Success in the investment world can come in a variety of different shapes and sizes. The one recurring theme for successful investors is that they were able to make it through a tough industry. James Dondero is as quiet, introverted, and subtle a man as they come and his work with Highland Capital Management has made him a force within the investment firm world. How does someone as unassuming as Jim Dondero make it in a cutthroat world like financial investing? Well, he does it by bringing innovation and hard work wherever he goes. Let’s leap into Dondero’s history in order to see what makes him so effective.
James Dondero was born and raised in New Jersey before basing himself out of Texas. Dondero’s work in the financial industry has been evolutionary and innovative due to his willingness to take risks and his ability to weather the storm. This is what brought Dondero to the top of the rankings in terms of its ranking within peer groups. Dondero’s focus when working with the Highland Global Allocation Fund is on focusing toward a very specific group of securities. Take, for example, that the typical allocation fund will work with over 400 securities. The Highland Global Allocation Fund utilizes just under 200. Of those 200, Dondero focuses on roughly 40% of those securities for his investors.
Working with a top heavy approach to investments can lead to heavy swings in terms of performance on a year to year basis. For investors willing to weather those storms, James Dondero can help lead them to serious profits. Let’s take a look at a run from 2014 to 2015. In 2014 Dondero’s Highland Global Allocation was at the top of the rankings within its peer group. A maneuver to focus on energy in 2015 ended up tanking their ranking before a 2016 surge put Dondero’s work right back at the top of the list.
James Dondero founded Highland Capital Management back in 1993 with his partner Mark Okada. Over the past 25 years Dondero has grown Highland Capital into one of the most effective and innovative investment firms in t he country.