Finance

Jim Cramer ETF becomes history as troubled short fund shuts down


(Bloomberg) — Jim Cramer spent about four decades of his career on Wall Street, from hedge fund manager to host of CNBC’s Mad Money. The ETFs he inspired proved to be far less durable.

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The Inverse Cramer Tracker ETF (ticker SJIM), a fund designed to short stocks recommended by the bombastic TV personality, is poised to join its bullish brethren on the ETF garbage heap, it was announced Thursday. SJIM will reportedly cease trading on February 13. Since its launch in March 2023, the product has attracted only $2.4 million in assets.

A CNBC spokesperson declined to comment.

SJIM closed five months after Tuttle Capital Management’s Long-Term Cramer Tracker ETF (LJIM) closed, with the fund (which bought stocks recommended by Cramer) attracting even fewer assets.

Since its launch, the inverse fund has lost 15% in total returns. Its demise comes on the heels of the second-busiest year for ETF closures.

Jane Edmondson, head of theme strategy at TMX VettaFi, said: “There are a lot of ‘fashion’ themes that have nothing to do with sound economic principles. Sadly, most of them are destined to fail.”

Cramer is one of Wall Street’s most prominent figures, known for his brash on-air personality and record of mixed stock recommendations.

When news of the planned 2022 ETF broke, he tweeted that he always welcomes people shorting him, but that those who do so will be shorting some of the most successful companies in U.S. history, including Apple, Google parent Alphabet Company and Yuan Platform Company

The two funds are the brainchild of Tuttle Capital Management CEO Matt Tuttle, the man behind the $146 million AXS Short Innovation Daily ETF (SARK), which shorted Cathie Wood’s flagship fund.He also partnered with REX Shares to launch an ETF that offers dual-leveraged exposure to single stocks like Tesla Inc. and Nvidia Corp.

“Retail investors focused more on volatility products, while interest in long/short portfolios never fully materialized,” Tuttle said in a press release about SJIM.

Tuttle also said he started SJIM to “point out the dangers of following TV stock pickers, particularly Jim Cramer,” and their lack of accountability.

—With help from Sam Porter.

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