Bankruptcy and loosing shares have been a nightmare for many superior companies and countries. Some of the examples, Argentina and Texas Energy Company headed by Warren Buffett, who encountered this after losing money in 2012.On the other hand, there is an opportunity in every predicament. For James Dondero founding manager and the president of the Highland Capital Management, he saw a monetary opportunity in bankruptcy and invested towards it. After founding the HCM in 1993, he pioneered the development of the Collateralized Loan Obligation (CLO) market and credit-oriented solutions for small investors and institutions worldwide. The Texas-based company has been offering separate accounts, private equity funds, mutual funds, collateral loan obligations, real estate investment trusts to curb bankruptcy.
Despite heading the HCM, Dondero also has the role of President and Chairman of Board of Directors at Next point Hospitality Trust Inc. In the same spirit, he heads Highland Acquisition Corporation as the President and Secretary. The more than 30 years experienced profession in credit and equity markets has also headed and founded other companies. They include Bond Analyst and then Portfolio Manager at American Express, where in five years he was managing $1 billion in fixed-income assets, Prospect Street High Income Portfolio Inc., and Highland Capital Multi-Strategy Fund.
The graduate of University of Virginia with a Bachelor of Science in Commerce with concentrations in Accounting and Finance in 1984, is a CPA, a CMA, and a Chartered Financial Analyst profession. This has enabled him to filter the best and inexpensive investment ideas and funds to his customers. An example is Highland Global Allocation, an $894 million fund which concentrates on a range of products, from dealing with a single company to a dozen companies in the same sector. The high performance of the fund saw it ranked at the top of its other funds in 2014 and 2016.
The Hoboken-born financier also concentrates on adapting calculated strategies, including proper allocation of funds on ideas, risk taking, in-depth researches on affected parties, while ensuring a balance in the market. This has enabled the affected companies and countries gain back the control of their finances, natural resources, infrastructural development and manage their population. They consequently can uphold their economy and increase their returns.