Succeeding in the financial world of investments can be difficult to downright impossible for some people. Not only is it hard to get a footing in the industry, the industry is also cutthroat — constantly spitting people out. So how did the quiet and mild mannered James Dondero make it with his company — Highland Capital Management? Dondero established the company over 20 years ago and he is still the acting President today — leading countless people to prosperity through his diverse and innovative approach to portfolio cultivation. Let’s take a look at the quiet force behind Highland Capital Management.
First, we should start off by talking about what makes Dondero so innovative. The Texas based portfolio manager is almost always elated to talk about how his mutual fund works with investors who are willing to ride a different sort of wave. Highland Global Allocation, the name of Dondero’s fund, is currently worth nearly $894 million. The fund represents just under 200 different securities which is unusual for most mutual funds — they typically work with upwards of 400 total securities. Of these 200 securities that are used at Highland Global Allocation (HCOAX on the ticker) Dondero likes to focus nearly 40% of his investments into just a handful of the selected securities. This sounds pretty wild, right? But it works out wonderfully.
Highland Global Allocation tends to rise and fall in dramatic swings, but these are expected and they are planned for. Look at how HCOAX fared in 2014 — they were one of the top investment funds in the world. Then Dondero switched gears, investing into energy, and the company ended up near the bottom of the leaderboard. In 2016 they were back on top. For those willing to endure this bit of stability the rewards are almost too good to be true.
James Dondero was born in in the city of Hoboken, NJ. Dondero went the University of Virginia where he studied accounting as well as finance before graduating. Dondero founded Highland Capital Management way back in 1993 and since then the fund has been steadily growing.