What Does James Dondero Alpha Say About Him?

The “alpha” is a key benchmark representing the profits, returns and success of a fund manager. Highland Capital President James Dondero explained his strategy for “driving the alpha” during his March 25, 2017 Barron’s interview. What does James Dondero’s Alpha say about him?

 

“Successful Alpha is Advantage”

 

Starting a mere five years after graduating from the University of Virginia, James Dondero was managing $1 billion for American Express. Barron’s James Dondero interview recounts his numerous accomplishments, including management of the Highland Small-Cap Equity (HSZAX) and closed-end NexPoint Credit Strategies (NHF) funds. His funds have been at the top of their peer groups for 2014 and 2016.

 

James Dondero’s bold alpha bets have led to his investing in American Airlines, Argentina and master limited partnerships. Like many alternative investments, they might experience dramatic price changes. Somehow, James Dondero keeps on ending up at the high end of alpha success.

 

“Successful Alpha is Research”

 

The fund’s alpha is really its “calling card,” making it “stand out in the crowd.” Anyone can invest in an index and get average gains, but experienced investors turn to hedge funds to deliver superior results.

 

Highland’s “alpha analysts” cover about a dozen “high-conviction ideas in detail” – this gives them an edge, so if the assets change dramatically, they can react in real-time. James Dondero continues, “[w]e expect the big themes to drive the alpha;” this is where the real profits are made. High risks and high rewards are the norm in the hedge fund field.

 

As alpha ideas bear fruit, they might “graduate to the diversified bucket.” The risk management of James Dondero Alpha seems to be quite effective.

 

“Dondero Charity: Reasoning Mind”

 

“Reasoning Mind” could be the name for Dondero’s alpha strategy, but it is also his charitable organization, seeking to increase mathematical and technological opportunities for the poor in Dallas schools. The program runs from pre-kindergarten through the seventh grade to give the children a solid base for a successful life. James Dondero Alpha seems to show he cares and is quite successful in picking out the future winners.

The Fantastic Relationship between Fashion and Technology Industries

For over 40 years, Christopher Burch has been an investor in technology and fashion industries. Over the years, he has noticed a unique trend in the two industries. According to him, the two industries have depended on each other to grow. Over time fashion become technologically fashionable while technology becomes fashionable. A look at the past and present trends in both industries can help fashion designers and technologists predict the future.

 

Relationship between the Two Industries

 

There is proof that the two industries have helped each other in the past and the present. In the 1970s, boom boxes and two cassette decks were popular. However, the boom boxes didn’t roll over to the 1980s. Instead, the two cassette decks became technologically fashionable because they were added to the 1980s’ movie stories.

 

Similarly, the Google glasses didn’t penetrate the market as expected by the manufacturers. This trend continued until, Diane Von Furstenberg, an American fashion designer, came to their rescue. The designer made her models to wear Google glasses while on the catwalk. This gave Google glasses an instant acceptance and increased demand. From these two phenomena, it can be concluded that the future of these two industries will be determined by how much they help each other.

 

The Future Trends

 

According to fashion experts, marrying technology and fashion is the next phase of the two industries. They believe that the two industries offer a great playground that can enable designers to develop endless possibilities that can yield high standard innovations.

 

Marrying technology with fashion is expected to bring out innovations to protect the humans as well as producing energy. For instance, fashion designers are developing shoes and clothing that convert kinetic energy produced while in motion to generate power enough to power portable devices such as mobile phones, mp3, and watches.

 

 

Chris Burch in Brief

 

Chris Burch is the founder and CEO of Burch Creative Capital. Chris has had a decorated career as an investor and entrepreneur. Burch began his entrepreneurial career while an undergraduate student at the Ithaca College when he collaborated with his brother to open Eagle’s Eye apparel with $2,000. The company later grew to become a $165 million company at the time it was sold.

 

Over time Burch has been recognized as a serial entrepreneur having excellently invested in technology, fashion, and real estate. With 40 years of entrepreneurial experience, Burch has helped more than 50 companies to grow and thrive. His company boasts an incredible investment portfolio including Cocoon9, Nihiwatu, Poppin, and Trademark.