Citadel catches RadioShack rebound

Tue Aug 26, 2008




By Pete Gallo

Ken Griffin's Citadel Investment Group has long targeted potential turnaround situations, with many of them paying off quite well.

One of the most recent - and most notable - has been embattled technology-and-gadget retailer RadioShack. Citadel's plunge into the stock was bold, considering that the company's perennial stumbling seems to stem from low self-esteem as much as from increasing competition from the likes of Best Buy.

RadioShack hit a low of $12 on July 1, down from $34.85 a year earlier. Enter Citadel. Filings with the Securities and Exchange Commission show that the hedge fund group purchased 6.9 million RadioShack shares, making it one of the company's biggest owners, with a 5.3% stake. (No other hedge funds have showed up as major shareholders, according to SEC filings.)

Citadel's timing was excellent. RadioShack rose from $12 in July to about...

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