Dan Loeb Sold Out of Alibaba -- Here’s Where He’s Investing Instead

NEW YORK (TheStreet) -- Three years after first making the case for Alibaba (BABA) , Dan Loeb is done. His firm, Third Point, exited its billion-dollar stake in the Chinese e-commerce giant in the first quarter of the year.

Loeb has had his eye on Alibaba since it was under the Yahoo!  (YHOO) umbrella, and when it became public in September 2014, he dove in. "Our enthusiasm for the Alibaba story has underpinned multiple investments at Third Point and now that the company is public, we have established a significant direct investment in Alibaba shares," he wrote in a letter to investors last year.

However, his most recently regulatory filing reveals that investment is no more. Instead, his firm, which oversees about $17.4 billion in assets, is placing its bets elsewhere.

Loeb's most noteworthy new stake is in Yum! Brands (YUM) , in which he has a $260 million position as of March 31. The second-largest global quick service restaurant company, the company's brands include Kentucky Fried Chicken, Pizza Hut and Taco Bell.

In his first-quarter letter to Third Point investors, Loeb discussed the decision to invest. "We think investors should want to own Yum! for its unique open-ended middle-class growth story in China and its strong and growing franchise-led cash flows outside China," he wrote. "We also expect that Yum! management, consistent with their prior public statements, will consider a variety of value-enhancing actions to ensure that the market properly rewards its investors for both compelling earnings streams."

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