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Dondero Spots The Right Investments

Highland Capital Management has been watching the distressed credit situation in Argentina for some time now. They are one of the largest holders of long-term bonds from the country with the end date in 2033. They have held a considerable amount of this sovereign debt despite Argentina ceasing payment in 2014 under the direction of previous President Cristina Fernandez de Kirchner. This cessation of payment caused the U.S. courts to bar the country from the sovereign debt market until they serviced their debt. However, the newly elected President Mauricio Marci has put the country on the path to rejoining the international community in the credit markets and paying out handsomely to holdout creditors like Highland Capital Management.

James Dondero was a co-founder of Highland Capital Management and is the businesses, current President, too. His visionary approach to distressed credit is one of the reasons that Highland Capital Management has remained invested in Argentina and seeks to invest further with a formation of an Argentina Fund. This move would be predicated on Argentina successfully rejoining the sovereign debt market. A fund dedicated to a distressed credit country is not Jim’s first venture in creating new investment vehicles. One of his flagship contributions to the financial world is the formation of Collateralized Loan Obligations (CLOs) which are optimized for handling distressed credit investments like Argentina and other Latin American countries.

Dondero’s financial investments are not just restricted to sovereign debt or distressed credit situations. He has many philanthropic investments, both personally and through Highland Capital Management. James believes in education, veteran affairs, and public policy very heavily on a personal level. One of the charity groups that have received endowments from him or Highland Capital Management in recent years is Education is Freedom. This organization brings together corporate leaders with a goal to empower the students of today to become educated and viable in the global economy. This is achieved both through trade schools and traditional college education funded by the organization and its donors.

Sources: Bloomberg

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