Hudson Bay Capital Management

Hudson Bay Capital Management LP

Company type	Private
Industry	Investment management
Founded	2005
Founder	Sander Gerber, Yoav Roth
Headquarters	Greenwich, Connecticut , United States
Area served	United States, United Kingdom, Hong Kong, United Arab Emirates
Key people	Sander Gerber (founder)
Products	Multi-strategy funds, distressed debt investments, active shareholder engagement
Number of employees	40 (planned additional hires in 2022)

Hudson Bay Capital Management LP (HBC) is a U.S.-based investment management firm employing multiple strategies, with its main office located in Greenwich, Connecticut. Additional branches operate in New York, Miami, London, Hong Kong, and Dubai.

This company is not affiliated with the Canadian Hudson's Bay Company.

Background

Sander Gerber, formerly an equity options trader at the American Stock Exchange, founded Gerber Asset Management in 1997. In 2005, Gerber partnered with Yoav Roth to create Hudson Bay Capital, incorporating the team and assets of Gerber Asset Management.

HBC broadened its global presence by opening a London office in 2018 and establishing operations in Dubai by 2023.

In March 2020, the firm introduced a special share class structured around a drawdown model aimed at profiting from market downturns following record peaks.

By February 2022, HBC was awarded a $1.3 million grant from the state of Connecticut to support hiring 40 additional staff at its Greenwich location.

In July 2024, the company extended the lockup period for investor capital from one year to two years to better reflect its shifting strategic priorities.

November 2024 saw HBC release a detailed 41-page proposal authored by Stephen Miran, which outlined a comprehensive overhaul of global trading systems. This publication gained considerable attention within Wall Street circles and influenced debates on trade policies connected to the "Mar-a-Lago Accord."

Firm operations

HBC’s asset management centers on its multi-strategy fund, alongside investments in distressed debt and active shareholder engagement. Prominent holdings include New York Community Bank, Plug Power, and Transocean. The firm also extended a $155 million loan to refinance New York City’s Lexington Hotel.

The company utilizes a proprietary risk management framework known as "The Deal Code System," developed by founder Sander Gerber. This adaptable portfolio management tool prioritizes high-conviction investments with minimal market correlation and applies specific thresholds to regulate profits and losses. HBC generally avoids excessive leverage and high-risk transactions.

Gerber also created the "Gerber Statistic," a key correlation metric integral to the firm’s risk assessment approach. In collaboration with Nobel Prize winner Harry Markowitz, Gerber co-authored research published in 2022 demonstrating that the Gerber Statistic outperforms traditional measures in evaluating asset correlations.

Investment History

In 2013, HBC resolved charges brought by the U.S. SEC concerning short-selling violations under Rule 105 of Regulation M by paying nearly $950,000.

The firm invested in Digital World Acquisition Corp., which later became Trump Media & Technology Group; additionally, Gerber made personal contributions to Donald Trump’s 2020 presidential campaign.

HBC reported a 13.5% return for the year 2021.

In February 2024, HBC completed fundraising for an $800 million closed-end special situations fund with a six-year term. Among its portfolio was New York Community Bank, which had recently received a $1 billion equity infusion involving HBC and other investors.

Bed Bath & Beyond

In February 2023, HBC structured a financing arrangement exceeding $1 billion for Bed Bath & Beyond amid the retailer’s bankruptcy struggles. This agreement offered HBC considerable upside potential while limiting downside exposure. Nevertheless, one month later Bed Bath & Beyond withdrew from the deal and opted to raise up to $300 million through public common stock offerings. During this period, HBC sold 300 million newly issued common shares, capitalizing on Bed Bath & Beyond’s meme stock status before the company filed for Chapter 11 bankruptcy in April 2023. In May 2024, Bed Bath & Beyond initiated legal action against HBC seeking recovery of over $300 million in trading gains from this transaction to repay creditors.