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Jamie Dinan: Look to M&A for best plays

For the next great investment ideas, look to the M&A space, York Capital Management CEO Jamie Dinan said Wednesday.

"I'm pretty constructive on the market," he said from the SkyBridge Alternatives Conference in Las Vegas. "As you know, the market this year has been very frustrating for a lot of investors."

While noting that the Russell 2000 and the Nasdaq are down significantly from their highs, Dinan was nevertheless positive in his outlook.

"The thing that's doing well for us is the event-driven space, particularly the mergers and acquisitions," he said on CNBC's "Halftime Report."

Read MoreThese tech M&A deals should happen now: Pro

"This year, in particular, we've seen a huge broadening along a lot more industries," Dinan added. "Industrials—think of GE trying to buy Alstom. Volkswagen just announced yesterday they bought the minority stake in Scania they wanted. Rolls-Royce over in England trying to buy Finland's Wartsila, a big marine engine company. These are all very large, multibillion-dollar transactions."

In the consumer space, Dinan also noted the $4.3 billion purchase of Pinnacle Foods by Hillshire Brands.

The broadening of merger and acquisition activity signals a stronger economy, he added.

"And its broadening because for many of these companies the CEOs are starting to see the economy as a glass half-full, not half-empty. The economy's doing better. They're getting a lot more confidence. And this broadening bodes very well, not just for our strategy, but we think for the markets and the economy," he said.

Dinan, who has $22.3 billion in assets under management, suggested looking to Europe for M&A plays.

"There are a lot of European industrials that are out there," he said. "They're attractively priced and could be subject to M&A."

Disclosure: York Capital does not hold positions in the companies mentioned.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

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