Here’s What Made Jacob Fund to Pick Bed Bath & Beyond (BBBY)

Jacob Fund is a mutual fund company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The latest quarter showed continued market recovery, with major equity indexes reaching new all-time highs. After uncertainties regarding trade policy, finalized tariffs had a limited economic impact, stabilizing the market and refocusing investors on fundamentals. The fund anticipates a new productivity cycle that will enhance profit margins and earnings growth by keeping labor markets subdued. In addition, the fund will remain focused on companies poised for earnings growth and improved valuation multiples in expectation that asset prices could continue to rise in the near-term. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025.

In its third-quarter 2025 investor letter, Jacob Fund highlighted stocks such as Bed Bath & Beyond Inc. (NASDAQ:BBBY). Headquartered in Union, New Jersey, Bed Bath & Beyond Inc. (NASDAQ:BBBY) is an e-commerce platform that provides furniture and home furnishing products and services. One-month return of Bed Bath & Beyond Inc. (NASDAQ:BBBY) was -11.36%, and its shares gained 4.29% of their value over the last 52 weeks. On December 05, 2025, Bed Bath & Beyond, Inc. (NYSE:BBBY) stock closed at $6.32 per share, with a market capitalization of $435.124 million.

Jacob Fund stated the following regarding Bed Bath & Beyond, Inc. (NYSE:BBBY) in its third quarter 2025 investor letter:

“The Jacob Internet Fund added two new positions in the quarter, Circle Internet Group and Bed Bath & Beyond, Inc. (NYSE:BBBY). Bed Bath & Beyond may appear to be an unlikely addition to this fund, but the key attraction here is the growing interest in tokenization and the company’s stake in the tZERO exchange, which provides exposure to the development of alternative trading platforms. The company has recently appointed new management, which has begun implementing restructuring efforts aimed at improving operations and exploring strategic options. There is also the potential for asset sales or spinoffs that could unlock value. We believe the market may not fully reflect these factors in the current share price. While not a core part of our investment thesis, the company’s retail operations have been appropriately re-sized, which includes a small experiment with reopening a few offline locations of its well-known flagship brand, with a tighter focus on core categories and private-label brands. Most of the retail business will remain online, which should improve operational efficiency and stabilize profitability.

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Bed Bath & Beyond, Inc. (NYSE:BBBY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Bed Bath & Beyond, Inc. (NYSE:BBBY) at the end of the third quarter, which was 15 in the previous quarter. Bed Bath & Beyond, Inc. (NYSE:BBBY) reported net revenue of $257 million in the third quarter of 2025, marking a decrease of 17% year-over-year or 13% excluding the impact from its exit from Canada. While we acknowledge the risk and potential of Bed Bath & Beyond, Inc. (NYSE:BBBY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Bed Bath & Beyond, Inc. (NYSE:BBBY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.