James Dondero is the man with a mission behind the hard working team at Highland Capital Management. Dondero established his prized company back in 1993 and since then he has constantly been focusing on innovating and bringing new insights into his business practices. Dondero’s heavy hitting work in the field of finance management may seem to be at odds with Dondero the person. A quiet and introverted individual, Dondero has managed to succeed in an industry that seeks to be as cutthroat as possible. Let’s take a look at the incredible career growth of Mr. Dondero and that of his company, Highland Capital Management.
If you aren’t familiar with the financial investment field then looking through Mr. Dondero’s portfolio can be somewhat confusing. Belying Dondero’s calm demeanor is a portfolio that swings and sways due to the innovative nature of the selected investments. Highland Capital Management isn’t only a neat way for investors to put their money into the right places, but it is an interesting look at how a company can rise to the top multiple times in a shortened period. Let’s dig a little bit deeper into what Highland is doing.
Highland gives mutual fund investors the chance to invest in a series of ideas that James Dondero personally picks. The Highland Global Allocation, worth $894 million, is the fuel with which Dondero helps these investors. Over the past year we have seen Highland Global Allocation spike to 29.6% in growth. What makes Highland Global even more interesting is how they operate. A traditional allocation fund will have you investing in almost 400 different securities. Highland Global only has 200 securities and they tend to keep nearly 40% of all investments into just a couple of the themes within the portfolio.
Due to the nature of Dondero’s innovative portfolio you will often see performance swings from year to year. In 2014 James Dondero’s Highland Global Allocation ranked at the top of its field. However in 2015 the team moved to the energy sector, dropping its numbers as a result. In 2016, last year, HGA was back at the top. For those willing to ride the wave, James Dondero can be a very beneficial person to work with.