James Dondero is a graduate of the University of Virginia and holds the highest honors, commonly referred to as Beta Alpha PS and Beta Gamma Sigma from the McIntire School of Commerce with major in Finance and Accounting. He is a Certified Management Accountant (CMA), Certified Public Accountant (CPA) and Chattered Financial Analyst (CFA). Jim is the current president and co-founder of Highland Capital Management, a company he founded in 1993.
James has managed Highland Capital Management Company to become a notable hedge fund manager in the market. The firm is well known for its leadership in the use Collateralized Loan Obligation (CLO) and coming up with innovative financial and investment products both retail and institutional investors. For instance, HCM has introduced credit-oriented solutions including CLOs, mutual funds, hedge funds, and institutional separate accounts and private funds.
Currently, James Dondero is planning to buy the new bond to be issued by Argentina next month. Being a company managing over $19 billion of credit funds from emerging markets and credit hedge funds, the company aims to extend the relationship with Argentina. HCM is currently holding $4 billion of bonds issues the past six months and is planning to buy the new issuance. Based on his experience, James Dondero is optimistic that the country’s policies are likely to reform, thereby yielding high returns for securities.
HCM’s investment into the Argentina’s bond issuance will be a vote of confidence in the government’s efforts to reform the economy of the country. The current president, Mauricio Macri has moved swiftly to reverse the policies introduced by his predecessor Cristina Fernandez de Kirchner after taking office in December last year. Argentina had to experience tough economic times when it defaulted a debt of $95 billion in 2001. Since then, the country was unable to pay foreign-law bonds due to the cessation of the payments in 2014.
However, the situation changed when the U.S. District Judge Thomas Griesa lifted the ban. According to the ruling, the judge instructed the country to pay all foreign creditors who invested its restructured debt. HCM was one of the beneficiaries as the company earned returns on Argentina’s bonds close to 20 percent since June 2014. James Dondero has insisted that he is looking for more investment opportunities in Argentina apart from the sovereign bond, possibly to start an Argentina Fund. Initially, there was an expectation that investors will free once they are paid. However, it seems most of them will stay through investing in Argentina’s equity, debt and private equity. Original article found here http://www.bloomberg.com/news/articles/2016-03-08/argentina-luring-highland-shows-distressed-bond-buyers-to-stay