Etsy is surging after a big investor boosted its stake in the company

Etsy shares rallied more than 7% on Wednesday, lifted by news that Tiger Global Management has bought a stake in the company.

On Monday, a regulatory filing showed the hedge fund increased its holding of the company's stock to 8.9% of all outstanding shares from 7.3% as of mid-April.

Etsy's stock climbed to as high as $17.45 a share on Wednesday morning.

That price is still nearly half of Etsy's IPO price of around $30 per share.

The stock is now down 43% from the day it went public.

Here's a chart showing the pop in Etsy shares on Wednesday.