Jamie Dinan’s York Capital posted gains across all strategies in November. The firm’s Multi Strategy funds with $5.5 billion under management gained nearly 3% over the last month, bringing year to date return to +15%. York Total Return Fund gained 2% in November, increasing total gain to +14%.
Multiple expansion in 2014 predicted by Jamie Dinan
Jamie Dinan was recently on CNBC during the HalfTime Report with Scott Wapner. Regarding the outlook on the stock market, Jamie Dinan said that he sees U.S markets undergoing multiple expansion in the next year. Jamie Dinan said that there are situations that will increase shareholder value, and earnings and buybacks will likely go up next year. On the subject of M&A, Jamie Dinan said that it is easier to borrow money and buy companies as interest rates are so low and there are a lot of good opportunities.
Consolidation in airline and auto industry
He sounded very bullish on airline stocks and mentioned that York is invested in nearly all the major airlines. Jamie Dinan said that the industry has consolidated and is now less volatile, and added that the three major players along with Southwest Airlines Co. (NYSE:LUV) are now controlling 90% of air travel. He added that these companies are now being run like businesses which are capable of making making money off high oil prices of $95. Jamie Dinan said that after decades of underperformance, it will take a while for the airline industry to turn large profits adding that stocks are adequately priced. Jamie Dinan also spoke about the merger of American Airlines (AMR) with U.S Airways into American Airlines Group Inc (NASDAQ:AAL), saying that the deal has enormous potential both in terms of revenue generation and cost cutting.
Jamie Dinan commented on his largest position, Hertz Global Holdings, Inc. (NYSE:HTZ). He said that consolidation is another theme in this industry, as Hertz merged with Dollar Thrifty Group this year. He said that Hertz Global Holdings, Inc. (NYSE:HTZ) is a great stock to own with a lot of upside, as the company has an impressive stock buyback program lined up for the next couple of years.
Jamie Dinan said he likes Costamare Inc (NYSE:CMRE) and Scorpio Tankers Inc. (NYSE:STNG). We reported earlier that York has also bought commerical vessels in a joint venture with a European shipping company.
Speaking on CNBC, he said that York had started investmenst in Greek and Norwegian shipping companies which had lost bank funding. He said that the shipping business is on a definite upturn. York owns stock of these companies as well as actual ships, and he said the industry is on the move as shipping rates are going up.