Athenahealth, Inc. (NASDAQ: ATHN) shares soared today after the hedge fund, Elliott Management, disclosed a 9.2% stake in the company. The stock is up over 20% at $126 per share, and is flourishing despite the political turmoil in the nation’s capital.
The hedge fund, headed by Paul Singer, believes Athenahealth, “operates in a highly strategic area at the intersection of technology and healthcare with a disruptive value proposition, a leading competitive position and a compelling product set, the value of which is not reflected in [their] current market value.” A change of pace from their usual distressed debt business, the fund stayed true to their activist characteristics. According to the filing, Elliott plans to “engage in a dialogue” to maximize shareholder value.
Watertown, MA based Athenahealth has a current market capitalization of $4.9 billion.