Highland Capital Management is a Dallas based and SEC registered investment advisory firm, with over $32 billion in assets. Highland specializes in credit strategies, and is the world leader in global alternative management. Hedge funds, distressed situations, emerging markets, natural resources, pension plans and endowments are just a few of Highland’s areas of expertise. Highlands unique strategies of diversification guarantee low risk and high yield investments. Highland is a global firm with offices in Dallas, New York, San Paulo, Singapore and Seoul.
The firm was founded by Jim Donderoand Mark Okada when their partnership purchased a stake in PAMCO. The next year Highland was born, and there was no holding the young firm back. Under Dondero’s leadership Highland expanded its global footprint to emerging markets. Dondero’s plan is called the four-factor-alpha which produced an 80 point increase in less than a month’s time. The four-factor-alpha plan’s main focus is on hedge funds, and Dondero’s strategy out performs any other plan in the market by using small-cap instead large-cap picks. Highland manages the largest CLO in the world worth over $21 billion dollars.
Dondero started his career with American Express as a portfolio manager and as a corporate bond analyst at Protective Life’s GIC. His experience with those firms inspired him to pioneer the use of the CLO as safe road to high gain and low risk investment. A CLO is a Collateralized Loan Obligation. The CLO offers the investor an opportunity at high gain return through the use of public and private investments.
Dondero’s outlook for the market in 2015 is optimistic, and he expects emerging markets to offer high yield returns. According to Dondero crude oil prices will bounce resulting in the stock and bond markets experiencing higher returns. He predicts a normalization of crude prices by 2016, and the dollar and other commodities to level off. India is choice for a solid overseas market, but he expects Brazilian and Russian markets to go on the down trend. He also predicts the deflation led by China to continue.
He earned degrees in both accounting and finance, and is CFA and CMA certified. He holds nine board seats across 20 industries. He acts as Director of MGM Holdings and Metro-Goldwyn-Mayer, and his other affiliations are too numerous to name but include American Banknote Corporation and NextBank Capital.