Bill Ackman of Pershing Square Capital revealed a new stake in Starbucks on Tuesday at a conference in New York. The hedge fund has 15.2 million shares or about $900 million worth at current prices. Starbucks shares popped after the news came out. They closed up 2 percent, to $57.71. Ackman's average cost for Starbucks was $51 a share, according to his presentation made at the Grant's Interest Rate Observer conference, which means the hedge fund manager is already up about 13 percent on the investment. "If SSS (same store sales) and valuation revert closer to historical average levels, we believe that SBUX shares can more than double over the next three years," the presentation said. It's a "rare opportunity to own one of the world's best businesses at a discount."

Ackman also calls China the company's single largest growth opportunity and notes that Starbucks' current two-year share repurchase plan represents 20 percent of the company's market value. The activist investor said in August that the fund had taken a new undisclosed position that made up about 10 percent of the portfolio and that apparently was Starbucks. The fund also disclosed new stakes in United Technologies and Lowe's Cos. back then.

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