A SEC filing on October 5th reveals that Tuttle Capital Management has launched an ETF to bet against CNBC’s Mad Money host Jim Cramer, reports an article in Bloomberg. Tuttle also has an ETF that bets against Ark Management founder Cathie Wood’s stock picks, and the new ETF would function in much the same way, if approved.
Cramer is a divisive voice on Wall Street, giving passionate endorsements to various stocks, many of which have gone on to fail dismally. Last year, he lauded Wood and her flagship ETF, which then plummeted almost immediately, and he posted a tweet encouraging investors to buy AMC Entertainment right before it fell 30%. When asked for comment, a CNBC spokesperson told Bloomberg in an email that Cramer’s goal is to “encourage long-term investing” through a well-balanced portfolio of both “index funds and individual stocks” and that the TV host “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.”
Tuttle’s new fund, named the Inverse Cramer ETF, will be actively managed by skilled professionals who will analyze Cramer’s advice on both his television show and through social media. Those managers will then try to generate a negative correlation to that advice, by short-selling or other means; however, when Cramer discourages investing from a particular stock or fund, the managers would then go long on it.
Since Tuttle launched its anti-Wood ETF in November of last year, the fund is up nearly 90% and has garnered over $350 million in assets. The firm, which was acquired by AXS Investments in April, is also planning to launch a pro-Cramer fund, that will follow Cramer’s advice and invest in stocks that he endorses, reports Bloomberg.