After the Trump win, there were winners and losers in the investment market. Investors who bet Trump was going to lose and the stock market would tank, got hurt the most. George Soros, the hedge fund legend, lost $1 billion betting against Trump and the market. There are policy uncertainties and political volatility that could impact the market. The Dow Jones had eight consecutive losing sessions recently, and the S&P had seven out of eight losing sessions. But Trump’s failed effort to rework the Affordable Healthcare Act didn’t impact the market as much as some investors thought, according to Jim Dondero, the president of Dallas-based Highland Capital Management.
Dondero is an alternative investor that bets on market volatility. Jim is a SEC-registered alternative credit adviser, and he has an impressive investment portfolio. Highland Capital has more than $16 billion in assets under management, and the company’s global portfolio keeps expanding because of Dondero’s investments in emerging markets like Argentina. Jim co-founded Highland Capital will fellow investor Mark Okada more than 20 years ago. Dondero has 30 years of investing under his belt, and his focus these days is hedge funds, mutual funds, private equity funds, and real estate investment trusts. But he is also bullish about healthcare, pharmaceutical, energy and retail companies.
Highland Capital Management is a leader in the alternative credit and equity industry, but the company also has a reputation for charitable work in the Dallas area. The Highland Dallas Foundation donates time and money to several local non-profits. The Dallas Zoo, The Ross Perot Foundation, The George W. Bush Library and other local organizations receive help from Highland Capital as well as from Jim Dondero, and his team of executives.
But there are challenges facing Highland Capital in 2017. If Trump’s tax code reform bill is thrown out, or his immigration agenda is stillborn, the market will experience a correction. The correction may not stop the bull market, but it will scare some investors. But Dondero and Highland Capital are ready for any challenges that may develop. That’s why Jim Dondero makes the big bucks. He is usually one step ahead of the challenges.