Get All Access for $5/mo

A College Student Cashed Out a $110 Million Profit on Bed Bath & Beyond - After Piling $25 Million Into the Meme Stock Jake Freeman's fund revealed a 6.2% stake in the retailer in late July, then sold it on Tuesday.

By Theron Mohamed

This story originally appeared on Business Insider

Richard Levine/Corbis/Getty Images via BI

A 20-year-old college student raked in an estimated $110 million profit by selling Bed Bath & Beyond shares this week, capitalizing on the homewares retailer becoming the latest meme stock to multiply in value in a matter of days.

Jake Freeman, the head of Freeman Capital Management, revealed he owned nearly 5 million Bed Bath & Beyond shares, or 6.2% of the company, in a Securities and Exchange Commission filing on July 21. He sold the entire position on Tuesday, he disclosed in another filing this week.

Bed Bath & Beyond stock more than tripled in price from under $6 to over $20 during that period, as retail traders piled in hoping it would skyrocket in value like GameStop, AMC, and other meme stocks. Freeman spent about $25 million on his stake, or less than $5.50 a share, and sold it for north of $130 million on Tuesday, the Financial Times reported.

"I certainly did not expect such a vicious rally upwards," Freeman told the newspaper. "I thought this was going to be a six-months-plus play," he continued, adding that he was "really shocked that it went up so fast."

Freeman is an applied math and economics major at the University of Southern California, and co-published a paper titled "Irreducible Risks of Hedging a Bond with a Default Swap" at the age of 16. He told the FT that he has invested alongside his uncle for years, previously interned at a hedge fund named Volaris Capital, and mostly raised the money for his Bed Bath & Beyond bet from friends and family.

He appears to have lucked out with the timing of his sale. Bed Bath & Beyond stock fell as much as 19% on Wednesday after the retailer's largest shareholder and GameStop's chairman, Ryan Cohen, disclosed he intended to dump his entire 12% position in the company.

Bed Bath & Beyond shares had spiked on Tuesday after Cohen confirmed he still held bullish call options on the stock. Cohen helped spark GameStop's surge in January 2021, and kickstarted the wider meme-stock boom, by investing in the video-game retailer and pushing for changes at the company.

Freeman didn't immediately respond to a request for comment from Insider.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Marketing

Are Your Business's Local Listings Accurate and Up-to-Date? Here Are the Consequences You Could Face If Not.

Why accurate local listings are crucial for business success — and how to avoid the pitfalls of outdated information.

Money & Finance

Day Traders Often Ignore This One Topic At Their Peril

Boring things — like taxes — can sometimes be highly profitable.

Productivity

Want to Be More Productive Than Ever? Treat Your Personal Life Like a Work Project.

It pays to emphasize efficiency and efficacy when managing personal time.

Business News

'Passing By Wide Margins': Elon Musk Celebrates His 'Guaranteed Win' of the Highest Pay Package in U.S. Corporate History

Musk's Tesla pay package is almost 140 times higher than the annual pay of other high-performing CEOs.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Starting a Business

I Left the Corporate World to Start a Chicken Coop Business — Here Are 3 Valuable Lessons I Learned Along the Way

Board meetings were traded for barnyards as a thriving new venture hatched.