Mad Money host Jim Cramer has two new exchange-traded funds to his name after the television personality became infamous for his poor crypto investment tips. One of these funds, aptly named Inverse Cramer, will bet against his calls.
Tuttle Capital Management, a US-based advisory firm, has filed a preliminary prospectus with the United States Securities and Exchange Commission (SEC) to launch the Inverse Cramer ETF (SJIM) and Long Cramer ETF (LJIM).
Inverse Cramer ETF to trade against Cramer’s advice
Each of the two funds forms part of a Northern Lights Fund Trust IV series. However, the prospectus is subject to completion and will come into effect upon the regulator’s approval.
Once launched, the Inverse Cramer ETF will follow investment guidance that is the antithesis of Jim Cramer’s suggestions. This basically suggests that the investment outcomes will be roughly the opposite of what one would expect if one were to listen to the host.
The filing noted, “Under normal circumstances, at least 80% of the Fund’s investments [are] invested in the inverse of securities mentioned by Cramer.”
Further explaining that the adviser to the Fund is set to track Cramer’s stock picks and general market recommendations throughout the trading day as they are made public on Twitter or in his CNBC television programs, to either short those recommendations or engage in derivatives transactions like futures, options, or swaps that have a negative correlation to them.
“The Fund’s portfolio is comprised generally of 20 to 25 equally weighted equity securities of any market capitalization of domestic and foreign issuers,” the filing noted.
The Long Cramer ETF will provide investment results that will track the results of the investments recommended by television personality Jim Cramer.
The funds also highlight risks associated with foreign securities, investment style, issuer, operations, market and geopolitics, portfolio turnover, and small and medium capitalization.
A checkered reputation
The 67-year-old CNBC host is a former hedge fund manager who has made people angry as he turned from a Bitcoin lover to a crypto skeptic within a matter of 10 days.
In another instance, Cramer cautioned in July that the U.S. Securities and Exchange Commission might look into Coinbase, only for the cryptocurrency exchange’s stock price to skyrocket by 50% the following week.
In his latest prediction on Oct. 4, Cramer said that equity stocks would bottom fish in the coming weeks with a rally after that. These are just 2 of many examples of calls that many investors in the crypto sector would have loved to ‘inverse Cramer’ on.
Since crypto recently swayed away from the highest-ever correlation between the equity and digital asset markets, Bloomberg noted recently that the latter seems to outperform the former.
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