Having lost all his savings on Black Monday in 1987, James Dinan made a remarkable comeback, setting up his hedge fund, York Capital Management, in 1991 with $3.6 million and ending up controlling more than $10 billion worth of investments at the end of June, 2014. The fund has a diversified equity portfolio, investing in a wide range of stocks, from financials to health care companies. Dinan employs an event driven strategy to identify opportunities in companies undergoing mergers and acquisitions, distressed and restructuring companies and other. Forbes estimates Dinan’s net worth to be around $2.2 billion. There has been a major overhaul of the fund’s top positions during the second quarter of 2012, therefore, in this article, York Capital’s top 3 positions will be analyzed.
James Dinan’s new favorite is American Airlines Group Inc (NASDAQ:AAL), the company that runs American Airlines, Inc. During the quarter, Dinan has increased his investment in the company by roughly 30%, taking it to 18,4 million shares, which are valued at $791 million. American Airlines Group Inc (NASDAQ:AAL) is also among the favorites of David Tepper, the manager of Appaloosa Management LP. The fund reportedly owns 11.6 million American Airlines Group Inc (NASDAQ:AAL) shares, which are valued at $500 million and account for 7% of Appaloosa’s equity portfolio.
Subject of a takeover bid from Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Allergan, Inc.(NYSE:AGN) has caught the attention of James Dinan, who has built a significant position in the company, making it the second largest equity position in York Capital Management’s portfolio. In its latest 13F filing, the fund disclosed ownership of 2.42 million Allergan, Inc.(NYSE:AGN) shares worth in excess of $410 million. A huge supporter of Valeant’s takeover bid, Bill Ackman has a huge stake in Allergan, Inc.(NYSE:AGN), having increased it by 4734% during the quarter. His fund, Pershing Square, has reported control over 28.8 million shares valued at $4,88 billion.
Ally Financial Inc (NYSE:ALLY), a financial services company, is another new addition to the equity portfolio of York Capital Management. Throughout the second quarter, Dinan was busy building a position that amasses 15.4 million shares worth roughly $369 million. Dan Loeb also believes Ally Financial Inc (NYSE:ALLY) is a good investment, having made it a key piece in his portfolio. Loeb’s fund, Third Point, reportedly holds 45.6 million shares of Ally Financial Inc (NYSE:ALLY) , a position that carries a value of $1,08 billion.