Acclaimed Hedge Fund Manager Takes Big Stake in RadioShack Corporation Stock


It seems the stock market and media may have been snoozing last Friday when Jamie Zimmerman's Litespeed Management LLC disclosed an 8.1% stake in RadioShack Corp. (NYSE: RSH  ) . Shares were up slightly on Tuesday morning, but with no sign of Wall Street taking notice of the large position.

Who is Jamie Zimmerman?
For those unfamiliar with Zimmerman, she is a famed hedge fund manager known for her incredible market-beating performance in the early 2000s. Most sources quote her firm Litespeed LLC as managing around $1.0 billion in assets and specializing in special situations, distressed securities, and bankruptcy. 

This makes RadioShack a perfect candidate for her firm and could be a bullish sign for investors in the struggling retailer going forward. Zimmerman is known for being an astute analyst and if her track record holds up it could be good news for embattled RadioShack shareholders.

Shareholders should keep in mind that even though Zimmerman is an accomplished fund manager and has voted yes for RadioShack's turnaround, that doesn't mean the company's turnaround will succeed. Even the best managers will admit that being accurate 66% of the time is incredibly difficult; so while this is a good sign, it's doesn't guarantee she's correct.

Final takeaway
RadioShack is set to report earnings in late February and any surprises will surely bring large stock price moves. Investors should keep a careful eye on how same-store-sales are performing at remodeled stores. Any weakness in the new concept stores would be a bad sign for the success of the turnaround story taking place at RadioShack. Until then, investors can take comfort in one acclaimed fund manager jumping on the RadioShack bandwagon. 

RadioShack shouldn't be the only stock in your portfolio
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

link


Read/Post Comments (0) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2802428, ~/Articles/ArticleHandler.aspx, 7/31/2014 3:55:55 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement