Mario Gabelli Initiates 8% Stake in Zale Corporation (ZLC)

Mario Gabelli has set his sights on Zale Corporation (NYSE:ZLC). In a recent filing with the Securities and Exchange Commission, GAMCO Investors, Gabelli Funds, and GSI have disclosed opening a new position by acquiring an aggregate of 2.7 million shares. This stake accounts for approximately 8.1% of the company’s common stock.

Mario Gabelli

Zale Corporation (NYSE:ZLC) has also attracted the attention of Guru Ramakrishnan. During the last quarter of 2013, his fund, Meru Capital, has acquired 557,700 shares reportedly worth $8.79 million. Israel Englander is also bullish on this stock, having increased his stake by 143%. According to its latest 13F report, Millennium Management holds 375,300 shares valued at $5.9 million. Jim Simons of Renaissance Technologies has, on the other hand, reduced his exposure to Zale Corporation. Renaissance has almost halved its stake to 341,692 shares reportedly worth $5.4 million.

Zale Corporation (NYSE:ZLC) is a retailer of jewelry that operates in North America. Following a massive depreciation in the aftermath of the 2008 financial crisis, the stock has been steadily advancing to a current price of $21.71, up by 2339% since the 2009 low of $0.89 per share. The company has a market cap of $713 million and does not pay a dividend. For the quarter ended January 31, 2014, Zale posted revenues of $656 million, down from $671 million in the same period last year, and earnings of $1.13 per share, a 10% year-over-year increase. Analysts expect the company to register revenues of $441 million and earnings of $0.17 for the current quarter.

Gabelli has managed to beat the S&P500 index by approximately 2% since its inception and is a renowned investor, with a portfolio worth more than $18 billion. According to the fund’s latest 13F report, the biggest position in its portfolio is held by DIRECTV (NASDAQ:DTV). in which Gamco owns 4.5 million shares valued at $313 million.

Disclosure: none

Recommended reading:

Hedge Fund News: Dmitry Balyasny, Daniel Loeb & SAC Capital Advisors

David Kim’s Ghost Tree Capital Loves These Healthcare Stocks

David Gallo’s Valinor Management Boosts Stake in dELiA*s Inc (DLIA)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!