Exiting $HSY

We are selling our Hershey position on the news that Mondelez will buy it, which this morning drove the stock up 15%.

In the past few months our views on Hershey’s competitive position has changed and we’ve become more pessimistic than we were before, mainly based on how much the company has spent on acquisitions that are increasingly threatened by private label competitors.

We will therefore take advantage of the strong price increase to exit the position, and in the meanwhile study the prospects of a combined Hershey-Mondelez.