Penny Stock Surges After Fidelity Legend Lynch Reveals Stake

(Bloomberg) -- Peter Lynch still gets investors’ attention.

Most Read from Bloomberg

Target and Walmart’s Deep Pain Could Be Your Gain

Walmart Flashes a Warning Sign to the Entire Consumer Economy

Plotkin Shuts Melvin Hedge Fund Reeling From Redditor Attack

Stocks Suffer Steepest Rout in Almost Two Years: Markets Wrap

Musk Loses $12 Billion in a Day as He Tweets Politics, Slams ESG

The former Fidelity Magellan fund manager revealed on Wednesday that he had taken a 5.2% stake in Imac Holdings Inc., a provider of alternative medical treatments -- and on Thursday the shares surged, up as much as 25% in early trading.

Lynch tries to avoid owning more than 5% of a particular stock and didn’t realize that his $1.2 million stake put him over that threshold, requiring him to disclose it in a filing, he said in an interview Wednesday.

He likes small-cap stocks because “they are less well followed,” Lynch said, declining to discuss why he invested in Imac.

At Fidelity, Lynch generated annualized returns of 29% from 1977 to 1990, making him a Wall Street star who later wrote popular books on stock-picking.

Read more: Peter Lynch Says All-In on Passive Investing Is All Wrong

Shares of Brentwood, Tennessee-based Imac were up 18% to $1.01 each at 9:37 a.m. in New York Thursday. The stock is down 11% this year.

Most Read from Bloomberg Businessweek

Used Cars Become an Expensive Problem for Online Dealers Like Carvana

The Math Prodigy Whose Hack Upended DeFi Won’t Give Back His Millions

UK Is About to Become Stagflation Nation

Tech’s High-Flying Startup Scene Gets a Crushing Reality Check

A $60 Billion Crypto Collapse Reveals a New Kind of Bank Run

©2022 Bloomberg L.P.
Click Here To Get Funded!