Hedge fund billionaire Paul Singer has unveiled his latest target, and the share price has exploded

Shares of hunting, fishing, and camping retailer Cabela's jumped around 20% on Thursday after activist hedge fund Elliot Management disclosed an 11.1% stake.

Elliott Management, the fund run by Paul Singer, owns 4,165,000 shares, or 6% of the shares outstanding. The fund also has 5.1% of the shares through derivative agreements, the filing said.

Elliott believes the stock is "significantly undervalued" and said that with the "robust environment" for private equity investment in retail companies that there may be an opportunity to sell the company.

The retailer's share price was trading last up about 19.62%, or $6.59, at $40.

According to the filing, Elliott purchased shares over the last couple of months in a range of $33.33 to $47.99.

Here's a five-day chart: