Activist hedge fund buys 8.3% stake in The Advisory Board Company

Elliott Associates — an "activist" hedge fund — on Wednesday bought an 8.3 percent share of The Advisory Board Company, according to a 13-D filing with the Securities and Exchange Commission.

The Advisory Board Company, a Washington, D.C.-based healthcare consultancy, recently restructured its healthcare business and laid off 220 employees earlier this month. The company's stock has been falling in recent years, from $69 per share in 2013 to $36 per share ahead of the Elliott filing, according to coverage of the filing in The Washington Post. After Elliott announced Thursday it bought a significant stake in the company, Advisory Board shares jumped 16 percent in early trading, The Washington Post reported.

Elliott Management, founded by billionaire Paul Singer, is known for "activist" investments. It often invests in companies in debt or nearly bankrupt.

"We are obviously aware of Elliott Management's 13-D filing and investment in The Advisory Board Company," Robert Borchert, vice president of investor relations at The Advisory Board Company, said in an emailed statement to Becker's. "As with all of our shareholders, we are always open to discussing constructive ideas for enhancing long-term shareholder value. We remain focused on this endeavor and continue to execute on a number of initiatives, including the refined healthcare strategy and restructuring we announced on January 3."

 

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