Dan Loeb revealed a stake in YUM! Brands and the stock is shooting up

Third Point founder Dan Loeb has issued his first quarter letter, and he says he's taken a significant position in YUM! Brands, the owner of food chains including KFC. 

YUM! stock was up about 4% on the news in Friday morning trading. 

Loeb also took a position in Devon Energy, according to his first quarter letter. 

In Loeb's letter, he said he's bullish on the US for three reasons: it is unlikely the Fed will raise rates in June; he's expecting economic data to improve over the next few quarters, and he believes that when the Fed finally does raise rates, it will be incremental. 

One Loeb follower on Twitter posted a portion of his letter that's bullish on YUM!: