A Glimpse Inside the Head of York Capital Management Founder, Jamie Dinan

Anthony Scaramucci sat down with York Capital Management founder Jamie Dinan this week at the 2014 Salt Conference for an up close and personal interview. From the time he took the stage, Dinan had an heir about him, but also a humility. Sitting in the armchair across from Scaramucci, his posture was confident, yet relaxed. Sure, his graying hair gave him that ‘distinguished' look associated with longevity and wealth in finance, but Jamie also seemed like the uncle everyone gets excited for when he fires up the grill for the Fourth of July, or the guy to have a cup of coffee with and enjoy a good conversation The latter quality, humble and down-to-earth could stem from his transition from research analyst to portfolio manager. Scaramucci asked Jamie, “When you were imagining the future, what was the expectation?” Jamie thought it would be relatively seamless. “Turns out, it wasn't. The biggest thing I had to deal with was going from a research analyst to a portfolio manager. As an analyst, you're always trying to take risk. As a portfolio manager, you're a fiduciary. It's your friends money. It's your money. You need to have your foot on the brake and the gas at the same time.” “What was the struggle at first?” “Being nervous.” Dinan didn't hire his first client services person until 1999. You need a team that is different than yourself and, “you need to develop that team early on. Find guys that one day you'll need to pay a lot of money to because they're going to be part of the franchise.” Jamie looks for people he can develop, people he can grow. He needs people who can, “go from adolescence to adulthood.” The biggest key he says is to, “Hire good portfolio managers, give them lots of responsibility. Make them feel like it's their own money.” “Whats gnawing at you?” As Dinan answers, his voice echoes the consumer-focus his fund has. “You have to have conviction.” It's important to have conviction in the areas to invest, whether it be asset class or geography. He says, “Growth is picking up here in the U.S.” He thinks that rates in Europe will probably go lower. In his own personal view, “rates will stay low in soverigns and corporates. Scaramucci is digging for his thoughts on the future, “What do you see on the dashboard?” Dinan says, “Europe can't create inflation even though they're trying.” In the U.S., as the Fed tapers, taxes are going to go up. “States are trying to raise taxes. We have an aging population.” He acknowledges that some assets are experiencing inflation, but that it's not indicative of the broader economy. “Corporate debt continues to make a ton of sense.” “What has you up at night? What are the worries?” Dinan thinks briefly and responds calmly, “I actually sleep pretty well at night. Not much keeps me up.” After another brief pause, he continues, “I often worry about fear begetting more fear.” Mentioning the young students on scholarship to Salt from Skybridge, Scaramucci asks, “What can you share with young people?” Very earnestly, Dinan replies, “I wish I truly appreciated how valuable alpha generation is going to be in the institutional market space. I wish I had more willingness to ride the volatility, and to be more fact induced than fear induced.” He ends with, “I don't look back much. The past is passed.”