Jamie Dinan of York Capital Talks Europe, America, and De-Risking (SPY, LQD, EWG)
CEO and Managing Partner of York Capital, a hedge fund with $12 billion under management, Jamie Dinan, was just interviewed by David Faber on CNBC.
The hedge fund guru expressed concern about what is going on in Europe. When asked if the recent headlines in Germany (NYSE: EWG) are impacting they way he’s investing, he said “We try not to react to external stimuli…but the stuff going on today is more than just “noise.”’
He also said that, “Things in Europe can become more contagious,” which is concerning.
Mr. Dinan said that the recent short ban is heading in the wrong direction and that “Its amazing how everyone likes to blame the messenger and not the problem,” adding that “Hedge funds are not creating market instability.”
One key point that German regulators are missing is that “If people cannot hedge they will not buy the sovereign debt,” said Mr. Dinan, adding that rates will thus rise, which is “not good for anyone.”
In regards to their trading book he said that they are “Lightening up on credit (NYSE: LQD)” as well as “increasing hedges on equities (NYSE: SPY).” They are also “selling non-core holdings.”
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