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Pinterest shares rose more than 20 percent after hedge fund Elliott Investment Management identified itself as the company’s largest shareholder and expressed support for the new CEO.

The announcement helped offset Pinterest’s disappointing second quarter results, which reflected weakness in the digital advertising market, which has hit several of its social media rivals.

“Pinterest is a highly strategic company with significant growth potential, and our belief in the value-creation opportunity at Pinterest today has led us to become the company’s largest investor,” Elliott said in a statement on Monday.

In July, the Wall Street Journal reported that Elliott had acquired a more than 9 percent stake in the company.

The Florida-based hedge fund said Bill Ready, Pinterest’s new CEO, was the “right leader” to oversee the company’s next phase of growth. Ready joined in late June and previously led the commerce and payments division at Google.

Pinterest shares rose 21.7 percent in after-hours trading on Monday to a four-month high of $24.32.

The share price increase comes despite the disappointing second quarter results that the company announced on Monday. Pinterest’s revenue rose 9 percent to $665.9 million, roughly in line with analyst forecasts. But expenses were up 29 percent from a year ago, and the $43 million net loss in the quarter beat Wall Street’s expectations for a $30 million profit.

Recent reports that Elliott, with his reputation as a formidable activist investor, was building a stake in PayPal gave a boost to the payment company’s stock price last week.

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