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

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!