Hedge fund Third Point LLC scooped up shares of Yahoo Inc and demanded that the company overhaul its board, saying the directors had made serious misjudgments and destroyed value for stockholders.

A reconstituted board with new directors who will bring fresh eyes, relevant industry expertise and increased investor alignment to the table is immediately necessary, said Third Point, which has about $8 billion under management and now owns about 5 percent of Yahoo shares.

In a letter to the Yahoo board, Third Point Chief Executive Officer Daniel S. Loeb called for the prompt resignation of Chairman Roy Bostock and directors Arthur Kern, Vyomesh Joshi, and Susan James.

Third Point said it had held discussions with a number of potential replacements for current directors.

Yahoo CEO Carol Bartz was fired two days ago.

Third Point welcomed Bartz's departure, but said the board ultimately was responsible for the company's performance over the years.

From the failed Microsoft sale negotiations, to a subsequent bungled and disappointing search deal with Microsoft, through a series of misguided CEO selections, and most recently the Alipay debacle, this Board's failures have destroyed value for all Yahoo stakeholders, the letter said.

A Yahoo representative was not immediately available for comment.

Shares of Yahoo were up 3.1 percent at $14.03 in afternoon trading.