Tuttle Capital Management announced the closure and liquidation of its Inverse Cramer ETF (SJIM), which was designed to bet against the stock buy tips of CNBC’s Mad Money host Jim Cramer. Launched in March 2023, the fund will have its last trading day on February 13, 2024.
The SJIM ETF, which shorted stocks recommended by Cramer, struggled both in terms of attracting capital and performance. It managed to gather only $2.4 million in assets and experienced a negative 15% return since its inception. This follows the earlier discontinuation of the Long Cramer ETF (LJIM) in August 2023, which also had underwhelming performance and low capital inflow.
Jim Cramer, known for his investment tips on Mad Money, has become a controversial figure among retail crypto and stock traders. His mixed track record, including his fluctuating stance on cryptocurrencies, has been a point of discussion and sometimes criticism.
Matthew Tuttle, CEO and CIO of Tuttle Capital, stated that the ETF was launched to highlight the risks of following TV stock pickers, specifically targeting Jim Cramer. He expressed that while the mission to demonstrate this risk was accomplished, the interest in a long/short portfolio like SJIM never fully materialized among retail investors.
Tuttle mentioned that the firm’s focus on other, more successful ETFs was a factor in the decision to close SJIM. The firm is reportedly planning to launch six new ETFs that leverage Bitcoin, with proposed offerings including 1.5x, 1.75x, and 2x each of long and short ETFs.
SJIM is set to cease operations and liquidate its assets, with shareholders expected to receive cash distributions based on the net asset value of their shares on February 23.
The closure of the Inverse Cramer ETF underscores the challenges and complexities of investment strategies based on countering specific market personalities. It also highlights the evolving landscape of ETFs and investor interests, particularly in relation to the growing focus on cryptocurrency-related products. As the market continues to evolve, investment firms like Tuttle Capital are adapting their strategies to align with emerging trends and investor preferences.
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