The stock picks of one of the most well-known financial media personalities will be the theme of an ETF tracking his stock picks — for better or worse.
Short cramer and long cramer: After before assumption Cathie Wood, Matthew Tuttle has a new goal in mind. Tuttle capital management filed two new ETFs on Wednesday that will track the TV personality’s stock picks Jim Cramer.
The ETFs are the Inverse Cramer ETF with ticker SJIM and the Long Cramer ETF with ticker LJIM, representing Short Cramer and Long Cramer.
The Inverse Cramer ETF will bet against Cramer’s stock recommendations.
“The Fund is an actively managed exchange traded fund that seeks to achieve its investment objective by engaging in transactions designed to seek the inverse return of the investments recommended by television personality Jim Cramer,” the prospectus reads.
How the ETFs work: The fund invests at least 80% in investments named by Cramer.
“The Fund’s Advisor monitors Cramer’s stock selections and overall recommendations throughout the trading day, as publicly posted on Twitter or on his television programs aired on CNBC, and sells these recommendations short or enters into derivative transactions such as futures, options or swaps that create a negative correlation on this recommendation.”
The ETF goes long stocks or ETFs where Cramer is negative. The fund may also take positions in index ETFs and inverse index ETFs that reflect Cramer’s broader view of the market.
The Long Cramer ETF invests in stocks and ETFs related to positions Cramer is positive about.
The actively managed ETFs are expected to have a high turnover of positions in the funds.
The funds will close positions if Cramer announces a planned exit or a change in sentiment. Positions will also be closed at the Advisor’s discretion if Cramer has not submitted a position on the stock or ETF for over a week.
A portfolio of around 20 to 25 stocks…
