Former Fidelity mutual fund manager and well-known investor Peter Lynch is still on Wall Street looking for a bargain, even if it involves a penny stock. The former Fidelity Magellan fund manager just acquired a 5.2% stake in alternative medicine treatment Imac Holdings Inc, as the company disclosed in an SEC filing.
Lynch tried to avoid owning more than 5% of a particular stock and didn’t feel that his $1.2 million stake put him above the threshold, requiring him to disclose it in a filing Wednesday. is needed, he said in an interview to Bloomberg. He prefers smallcap stocks because ‘they are less followed’, refusing to discuss why he invested in emacs.
At Fidelity, Lynch earned an annual return of 29% from 1977 to 1990, making him the Wall Street star who later wrote popular books on stock-picking.
Lynch ran Fidelity’s Magellan Fund for 13 years from 1977–1990, and has earned a reputation as a top performer, increasing assets under management from $18 million to $14 billion (as of 1990). He also authored several best-selling books on investing, including One Up on Wall Street and Beating the Street, and has been a generous contributor to the Boston Community, the Catholic School Foundation, and the Inner City Scholarship Fund.
Shares of Brentwood, Tennessee-based emacs closed more than 4% up at 85 cents on Wednesday, reducing its decline for the year to 25%. The stock had fallen as much as 6.7% earlier in the day, but reversed in the wake of Lynch’s filing with the Securities and Exchange Commission (SEC).
(with inputs from Bloomberg)