions)

13

Percent of class represented by amount in Row (11)

0.1 %

14

Type of Reporting Person (See Instructions)

PN

Comment for Type of Reporting Person:

The percentages used herein are calculated based upon 54,647,995 Common Shares outstanding as of 7/27/26.

SCHEDULE 13D

CUSIP Number(s): 43010E404

1

Name of reporting person

NEXPOINT ASSET MANAGEMENT, L.P.

2

Check the appropriate box if a member of a Group (See Instructions)

(a)
(b)

3

SEC use only

4

Source of funds (See Instructions)

WC, AF

5

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

6

Citizenship or place of organization

DELAWARE

Number of Shares Beneficially Owned by Each Reporting Person With:

7	Sole Voting Power 0.00
8	Shared Voting Power 3,115,253.00
9	Sole Dispositive Power 0.00
10	Shared Dispositive Power 3,115,253.00

11

Aggregate amount beneficially owned by each reporting person

3,115,253.00

12

Check if the aggregate amount in Row (11) excludes certain shares (See Instructions)

13

Percent of class represented by amount in Row (11)

5.7 %

14

Type of Reporting Person (See Instructions)

IA, PN

Comment for Type of Reporting Person:

The percentages used herein are calculated based upon 54,647,995 Common Shares outstanding as of 7/27/26.

SCHEDULE 13D

CUSIP Number(s): 43010E404

1

Name of reporting person

DONDERO NANCY MARIE

2

Check the appropriate box if a member of a Group (See Instructions)

(a)
(b)

3

SEC use only

4

Source of funds (See Instructions)

AF

5

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)

6

Citizenship or place of organization

UNITED STATES

Number of Shares Beneficially Owned by Each Reporting Person With:

7	Sole Voting Power 0.00
8	Shared Voting Power 2,029,796.34
9	Sole Dispositive Power 0.00
10	Shared Dispositive Power 2,029,796.34

11

Aggregate amount beneficially owned by each reporting person

2,029,796.34

12

Check if the aggregate amount in Row (11) excludes certain shares (See Instructions)

13

Percent of class represented by amount in Row (11)

3.7 %

14

Type of Reporting Person (See Instructions)

IN

Comment for Type of Reporting Person:

The percentages used herein are calculated based upon 54,647,995 Common Shares outstanding as of 7/27/26.

SCHEDULE 13D

Item 1.	Security and Issuer
(a)	Title of Class of Securities: Common Shares, par value $0.001 per share
(b)	Name of Issuer: HIGHLAND OPPORTUNITIES & INCOME FUND
(c)	Address of Issuer's Principal Executive Offices: 300 CRESCENT COURT, Suite 700, DALLAS, TEXAS , 75201.
Item 1 Comment: This Amendment No. 4 (this "Amendment") is being filed on behalf of James D. Dondero, Highland Global Allocation Fund, a Massachusetts business trust ("GAF"), Drugcrafters, L.P., a Delaware limited partnership ("Drugcrafters"), NexPoint Asset Management, L.P., a Delaware limited partnership ("NexPoint"), and Nancy Marie Dondero (collectively, the "Reporting Persons"), and amends the Schedule 13D filed with the United States Securities and Exchange Commission on September 22, 2025, as subsequently amended on October 7, 2025, as subsequently amended on December 10, 2025 and as subsequently amended April 1, 2026 (the "Schedule 13D"). The Schedule 13D is supplementally amended as follows.
Item 3.	Source and Amount of Funds or Other Consideration
	Since the last transaction reported in the Schedule 13D, GAF has purchased 470,400 Common Shares in open market transactions with the Reporting Person's working capital, with an aggregate purchase price of $2,927,625.
Item 5.	Interest in Securities of the Issuer
(a)	As of July 27, 2026, (i) James D. Dondero may be deemed to beneficially own 5,218,875.74 Common Shares, which represents approximately 9.6% of the outstanding Common Shares, (ii) Drugcrafters may be deemed to beneficially own 72,082 Common Shares, which represents approximately 0.1% of the outstanding Common Shares, (iii) GAF may be deemed to beneficially own 3,115,253 shares of Common Shares, which represents approximately 5.7% of the outstanding Common Shares, (iv) NexPoint may be deemed to beneficially own 3,115,253 shares of Common Shares, which represents approximately 5.7% of the outstanding Common Shares and (v) Nancy Marie Dondero, in her capacity as trustee of a trust, may be deemed to beneficially own 2,029,796.34 shares of Common Shares, which represents approximately 3.7% of the outstanding Common Shares. James D. Dondero has the right to acquire beneficial ownership of all shares of Common Shares owned by the trust referred to in the preceding sentence.
(b)	1) Mr. Dondero has sole voting power and sole dispositive power with respect to 1,744.39 Common Shares and shared voting power and shared dispositive power with respect to 5,217,131.34 Common Shares. These shares are held by Mr. Dondero indirectly through NexPoint and their advised accounts (as described in paragraph (4) below), Drugcrafters, a proprietary account and a 401(k) account. These also include shares that Mr. Dondero has the right to acquire beneficial ownership of that are held by the trust referred to in Item 5(a), for which he does not serve as trustee. Mr. Dondero is the sole stockholder and director of NexPoint's general partner and may be deemed to be an indirect beneficial owner of the shares held by NexPoint. Mr. Dondero disclaims beneficial ownership of such shares. (2) Drugcrafters has sole voting power and sole dispositive power with respect to 0 Common Shares and shared voting power and shared dispositive power with respect to 72,082 Common Shares. Mr. Dondero owns 75% of PCMG Trading Partners XXIII, L.P. ("PCMG") and PCMG owns 99% of Drugcrafters. These entities are ultimately controlled by Mr. Dondero. Mr. Dondero may be deemed to be an indirect beneficial owner of the shares held by Drugcrafters. Mr. Dondero disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. (3) GAF has sole voting power and sole dispositive power with respect to 0 Common Shares and shared voting power and shared dispositive power with respect to 3,115,253 Common Shares. GAF is managed by NexPoint, which is ultimately controlled by Mr. Dondero. Mr. Dondero may be deemed to be an indirect beneficial owner of the shares held by GAF. Mr. Dondero disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. (4) NexPoint has sole voting power and sole dispositive power with respect to 0 Common Shares and shared voting power and shared dispositive power with respect to 3,115,253 Common Shares. These shares are held by NexPoint indirectly through an advised account. Mr. Dondero is the sole stockholder and director of NexPoint's general partner and may be deemed to be an indirect beneficial owner of the shares held by NexPoint. (5) A trust for which Ms. Dondero serves as trustee has sole voting power and sole dispositive power with respect to 0 Common Shares and shared voting power and shared dispositive power with respect to 2,029,796.34 Common Shares. Ms. Dondero is the sister of Mr. Dondero and disclaims beneficial ownership of such shares.
(c)	Annex A attached hereto lists all transactions in Common Shares effected in the last 60 days by the Reporting Persons or on behalf of the Reporting Persons other than 13,080.31 Common Shares received by a trust for which Ms. Dondero serves as trustee pursuant to the Issuer's dividend reinvestment program. Except as otherwise noted, the transactions in Common Shares were effected in the open market.
(d)	No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Common Shares.
(e)	Not applicable.
Item 7.	Material to be Filed as Exhibits.
	Exhibit 99.1 Annex A

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

DONDERO JAMES D

Signature:	/s/ James D. Dondero
Name/Title:	James D. Dondero
Date:	07/29/2026

HIGHLAND GLOBAL ALLOCATION FUND

Signature:	/s/ Stephanie Vitiello
Name/Title:	Stephanie Vitiello
Date:	07/29/2026

Drugcrafters, L.P.

Signature:	/s/ James D. Dondero
Name/Title:	James D. Dondero
Date:	07/29/2026

NEXPOINT ASSET MANAGEMENT, L.P.

Signature:	/s/ James D. Dondero
Name/Title:	James D. Dondero, President
Date:	07/29/2026

DONDERO NANCY MARIE

Signature:	/s/ Nancy Marie Dondero
Name/Title:	Nancy Marie Dondero
Date:	07/29/2026