(Bloomberg) — Peter Lynch is still searching for bargains on Wall Street at age 78, even if it involves a penny stock.
The former Fidelity Magellan fund manager acquired a 5.2% stake in Imac Holdings Inc., a provider of alternative medical treatments, offering a rare glimpse into the legendary investor’s portfolio.
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 Wednesday, he said in an interview.
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.
Shares of Brentwood, Tennessee-based Imac rose 4.3% to close Wednesday at 85 cents each, paring its decline for the year to 25%. The stock was down as much as 6.7% earlier in the day, but reversed course in the wake of Lynch’s filing with the Securities and Exchange Commission.
©2022 Bloomberg L.P.