The hedge fund Elliott Management is raising its bet on Juniper Networks after the networking equipment company announced a series of new initiatives.
Elliott, which began pushing for change at Juniper in January, has increased its stake in the company to 7.4 percent, according to a regulatory filing on Wednesday. Previously, its stake in Juniper was 6.2 percent.
The hedge fund is the second-largest shareholder of Juniper, after T. Rowe Price, according to Bloomberg data. In the filing, Elliott said it believed Juniper’s shares were “significantly undervalued.â€
The company’s stock was up about 0.5 percent in trading Wednesday afternoon, above $25.50 a share.
Last month, Juniper struck an agreement with Elliott that avoided a potential proxy fight. The company announced new initiatives that were quite similar to a proposal that Elliott had earlier put forward, drawing praise from the hedge fund.
Among the initiatives Juniper announced were plans to nominate two new directors to its board and return more money to shareholders. It also said it would seek to streamline its business portfolio and cut costs.
