Highland Capital is a multi-billion dollar asset management company and most of their clients have investments in alternative funds in both the equities and credit markets, and one of the first companies to bring collateralized loan obligations to common use. The company is an educator for investors on the different risks that come with investments such as long/short healthcare investments, energy MLPs, global allocations, and exchange traded funds. Highland Capital has made several publications to educate investors on the best sectors to place their money, the impacts of healthcare investments and the Affordable Care Act, and floating rate investments.
Highland Capital has grown over the last twenty years thanks largely in part to James Dondero, the co-founder and leading director of the company, along with Mark Okada, a businessman who’s commonly seen on CNBC’s Squawk Box. Dondero has been a large quantity asset manager and Chief Financial Analyst for quite some time, starting his business career upon graduating from the University of Virgina. After a few years of managing funds for the American Express bank, he joined Protective Life to become part of a new plan for one of their subsidiaries. The GIC, as it was called took off quickly under his leadership as it raised its portfolio to $2 billion in just 5 years. From out of there, another side business and Dondero and Okada started would become Highland Capital, managing a portfolio to this day of almost $40 billion in assets.
Highland Capital and investment banks are there to create a vehicle for businesses to expand their empire, while at the same time advise investors on where they can go to to offset risky investments in those businesses with safer investments. The key for investors is that the riskier the investment they go with is, the greater the interest return will be, but also the greater the chance of loss is. That’s why portfolio diversification for investors is important because if one of their investments is in decline, others could offset it by the gains they’re experiencing. Foreign markets often carry the most risk with them because they could be going through periods of political or economical instability, or fluctuations on prices.