Citadel Boosts McClatchy Stake As Street Warms to the Chain

By: Mark Fitzgerald Citadel Investment Group, a hedge fund operated by Kenneth Griffin, disclosed in a U.S. Securities and Exchange Commission (SEC) filing Friday that it had nearly doubled its stake in The McClatchy Co. to 5.7%.

The increased stake comes as Wall Street -- which hammered McClatchy stock (MNI: NYSE) for buying Knight Ridder Inc. and following the acquisition with disappointing results -- increasingly portrays the publisher of The Sacramento Bee as undervalued.

In its SEC filing, Citadel said it owned 3.2 million shares of McClatchy, or 5.7% of outstanding shares. In its last disclosure, in March, Citadel reported ownership of 2.99% of outstanding shares.

McClatchy stock has caught fire in recent days, rising as much as 7.8% during trading on Wednesday, before closing with a 4.2% gain.

Minutes before the close of trading Friday, McClatchy was priced at $25.27, down 27 cents or 1.06%.


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