Masimo Corp.stock gains after report activist Politan Capital takes stake

Masimo Corp. (NASDAQ:MASI) rose 3.9% in after hours trading after a report that an activist investor has taken a 9% stake.

Politan Capital, founded by veteran activist Quentin Koffey, has a 9% stake worth $750 million, according to a WSJ report, which cited people familiar.

Politan is said to want to pressure Masimo, a medical monitoring company which supplies pulse oximeters to hospitals, to take actions to improve its stock price after it plunged following an acquisition of a high-end audio equipment company Sound United in February, the WSJ reported.

Masimo (MASI) shares plunged 37% on Feb. 16 the day after the medical company announced it was purchasing Sound United, which drew much skepticism on Wall Street. Masimo shares have dropped 30% since the acquisition was announced.

Politan’s Koffey is a veteran activist investor who previously work at hedge funds DE Shaw and Senator Investment before founding Politan last year.

Politan Capital reportedly took a $900 million stake in Centene Corp. (CNC) last year and in December the company reached a cooperation agreement with the activist. Politan owned 12.9 million Centene shares as its most recent 13-F filing.