Inverse ETF Is Taking up Jim Cramer



(Bloomberg) — A neater method to guess towards finance character Jim Cramer is within the works.

Tuttle Capital Administration — which beforehand launched an exchange-traded fund betting towards Cathie Wooden’s inventory picks — plans to debut the Inverse Cramer ETF with the ticker SJIM, in line with a submitting with the Securities and Trade Fee on Wednesday. If accredited, the fund would supply funding outcomes which are roughly the other of Cramer’s funding suggestions. 

The host of Mad Cash on CNBC is an outspoken and polarizing determine within the finance world, recognized for his ardent endorsements of assorted shares, with combined outcomes. In 2021, he praised Ark Funding Administration’s Wooden simply earlier than her flagship fund plummeted, and he additionally famously tweeted to purchase AMC Leisure Holdings Inc. simply previous to a 30% plunge.

“Jim’s mission has all the time been to encourage long-term investing and a balanced portfolio that features index funds and particular person shares,” a CNBC spokesperson wrote in an electronic mail to Bloomberg Information. “He regards Mad Cash as his classroom and believes educating those that need to decide particular person shares by means of perception and expertise is the easiest way to assist them take management of their funds.”

The Inverse Cramer ETF can be actively managed, which means monetary professionals behind the scenes would monitor Cramer’s inventory picks and general market suggestions by means of Twitter or his tv appearances, in line with the submitting. Fund managers would then promote these shares brief or use derivatives to supply a unfavorable correlation to his suggestions.

If Cramer mentioned he was unfavorable on a inventory or ETF, the fund managers would take an extended place. 

Tuttle’s anti-Wooden ETF, recognized by the ticker SARK, is up virtually 90% since its launch in November 2021 and has attracted greater than $350 million in property. Tuttle was acquired by AXS Investments earlier this 12 months.

And for individuals who do place confidence in Cramer, Tuttle can also be planning a Lengthy Cramer ETF, or LJIM, to guess on investments that Cramer endorses. The filings didn’t disclose the charges for the 2 funds, however SARK prices an expense ratio of 0.75%. 


To contact the creator of this story:

Claire Ballentine in New York at [email protected]