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Activist investor Jana Partners has revealed a strong stake in Callaway and is pushing for a sale of the company.
Jana Partners announced Thursday in a statement from the Securities and Exchange Commission that it had acquired more than 9% stake in Callaway Golf (ELY), the maker of the famous line of clubs and drivers Big Bertha, X Hot and X2 Hot.
Callaway shares jumped nearly 15% on news. Shares of another publicly traded golf company, Titleist owner Acushnet (GOLF), increased by more than 3% as well.
Jana is led by influential hedge fund manager Barry Rosenstein. The company said Callaway's shares were still undervalued, although Callway "stimulated innovation and sustained market share gains in its core golf business."
Several other individual investors support Jana's attempts to increase the value of the company. Among them is Cynthia Davis, an old Nike (NKE) executive who has been president of the sports giant's golf division.
Callaway's shares are down 10% in the past 12 months, even though the stock had appreciated earlier this year following Woods' magnificent Masters win in April. Woods does not approve of Callaway. But CEO Chip Brewer noted last month that Tiger's return was great news for the sport.
Callaway was not immediately available to comment on Jana's investment.
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