Fixed Income York Capital Management

York Capital Management

Founded in 1991, York Capital Management (York) seeks to understand the outcomes of corporate events and to deliver attractive returns over various market cycles while employing a fundamental, research-driven investment process.

Event-driven investing at York generally comprises three strategies: risk arbitrage, special situations, and distressed credit. Portfolio construction and risk management emphasize liquidity, diversification, and a minimal use of leverage.

The York Multi-Strategy strategy (YMS) targets event-driven situations with asymmetric return profiles by investing in global companies using a catalyst-driven, fundamental-value approach. The team focuses on three situations: risk arbitrage (opportunities as companies seek growth via acquisitions, facilitated by record cash on balance sheets and historically low interest rates), special situations (opportunities as a result of increasing corporate activity through spinoffs, asset sales, divestitures, and stock buybacks), and distressed credit (opportunities in bankruptcies, liquidations, and recapitalizations). 

The York European Opportunities strategy (YEO) targets event-driven situations with asymmetric return profiles by investing in European companies using a catalyst-driven, fundamental-value approach. The strategy focuses on three situations: risk arbitrage (opportunities as companies seek growth via acquisitions, facilitated by record cash on balance sheets and historically low interest rates), special situations (opportunities as a result of increasing corporate activity through spinoffs, asset sales, divestitures, and stock buybacks), and distressed credit (opportunities in bankruptcies, liquidations, and recapitalizations).

The York Asian Opportunities strategy (YAO) invests primarily in Asian companies using a catalyst-driven approach and targets event-driven situations with asymmetric return profiles. The strategy seeks to generate alpha from concentration and portfolio diversification by limiting the number of equity positions in the portfolio, eliminating or concentrating marginal positions, and active portfolio management by trading around names to increase return and reduce risk. YAO’s fundamental research-based investment approach focuses on reducing volatility and enhancing performance, managing risk through liquidity, diversification and limited leverage within portfolios, limiting losses on individual positions, and protecting capital in difficult markets. The four-stage investment process includes generating ideas, evaluating investment merits, final portfolio composition, and exit.

The York Total Return strategy (YTR) targets event-driven situations with asymmetric return profiles by providing access to multiple York Capital strategies. The strategy focuses on three situations: risk arbitrage (opportunities as companies seek growth via acquisitions, facilitated by record cash on balance sheets and historically low interest rates), special situations (opportunities as a result of increasing corporate activity through spin-offs, asset sales, divestitures, and stock buybacks), and distressed credit (opportunities in bankruptcies, liquidations, and recapitalizations).

The York Global Credit Income strategy (YGCI) targets credit investments globally, focusing on primarily performing credits using a fundamental, bottom-up research process. In addition, the fund will invest in special situation credit opportunities utilizing York’s event-driven investment strategies.