It will soon be possible for investors to bet on or against CNBC host Jim Cramer’s stock picks. Matthew Tuttle of Tuttle Capital, a regular guest on CNBC, Fox Business and other, similar stations, has filed to create two new exchange-traded funds (ETFs). The Long Cramer ETF, or LJIM, will place investors on the side of Cramer. Meanwhile, the Inverse Cramer ETF, or SJIM — which is getting a lot more attention — will bet against him.
Cramer is not the first stock picker to have funds raised against him. Last November, AXS Investments launched the AXS Short Innovation Daily ETF (NASDAQ:SARK), a fund that shorts the trades of ARK Invest CEO Cathie Wood. Since its launch, SARK is up more than 80%.
Celebrity Cultured
Like the Wood fund, the Cramer funds will be actively-managed ETFs. They will aim to replicate or bet against the performance of Cramer’s specific stock picks and his general attitude on the markets.
Tuttle’s Securities and Exchange Commission filings don’t state an expense ratio, but SARK charges 0.75% on its assets. It currently has $560 million invested. Wood’s ARK Innovation (NASDAQ:ARKK) fund is down 58% in 2022, and SARK is up 58%. Investors have enjoyed dunking on Wood this year after her funds’ huge success in the tech bull market, when ARKK traded as high as $152. It opened Oct. 6 at $40.
Unlike Wood, who focuses on “disruptive technology” and has been hammered by the 2022 tech meltdown, Cramer covers the whole market, seeking the best returns for his fans on CNBC. The publication charges $400 per year to join Cramer’s investing club. Tuttle will charge a percentage of what his investors risk.
Tuttle’s own investment thesis is conventional. He is skeptical of meme stocks like Gamestop (NYSE:GME) and special purpose acquisition companies (SPACS). He has tweeted favorably about bonds.
What Happens Next
Celebrity has existed on Wall Street since the nineteenth century, with small investors turning successful investors into celebrities.
Cramer, however, just plays a big money man on TV. His job forbids him from direct investments, which is why his picks are in a charitable trust. Here at InvestorPlace, the policy is to disclose holdings, long or short, on any story we write about.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
