Trusted legend Peter Lynch has a 5.2% stake in Penny Stock

(Bloomberg) – Peter Lynch, 78, is still looking for a bargain on Wall Street, even if it involves a penny stock.

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Former Fidelity Magellan fund manager, alternative medicine provider, has acquired a 5.2% stake in Imac Holdings Inc., giving a rare glimpse into the legendary investor portfolio.

Lynch tried to avoid owning more than 5% of a certain stock and did not realize that his $ 1.2 million shares had pushed him above that threshold, which he had to disclose in a filing Wednesday, he said in an interview.

He prefers small-cap stocks because “they are less well-followed,” Lynch said, refusing to discuss why he invested in IMA.

At Fidelity, Lynch generated a 29% annual return from 1977 to 1990, making him a Wall Street star who later wrote a popular book on stock picking.

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

Shares of Brentwood, Tennessee-based Imac rose 4.3% to close at 85 cents each on Wednesday, surpassing its fall of 25% for the year. The stock was down as low as 6.7% at the start of the day, but has reversed in the wake of Lynch’s filing with the Securities and Exchange Commission.

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