According to Reuters, James Dondero, co-founder of Highland Capital Management, reported an 11-percent passive stake in Pendrell Corporation, an intellectual property advisory and management firm. Pendrell Corporation’s August 4 SEC filings show Dondero with an 11% percent stake and Highland Capital Management with a 6.5% stake in Pendrell.
With over 30 years experience in credit and equity markets, James Dondero started his career at Morgan Guaranty, eventually becoming a portfolio analyst for American Express. After launching a subsidiary of GIC called Protective Life, Dondero founded Highland Capital Management in 1993. The company, which manages over $19 billion in assets, specializes in credit-oriented investment opportunities and focuses on products such as hedge and private equity funds and CLOs.
A summa cum laude graduate of the University of Virginia in Accounting and Finance, Dondero is a Certified Public Accountant, Certified Management Accountant, and Certified Financial Advisor. In addition to his investment firm, he is a chairman and board member for several other companies.
Dondero and Highland Capital Management were pioneers in developing the collateralized loan obligation market. CLOs are securities backed by credit obligations, usually corporate loans. Highland Capital Markets is the largest manager of CLOs in terms of assets managed. Dondero and Highland have also expanded by acquiring several high-yield funds, including several types of alternative funds and ETFs.
Highland Capital Markets also has a Brazilian subsidiary, Highland Capital Brasil, established in 2011, which focuses on the Brazilian corporate debt and infrastructure market. In addition to the Brazilian market, the Brazilian firm also invests in other emerging markets.
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