At least one investor exited Bed Bath Beyond ahead of GameStop chairman Ryan Cohen.
Freeman, a 20-year-old student, made $110 million from meme-stock favorite Bed Bath Beyond BBBY, and Freeman snapped up a 6.2% stake in the homeware retailer in July - nearly 5 million shares, or $5.50 per share, according to the Securities and Exchange Commission filings.
Freeman sold over $130 million worth of stock on Tuesday, according to the filings.
Freeman told MarketWatch that I did not expect the price to go as high as it did. I was hoping that BBBY better structured its balance sheet to allow value to be unlocked. I felt at those elevated levels that BBBY was not worth it from a risk reward standpoint. After Cohen revealed his plans to sell his big stake in the company a few months after he bought it, shares of Bed Bath Beyond fell more than 18% in after-hours trading on Wednesday.
According to the Financial Times, he is a student at the University of Southern California and raised the initial money from friends and family.
Freeman has worked for the New Jersey hedge fund Volaris Capital over the years, according to his LinkedIn profile. Freeman and his uncle Dr Scott Freeman, a former pharmaceutical executive, recently amassed an activist stake in the pharmaceutical company Mind Medicine MNMD, Freeman told MarketWatch that he plans to have a constructive dialogue with the board of Mind Medicine, along with his study of complex analysis and mathematical statistics at the USC. He is studying for the GRE in math.
After Freeman acquired Bed Bath Beyond in July via Freeman Capital Management, a fund registered in Wyoming, he sent a letter to management saying the company was facing an existential crisis for its survival. He advised the board to reduce its cash-burn rate, improve its capital structure, and raise cash. He suggests swapping debt and issuing a convertible bond to take advantage of the implied volatility of the stock.