The U.S. Money Reserve’s Stance on the Penny


For the past several years, it has been a question on whether or not the penny has any real value. Phil Diehl who is the former Director of the U.S. Mint and the current president of coin distributor U.S. Money Reserve, is completely against the production of the penny. Mr. Diehl explained on CNBC Squawk Box that he believes that the penny costs too much to produce for what it is actually worth. The cost of producing one penny which is one cent is 1.8 cents which equates to millions of dollars that is lost to making pennies annually.

Mr. Diehl has received several protests against eliminating the penny. One argument is the fact that the elimination of the penny could lead to inflation of the United States’ economy. In response to this argument, Mr. Diehl states that this has been a concern for the past 25 years by penny lobbyists to keep the penny. Mr. Diehl then continues with a counter argument that in present day 75 percent of all transactions are now through electronic devices such as apps and credit cards. The remaining 25 percent of cash transactions would not be hugely affected by raising or lowering the prices of products due to the elimination of the penny.

Mr. Diehl continues by stating that in response to the elimination of the penny companies would likely round the prices down rather than round up. This action would be done to keep the customers happy instead of aggravating them with an increase in the product price.

Those who want to protect the penny include private interest groups that make the penny blanks. Among these private interests groups are the zinc lobbyists that produce 97.5 percent of what the penny is made out of. In addition to this, a private interest group called American’s for Common Cents has continued to protect the idea of the penny. The argument that this group uses is that organizations such as charities would be negatively affected because there would be less pocket change donated to organizations. In addition to this, the idea of “rounding tax” would negatively affect consumers.


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A Recap on Highland Capital Management’s Win of the HFM US Hedge Fund Performance Award

Highland Capital Management is a firm that was established in 1993 by Mark Okada and Jim Dondero. It has its headquarters in Dallas, Texas with other offices in various places such as Singapore and New York. This firm is a security and exchange registered advisor, which has managed to acquire many assets that amount to $20 billion.

It boasts of various credit strategies that include collateralized loan obligations (CLOs), credit hedge funds, separate accounts, special and distressed situation private equity. It is well known for offering alternative ventures that include long/short equities, natural resources and emerging markets. In addition, the firm has a wide customer base that include funds of funds, public pension plans, governments, endowments, and wealthy people.

The company recently appointed Terry Jones as the president of Institutional products on 23 Oct 2015. Primarily this was to enhance the risk adjusted results and increase client solutions.

Highland Capital Management’s co-founder, Jim Dondero has placed himself as a business icon in the corporate world. This is because of his overwhelming experience in different managerial positions, and an excellent academic background. He boasts of being a Certified Public Accountant, a Certified Financial Analyst and a Certified Management Accountant. In addition, to he graduated with a degree in finance and accounting from University of Virginia.

In Highland Capital Management, Jim is tasked with the duty of managing the firm’s investment plans and operations for both retail and institutional products. Due to his incredible business acumen, various funds under his supervision have achieved various awards that include the Morningstar’s #1 ranked Healthcare Long/short Equity Fund in 2014.

This was due to the commitment of the Michael Gregory and his colleagues in healthcare investment. The HFM US Performance Awards appreciate funds of funds, hedge funds, and 40 Act funds that have achieved exemplary results.

This information can be obtained from PR Newswire through the following link