James Dondero’s Roles As An Alternative Investor And Philanthropist

James Dondero was a pioneer in investing in collateralized loan obligations (CLOs). Today, the company he co-founded, Highland Capital Management, has more than $15 billion in assets under management in no small part due to the money they made from CLOs starting in the early 1990’s. He has made a number of other bold investments during his professional career including American Airlines and the sovereign debt of Brazil.One of Highland Capital Management’s most popular funds, stock ticker HCOAX, was created by James Dondero and is one that he still actively manages. This fund has some of his best ideas in it. Most world allocation funds hold the about 400 securities but HCOAX holds less than 200. The assets in this fund are sorted into themes based on what sector of the economy they are focused on. Some of the areas that he has recently invested in through this fund are master limited partnerships and Vistra Energy.

As he concentrates on specific sectors and even companies, HCOAX can experience big performance swings. This is intentional, Dondero says, because he doesn’t want to offer a muted fund just like most of the other ones that are out there. He prefers to do deep research and then swing for the fences with this fund.James Dondero serves as the President of Highland Capital Management, which is based in Dallas, Texas. He has been an alternative investor for over 30 years. He is also involved with other financial companies including serving as the Chairman for Nexbank, Cornerstone Healthcare, and CCS Medical. He also holds two financial certifications, Certified Management Accountant and Chartered Financial Analyst.

As an active philanthropist, James Dondero has supported a number of Dallas charities. The main areas he supports are education, public policy, and veteran’s affairs. He has also supported The Family Place, a Dallas nonprofit that provides a safe place and resources for people that are escaping from family violence. Unlike many similar places, The Family Place can accommodate pets as one of the main reasons some people stay in an abusive relationship is because they don’t want to leave their pets behind. Learn More.

A 2016 Outlook Based On Madison Street Capital’s 4th M&A Overview

Madison Street Capital, LLC has released its yearly M&A overview of the hedge fund industry. This report is the 4th edition of the release, which covers every area of the industry including M&A opportunities and transaction activities. The report shows that the volume of transactions in the sector rose by 27 %.

According to this report, which was released by Madison Street Capital in January this year, the number of hedge fund deal closed or announced in the industry increased from 32 in 2014 to 42 in 2015. These transactions represented an increase of 27 % in transaction volume. A number of the deals took place in the fourth quarter of the year. This situation indicates that there shall be a momentum in hedge fund deals in 2016. Analysts are expecting 2016 to record many deals in terms of hedge fund M&A transactions.

First, in 2015, the performance of the industry was below average. However, the industry’s assets are at all-time high. This has enabled institutional investors to look for alternative places to invest with the view to generating more revenues from the hedge funds. These new or alternative areas of investment guarantee investors of receiving high returns. This information was first published at PR.com as indicated in the following link http://www.pr.com/press-release/657365.

From the report, it is also clear that investors are shying away from investing in hedge funds. This scenario is making it hard for hedge fund managers to raise enough capital that will enable them to achieve optimal portfolio capacity level. Reduced number of new clients has resulted in reducing the firms’ returns from its investments. This problem is particularly conspicuous among small hedge fund managers.

Additionally, the industry is suffering from high operational costs. Besides, the competition in the industry has exerted pressure on the hedge fund managers to reduce their fees, thus reducing their revenues. With lower fees and high operation costs, the industry is being compelled to consider strategic alternatives.

Speaking during the event, Madison Street Capital’s Senior Managing Director, Karl D’Cunha, noted that the trend in the industry is creating a good environment for consolidation in the fragmented industry.

About Madison Street Capital

Madison Street Capital, LLC is an investment-banking firm whose headquarters are in Chicago, Illinois. The firm provides financial advisory services to different private and public companies. Its areas of expertise include reorganization, capital restructuring, buyout, mergers and acquisition, private placement and bankruptcy advisory services. Many firms have used the company’s services. These firms include central Iowa Energy LLC, Bond Medial Group Inc and Fiber Science, Inc. This information was originally mentioned on Madison Street Capital’s website as highlighted in the link below http://madisonstreetcapital.org/

Appraising Madison Street Capital’s Prime Position in Investment Banking

Madison Capital has emerged among the leading lights as far as investment banking is concerned. This privately owned financial institution has for years been steadfast in its quest to provide services that meet high ethical and professional standards. In line with this, services and products offered by the bank are tailor made to meet the needs of each individual client.

With global offices in the continents of Asia, Africa and North America, the company is looking forward to expanding to more frontiers. Its clients range from public and private businesses to individuals who wish to be offered advice about investment. The following are some services offered by Madison Street Capital.

a) Asset Management

The firm has created specialty through offering advice to wealth managers who are intending to augment the value of their businesses. The advisory services given are aimed at providing optimum financial returns to the clients. Advice given majorly lies in the areas of Mergers and Acquisition Transactions, Capital Realignment, Buyouts and Bankruptcy among others.

b) Business Valuation Service

One of the core obligations of Madison Capital is to help its clients appraise the value of their businesses. In this regard, it makes use of the expertise provided by the large pool of highly competent financial experts under its employment. These professionals use top of the range analytical tools to offer appraisal services. In relation to this, the firm also offers advice concerning tax compliance.

c) Madison Street Capital also offers its fair opinion concerning any business transactions that its clients want to undertake. In the current dynamic corporate world, transactions need to be diligent and must also factor in all the intricacies involved in running business organizations.

Besides its business endeavors, Madison Capital has endeared itself to communities by supporting different charitable organizations. Such initiatives are in line with the firm’s corporate social responsibility mantra, which is making a difference in the local and global community. Besides this, the Chicago based firm is always on the lookout for opportunities to partner with like-minded organizations to improve educational services and support various community-based projects.