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:RSHCQ). 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.
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.
Blake Bos owns shares of RadioShack. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.