Hedge fund Pershing Square Capital confirmed that it has taken a large stake in
, and it signaled that it may make waves at the discount retailer.
Pershing, run by activist investor Bill Ackman, said in a
Securities and Exchange Commission
filing Monday that it has acquired about 81.8 million shares of Target, equal to a 9.6% stake.
The move was widely expected; reports that Ackman had amassed a stake of more than 5% sent Target's shares up 7% last Thursday.
The filing said Pershing views Target's stock as undervalued, and it intends to "discuss with management ways in which this undervaluation can be corrected."
Pershing said it will seek talks with Target related to the company's strategy, business, assets, operations, capitalization and/or financial condition.
Shares of Target recently were down $1, or 1.4%, to $69.14.