Billionaire James Dinan’s Latest Stock Picks: Bank of America Corp (NYSE:BAC), Tyco International

YORK CAPITAL MANAGEMENTJames Dinan’s York Capital Management is a 20-year-old fund with an impressive performance record—the fund lost value in only three of those years. Unfortunately, 2011 was one of those years, one of the worst in recent memory for hedge funds generally, as the fund posted a loss of 5.93 percent. Dinan, a self-made billionaire and avid sailor, presently manages about $15 billion in his York Capital Management fund.

The fund filed its 13F form for the second quarter on August 14, disclosing its holdings. Below is a discussion of the major changes.

The single most valuable item in the fund’s portfolio remains Dollar Thrifty Automotive Corp, Inc. (NYSE:DTG), with $428 million in shares or a 17 percent stake. Pentwater Capital Management recently increased its stake in Dollar Thrifty by 35 percent, now holding a total of 11.5 percent of the company. So this rental car company seems pretty interesting to both of these hedge funds, and it is up 11.2 percent year-to-date. Cost per vehicle fell to $162 in the second quarter, down $26 year-over-year, due to the increasing strength of the used car market. Revenue was essentially flat year-over-year in the second quarter at $378.9 million. Hertz Global Holdings, Inc. (NYSE:HTZ) placed a bid for the company at $40 a share two years ago; shares presently trade in the high $70s.

Notably, and in line with many other hedge funds, York Capital dumped a bit over 85 percent of its position in Citigroup Inc. (NYSE:C). The company’s shares have been floundering as net revenue fell in 2011 to $78 billion, down from $86.6 billion in 2010. The company’s capital plan was denied by the Fed in March, and investors are still wondering whether the company can execute on its return on investment goals.

Hertz Global Holdings, Inc. is another member of the funds top ten, with 12.5 million shares of common stock and an additional 1.1 million in call options. This represents a decrease from the 19.6 million shares held in the first quarter. Hertz shares lost 20 percent of their value in May and, as we noted elsewhere, the company is rather sensitive to the broader market. Additionally, though management has noted that it “continue[s] to believe that a merger is in the best interest of both” Dollar Thrifty and Hertz, we are still yet to see signs that the two will be merging any time soon.

York Capital also sold shares in Tyco International Ltd. (NYSE:TYC), which specializes in filtration systems and electronic security solutions. The fund’s holdings have decreased by about 1 million shares since the first quarter. This comes as Tyco shares trade at their highest levels in the past decade, likely preparing for the three-way split that is set to occur within the next year. This will result in three entities: ADT (a security system service), a pipes and valves company, and commercial security and fire business. Optimistic sum-of-the-parts valuations put the total value of the three businesses at $65 a share.

York has retained its significant call positions in Bank of America Corp (NYSE:BAC) and General Motors Company (NYSE:GM). In all, the company’s overall portfolio is balanced and diverse, with weighting in a variety of different sectors.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!