Hudson Bay Capital Reduces Stake in Five Below

Hedge fund cuts position in specialty retailer by over 87%

Mar. 20, 2026 at 9:37am

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Hudson Bay Capital Management LP has significantly reduced its stake in Five Below, Inc. (NASDAQ:FIVE), selling off 411,744 shares and cutting its position by 87.3% during the third quarter, according to a recent SEC filing. The institutional investor now owns 59,762 shares of the specialty retailer's stock, worth approximately $9.2 million.

Why it matters

The reduction in Hudson Bay Capital's position in Five Below is notable, as the hedge fund was previously a major investor in the discount retailer. This move could signal a shift in the fund's outlook on Five Below's prospects, though the reasons behind the sell-off are not entirely clear from the public filings.

The details

According to the SEC disclosure, Hudson Bay Capital Management LP sold 411,744 shares of Five Below during the third quarter, leaving the fund with a remaining stake of 59,762 shares. The sale represented an 87.3% reduction in the fund's position in the specialty retailer.

  • The share sale occurred during the third quarter of the year.

The players

Hudson Bay Capital Management LP

An institutional investment management firm that has previously held a significant stake in Five Below, Inc.

Five Below, Inc.

A specialty discount retailer offering a broad assortment of merchandise priced primarily at $5 or below, targeting tweens, teens and beyond.

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The takeaway

The substantial reduction in Hudson Bay Capital's position in Five Below raises questions about the hedge fund's outlook on the retailer's future performance. While the reasons behind the sell-off are not entirely clear, it could signal a shift in investor sentiment towards Five Below amidst broader market conditions and competitive pressures in the discount retail space.