Category Archives: Investors

James Dondero’s Roles As An Alternative Investor And Philanthropist

James Dondero was a pioneer in investing in collateralized loan obligations (CLOs). Today, the company he co-founded, Highland Capital Management, has more than $15 billion in assets under management in no small part due to the money they made from CLOs starting in the early 1990’s. He has made a number of other bold investments during his professional career including American Airlines and the sovereign debt of Brazil.One of Highland Capital Management’s most popular funds, stock ticker HCOAX, was created by James Dondero and is one that he still actively manages. This fund has some of his best ideas in it. Most world allocation funds hold the about 400 securities but HCOAX holds less than 200. The assets in this fund are sorted into themes based on what sector of the economy they are focused on. Some of the areas that he has recently invested in through this fund are master limited partnerships and Vistra Energy.

As he concentrates on specific sectors and even companies, HCOAX can experience big performance swings. This is intentional, Dondero says, because he doesn’t want to offer a muted fund just like most of the other ones that are out there. He prefers to do deep research and then swing for the fences with this fund.James Dondero serves as the President of Highland Capital Management, which is based in Dallas, Texas. He has been an alternative investor for over 30 years. He is also involved with other financial companies including serving as the Chairman for Nexbank, Cornerstone Healthcare, and CCS Medical. He also holds two financial certifications, Certified Management Accountant and Chartered Financial Analyst.

As an active philanthropist, James Dondero has supported a number of Dallas charities. The main areas he supports are education, public policy, and veteran’s affairs. He has also supported The Family Place, a Dallas nonprofit that provides a safe place and resources for people that are escaping from family violence. Unlike many similar places, The Family Place can accommodate pets as one of the main reasons some people stay in an abusive relationship is because they don’t want to leave their pets behind. Learn More.

Madison Street Capital Is A Global Merger And Acquisition Firm

Chicago-based Madison Street Capital’s reputation is not based on being a commercial lender or a bank. Senior Managing Director, Karl D’Cunha, likes to make that clear before any transactions begin. Madison Street Capital is a boutique investment firm that specializes in small and medium size mergers and acquisitions. Karl D’Cunha thinks Madison Street Capital is successful because the firm excels in capital restructuring, bankruptcy direction, buyout advice, employee stock option plans, tax compliance, business valuation and corporate governance. The restructuring advice, portfolio valuations, tax planning, business exit strategies and wealth management information that Madison Street offers clients is well above the norm in the investment industry. But Karl D’Cunha also makes it a point to tell clients that the firm bears no responsibility for lender performance when financing is involved in a transaction. Madison Street will identify possible financing opportunities, including, revolving credit facilities, debt refinancing, mezzanine and term loans, syndicated loans, secured lending facilities, and revolving credit opportunities. Madison Street Capital is a financial arranger, not a lender.

 

 

Madison Street Capital was founded by Charles Botchway and Tony Marsala. Both men have an extensive background in the merger and acquisition industry. Botchway is an expert when it comes to identifying companies that will perform better together, than apart. Marsala has been recognized for his leadership in the merger and acquisition industry. He recently received the “40 under Forty Award” for his work in the M&A industry. Tony was also recognized by the M&A Advisor Award program for closing a merger between Dowco, and a Mexican company. Marsala has a proven track record in the emerging market segment of the M&A industry. Read more: https://ideamensch.com/charles-botchway/

 

 

The investment industry is going through a transition period. Investors have been nervous about what’s happening in China, and they are nervous about the Feds reluctance to raise interest rates. Trump’s candidacy also played a role in keeping the investment industry guessing. Now that Trump is the new president, investors are pouring money into various assets. Trump may have played his election tune to the working man, but investors stand to make serious money in 2017, thanks to his political agenda. Madison Street Capital executives are gearing up for an excellent M&A year.

 

 

But there are issues in the industry that must be addressed. More big mergers and acquisitions will be put on hold in 2017, according to some investors. Madison Street Capital has no plans to change their place in the industry going forward. The big mergers don’t appeal to Madison Street executives. No one is sure what 2017 will bring in terms of regulation and policy changes. But Madison Street Capital is prepared to adjust, according to Karl D’Cunha. Adjustments are part of the firm’s business model.

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Soros Recounts Top Investment Ever

George Soros is well regarded in the finance industry as being one of the most savvy investors in the world. George Soros has managed the Soros Funds for over 50 years, which has helped individual and institutional investors earn billions of dollars in value appreciation. While his investors have turned rich, so has George Soros as the head of the funds. He is estimated to have a net worth of over $25 billion, which makes him one of the richest people in the world.

While George Soros has executed many successful trades over the course of his career, one trade in particular may have allowed him to grow to such a significant level in the hedge fund industry. During the early 1990s Great Britain was struggling with significant levels of inflation and currency devaluing compared to the rest of the world. While the country was fighting very hard to keep the pound valuable compared to the rest of the world, many of the most savvy investors on http://www.valuewalk.com/2016/05/george-soros-broke-gbp-trade-century/ across the world saw this as a great investment opportunity.

By September 1992 the Soros Quantum Fund had invested heavily against the Britain currency. The fund had over $15 billion in assets bet against the pound’s value when compared to other currencies across the globe. While a portion of this was from raised equity on https://en.wikipedia.org/wiki/Soros_Fund_Management, they also borrowed heavily on margin to maximize this. Finally, on September 17, 1992 Great Britain ended up reducing the value of the pound by 25% compared to the US Dollar.

This one trade alone had a significant increase in value for the Soros Quantum Fund. The value of the fund ended up increasing from $15 billion to $19 billion overnight and it allowed the fund to invest in more and more asset types, which allowed the fund to grow to over $22 billion in assets within the next year. While this was great for the fund, it was also great for George Soros and the other fund managers, whom were allowed to take 20% of the valuation increase in personal compensation, which essentially gave over $1.5 billion to Soros and the fund managers. Many in the finance world consider this to be the most profitable hedge fund investment ever.