Tap on the profile icon to edit
your financial details.

York Capital Management Review

Your Details Done
by Updated

York Capital Management, L.P.

York Capital Management

In business since 1991, York Capital Management, L.P. is an investment advisor to hedge and private equity funds. James Dinan, part owner of the Milwaukee Bucks (as of 2014), founded the New York firm that manages nearly $20.5 billion in assets.  

Investors in these funds include high-net-worth individuals, pension and profit-sharing plans, trusts, estates, charitable organizations, corporations, business entities, endowments and foreign sovereign wealth funds. Of these investors, 49% are not American, according to SEC data.

York Capital Management Background

Four years after Black Monday, Dinan, who’d lost almost everything in the 1987 stock market crash, started York Capital Management with funds raised from former colleagues at stock research firm Donaldson, Lufkin & Jenrette. (He named the firm after the avenue in New York that he was living on at the time.) In six short years, according to Bloomberg, the hedge fund manager was overseeing more than $610 million in assets. A decade after that, Credit Suisse bought a third of the firm for $425 million. 

Currently, the firm has offices in New York (its headquarters), London and Hong Kong and employs 74 advisors. Dinan still leads the firm as chairman, CEO and managing partner, though in 2017 he named his eventual successors. Worth roughly $2 billion, Dinan ranked No. 370 on Forbes’ 2019 list of the 400 wealthiest Americans.

York Capital Management Client Types and Minimum Account Sizes

As noted earlier, the firm’s actual clients are pooled investment vehicles, which are organized as domestic or foreign partnerships, incorporated or unincorporated entities or other similar entities. Investors in these funds are generally high-net-worth individuals, pension and profit-sharing plans, trusts, estates, charitable organizations, corporations, business entities, endowments and foreign sovereign wealth funds. Almost half are overseas.

This firm does not work with individual clients. If you are looking for an advisor that does, consider using SmartAsset's free financial advisor matching tool.

York Capital provides its minimum investments in each private fund’s offering documents. According to SEC data, they range from $1,000 to $25 million. The firm may waive the minimum at its discretion. 

Services Offered by York Capital Management

As mentioned earlier, York Capital advises and provides administrative services to hedge, private equity and (European) UCITS funds. It also manages collateralized loan obligation funds and serves as an investment advisor to other institutional managed accounts, accounts related to its founders and on occasion separately managed accounts of investors who meet certain requirements.

York Capital Management Investing Philosophy

Depending on the fund, York Capital’s investing strategies vary and are provided in each fund’s offering documents. Generally, the firm invests and trades in securities, looking to exploit inefficiencies in the market. In its ADV form brochure, it says it may use the following strategies and instruments:

  • Leverage, including margin loans
  • Event-driven and arbitrage transactions
  • Balance sheet arbitrage
  • Investments in distressed companies
  • Speculative purchases of “special situation” securities
  • Equity securities
  • Short sales
  • Debt obligations
  • Below investment-grade securities
  • Second lien loans
  • Non-performing loans and participations
  • Distressed secured loans
  • Direct loans
  • Bankruptcy claims
  • Options trading
  • Stock index options trading 
  • Securities of non-U.S. issuers
  • Real estate investments
  • Residential mortgage-backed securities and other asset-backed securities
  • Regulatory capital relief trades
  • Sovereign debt investments
  • Ships, including, without limitation, freight carriers or vessels. 
  • Start-up entities
  • Private equity investments
  • Hedging strategies
  • Swap transactions
  • Credit default swaps
  • Futures contracts 
  • Repurchase and reverse repurchase agreements

Fees Under York Capital Management

York Capital’s management fees vary from fund to fund and according to share class. Like most advisors, the firm bases them on a percentage of assets under management. It also collects a performance-based fee. Generally, the annual management fee is between 1% and 2% and the performance-based fee can be up to 20% of the aggregate profits or distributions. For other accounts, the management fees are negotiated and range from 0.5% to 2% annually.

York Capital Management Awards and Recognition

Dinan ranked No. 20 on Forbes’ 2018 top 20 list of highest-earning hedge fund managers and traders. 

What to Watch Out For

Investing with York Capital not only takes a lot of money. It also contractually requires a long timeline. Each fund specifies the terms of withdrawal or redemption, but generally, one’s money will be locked up for a considerable amount of time.

Additionally, the firm does not provide financial planning or wealth management services. So if you are looking for a financial advisor who can help steer your personal finances, this firm is not right for you.

In its most recent SEC filings, York Capital reported that it had one disclosure within the past 10 years. Its affiliate York Capital Management Europe (UK) allegedly failed in May 2013 to cover a short position in a timely manner in the York European Focus Funds. York Capital reported that to avoid the expense and distraction of litigation in the Spanish courts, York UK didn’t challenge the determination and elected to pay the fine of 100,000 euros.

Opening an Account With York Capital Management

To contact York Capital, call (212) 300-1311, email ycm@yorkcapital.com or send a message via http://www.yorkcapital.com/Contact.

All information was accurate as of the writing of this article. 

Tips for Finding the Right Financial Advisor 

  • If you don’t have the millions that a hedge fund manager like York Capital requires, you should shift your sights to a financial advisor who primarily works with individuals. Use our SmartAsset financial advisor matching tool to be connected with up to three local advisors.
  • Make sure any prospective advisors are fiduciaries. They must work in their clients’ best interests, while advisors who are not bound by a fiduciary duty are simply required to make suitable recommendations to their clients.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research