York Capital

Here’s what Lee Ainslie, James Dinan, Izzy Englander had to say on the “hedge funds legends” panel at this year’s SALT conference in Vegas about the culture within their firms:

Ainslie: “It’s very important to identify what you values are; make sure everyone understands what you’re trying to achieve as a team. Our training week at the beginning of the year starts with an ethics section. We never keep an individuals’s P&L- only team P&L, so no one person gets credit or blame for an investment decision, which makes for a very collegial culture and makes people do recognize that they’re there to what’s in the best interest of our investors. Read more »

There were whispers at The Breakers resort on Tuesday morning that the weather battering the northeast would prevent James Dinan’s jet from making it to Palm Beach, Fla., in time for him to deliver the keynote luncheon speech to one of the year’s biggest gatherings of hedge fund managers. But it turns out that Mr. Dinan, the founder of York Capital Management, was thinking ahead. The CEO of the hedge fund that manages nearly $15 billion caught a commercial flight on JetBlue to Palm Beach on Monday, a spokesman for the firm said. [WSJ]

For its September issue, Absolute Return is running a “hedge fund report card.” The magazine polled hundreds of investors, asking them to rate their respective funds based on factors that included alignment of interests, alpha generation, independent oversight, infrastructure, transparency and liquidity terms. The results put York Capital at number one, followed by Bridgewater Associates, Bain’s Brookside Capital, Adage Capital and Cayon Capital overall. Bringing up the rear were SAC Capital, TPG-Axon, QVT Financial, Citadel and Cerberus Capital in dead last. In addition to asking the investors to simply provide scores, AR also afforded them their opportunity to air their grievances. Let out what they’ve been holding in, etc. For instance, someone with Citadel apparently doesn’t think Ken Griffin treats his clients right, noting that KG “holds his investors somewhere between indifference and disdain.” Which doesn’t really seem that fair! Read more »

Boaz Weinstein Kills it in May . . .

May was the worst month for hedge funds since October 2008. The HFRX Global Hedge Fund Index lost 2.6 percent and Louis Moore Bacon got hammered. Not Boaz Weinstein. Yeah, he might have lost $1 billion at Deutsche Bank, but that’s old news. Boaz’s Saba Capital (Hebrew for grandfather) bucked the trend in May, up 1.6 percent for the month and 5.8 percent for the year.

Here’s some other winners and losers from May: Read more »

  • 19 May 2010 at 4:01 PM

Highbridge, York Capital Cutting Risk Dramatically

“The best course of action is to take risk off,” said Highbridge Capital’s Glenn Dubin at SkyBridge Capital’s hedge fund confab in Las Vegas. Dubin thinks there is a lot of risk in the market now, and Highbridge is reducing its balance sheet dramatically, moving to a defensive position.

“We are seeing massive de-risking and de-leveraging,” Dubin’s told CNBC’s David Faber. He also called Germany’s move to ban bearish bets on certain European debt and financial stocks “ill-advised.” As for the Volcker rule, which would affect the JPMorgan-owned Highbridge, Dubin said he disagreed with its premise because financial the business is not too big to fail and, therefore, not in jeopardy being bailed out by taxpayers.

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