CNBC personality and show host Jim Cramer is well-known for his outspoken opinions on stocks and people. He is also known for sometimes flip-flopping on his viewpoints, which is likely the case with his opinion of Ark Funds CEO Cathie Wood.
What Happened: Benzinga recently reported that Cathie Wood trimmed her stake in electric vehicle company Tesla Inc TSLA. The fund manager bought shares of automaker General Motors Company GM for the first time recently.
Cramer discussed the beaten down shares of General Motors and Ford Motor Company F on CNBC last week, and hesitated to recommend buying shares of General Motors.
“GM’s doing well, I think that Cathie Wood is the kiss of death,” Cramer said.
Cramer went on to warn viewers to avoid stocks that Cathie Wood is buying.
“You usually don’t want to say that. She’s awful.”
Cramer said that investors might also want to avoid shares of General Motors going into a recession.
The CNBC host noted that there has to be more destruction before large investors start to buy the bottom.
“We’ve had bottoms with Warren Buffett coming in and buying.”
The comments come after Cramer recently criticized Palantir Technologies PLTR, a stock linked to Wood.
“I don’t want to dwell on them because that’s kind of a stock that you would’ve never really heard of if it weren’t for Cathie Wood.”
Why It’s Important: In January, Cramer recommended to viewers that they short Cathie Wood with the potential of going long the Tuttle Capital Short Innovation ETF, SARK, a fund betting against Wood’s flagship Ark Innovation ETF ARKK.
Cramer featured a “drowning” sequence on the episode of Mad Money and criticized Ark as “the ultimate hedge fund” that owns textbook growth stocks.
Many on social media were quick to point out that Cramer previously called Wood a genius less than a year ago, which came near the peak of Wood’s ETF performance.
Bloomberg senior analyst Eric Balchunas highlighted the irony on Twitter.
“Top ticked one of the greatest runs we’ve ever seen. Down 50% since. Now he wants you to short it. LOL,” Balchunas said.
In February 2021, Cramer suggested that Wood should close off the Ark Funds to new investments and “concentrate on performance.”
Wood shared her thoughts on the Cramer comments from 2021 with Benzinga in the video below.
Photo: Courtesy of Scott Beale on Flickr
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