Tuttle Capital Management has unveiled a pair of actively managed ETFs delivering long or short exposure to stocks recommended by American television personality Jim Cramer.
Jim Cramer, ‘Mad Money’ talk show host.
The Long Cramer Tracker ETF (LJIM US) and Inverse Cramer Tracker ETF (SJIM US) have been listed on Cboe BZX Exchange with expense ratios of 1.20% each.
Cramer, a former hedge fund manager, has been the host of CNBC’s ‘Mad Money’ since 2005, providing do-it-yourself investors with “the knowledge and the tools that will empower you to be a better investor”.
Cramer is one of the most recognized money managers and financial gurus on TV and is considered by many to be a leading expert on the US stock market. He has been involved in stocks for the best part of three decades and has earned a name for himself as an aggressive, no-nonsense investor.
Cramer also has plenty of critics who point to studies that seem to show the host’s success rate is less than 50% and his ‘best recommendations’ are no more accurate than his regular picks. They also condemn him for repeatedly giving erroneous advice during the 2007-2008 Financial Crisis.
Commenting on the ETFs’ unusual investment approach, Matthew Tuttle, CEO and CIO of Tuttle Capital Management, said: “Love him or hate him, Jim Cramer is a polarizing figure. We want to give investors on both sides of the debate a way to express their views and create products that can provide diversification to traditional portfolios.”
Investment approach
LJIM provides long exposure to recent investment recommendations made by Cramer, whereas SJIM offers a contrarian approach by going short his advice.
In building the ETFs’ portfolios, Tuttle will continuously monitor Cramer’s public announcements made on Twitter or TV, implementing positions as swiftly as possible.
According to Tuttle, the portfolios will, on average, consist of between 20 and 50 securities, primarily comprising US stocks as well as American Depository Receipts of non-US-listed companies buy may also hold relevant ETFs if Cramer makes market or sector recommendations.
Each ETF will typically hold a position for no longer than one week, although this time period may be longer if Cramer continues to express his opinion on the stock in question.