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.