Daniel Loeb, who runs hedge fund firm Third Point, said his firm’s position in Yum! Brands Inc. is worth about $1 billion.
“We think there’s enormous upside in” Yum!, Loeb said at the SkyBridge Alternatives Conference in Las Vegas on Wednesday. “We don’t put a billion dollars to work unless” we see the opportunity for substantial gains, he said.
Third Point, which oversees $17.4 billion, disclosed last week in a letter that it bought a “significant stake” in Yum! in the first quarter. The New York-based investment firm said the restaurant operator’s business in China will recover from recent food-safety issues.
Yum! shares have gained 3.8 percent since April 30, the day before Third Point revealed its position in the letter.