Elliott Management has disclosed a $4bn stake in PepsiCo, marking one of the activist hedge fund’s largest positions to date, as it pushes for a shake-up at the global drinks and snacks group to reverse a sharp share price decline, according to a report by the Financial Times.

In a letter to PepsiCo’s board published Tuesday, Elliott called for a comprehensive portfolio and operational review, including a reassessment of bottling operations, greater investment in high-growth brands, and enhanced governance oversight. PepsiCo shares have fallen 16% over the past year, leaving the group with a market value of just over $200bn.

Elliott, which manages more than $67bn in assets, said PepsiCo’s challenges – from softening growth in its Frito-Lay snacks division, to continued market share losses in beverages – represented an “historic opportunity” for a turnaround that could unlock substantial shareholder value. The fund stressed its intention to work “collaboratively” with management.

The campaign places Elliott among PepsiCo’s top five shareholders outside of index funds and follows its recent high-profile activism at Honeywell and Starbucks, where it successfully pushed for leadership and strategic changes.

PepsiCo responded that it would review Elliott’s presentation, highlighting its existing focus on innovation, portfolio transformation, productivity, and international growth. The group, led by CEO Ramon Laguarta since 2018, maintained confidence in its long-term strategy.

Shares rose 2.3% in New York on Tuesday following the disclosure of Elliott’s stake.