At least one investor left Bed Bath & Beyond before GameStop Chairman Ryan Cohen.
Securities and Exchange Commission filings show Jake Freeman, who is a 20-year-old college student, earned $110 million from meme-favorite Bed Bath & Beyond
Freeman acquired a 6.2 percent stake in the home goods retailer in July — nearly 5 million shares, worth roughly $25 million, or $5.50 a share.
On Tuesday, Freeman sold more than $130 million worth of stock, the filings show.
“I didn’t expect the price to jump the way it did,” Freeman told MarketWatch. “I expected this as BBBY structures its balance sheet better for value to be unlocked. I felt that at these high levels, BBBY was not worth it from a risk/reward perspective.”
Shares of Bed Bath & Beyond fell more than 18% in after-hours trading Wednesday after Cohen revealed plans to sell his large stake in the company just months after buying it.
He is a student at the University of Southern California and according to initial reports from the Financial Timeshe raised the initial money from friends and family.
Freeman has been an intern at New Jersey hedge fund Volaris Capital over the years, according to his LinkedIn profile. According to the FT, Freeman and his uncle Dr. Scott Freeman, a former pharmaceutical executive, recently acquired an active stake in pharmaceutical company Mind Medicine
Freeman told MarketWatch that he now plans to focus on having a “constructive” dialogue with Mind Medicine’s board, along with studying complex analysis and mathematical statistics at USC. Now studying for the GRE in math.
After Freeman acquired Bed Bath & Beyond in July through Freeman Capital Management, a Wyoming-registered fund, according to filings with the SEChe sent a letter to management saying the company was “facing an existential crisis for its survival.”
He advised the board to “reduce the rate of cash burn, dramatically improve its capital structure and raise cash.” It suggests taking advantage of the implied volatility of stocks by swapping debt and then issuing convertible bonds.