Hedge fund to take two Tivity board seats

The next Nutrisystem domino has fallen at Tivity Health, where two directors will make way this spring for representatives of an activist hedge fund that bought 1.75 million shares of the company in the wake of last week’s exit of CEO Donato Tramuto.

New York-based HG Vora Capital Management’s recent bargain buying spree — Tivity shares were cut in half to about $11.40 between Wednesday afternoon and Monday morning — came after the firm had aggressively shrunk its stake in mid-January, when Tivity was changing hands around $25. The firm’s managers had since then been buying back shares in the low $20s but went whole hog late last week, rebuilding their holdings to 9.9 percent.