New ETF plans to provide the inverse performance of investments recommended by CNBC’s Cramer.Tuttle Capital Management — which previously launched an exchange-traded fund betting against Cathie Wood’s stock picks — plans to debut the Inverse Cramer ETF with the ticker SJIM, according to a filing with the Securities and Exchange Commission on Wednesday. If approved, the fund would provide investment results that are approximately the opposite of Cramer’s investment recommendations.
The host of Mad Money on CNBC is an outspoken and polarizing figure in the finance world, known for his ardent endorsements of various stocks, with mixed results. In 2021, he praised Ark Investment Management’s Wood just before her flagship fund plummeted, and he also famously tweeted to buy AMC Entertainment Holdings Inc. just prior to a 30% plunge.
“Jim’s mission has always been to encourage long-term investing and a balanced portfolio that includes index funds and individual stocks,” a CNBC spokesperson wrote in an email to Bloomberg News. “He regards Mad Money as his classroom and believes educating those who want to pick individual stocks through insight and experience is the best way to help them take control of their finances.”
The Inverse Cramer ETF would be actively managed, meaning financial professionals behind the scenes would monitor Cramer’s stock selections and overall market recommendations through Twitter or his television appearances, according to the filing. Fund managers would then sell those stocks short or use derivatives to produce a negative correlation to his recommendations.
If Cramer said he was negative on a stock or ETF, the fund managers would take a long position.
Tuttle’s anti-Wood ETF, known by the ticker SARK, is up almost 90% since its launch in November 2021 and has attracted more than $350 million in assets. Tuttle was acquired by AXS Investments earlier this year.
And for those who do have faith in Cramer, Tuttle is also planning a Long Cramer ETF, or LJIM, to bet on investments that Cramer endorses. The filings did not disclose the fees for the two funds, but SARK charges an expense ratio of 0.75%.
https://www.wealthmanagement.com/etfs/fund-helped-investors-bet-against-cathie-wood-taking-jim-cramer ....
There were past studies conducted by wallstreet investment firms which concluded stock traders would make more money doing the opposite of Jim Cramer's advice. Than they would by following it. These studies of Jim Cramer's past stock recommendations are more than a decade old.
It appears that a new ETF is revisting the old studies purely for promotional and marketing effect, I would guess?
Anyways if anyone doesn't know who Jim Cramer is, he has been portrayed in many hollywood films as the stock advisor who caps off his stock picks with him hitting a button that emits "BUY, BUY, BUY!" or "SELL, SELL, SELL!" soundbytes. Jim Cramer has been around forever. I don't think he has ever been controversial enough to draw this type of heat. But it appears that perhaps times are changing?
Given the nature of this new ETF. Is it possible for a crypto based ETF (outside the united states) to mimic the move for purely clickbait reasons? Perhaps an index of crypto fade material could be made that shorted all of the worst altcoins and tokens.
