Highland Capital Management is preparing itself for the release of Argentinian debt in the coming months. Argentina will be returning to the international bond markets and their goal is to sell almost 12 billion dollars of their debt. While some expected Argentinian investors to want a pay out and then take their money to other investments, many investors are planning on staying with the country. Some firms are even developing an Argentina fund to invest in private equity, debt and equity. According to a recent article by Bloomberg, if the new bonds are priced fairly, it will be more incentive to stay with Argentina rather than venturing out to other investments.
The article went on to say that Highland Capital is keeping a close eye on the investment situation in Argentina. The firm is one of the biggest holders of Argentinian notes that are due in 2033. And while the firm has been reducing their holdings their over the last 6 months, they are planning on building those holdings back up with investments in Argentina. These investments would only be on top of the 19 billion dollars that the firm already oversees.
James Dondero is the founder of Highland Capital Management and he is now running the firm also. Jim Dondero started out by graduating from the highly esteemed University of Virginia. He then went on to work for the Morgan Guaranty training program. He worked at this job as an analyst for about a year. Jim then moved on to American Express where he oversaw a portfolio valued at 1 billion dollars. He served as a portfolio manager and corporate bond analyst. It was after several years in these positions that he became the Chief Investment Officer for a company, which he then turned around and bought once it was worth 2 billion dollars.
It was this company that James Dondero turned into Highland Capital Management. He then decided it would be a good idea if the company limited itself to specific services. James Dondero decided to concentrate on two areas and really be the pioneer of those specific type of investments. The first area is credit based solutions for various global investors and the second niche investment category is the creation of a market for collateralized loan obligation.