Callaway Golf (NYSE:ELY) is making headlines Thursday morning due to a large hedge fund placing a sizable bet on the company.

The global sporting goods business that focuses on golf equipment and products — based out of Carlsbad, Calif. — announced that hedge fund Jana Partners LLC has acquired a 9.2% stake on ELY stock. This now makes the hedge fund the second-largest shareholders of the golf equipment business.

Jana revealed in a filing with the Securities and Exchange Commission that it arrived at the decision to buy the stake because it believed Callaway Golf’s shares are “undervalued and present an attractive investment opportunity.” The firm added that while Callaway has been able to drive innovation in recent years and gain market share, there are “other factors” that have caused the company’s stock to fail to live up to expectations.

This analysis has prompted the hedge fund to express its intention to have discussions with the golf equipment maker’s board of directors and management in regards to strategic alternatives, which include exploring a divesting of assets or a sale of the company.

In its most recent 13F filing, Jana said that it did not own any Callaway shares as of March 31.

ELY stock is soaring about 14.7% on Thursday morning following news that the company attracted the attention of a major hedge fund, which placed a considerable bet on the company.