Highland Opportunities: GAF Adds 621,484 Shares, Affiliates Hold 6.3%

Rhea-AI Filing Summary

Amendment No. 1 to Schedule 13D reports updated beneficial ownership in Highland Opportunities & Income Fund (Common Shares). As of 10/07/2025, James D. Dondero and affiliated parties collectively beneficially own 3,499,031.37 shares, representing approximately 6.3% of the outstanding common shares. The filing discloses that Highland Global Allocation Fund purchased 621,484 shares in open-market transactions for an aggregate price of $4,090,440 using working capital. Individual holdings reported include 1,427,678 shares held by GAF/NexPoint (approximately 2.6%) and 1,997,527.92 shares held in a trust for which Nancy Marie Dondero is trustee (approximately 3.6%). Transactions were effected in the open market and the filing identifies voting and dispositive power allocations among the reporting persons.

Positive

• Open-market acquisition of 621,484 shares shows active investment by affiliated fund
• Aggregate beneficial ownership is clearly disclosed at 3,499,031.37 shares (6.3%), improving transparency
• Purchase price disclosed ($4,090,440) provides clear fund-level cost basis for investors

Negative

• Concentrated related-party holdings represent 6.3% of the class, which could raise governance concerns for some investors
• Shared voting power rather than sole control limits clarity on decision authority despite high beneficial ownership

Insights

Corporate Governance Analyst

Stake consolidation by affiliated funds raises governance visibility.

The amendment shows affiliated entities increased open-market holdings, with 1,427,678 shares held by the managed fund and 3,499,031.37 shares beneficially attributed to Mr. Dondero and affiliates, equal to 6.3% of the class. This level of concentrated ownership can increase the reporting persons' influence on shareholder votes and strategic conversations.

Dependencies include the continued common ownership through NexPoint-managed accounts and trusts; shared voting power is disclosed rather than sole control. Watch near-term for any further open-market accumulation or coordinated filings that would change the 6.3% stake or disclose plans impacting governance within the next several months.

Investor Relations Specialist

Market purchases were modest in dollar terms but meaningful for ownership percentage.

The filing discloses a purchase of 621,484 shares for $4,090,440 by GAF, executed in the open market with working capital. That transaction increased managed holdings to 1,427,678 shares (about 2.6%), and contributed to the overall 6.3% beneficial ownership level reported.

Risks include potential perception by other investors of an activist or engagement posture; monitor subsequent SEC filings or public statements and any changes in ownership percentages reported in the next 13D/13G updates or proxy season filings within the coming quarter.

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 1)

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)

10/03/2025

(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).

SCHEDULE 13D

CUSIP No. 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)

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

UNITED STATES

Number of Shares Beneficially Owned by Each Reporting Person With:

7	Sole Voting Power 1,743.45
8	Shared Voting Power 3,497,287.92
9	Sole Dispositive Power 1,743.45
10	Shared Dispositive Power 3,497,287.92

11

Aggregate amount beneficially owned by each reporting person

3,499,031.37

12

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

13

Percent of class represented by amount in Row (11)

6.3 %

14

Type of Reporting Person (See Instructions)

IN, HC

SCHEDULE 13D

CUSIP No. 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 1,427,678.00
9	Sole Dispositive Power 0.00
10	Shared Dispositive Power 1,427,678.00

11

Aggregate amount beneficially owned by each reporting person

1,427,678.00

12

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

13

Percent of class represented by amount in Row (11)

2.6 %

14

Type of Reporting Person (See Instructions)

IV

SCHEDULE 13D

CUSIP No. 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

SCHEDULE 13D

CUSIP No. 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 1,427,678.00
9	Sole Dispositive Power 0.00
10	Shared Dispositive Power 1,427,678.00

11

Aggregate amount beneficially owned by each reporting person

1,427,678.00

12

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

13

Percent of class represented by amount in Row (11)

2.6 %

14

Type of Reporting Person (See Instructions)

IA, PN

SCHEDULE 13D

CUSIP No. 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 1,997,527.92
9	Sole Dispositive Power 0.00
10	Shared Dispositive Power 1,997,527.92

11

Aggregate amount beneficially owned by each reporting person

1,997,527.92

12

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

13

Percent of class represented by amount in Row (11)

3.6 %

14

Type of Reporting Person (See Instructions)

IN

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, DALLAS, TEXAS , 75201.
Item 1 Comment: This Amendment No. 1 (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 (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 621,484 Common Shares in open market transactions with the Reporting Person's working capital, with an aggregate purchase price of $4,090,440.
Item 5.	Interest in Securities of the Issuer
(a)	As of October 7, 2025, (i) James D. Dondero may be deemed to beneficially own 3,499,031.37 Common Shares, which represents approximately 6.3% 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 1,427,678 shares of Common Shares, which represents approximately 2.6% of the outstanding Common Shares, (iv) NexPoint may be deemed to beneficially own 1,427,678 shares of Common Shares, which represents approximately 2.6% of the outstanding Common Shares and (v) Nancy Marie Dondero, in her capacity as trustee of a trust, may be deemed to beneficially own 1,997,527.92 shares of Common Shares, which represents approximately 3.6% 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 1,743.45 Common Shares and shared voting power and shared dispositive power with respect to 3,497,287.92 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 1,427,678 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 1,427,678 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 1,997,527.92 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 since the filing of the Schedule 13D by the Reporting Persons. 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:	10/07/2025

HIGHLAND GLOBAL ALLOCATION FUND

Signature:	/s/ Stephanie Vitiello
Name/Title:	Stephanie Vitiello/Chief Compliance Officer
Date:	10/07/2025

Drugcrafters, L.P.

Signature:	/s/ James D. Dondero
Name/Title:	James D. Dondero/Managing Member of the General Partner
Date:	10/07/2025

NEXPOINT ASSET MANAGEMENT, L.P.

Signature:	/s/ James D. Dondero
Name/Title:	James D. Dondero/President
Date:	10/07/2025

DONDERO NANCY MARIE

Signature:	/s/ Nancy Marie Dondero
Name/Title:	Nancy Marie Dondero
Date:	10/07/2025

FAQ

What stake does James D. Dondero report in HFRO?

As of 10/07/2025, James D. Dondero and affiliated reporting persons are shown to beneficially own 3,499,031.37 shares, representing approximately 6.3% of HFRO common shares.

How many shares did Highland Global Allocation Fund buy and for how much?

Highland Global Allocation Fund purchased 621,484 shares in open-market transactions for an aggregate price of $4,090,440 using working capital.

What percentage of HFRO does NexPoint/GAF hold after the purchase?

GAF/NexPoint are reported to beneficially own 1,427,678 shares, representing approximately 2.6% of the outstanding common shares.

Are the transactions open-market or private transfers?

Except as noted, the filing states the transactions were effected in the open market.

Does Nancy Marie Dondero directly control her reported shares?

The filing shows a trust for which Nancy Marie Dondero is trustee holds 1,997,527.92 shares (about 3.6%) and she disclaims beneficial ownership