Bed Bath and Beyond Inc. (BBBY, Financial), a home goods retailer, contributed most to the Strategy’s returnduring the quarter. During the quarter, BBBY was caught up in the “Reddit frenzy”, highly volatile price swings in a handful of stocks driven by retail investors influenced by posts on Reddit site WallStreetBets (of which Gamestop was the most notable). We purchased BBBY in the low $20s late last year. We believed the restructuring plan laid out by new management would drive significantly higher earnings and a higher stock price if implemented successfully. Due to positive mentions on WallStreetBets, the stock rose dramatically in late January, soaring through our price target. As a result, we sold our position, at prices between $46 and $50. We reestablished a small position in early February as the frenzy subsided and the stock fell back to the mid 20s.
From Keeley Teton Small Cap Opportunities Fund's first-quarter 2021 letter.
