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(Bloomberg) — An easier way to bet against finance personality Jim Cramer is in the works.
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%.
To contact the author of this story:
Claire Ballentine in New York at [email protected]
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