Billionaire investor and American hedge fund manager Daniel Loeb revealed that his hedge fund 'Third Point' has taken a new position in fast food restaurant company Yum! Brands. According to Loeb, his hedge fund's new position has sent the Louisville headquartered company's stock up about 7%.

Loeb's Third Point, which is based in New York, bought into Yum! during the first quarter after finding that it has solved all the recent troubles that the company faced in its Business in China. According to reports, the $17.5 billion firm also determined before bought into Yum! that its profit would recover over the next one to two years.

In a letter to investors, Third Point said, "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".

As per the reports, stock of Yum! closed up 6.91% at $91.90. Spokeswoman of Yum!, which has owned Long John Silver's and A&W Restaurants, said that the company appreciates the investors' confidence and investment in Yum Brands. In China, the fast food restaurant company operates about 7,000 KFC and Pizza Hut restaurants in over 1,000 cities. According to the letter, the company also has three times as many restaurants as its closest competitor, McDonald's.

Apart from Loeb, earlier this year, hedge fund manager Keith Meister also took a stake. Meister also runs Corvex Management. Third Point, which is one of the hedge fund industry's most closely followed investors, has also taken new stake in Devon Energy. According to the company, it took new stake in Devon Energy because it could perform better as management starts to focus on capital in fewer, higher return areas. Share price of Devon rose about 0.59% to $68.61.