VIDEO: The creator of the long and short Jim Cramer ETFs
- Jim Cramer is one of the most recognisable TV personalities in the finance world
- In March, both Long and Short Jim Cramer ETFs were launched by Tuttle Capital Management
- Tuttle’s CEO, Matthew Tuttle, joins the podcast to discuss the ETF and Jim Cramer
Love him or hate him, Jim Cramer is among the most recognisable finance personalities on TV. The former hedge fund manager has been hosting CNBC’s Mad Money with Jim Cramer since 2005.
On the unforgiving world that is the Internet, some of Cramer’s poor recommendations have morphed into memes and other viral content in recent years. Today, you can both bet for and against Cramer’s recommendations, courtesy of Tuttle Capital Management, which launched the Long and Short Jim Cramer ETFs (SJIM and LJIM) earlier this year.
This week on the podcast, we were joined by the man behind these ETFs, CEO Matthew Tuttle.
Intriguingly, there is an important theme here beyond the memes and entertainment value of Jim Cramer ETFs. That is accountability – something which Tuttle says irked him about Mad Money and Jim Cramer, and part of the reason he launched the ETFs.
Indeed, this can be seen all over the investing world. Winners are touted and losers, somewhat conveniently, are never brought up again. We see this all over Twitter – remember the viral screenshots of 1000X gains during the Robinhood craze? It’s funny, but nobody seems to talk about their losers.
In such a way, the Cramer ETF – both long and short – forces one of the most popular financial TV shows to face the music. After all, they are on TV giving advice on where people should invest their money; that means people will be affected by it all, even if it is entertainment first and foremost. Perhaps accountability is only fair in that case?
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Below is the performance thus far of both the LJIM and SJIM portfolios, plotted against the S&P 500. Four months after launch, SJIM backers are down 3.5%, while those keeping faith with Cramer are up 2.3%. Both are underperforming the S&P 500 comfortably, which is up 8.7% in the same timeframe.
Naturally, we had a bunch of questions. How do the logistics work – which stocks are bought and sold, and how often are the ETFs rebalanced? How does one get into the anti-Jim Cramer ETF business? And what does Cramer himself think?
For this and a wider debate around ethics and investment recommendations, the links on various podcast platforms to our discussion with Matthew Tuttle of Tuttle Capital Management are below.
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