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York Capital Management is a hedge fund management firm founded by James G. Dinan. The firm manages over $10 bn in assets (equity + debt) in the York series of hedge funds. The firm has offices in New York, London, Hong Kong and Tel-Aviv.

Investment Strategy: York Capital Management is a value-oriented, event-driven investor that invests in U.S. stocks across all market-caps. The firm utilizes four strategies that include risk arbitrage, distressed securities, special situations and long-term event-driven. York Capital Management employs a bottom-up approach, emphasizing fundamental analysis in selection of investment opportunities. The firm's investment ideas are generated from significant corporate announcements and information found in the financial press.

The following is a list of its top 15 buys in the last quarter, as released in its most recent 13F filing with the SEC.

Stock

Symbol

Shares Held - 12/31/2010

Shares Held - 03/31/2011

Dollar Thrifty Automotive Group Inc

DTG

0

4,173,642

Fortune Brands Inc

FO

0

3,853,387

Beckman Coulter Inc

BEC

373,988

3,112,246

Big Lots Inc

BIG

0

4,639,622

Tyco International Ltd

TYC

0

3,985,076

Sealed Air Corporation

SEE

926,536

5,113,885

Family Dollar Stores Inc

FDO

0

1,961,984

Hertz Global Holding

HTZ

9,584,847

15,856,975

PetSmart Inc

PETM

225,000

2,557,736

Embraer - Empresa Brasileira De Aeron

ERJ

0

2,734,078

Ashland Inc

ASH

0

1,377,038

NYSE EuroNext Inc

NYX

0

2,253,831

WR Grace & Co

GRA

2,829,706

4,837,343

Masco Corporation

MAS

0

5,501,800

JPMorgan Chase & Co

JPM

0

1,614,562

Here are some of the specifics about these companies, including a brief description of their business, growth expectations (top line and bottom line) and valuation:

Dollar Thrifty Automotive Group Inc.

York Capital bought 4,173,642 shares of Dollar Thrifty Automotive Group Inc. last quarter. This is a new position for the fund and is 5.3% of its portfolio. The share price of the company has increased from $47.26 on 31 December 2010 to $66.73 on 31 March.

Dollar Thrifty Automotive Group, Inc. is engaged in the business of the daily rental of vehicles to business and leisure customers through company owned stores. The company also sells vehicle rental franchises worldwide and provides sales and marketing, reservations, data processing systems, insurance and other services to franchisees. Dollar’s EPS forecast for the current year is $4.60 and next year is $4.57. According to consensus estimates, its top line is expected to grow 2.90% in the current year and 4.10% next year. It is trading at a forward P/E of 18.15. Out of five analysts covering the company, two are positive and have buy ratings and three have hold ratings.

Fortune Brands Inc.

York Capital bought 3,853,387 shares of Fortune Brands Inc. last quarter. This is a new position for the fund and is 4.54% of its portfolio. The share price of the company has increased from $60.25 on 31 December 2010 to $61.89 on 31 March.

Fortune Brands, Inc. is a holding company with operating companies engaged in the manufacture and sale products, such as distilled spirits, home and security products, and golf products. Fortune Brands operates in three segments: Spirits, Home & Security and Golf. Fortune’s EPS forecast for the current year is $3.24 and next year is $3.81. According to consensus estimates, its top line is expected to grow 6.00% in the current year and 6.00% next year. It is trading at a forward P/E of 16.99. Out of 13 analysts covering the company, three are positive and have buy ratings and 10 have hold ratings.

Beckman Coulter Inc.

York Capital bought 2,738,258 shares of Beckman Coulter Inc. last quarter and now holds a total of 3,112,246 shares. This position is 4.92% of its portfolio. The share price of the company has increased from $75.23 on 31 December 2010 to $83.07 on 31 March.

Beckman Coulter, Inc. is a manufacturer and marketer of biomedical testing instrument systems, tests and supplies that simplify, automate and innovate complex laboratory processes It operates in two segments: Clinical Diagnostics and Life Science. Beckman’s EPS forecast for the current year is $3.98 and for the next year is $4.53. According to consensus estimates, its top line is expected to grow 3.80% in the current year and 5.10% next year. It is trading at a forward P/E of 18.34. Out of 12 analysts covering the company, all 12 have hold ratings.

Note: Danaher (NYSE:DHR) announced the acquisition of Beckman Coulter in February 2011 and this position increase has likely to do with merger arbitrage on the deal.

Big Lots Inc.

York Capital bought 4,639,622 shares of Big Lots Inc. last quarter. This is a new position for the fund and is 3.84% of its portfolio. The share price of the company has increased from $30.46 on 31 December 2010 to $43.43 on 31 March.

Big Lots, Inc. through its wholly owned subsidiaries is a closeout retailer. The company’s merchandising categories include Consumables, Home, Furniture, Hardlines, Seasonal, and Other. The Consumables category includes the food, health and beauty, plastics, paper, chemical, and pet departments. Big Lots’ EPS forecast for the current year is $3.01 and next year is $3.37. According to consensus estimates, its top line is expected to grow 3.80% in the current year and 6.00% next year. It is trading at a forward P/E of 9.91. Out of 16 analysts covering the company, three are positive and have buy ratings and 13 have hold ratings.

Tyco International Ltd.

York Capital bought 3,985,076 shares of Tyco International Ltd. last quarter. This is a new position for the fund and is 3.4% of its portfolio. The share price of the company has increased from $41.44 on 31 December 2010 to $44.77 on 31 March.

Tyco International Ltd. is a diversified company, which provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products. It operates in five segments: ADT Worldwide, Flow Control, Fire Protection Services, Electrical and Metal Products, and Safety Products. Tyco’s EPS forecast for the current year is $3.09 and for the next year is $3.66. According to consensus estimates, its top line is expected to decline 0.10% in the current year and grow 5.10% in the next year. It is trading at a forward P/E of 13.48. Out of 19 analysts covering the company, 10 are positive and have buy ratings and nine have hold ratings.

Sealed Air Corporation

York Capital bought 4,187,349 shares of Sealed Air Corporation last quarter and now holds a total of 5,113,885 shares in the company. This position is 2.59% of its portfolio. The share price of the company has increased from $25.45 on 31 December 2010 to $26.66 on 31 March.

Sealed Air Corporation is a manufacturer of a range of packaging and performance-based materials and equipment systems, which serves a range of food, industrial, medical and consumer applications. The Company operates in three segments. Sealed Air’s EPS forecast for the current year is $1.73 and for the next year is $2. According to consensus estimates, its top line is expected to grow 7.20% in the current year and 3.60% next year. It is trading at a forward P/E of 12.84. Out of 11 analysts covering the company, one is positive and has a buy rating, nine have hold ratings and one has a sell rating.

Family Dollar Stores Inc.

York Capital bought 1,961,984 shares of Family Dollar Stores Inc. last quarter. This is a new position for the fund and is 1.92% of its portfolio. The share price of the company has increased from $49.71 on 31 December 2010 to $51.32 on 31 March.

Family Dollar Stores, Inc. operates a chain of more than 6,800 general merchandise retail discount stores in 44 states, providing primarily consumers with a selection of priced merchandise in neighbourhood stores. Its merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics. Family Dollar’s EPS forecast for the current year is $3.15 and for the next year is $3.64. According to consensus estimates, its top line is expected to grow 8.70% in the current year and 7.50% in the next year. It is trading at a forward P/E of 15.31. Out of 23 analysts covering the stock, six are positive and have buy ratings, 15 have hold ratings and two have sell ratings.

Hertz Global Holding

York Capital bought 6,272,128 shares of Hertz Global Holding last quarter and now holds a total of 15,856,975 shares in the company. This position is 4.72% of its portfolio. The share price of the company has increased from $14.49 on 31 December 2010 to $15.63 on 31 March.

Hertz Global Holdings is a worldwide airport general use car rental brand, operating from approximately 8,500 locations in 146 countries as of December 31, 2010. The company has two segments: Car rental and equipment rental. The company operates both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia, Asia and New Zealand. Hertz’s EPS forecast for the current year is $0.9 and for the next year is $1.33. According to consensus estimates, its top line is expected to grow 7.70% in the current year and 8.40% in the next year. It is trading at a forward P/E of 12.14. All five analysts covering the company are positive and have buy ratings.

PetSmart Inc.

York Capital bought 2,332,736 shares of PetSmart Inc. last quarter and now holds a total of 2,557,736 shares. This position is 1.99% of its portfolio. The share price of the company has increased from $39.82 on 31 December 2010 to $40.95 on 31 March.

PetSmart, Inc. is a specialty provider of products, services and solutions for the lifetime needs of pets. The company offers a line of products for all the life stages of pets, and offers various pet services, including professional grooming, training, boarding and day camp. It also offers pet products through an e-commerce site. Petsmart’s EPS forecast for the current year is $2.43 and next year is $2.82. According to consensus estimates, its top line is expected to grow 6.50% in the current year and 5.80% next year. It is trading at a forward P/E of 16.06. Out of 20 analysts covering the company, eight are positive and have buy ratings and 12 have hold ratings.

Embraer-Empresa Brasileira De Aeron

York Capital bought 2,734,078 shares of Embraer-Empresa Brasileira De Aeron last quarter. This is a new position for the fund and is 1.75% of its portfolio. The share price of the company has increased from $29.4 on 31 December 2010 to $33.7 on 31 March.

Embraer S.A., formerly Embraer-Empresa Brasileira de Aeronautica SA, is engaged in the manufacturing of commercial aircraft. The Company is a supplier of defence aircraft for the Brazilian Air Force. It has also sold aircraft to military forces in Europe, Asia and Latin America. Its defence business accounted for 9.1% of its net sales during the year ended December 31, 2009. Embraer’s EPS forecast for the current year is $2.05 and next year is $2.41. According to consensus estimates, its top line is expected to grow 6.60% in the current year and 14.60% next year. It is trading at a forward P/E of 13.40. Out of 10 analysts covering the company, four are positive and have buy ratings, five have hold ratings and one has a sell rating.

Ashland Inc.

York Capital bought 1,377,038 shares Ashland Inc. last quarter. This is a new position for the fund and is 1.51% of its portfolio. The share price of the company has increased from $50.86 on 31 December 2010 to $57.76 on 31 March.

Ashland Inc. business consists of five segments: Ashland Aqualon Functional Ingredients; Ashland Hercules Water Technologies; Ashland Performance Materials; Ashland Consumer Markets, and Ashland Distribution. Ashland’s EPS forecast for the current year is $3.74 and next year is $4.86. According to consensus estimates, its top line is expected to decline 30.20% in the current year and 5.90% next year. It is trading at a forward P/E of 14.06. Out of 10 analysts covering the company, seven are positive and have buy ratings and three have hold ratings.

NYSE EuroNext Inc.

York Capital bought 2,253,831 shares of NYSE EuroNext Inc. last quarter and this is a new position for the fund and is 1.51% of its portfolio. This is a new position for the fund and is 0.79% of its portfolio. The share price of the company has increased from $29.91 on 31 December 2010 to $35.17 on 31 March.

NYSE Euronext is a global operator of financial markets and provider of trading technologies. It offers a range of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, carbon trading, clearing operations, market data and commercial technology solutions, all designed to meet the evolving needs of issuers, investors, financial institutions and market participants. It operates in three segments: Derivatives, Cash Trading and Listings, and Information Services and Technology Solutions. NYSE EuroNext’s EPS forecast for the current year is $2.6 and next year is $3.02. According to consensus estimates, its top line is expected to grow 6.90% in the current year and 6.50% next year. It is trading at a forward P/E of 12.06. Out of 17 analysts covering the company, seven are positive and have buy ratings, nine have hold ratings and one has a sell rating.

WR Grace & Co.

York Capital bought 2,007,637 shares WR Grace & Co. last quarter and now holds a total of 4,837,343 shares in the company. This position is 3.53% of its portfolio. The share price of the company has increased from $35.13 on 31 December 2010 to $38.29 on 31 March.

WR Grace & Co. is engaged in the production and sale of specialty chemicals and specialty materials on a global basis. It operates in two business segments: Grace Davison and Grace Construction Products. The Grace Davison principally applies silica, alumina, zeolite and rubber and lattice technology in the design and manufacture of products. WR Grace’s EPS forecast for the current year is $3.34 and next year is $3.5. According to consensus estimates, its top line is expected to grow 12.40% in the current year and 6.70% next year. It is trading at a forward P/E of 13.37. All three analysts covering the company are positive and have buy ratings.

Masco Corporation

York Capital bought 5,501,800 shares of Masco Corporation last quarter. This is a new position for the fund and is 1.46% of its portfolio. The share price of the company has increased from $12.66 on 31 December 2010 to $13.92 on 31 March.

Masco Corporation manufactures, distributes and installs home improvement and building products. It is manufacturer of a range of home improvement and building products, including faucets, cabinets, architectural coatings and windows, and installers of insulation for the new home construction market. Masco’s EPS forecast for the current year is $0.22 and next year is $0.53. According to consensus estimates, its top line is expected to grow 0.20% in the current year and 7.20% next year. It is trading at a forward P/E of 26.89. Out of 19 analysts covering the company, one is positive and has a buy rating, 13 have hold ratings and five have sell ratings.

JPMorgan Chase & Co.

York Capital bought 1,614,562 shares of JPMorgan Chase & Co. last quarter. This is a new position for the fund and is 1.42% of its portfolio. The share price of the company has increased from $42.42 on 31 December 2010 to $46.1 on 31 March.

JPMorgan Chase & Co. is a financial holding company. JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association a national bank with United States branches in 23 states, and Chase Bank USA, National Association, a national bank that is the Firm’s credit card-issuing bank. JPMorgan Chase’s principal nonbank subsidiary is J.P. Morgan Securities LLC, the Firm’s United States investment banking firm. JPMorgan’s EPS forecast for the current year is $4.93 and for the next year is $5.65. According to consensus estimates, its top line is expected to decline 3.90% in the current year and grow 4.60% in the next year. It is trading at a forward P/E of 7.65. Out of 31 analysts tracking the stock, 28 are positive and have buy ratings and three have hold ratings.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Top 15 Buys of York Capital Management