What is less clear is how Freeman raised so much start-up capital. He declined to disclose the names of his investors, citing confidentiality agreements, but said he had tapped friends, family and other people in his orbit. Freeman has interned at New Jersey-based Volaris Capital Management under the mentorship of its founder Vivek Kapoor, who said he was not involved in the Bed Bath trade. The pair have published two academic papers examining complex theories on debt defaults and options contracts. More recently, they studied Latinised Sanskrit together.

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