Wed Jul 30, 2008
Jamie Dinan has taken York Capital Management to $16 billion – all without sacrificing returns. Poised for the distressed cycle expected shortly, the event-driven firm may even have an opportunity to improve its game.
Dinan isn't afraid to think big - and has the results to show
By Carolyn Sargent
Ah, youth. In 1987, Jamie Dinan was a 28-year-old Harvard
MBA trading at Kellner DiLeo & Co., a $300 million hedge
fund in New York, and feeling on top of the world. "In my mind,
I was a superstar making a lot of money," he recalls with a
The mid-'80s were heady days in the market. Speculating in
mergers and acquisitions, Dinan was long equities and levered.
To have more personal capital to invest, he had aggressively
borrowed on his credit cards - at 18%. And he used that
borrowed money to load up on derivatives. "Why buy stock, when
you can buy a call option, where you can get even more bang for
your buck?" a facetious Dinan asks now.
Come October 1987, the Dow Jones Industrial Average began
giving up ground....
ISSN: 2151-1845 / CDC10004H
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