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Jagged Alliance 3 players will do various things over the course of their adventure in Grand Chien but they often miss the Teddy Bear killer because he is in the part of the map that is otherwise uninteresting.
He is easily found, however, as you just need to interact with a couple of his victims, of which you will find plenty in the Farmlands.
Perhaps the easiest way to get him out of hiding is to go to sectors K17 and then K18 and interact with the dead bodies there. That said, you can find his victims in almost all sectors that are named "Farmlands", including K19.
He appeared after two interactions in my playthrough but I've managed to find more of his victims afterwards as well as a house full of teddy bears.
When the Teddy Bear killer appears, he will try to fight your squad in close quarters so make sure you have appropriate weapons ready. Two successful swings of a machete can down him so you don't need to risk shooting your team members.
If you bring Larry along before putting him through rehab, he will have some funny dialogue as he refers to his own teddy bear.
Completing the side quest will also affect the ending slides, especially if you previously found Flay in the opposite corner of the map.
