20-year-old college student Jake Freeman has seized a $110 million profit by selling his entire stake in Bed Bath & Beyond shares during the latest meme stock frenzy.
Freeman, the head of Freeman Capital Management and an applied math and economics major at the University of Southern California, made this incredible windfall as retail traders flocked to Bed Bath & Beyond, hoping for a GameStop-style rally.
Freeman initially purchased nearly 5 million shares of the homewares retailer at less than $5.50 per share, investing approximately $25 million.
Within days, Bed Bath & Beyond’s stock skyrocketed from under $6 to over $20, forcing Freeman to sell his entire position for more than $130 million.
In an interview with the Financial Times, Freeman expressed his astonishment at the unexpected rally, confessing that he had anticipated a more extended investment horizon.
Freeman, who co-published a paper on financial topics at the age of 16 and interned at Volaris Capital, funded his Bed Bath & Beyond bet with contributions from friends and family.
The timing of Freeman’s sale appeared fortunate as Bed Bath & Beyond’s stock suffered a sharp 19% drop after its largest shareholder, Ryan Cohen, announced his intention to divest his 12% stake.
Cohen’s involvement was pivotal in the GameStop stock surge in January 2021, making Freeman’s sale even more remarkable.
As the market remains volatile, this remarkable story underlines the unpredictability of meme stocks and the astonishing opportunities they present, especially for young investors.