Tuttle Capital Management files a preliminary prospectus with the SEC for two new ETFs focused on betting against investment advice from Jim Cramer.
The consulting company Connecticut-based Tuttle Capital Management has filed a preliminary prospectus with the US Securities and Exchange Commission (SEC) for two new exchange-traded funds (ETFs) focused on betting against investment advice from Jim Cramer.
Cramer is the host of CNBC’s Mad Money show and has become a popular meme in the cryptocurrency and stock community, who believe he has an uncanny knack for giving investment advice that ends up being wildly misguided.
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In relation to cryptocurrencies, one of Cramer’s most notable tips was buying Coinbase shares when they were “cheap” at $248 in August last year. Since then, COIN has continued to crash and is at $72.97 at the time of writing this article.
Finally happened: Cramer ETFs
Inverse Cramer ETF $SJIM
Long Cramer ETF $LJIM
Eff Dec 1920-25 equal-weighted stocks/ETFs based on Cramer’s Twitter & TV recommendations and market views. Positions exited if Cramer has no view & once profit targets met.https://t.co/ZvA5G2zoTX pic.twitter.com/tY9yBMt15s
— ETF Hearsay by Henry Jim (@ETFhearsay) October 5, 2022
It finally happened: 2 Cramer ETFs. (1) Inverse Cramer ETF: $SJIM and (2) Long Cramer ETF: $LJIM. Decembre 19th.
20-25 equally weighted stocks/ETFs based on Cramer’s recommendations on Twitter, TV and his views of the market. Positions are exited if Cramer has no opinion and once profit targets are met.
According to the preliminary prospectus filed with the SEC on October 5, If approved, Tuttle Capital Management will launch a short ETF called the Inverse Cramer ETF (SJIM) and a long ETF called the Long Cramer ETF (LJIM).
The company states in the prospectus that The investment objective is to provide investment results “that are approximately the opposite, before fees and expenses, of the investment results recommended by television personality Jim Cramer.”
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In selecting the weighting for each ETF, Tuttle Capital Management will take essentially the opposite position of what Cramer chooses publicly on CNBC or on Twitter. However, it will be based purely on shares and not crypto assets.
“Under normal circumstances, at least 80% of the Fund’s investments are invested in the inverse of the securities mentioned by Cramer,” reads in the presentation.
Despite the apparent novelty and absurdity of the presentation, Bloomberg senior ETF analyst Eric Balchunas was not surprised by the move, noting on Twitter that he had signaled in February that such a thing would happen:
“In fact, we wrote in February that a Cramer Inverse ETF would likely be introduced at some point. Considering some of the things that have been tried with ETFs, this is not unreasonable. And ETFs linked to big personalities are not new, for example, $SARK $TSLQ.”
We actually wrote back in Feb about how an Inverse Cramer ETF would likely be filed at some point. Given some of the stuff that has been tried w ETFs this isn’t big stretch. And ETFs tied to big personalities not unprecedented eg $SARK $TSLQ pic.twitter.com/Dsx5aYDmk8
– Eric Balchunas (@EricBalchunas) October 5, 2022
In fact, we wrote in February that a Cramer Inverse ETF would likely be introduced at some point. Considering some of the things that have been tried with ETFs, this is not unreasonable. And ETFs tied to big names are not new, eg $SARK $TSLQ.
In August, Cointelegraph reported that the famous cryptocurrency trader AIgod he had doubled his “Inverse Cramer” portfolio in a month, to more than $100,000, simply by trading against Cramer’s advice.
Tuttle Capital’s Unique ETFs
This type of game is nothing new for Tuttle Capital Management. The company already caused a stir late last year by launching an inverse ETF on the Nasdaq exchange called Turtle Capital Short Innovation ETF (SARK).
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In what Tuttle Capital CEO Matt Tuttle described in November as something that had “never been done before,” SARK’s purpose is to bet against Cathie Wood’s ARK Invest ARK Innovation ETF (ARKK).
“So if ARKK goes down a percentage, we will go up about a percentage, and if [ARKK] goes up a percentage, we will go down about a percentage,” he said.
In particular, Since its launch on November 9, SARK is up 83.1%, according to data from Yahoo Finance, which is hardly surprising considering the bearish investment climate of 2022.
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