A 20-year-old college student earned $110 million playing Bed Bath & Beyond.
According to Securities and Exchange Commission documents, Jake Freeman, a 20-year-old college student, made $110 million from Bed Bath & Beyond , a favorite among meme-public companies.
In July, Freeman bought more than 5 million shares for a total of $25 million, or $5.50 per share, taking a 6.2% stake in the home appliance retailer.
According to the document, Freeman sold $130 million worth of stock on Tuesday.
According to Freeman, "I didn't expect the price to go up that much." “I speculate that BBBY's balance sheet is more structured to unlock potential. In my opinion, BBBY at such a high level is not viable from a risk/reward perspective.
In after-hours trading Wednesday, Bed Bath & Beyond shares fell more than 18% after Cohen announced his intention to sell most of the company just months after the purchase.
He teaches at the University of Southern California, and the Financial Times reports for the first time that he got money from friends and family.
According to his LinkedIn profile, Freeman spent years as a hedge fund intern at Volaris Capital in New Jersey. It was reported that Freeman and his uncle Dr. Scott Freeman, a former pharmaceutical executive, recently took an active role at pharmaceutical company Mind Medicine, according to the Financial Times.
Freeman told MarketWatch that in addition to courses in rigorous analysis and mathematical statistics at USC, he will now focus on "constructive" discussions with the Board of Psychiatry. He is currently preparing math for the GRE.
Freeman Bed bought Bath & Beyond in July through Freeman Capital Management, a Wyoming-listed fund, according to SEC records. In a letter to company management, Freeman explained that the company "is facing an existential crisis in order to survive."
The Executive Board recommends "reducing the use of liquidity , significantly strengthening the capital structure and raising funds". It recommends paying off the debt and then issuing convertible bonds to take advantage of the stock's implied volatility.