Fans of CNBC’s Mad Money can choose to wager for or against recommendations made on the show.
Investors now have a way to bet for or against the stocks Jim Cramer talks about on CNBC’s show Mad Money.
The funds were introduced by Matthew Tuttle, CEO of Tuttle Capital Management. He is also the manager who runs the AXS Short Innovation Daily ETF (SARK) that provides investors with a vehicle to bet against Cathie Wood’s ARK Invest flagship ARK Innovation ETF (ARKK) – Get Free Report.
“The Inverse Cramer Tracker ETF seeks to provide investments results that are approximately the opposite of, before fees and expenses, the results of the investments recommended by television personality Jim Cramer,” its website says.
The other ETF does exactly the opposite.
“The Long Cramer Tracker ETF seeks to provide investments results that generally track, before fees and expenses, the results of the investments recommended by television personality Jim Cramer,” according to its website.
Tuttle talked about the inverse strategy on Bloomberg’s Trillions podcast.
“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. “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.”
After news of the planned ETFs was reported in October 2022, Cramer said he welcomed people betting against his ideas saying “they would have been wagering against some of the most successful companies in US history.”
A CNBC spokesperson described Cramer’s mission.
“Jim’s mission has always been to encourage long-term investing and a balanced portfolio that includes index funds and individual stocks,” a spokesperson for CNBC told Bloomberg. “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.”
Tuttle said the names of the funds were the subject of a conversation with the Securities Exchange Commission (SEC). They were originally to be called the Inverse Cramer ETF and the Long Cramer ETF, but the word “Tracker” was added because of a request by the SEC.
“If you’ve got someone’s name in an ETF, but they’re not actually involved in the running of it — which I would argue he kind of is, but you know, not by choice — then that’s kind of an issue,” Tuttle said, according to Bloomberg. “I like ‘Tracker’ better.”
Editor’s note: Jim Cramer was founder and a long-time columnist for TheStreet.com. He left the company in late 2021.