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Billionaire hedge fund titan crushing market says passive indexing making it easier to outperform

  • York Capital Management founder Jamie Dinan says he's finding great corporate restructuring stock ideas in Japan and Europe.
  • The hedge fund manager also says active management is getting "less crowded," and that bodes well for future returns.
  • The firm has $17 billion in assets under management. The flagship York Multi Strategy Fund is up 18 percent through July compared with the S&P 500's 10.3 percent return.

York Capital Management founder Jamie Dinan says he's finding "huge opportunities" in Japan and Europe.

"What we've been doing in Japan is playing the whole restructuring of the Japanese conglomerates ... by trying to figure out which subsidiaries they are going to sell," Dinan said Tuesday on CNBC's "Squawk Box."

The hedge fund manager also believes the restructuring theme is also working in Europe.

"Europe is the same thing happening right now. You're starting to see in Europe activism for example. Big companies like Unilever, Nestle are under pressure," he said. "European equities are really interesting."

Dinan also defended active management and emphasized "good managers will outperform." He noted how the move to passive funds bodes well for future hedge fund industry returns.

"It's less crowded right now. A lot of the money has left the strategies we do," Dinan said. "The supply-demand imbalance is actually much more in favor of finding alpha and creating excess returns."

The flagship York Multi Strategy Fund is up 18 percent through July compared with the S&P 500's 10.3 percent return. Dinan's firm says it has $17 billion of assets under management.