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Jonathan Bush’s Athenahealth Has a New Activist Investor

Activist investor Elliott Management disclosed a 9.2% stake in Athenahealth on Thursday, calling the healthcare software provider’s shares “significantly undervalued.”

Athena health’s shares (ATHN) jumped 15.7% to $123 in trading before the bell Thursday. By midday Friday it traded above $130.

Elliott would seek to engage in a dialogue with Athenahealth’s board regarding opportunities to increase shareholder value, the investor said in a regulatory filing.

Athena health is run by its co-founder, CEO Jonathan Bush, a nephew of former President George H.W. Bush and cousin of President George W. Bush. The company’s stock has been a target of short-sellers in the recent past, and its stock currently trades at well over 200 times trailing earnings.

Elliott, a hedge fund run by Paul Singer, has a lengthy track record of winning changes in management and leadership at companies where it has invested. It most recently drew attention for pressuring for the ouster of Klaus Kleinfeld, CEO of Arconic (ARNC) (formerly Alcoa).