Television personality Jim Cramer has gained immense traction in the financial world over the years, largely due to his stock analysis and presence on CNBC.
In March 2023, two ETFs were introduced to allow investors to align their strategies with Cramer's insights. However, one of these ETFs is now closing its doors.
What Happened: First announced in October 2022, Tuttle Capital launched two Cramer-themed ETFs, one offering investors a way to profit from his stock recommendations, and the other to bet against his stock picks.
On Monday, it was announced that the Long Cramer Tracker ETF LJIM will be shutting down, with the last day of trading set for Sept. 11, 2023.
The fund will be liquidated, with assets expected to be distributed back to shareholders on Sept. 21, 2023.
The other ETF, named the Inverse Cramer Tracker ETF SJIM, will remain open to investors.
“So we all know Jim’s stock picks have been suspect, to say the least,” Tuttle Capital Management CEO and Chief Investment Officer Matthew Tuttle told Benzinga. “We only wanted to do SJIM but decided to do LJIM to be nice and perhaps engage in a rational dialogue about his picks.”
Tuttle said Cramer and CNBC have been “unwilling to engage in dialogue” and have ignored the funds. This led to the decision that there was no reason to keep the long side going.
“Going forward we will just focus on the short side.”
Tuttle told Benzinga that he’s surprised in some ways that Cramer has been ignoring the ETFs.
“After NVDA earnings, LJIM popped, so figured maybe he’d take a victory lap.”
Cramer has been a fan of NVIDIA Corporation NVDA, going as far as naming one of his pets after the semiconductor company. The CNBC host has recommended the stock several times in 2023 and had much praise about the company’s quarterly financial results in May.
Related Link: Jim Cramer Has a Message For NVIDIA Non-Believers - 'Valuation Is More Of An Art'
Why It’s Important: Cramer previously spoke out about the launch of the ETFs after they were filed in October 2022.
“As always, I welcome people betting against me. I have done this for 42 years,” Cramer tweeted at the time. “Those who know that you would have been betting against Apple at 5, Google since inception, Meta at $18, Amazon at $10, Nvidia at $25 and AMD at $5. I welcome all comers.”
Cramer said his stock recommendations have a solid track record, adding, “I want you to bet against me.”
While he’s been relatively quiet since the launch, investors will be waiting to see if Cramer comments on the closing of the LJIM ETF.
Tuttle previously told Benzinga that the Cramer ETFs were “years in the making.”
“Been creating since the 80s and noticed the consensus seems to be wrong a lot, but how do you monetize that.”
Tuttle said Cramer represents the consensus, since he swings at every pitch.
“That’s not a criticism, he has to.”
Tuttle told Benzinga that the consensus tends to be wrong.
Selections for the Inverse Cramer ETF are made from recommendations made by Cramer on his “Mad Money” television show, his appearances on CNBC, and his tweets.
“We’ve got to watch him. We’ve got to see what he says.”
When it comes to what’s next for Cramer, Tuttle said the CNBC host will likely continue to ignore the Inverse Cramer ETF.
“He’s probably better off ignoring and CNBC certainly glosses over his picks, even though once in a while David Faber gets in a dig,” Tuttle said.
In response to whether LJIM's exit would aid the Inverse Cramer ETF, Tuttle confirmed it would.
“Going to help SJIM as I’ve been running them as mirror images since NVDA earnings, now a lot freer.”
Tuttle, who was also behind creating the Inverse Cathie Wood ETF, now known as the AXS Short Innovation Daily ETF SARK, has more planned for the future.
“Have something big coming. Hope to file this week.”
LJIM, SJIM Price Action: The Long Cramer Tracker ETF trades at $25.79 on Tuesday, versus a 52-week range of $23.48 to $29.65.
The Inverse Cramer ETF trades at $23.93 on Tuesday, versus a 52-week range of $20.84 to $26.26.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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