Highland Capital Management is one company that is taking bold steps in the alternative investment space. In an interview with Barrons, the President and co-founder of Highland Capital Management, James Dondero, made it clear that his biggest excitement comes from the challenge of taking on complex debt transactions that seem impossible to turn around. Then he turns them around. He is adept at finding emerging trends and value where few do. Barrons is a weekly financial newspaper published by Dow Jones.
James Dondero is also the co-founder and President of Highland Capital Management’s listed sister company, Highland Global Allocation Fund. The fund provides capital funding to mutual funds investors. Due to the diversity of the securities held as assets, the funds are exposed to market volatility. However, this is of little significance since with the financial expertise and wizardry of James Dondero; the investment funds stay healthy. He is proficient at leveraging volatility to maximize returns on his portfolios.
Dondero is a graduate of the University of Virginia. He worked for American Express after graduation. He co-founded Highland Capital Management in 1993, an industry leader in collateralized loan obligations with pioneering credit-based products for institutions and individual consumers. Dondero employs thorough research and analysis on a proposed asset and makes informed projections that define the assets behavior in a given period.
Dondero’s investment teams have a harmonized approach to delivering innovative products to clients. A good example is Dondero’s forays with the Argentinian sovereign debt. In 2012, Argentina’s debt bubble burst. Dondero’s teams embarked on a proper analysis and recovery projection of the country’s debt situation. They opted to take a significant stake in it. With a new government in place in 2015, the economy is already recovering, and Dondero’s bet is well paid. Additionally, Highland Capital Management has invested heavily in strategic limited partnership units in the oil and gas industry.
Highland Capital Management is uniquely placed to maximize the opportunity for deals that traditional fund managers would frown upon. They have a strong position on emerging trends such as clean, renewable energy and innovative pharmaceuticals. You can find the full Barrons’ interview here.