Jim Dondero Thinks Out-of-the-Box and Wins

James Dondero is a co-founder and Managing Partner of Highland Capital Management. The company opened its doors in 1993. It is currently worth over $15 billion. Jim is a visionary investor. He thinks about each investment and typically comes up with the correct solution. He has been able to find value where other top investors have failed. He is a bit introverted and spends time quickly going over debt issues, turnaround opportunities and new trends. His intuition has led him to major success in the investment arena.


Before most people even knew what collateralized loan obligations were, Jim was actively investing in them. He offers investors the opportunity to invest in unique mutual funds that are off the beaten path. His Highland Global Allocation Fund was up 29 percent over the last 12 months. The funds Jim manages are heavily concentrated in specific sectors, some even concentrated in specific companies. This type of investing is not for the faint of heart.


James Dondero feels that investors can find plain vanilla funds all over the marketplace, but to find a fund that invests in the hidden value is rare. That is why he runs the funds he does. Jim focuses a lot on fixed income investing and credit markets. That seems to be where he is able to see value more clearly. The funds Jim runs invest about half of their assets in a diversified group of securities, but the other half is used for following trends and placing major bets on a few ideas.


Jim is heavily involved in philanthropy in the local community and his former home town Santa Barbara, California. He works heavily with the Highland Santa Barbara Foundation which has given over $1.5 million to twenty-seven organizations around the country. They support educational programs, youth development and veteran’s organizations. Since 2005, Highland Capital has contributed over $10 million to charitable organizations.



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