Starboard Value is building a 6.5% stake in GoDaddy and making its shares rise 8%

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Activist investor Starboard Value took a 6.5% stake in GoDaddy, which sparked a rally in the web services company’s stock.

The hedge fund bought more than 10,000 shares of GoDaddy, valued at approximately $ 800 million, according to a government filing. The new stake became Starboard’s largest stake.

GoDaddy’s shares rose more than 8% on the news Monday.

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The stock is flat over the year despite the company seeing an increase in online traffic amid the Covid-19 pandemic.

The Wall Street Journal first reported on Starboard’s involvement.

Starboard Value and GoDaddy did not immediately respond to CNBC’s request for comment.

Starboard Value CEO Jeff Smith was a prolific activist investor even during the pandemic, pushing for change in companies in the veterinary, chemical and healthcare industries.

According to submissions, Starboard Value has assets of approximately $ 6.2 billion under management through the first quarter of 2020. Smith spun off the New York-based hedge fund from investment firm Ramius in 2011.

– CNBC’s Jesse Pound contributed to the coverage.