It provides ‘buy-buy-time’.”įreeman told Redditors that he had “worked in the financial industry since 14 years old and have been interested in finance since I was 12”. “I truly think FCM’s proposed plan likely provides a great opportunity for BBBY to succeed. “Hi Everyone, I’m Jake Freeman,” he said. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.Īt the same time he introduced himself to members of the BBBY Reddit page with a post titled Giving BBBY a chance. For more information see our Privacy Policy. Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. His uncle is Scott Freeman, a former pharmaceuticals executive who helps manage the FCM fund. The student, who at one point owned more than 6.2% of BBBY via his Freeman Capital Management fund according to US Securities and Exchange Commission (SEC) filings, said he raised the $25m stake from friends and family. “I thought this was going to be a six-months-plus play … I was really shocked that it went up so fast.”įreeman, who has regularly interned at New Jersey hedge fund Volaris Capital, said he celebrated the trading success by going to dinner with his parents in the suburbs of New York City where they live. “I certainly did not expect such a vicious rally upwards,” Freeman told the Financial Times in an interview. They rose to prominence early last year when shares in ailing companies such as the US retail firm GameStop soared, partly driven by a campaign to punish hedge funds betting that their value would fall.Īlthough those shares eventually slid back down, the meme stock trend has had a revival this summer, with BBBY shares leading the charge.įreeman, an applied mathematics and economics student at the University of Southern California, said he had been “shocked” at the speed of the surge in the stock. Meme stocks are those that soar independently of the success of a business, thanks to hype on message boards and social media. The Bed Bath & Beyond shares, which trade on the ticker BBBY, dropped to $23 on Wednesday, and were down a further 14% in pre-market trading on Thursday to $19.70. They rose as high as $28 on Tuesday, when Freeman is understood to have sold most of his stake. After an almost 500% increase in the shares, sparked by intense chatter about the stock on Reddit message boards, including several posts by Freeman, he sold them for more than $130m – crystallising the vast profit.
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