After an all around abysmal June for James Dinan’s York Capital, the hedge funds managed to turn around in July. The assets under management at York Multi Strategy rose from $5.4 billion at the end to June to $5.7 billion in July. The largest allocation of York Capital, multi-strategy funds, gained 2.7% in July, raising the year-to-date gain to nearly +8%.
July proved to be a good month for hedge funds in general, all major hedge fund indices posted a decent gain. The Eurekahedge Hedge Fund Index was up 0.9% in July whereas HFRI Composite Index was up 1.3% in the same period.
A decade ago, no one talked about tail risk hedge funds, which were a minuscule niche of the market. However, today many large investors, including pension funds and other institutions, have mandates that require the inclusion of tail risk protection. In a recent interview with ValueWalk, Kris Sidial of tail risk fund Ambrus Group, a Read More
York’s shorts in JC Penney seeing traction after Ackman resignation
York Capital also did well in its debt focused regional funds, the York Credit Opportunities fund netted a 1.6% return in last month and is up 9% YTD. Assets under management of the Credit Opportunities fund rose from $4.7 billion to $5 billion. York Capital has managed the highest annual gain in the Credit Opportunities Fund, with a return of +17% since inception. York’s short bet in J.C. Penney Company, Inc. (NYSE:JCP)’s debt is getting more traction with each passing day as the chain store battles one trouble after another. Bill Ackman, the largest shareholder of JCP, resigned from the company’s board today.
The York European Credit Opportunities Fund, AUM $1.8 billion, managed the least gain in last month, the fund was up 0.8% in July, finishing off seven months with a +5.5% return. The York Asian Opportunities Fund was up 1.1% and has gained 6.47% YTD, the fund manages $500 million.
York Capital’s largest publicly disclosed holdings are in H.J. Heinz Company (NYSE:HNZ), Realogy Holdings Corp (NYSE:RLGY), American International Group Inc (NYSE:AIG) and Hertz Global Holdings Inc. (NYSE:HTZ). York Capital’s 13f for 2Q2013 will be out over the next couple of days, stay tuned.