Baupost Group, a hedge fund run by Seth Klarman, has acquired a 3.5% stake in the food delivery company Just Eat Takeaway (NASDAQ: GRUB).

Klarman paid $645 million to acquire the stake last week, according to a regulatory filing on Thursday.

Shares of the company have underperformed this year, being down nearly 19% YTD. This prompted the company’s shareholder, Cat Rock Capital Management LP, to describe the stock as “deeply undervalued,” as the company “can quickly and materially improve its standing in the capital markets by improving transparency, selling non-core assets, and exploring strategic options.”

Last month, the company reported a 51% surge in overall orders for the first six months of 2021.

"Adjusted EBITDA losses, mainly caused by U.S. and Canadian fee caps and our investment programme, have now peaked. We therefore expect to trend back to profitability going forward while retaining significant growth during the second half of the year,” Chief executive Jitse Groen said.

As a result, GRUB upgraded its full-year outlook for the growth rate to over 45%.

Just Eat Takeaway completed a $7.3 billion acquisition of U.S.-based delivery company Grubhub two months ago.