Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

James Dinan has an economics degree from the University of Pennsylvania and an MBA from Harvard Business School. He started his career at Donaldson, Lufkin & Jenrette, working as an investment banker for two years, until 1983. Later he worked in merger arbitrage at Kellner DiLeo & Co. Dinan, lost his entire savings on Black Monday in 1987, but he came back in 1991 by founding his own investment management firm, York Capital Management, with $3.6 million. Currently, Dinan is ranked 833 on Forbes' list of The World's Billionaires.

Below are the top 20 positions in the 13F portfolio of York Capital Management as of September 30, 2011.

Company Name

Ticker

Value

Activity

SPDR GOLD TRUST Put

GLD

349313

7029%

DOLLAR THRIFTY

DTG

303297

-2%

GOODRICH CORP

GR

274874

New

GOLDMAN SACHS Call

GS

225105

11514%

SPDR SERIES TRUST Call

XRT

218061

New

GENERAL MOTORS CO Call

GM

173082

10620%

CENTERPOINT ENERGY

CNP

122762

-6%

CITIGROUP INC Call

C

115268

2241%

FORTUNE BRANDS INC

FO

114413

-41%

HERTZ GLOBAL HOLDINGS

HTZ

107765

-42%

WILLIAMS COS

WMB

96506

48%

FREEPORT MCMORAN Call

FCX

92568

4243%

SARA LEE CORP

SLE

85861

6%

ABOVENET INC

ABVT

78305

-13%

AMERICAN TOWER CORP

AMT

68509

New

TYCO INTL

TYC

58678

-74%

RADWARE LTD

RDWR

49909

-12%

PETSMART INC

PETM

49834

-61%

CROWN CASTLE INTL

CCI

47511

New

IVANHOE MINES LTD

IVN

46838

-63%

During the third quarter, York Capital’s portfolio’s value went down to $3.5 billion from $4.5 billion. The number of positions in the fund was also reduced from 82 to 71. York Capital sold out several positions during the third quarter, including Walter Energy Inc (NYSE:WLT), Ford Motor Co (NYSE:F), Ralcorp Holdings Inc (RAH), and Masco Corp (NYSE:MAS). On the other hand, the fund also opened a few new positions. For example, York Capital initiated a brand new $275 million position in Goodrich Corp (NYSE:GR) in the third quarter. The stock returned 2.51% since the end of September, lower than SPY’s 11.02%. Tiger cub Stephen Mandel is bullish about GR as well. At the end of the third quarter, his Lone Pine Capital had $323 million invested in this stock.

York Capital’s largest position at the end of September is the put options of SPDR gold Trust (NYSEARCA:GLD). During the third quarter, Dinan significantly boosted his stakes in this position. At the end of September, York reported to own $349 million of GLD puts. Additionally, York Capital also sold out its stakes in GLD. At the end of June, York had had $145 million invested in GLD stocks. The fund did not report owning any shares of GLD stocks at the end of September. Since then, GLD lost 4.45%, while SPY was up 11.02% in the same period. Eric Mindich’s Eton Park Capital also bought $242 million worth of new GLD puts over the third quarter. Mindich also reduced his position in GLD calls by 11%.

Dinan is also bullish about Goldman Sachs Group Inc (NYSE:GS), General Motors Co (NYSE:GM), Citigroup Inc (NYSE:C), Williams Cos (NYSE:WMB), Freeport McMoRan Copper & Gold (NYSE:FCX), and American Tower Corp (NYSE:AMT). We like Dinan. His previous experience in investment banking and merger arbitrage is invaluable to York Capital Management. Our research has shown that investors are more likely to beat the S&P 500 index over the long term by imitating the top stock picks of successful fund managers like James Dinan.

Source: Billionaire James Dinan's York Capital Is Bullish On These Stocks