For over two decades Highland Capital Management has increased momentum within the credit industry. Since the firm began in 1990, Highland Capital Management has progressed into becoming the industry’s principal and most-skilled alternative credit managers in the world.
Highland Capital Management was founded by James Dondero and Mark Okada as a joint venture specializing in fixed income credit markets and managing of senior bank loans. Both have remained with the company; James is currently the President and Mike is the Chief Investment Officer.
Senior bank loans have been an excellent investment for Highland Capital Management. With senior bank loans being a floating rate with investments, the firm is allowed to build capital for investors and capitalize on those yield returns. Highland Capital Management sees bank debt as a huge opportunity to invest capital which can yield a profit margin that produces five to six percent yearly. With an $8 billion bank loan investment portfolio, those percentages are a substantial return for a floating rate. Because Highland Capital Management drives its business from a frailer economy approach, the firm is also at an advantage for seeking the best opportunity with secured lending.
This type of investing is what Highland Capital Management does best and the reason the firm has become extraordinarily successful. Over the course of 20 years, the firm has created an edge to bring forth a competitive challenge by other firms seeking to repeat Highland Capital Management’s performance.
Highland Capital Management has an excellent execution with their investment opportunities. Starting with a tracking risk of zero as a credit managing firm is the ideal choice, which has resulted in huge advantages to create successful outcomes for their investors.
The team at Highland Capital Management continues to drive forth great ideas in order to deliver their investors a product that will add sustaining yields to their portfolios. The delicate approach by the firm’s team is to operate at a level that diversifies a portfolio without adding any significant risk.
Highland Capital Management operates on $18 billion of assets. The company is based in Dallas, Texas and has offices in New York, London, Singapore and Seoul.