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Jan 12 (Reuters) - Elliott Associates LP, a unit of activist hedge fund Elliott Management Corp, disclosed an 8.3 percent stake in Advisory Board Co, saying the company's stock was "significantly undervalued".
Shares of Advisory Board, which provides research and software tools as well as consulting services to healthcare and education companies, shot up as much as 17.15 percent at $42.35 in morning trading on Thursday.
The stake would make Elliott Associates the biggest shareholder in the company, according to Thomson Reuters data.
Elliott Associates said in a regulatory filing it would seek to engage with the company's board over "opportunities to maximize shareholder value". reut.rs/1oUTX8C
"We are always open to discussing constructive ideas for enhancing long-term shareholder value," Advisory Board spokesman Robert Borchert said in an emailed statement.
Earlier this month, the company said it would cut 220 jobs, or 5.7 percent of its total workforce. It had warned of lower revenue growth in 2016 due to significantly reduced IT spending following the U.S. presidential election.
Advisory Board's stock had lost nearly a third of its value in 2016. (Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Saumyadeb Chakrabarty and Savio D'Souza)