James Dondero Supports Highland Capital Management with Intense Insight

April 15th, 2017 by admin
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James Dondero is co-founder and President of Highland Capital Management, and investment company offering alternative investment opportunities to a variety of clients. Jim’s initial focus was on collateralized loan obligations and other credit issues. In 1993, Jim and his business partner, Mark Okada, turned their small investment into $15 billion, investment firm Highland Capital. The company is headquartered in Dallas.

 

Jim has since had some major successes in other areas of the market, aside from credit. Highland offers access to their Highland Global Allocation Fund, worth nearly $894 million. Over the past 12 months the fund has returned 29.6 %. The fund does have its ups and downs. The fund is fairly concentrated. They may invest 40 percent of their assets in a small number of investment scenarios. This is very unlike most mutual funds. James Dondero claims that you can’t expect much from a fund that has little volatility. Most mutual funds try to severely reduce volatility; however, they reduce upside performance at the same time.

 

Dondero invests about 50 percent of the assets in his mutual fund, in a diversified portfolio of stocks, however, the other 50 percent is concentrated in specific areas he believes will outperform the markets. One area the company focused on was Argentina. The country had been having financial problems and they felt that a bottom was nearing. In 2014, the company invested heavily in Argentina. Towards the end of 2015, the country had a new leader and the debt Dondero purchased for 70 cents on the dollar, was approaching $1.20.

 

Jim is not your typical fund manager. He is fairly reserved, somewhat introverted and more of a thinking man. He claims to base his success on the fact that he is a good problem solver. He thinks through each situation and looks for the most likely outcome.

 

Jim graduated from the University of Virginia, in accounting and finance. He is a Chartered Financial Analyst. Five years after finishing college he was handling a $1 billion fixed income portfolio for American Express. He also worked with Protective Life’s GIC subsidiary. He and Mark Okada started Highland Capital Management in 1993

 

 

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