All serious investors want high returns, but when you trust in James Dondero’s Highland Capital funds, are you getting the best? You can choose from the Highland Global Allocation fund (HCOAX), Highland Small-Cap Equity (HSZAX) or closed-end NexPoint Credit Strategies (NHF). Why was the Highland Global Allocation fund “up 29.6% over the past 12 months?”
“Successful Bold Bets”
Sovereign debt has been a hot investment since 2008 due to the PIIGS problems. If you check out the figures, there might be a nation that goes bankrupt every 5 years or so. In 2014, Argentina went bankrupt, making its sovereign debt securities very cheap. So what did Highland Capital and James Dondero do? They bought the Argentina sovereign debt bonds.
When Mauricio Macri was elected in 2015, the Australian bonds, which had been purchased for “70 cents on the dollar appreciated to 120 cents on the dollar.” Do the math – that is about a 70% return. Few can beat James Dondero’s 70% returns.
“Wise Alpha Strategy”
Research and development (R&D) is the key difference between rising funds and falling funds. It can be easy to cut back on R&D if you want to maximize profits, but that is the wrong strategy.
Highland has “alpha analysts,” who are continually monitoring high conviction assets and events. A good example is sovereign debt. Which is the next nation to declare bankruptcy?
After a return of 70% on Argentina, any wise fund should be looking for the next country to run out of cash. Will it be one of the PIIGS? How is Saudi Arabia managing with the low oil prices? Venezuela seized the General Motors automobile factory. Highland Capital “alpha analysts” might be discussing and researching the next sovereign debt default already.
“Charitable James Dondero”
Poor children might not have the same access to computers as wealthy children. That should not force them to settle for second-best. Thankfully, Dondero’s Highland Capital firm has donated to the Dallas math computers for children project, called “Reasoning Mind.” Philanthropist James Dondero said “we’re looking … to make the biggest impact with our giving.”