Why 1 Hedge Fund Manager Said Jim Cramer Has A 'Barren Cranium'

TheStreet Inc. TST gave back much of its earlier gains Thursday as the dust settled on an activist investor's attack on Jim Cramer, its co-founder and a current director.

Carlo Cannell, who owns an 8.95 percent stake in TheStreet, referred to Cramer's "barren cranium," in a widely reported letter that sought a possible sale of the company.

"When you lie upon your deathbed, how will you reflect upon on your legacy?" Cannell wrote.

"Once a $70 stock, TST is now $2.20. You have done well, but how has the common shareholder done?"

Cannell called for a sale, or for Cramer to resign his position at CNBC television, cut his $2.5 million paycheck from TheStreet by 70 percent and "align [his] considerable talent and energies to helping [his] fellow shareholders crawl back from Hades."

TheStreet is unlikely to attract buyers, in the view of Reuters columnist Quentin Webb.

"The company has languished for years and anyone who wanted to – whether a buyout firm, media group, or fund manager – could probably have snapped it up," according to Webb. Webb also noted that TheStreet's market capitalization is about $80 million and the company has $57 million of cash on its balance sheet. 

Cannell follows in the footsteps of activist hedge fund Spear Point's Ron Bienvenu, who as recently as last year, said he was considering a proxy fight for two seats on the board. Spear Point reportedly held a 2 percent stake in TheStreet.

As of the company's latest proxy statement, Technology Crossover Venture held a 10 percent stake. Harvey Partners and Hightower Advisor each held more than 7 percent followed by Cramer's 6.1 percent stake.

TheStreet changed hands recently at $2.30 a share, down more than 4.5 percent.