Trian exits stake in PepsiCo Inc - filing

By Michael Flaherty

NEW YORK (Reuters) - Trian Fund Management sold its position in PepsiCo Inc, a regulatory filing said on Friday, ending a profitable if sometimes strained relationship between the activist hedge fund and the parent of Pepsi, Frito-Lay and Tropicana.

"Trian believes PepsiCo has addressed many operational issues identified by Trian – management has increased productivity efforts, reduced overhead, increased advertising investment, and delivered consistent earnings growth on a constant currency basis," New York-based Trian said in an emailed statement.

Trian said it first invested into PepsiCo (PEP.N) late in 2012, disclosing in a quarterly filing in April the following year that it held $269.1 million worth of shares. The stock was trading at around $78 (£54) per share at the time of the filing, after trading in the $70 range through the last months of 2012.

Trian pushed hard for PepsiCo to break up its business by spinning off its beverages arm from its better-performing snacks division.

After nearly two years of a contentious campaign to pursue such a move, Trian and the company reached a truce in January 2015. PepsiCo agreed to allow Trian operational partner William Johnson onto the company's board, and the activist eased off its campaign for a PepsiCo split.

PepsiCo shares were down 2 percent to $104 per share on Friday.

(Reporting by Michael Flaherty; Editing by Chris Reese and Tom Brown)