James Dondero: Leading Highland Capital For More Than Two Decades

James Dondero is the President of the famous Dallas hedge fund Highland Capital Management and he has been in this position for over two decades. His experience before Highland Capital allowed him to see what type of structure was needed in order to create an investment firm that surpassed success. To Jim, there are three principles that make up a trustworthy and successful fund. The first is Experience. Highland Capital has this. It was found in 1993 by James Dondero and it has pioneered the CLO and loan markets. The second principle is discipline. Highland Capital also has this. They are able to be transparent because they co-invest with their investors so that everyone’s interests are aligned. The third principle is boldness, which Highland Capital definitely has. The fund is employee owned and operated by the owner so that it can remain independent.

Jim Dondero decided to get a good start to his career by getting an education in accounting and finance from the University of Virginia. He the went on to work as an analyst for the Morgan Guaranty training program. Jim did this for a year and then he moved to American Express, where he was first a corporate bond analyst and then he served as a portfolio manager. In 1989, Jim Dondero was asked to join the team at the Protective Life GIC subsidiary. He did and he served as the Chief Investment Officer.

Highland Capital Management’s third quarter was recently reviewed after they filed their 13F. Octa Finance, the online newspaper, did the review and found some interesting changes that had occurred at the fund over the course of the third quarter. Octa Finance discovered that the fund’s portfolio is now valued at 3.42 billion dollars, down by 1.49 billion dollars since the second quarter.

Other changes that were made during the course of the quarter include 69 new stocks purchased and in 62 stocks that the fund already had a position in, additional purchases were made to increase the standing.

Follow James on Twitter and Facebook to stay up to date on Highland Capital’s investments.

If you would like to read more, find the full article here: http://www.octafinance.com/highland-capital-management-top-10-holdings-in-q3-2015/352793/

One Comment

  • Rover Neptune

    The fund sold out of 119 stocks and reduced their position in 80 stocks. The reasons for all of these trades is unknown. This filing only shows about 22 percent of the fund’s actual assets, which are worth 15 billion dollars. That alone is a very good example of a argumentative thesis statement that has gone viral.

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