Jim Dondero has a lot of experience in credit markets. Dondero has been involved in the finance industry for more than 30 years. Jim is the current president of Highland Capital Management. Dallas-based Highland Capital Management is one of the most experienced global credit managers in the industry. The company has more than $16 billion in assets under management. Dondero is known as one of the pioneers of the Collateralized Loan Obligation (CLO). In 1996, Jim started on of the first non-bank CLOs. Dondero and founding partner, Mark Okada both have excellent track records in the financial industry. Before starting Highland Capital Management, Dondero managed assets for American Express and Protective Life’s GIC subsidiary. Jim is the Chairman of the Board for CCS Medical and Cornerstone Healthcare. He is also a member of the board of MGM Studios and American Banknote.
Donald Trump’s election impacted the stock market. Before the election, people thought the market would crash, but the opposite happened. Stocks are up by more than 14 percent in 2017, and some investors think the bull market will continue. But Jim Dondero sees a change coming in the stock market. The change will happen in 2017, according to Dondero. Hedge fund managers are under a lot of pressure to produce better returns. Hedge funds only produced average returns of three percent in 2016. That percentage has to increase in 2017, according to Dondero. Highland Capital’s returns were much higher than the average in 2016.
Dondero thinks emerging market investing is important, and that strategy will help increase returns in 2017. But he also thinks the stock market will turn into a bear market at the same time. Once the Federal Reserve raises interest rates, the stock market will react. So many investors are moving away from stocks that are not considered value stocks, and investing in India, Brazil, Argentina, and South Africa. Thanks to offices in Sao Paulo, Singapore, Seoul and New York, Dondero can react quickly to opportunities in emerging markets. But Dondero still believes in healthcare, energy and Tech companies in 2017. Most of Highland Capital’s money is invested in those sectors of the global economy.