Yum! Brands, Devon Energy Jump After Third Point Reveals New Stakes

NEW YORK (TheStreet) -- Shares of Yum! Brands  (YUM) and Devon Energy  (DVN) are both benefiting this morning after Dan Loeb's Third Point revealed in its first quarter letter to investors that the hedge fund has taken new stakes in each.

YUM: Third Point holds a "significant stake" in Yum! Brands, which it initiated in the first quarter, as the fund thinks the company is in the "early stages" of moving past its recent troubles in its Chinese business. The fund noted that its research suggests that Yum's KFC brand continues to "resonate strongly" in China.

DEVON: Third Point also outlined that it has also recently initiated a position in Devon Energy, which it believes stands out in the E&P sector by "combining limited downside with an underappreciated, valuable asset base." Third Point added that it is encouraging Devon's management to continue streamlining its portfolio and that it believes the market is undervaluing Devon’s U.S. E&P business by $10B-$15B, or $25-$35 per share, if the value of its acreage is compared to companies like Concho Resources  (CXO), Cimarex Energy  (XEC) and Pioneer Natural  (PXD).

PRICE ACTION: In early trading, shares of Yum! jumped 4.6% to $89.90, while Devon rose 0.9% to $68.79.

Reporting by Jason Keil.

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