Critics of CNBC anchor Jim Cramer’s stock analysis now have a way to attempt to monetize their skepticism.
Cramer has emerged as a polarizing figure during his lengthy career at CNBC — with detractors often gleefully pointing out instances in which his predictions about specific stocks or the overall economy backfire.
A pair of exchange traded funds linked to Cramer’s stock pics launched Thursday via Matthew Tuttle, the CEO of Tuttle Capital Management, Bloomberg reported.
One of the funds, the Inverse Cramer Tracker ETF, allows investors to actively bet against the “Mad Money” host by shorting stocks he touts on CNBC’s airwaves or going “long” on companies he advises against.
“If he specifically says either buy, buy, buy a stock, then we’re gonna go short that stock at the next practical moment,” Tuttle said during a recent appearance on Bloomberg’s “Trillions” podcast.
“If he tells you he hates a stock or sell, sell, sell or something like that, then we’re gonna go long that name again at the next kind of practical entry point,” Tuttle added.
Jim Cramer hosts CNBC’s “Mad Money.”MediaNews Group via Getty Images
The other fund, the Long Cramer Tracker ETF, will take the opposite approach and follow the CNBC personality’s advice.
To facilitate the trades, Tuttle and two of his colleagues will track Cramer’s TV appearances and Twitter account.
“Jim’s mission has always been to encourage long-term investing and a balanced portfolio that includes index funds and individual stocks,” a CNBC spokesperson said in an email to Bloomberg.
Critics frequently pounce on Cramer when his stock picks backfire.NBCU Photo Bank/NBCUniversal via Getty Images
“He regards Mad Money as his classroom and believes educating those who want to pick individual stocks through insight and experience is the best way to help them take control of their finances,” the spokesperson added.
Tuttle’s firm offers a similar ETF that shorts the stock pics that tech investor Cathie Wood includes in her flagship ARK Innovation ETF.
Cramer often fires back at detractors by noting his lengthy career a stock picker, as he did last year when news of the planned inverse ETFs first surfaced.
As always i welcome people betting against me. I have done this for 42 years. Those who know me know that you would have been betting against Apple at 5, Google since inception, Meta at $18, Amazon at ten, Nvidia at $25 and AMD at $5. i welcome all comers..
— Jim Cramer (@jimcramer) October 7, 2022
“As always I welcome people betting against me,” Cramer tweeted last October. “I have done this for 42 years.”
“Those who know me know that you would have been betting against Apple at 5, Google since inception, Meta at $18, Amazon at ten, Nvidia at $25 and AMD at $5. i welcome all comers,” he added.
One notable instance in which Cramer’s stock advice went viral occurred earlier this year, when tech giant Meta staged a rally on Mark Zuckerberg’s announcement of a sweeping cost-cutting push.
Investor Matt Tuttle launched the ETFs.NBCU Photo Bank/NBCUniversal via Getty Images
Months earlier, an emotional Cramer had publicly abandoned the stock following a dismal earnings report.
In February, the @CramerTracker Twitter account, whose bio says it tracks “the stock recommendations of Jim Cramer so you can do the opposite,” pointed out that shares of Meta had doubled in value since Cramer’s retreat.
Source link: https://nypost.com/2023/03/03/inverse-cramer-etf-lets-investors-bet-against-cnbc-anchors-stock-picks/