Hedge Fund Scout Capital Buys More Arcos Dorados (ARCO)

James Crichton and Adam Weiss' hedge fund Scout Capital just filed an amended 13G with the SEC regarding their position in Arcos Dorados (ARCO).

They've boosted their position size by almost 48% since the end of the second quarter. Scout now owns 10.78% of Arcos Dorados with 13,962,000 shares per portfolio activity on November 9th.

In other activity from the hedge fund, we detailed that they acquired total return swaps on Domino's Pizza.

Also, we've posted Scout's presentation on Williams (WMB) and Sensata Technologies (ST) from the Value Investing Congress.

Per Google Finance, Arcos Dorados is "is a McDonald’s franchisee. As of December 31, 2010, the Company operated or franchised 1,755 McDonald’s-branded restaurants, which represented 6.7% of McDonald’s total franchised restaurants globally. It operates McDonald’s-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants."

Scout Capital Starts Arcos Dorados Stake (ARCO)

James Cricthon and Adam Weiss' hedge fund Scout Capital has started a position in Arcos Dorados Holdings, Inc (ARCO). Due to a 13G filed with the SEC, Scout has revealed a 5.2% ownership stake in the company with 6,733,263 shares.

The company recently priced its initial public offering (IPO) at $17 per share in the middle of April and it's very likely Scout participated in this. Shares now trade around $22.50.

The name of the company in Spanish literally translates into "gold arches." They purchased McDonalds' (MCD) operations in Latin America back in 2007. Scout's interest in the name shouldn't come as a surprise given that they've also held a very large position in McDonald's (MCD).

Scout manages over $4 billion. Before founding their hedge fund, Crichton worked at Zweig-DiMenna and received his MBA from Harvard while Weiss worked at Dan Loeb's Third Point and received his MBA from Columbia.

We've detailed some other recent portfolio activity from this hedge fund including an increase in their Domino's Pizza position (DPZ).

Per Yahoo Finance, Arcos Dorados "operates and franchises McDonald's restaurants. The company has operations in 19 territories, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, and more.".