Former hedge fund manager, current media personality, energetic host of CNBC’s “Mad Money,” and generally a well-known figure in the world of investing and finance, Jim Cramer has accrued a wide array of fans and critics over the years.
Throughout his career, Cramer has made many predictions on what the stock market might do and has many recommendations on what his viewers might do with their portfolios to get the best returns.
However, recent years have proven that despite his popularity, Jim Cramer often tends to be wrong in significant ways, including on major stocks like Microsoft (NASDAQ: MSFT) and on multiple occasions like his three attempts to analyze Coinbase (NASDAQ: COIN).
Picks for you
This observation led, on a less serious note, to the investor community on X feigning panic and advocating shorting whenever Cramer makes a big bullish recommendation, but also to a series of strategies and funds aiming to invest opposite to his analysis.
Shorting Cramer’s picks
Quiver Quantitative, a platform perhaps best known for tracking suspicious congressional trades, also built its own inverse Cramer strategy, which simply aims to short the TV personality’s most recommended stocks within the last 30 days.
Over the course of its lifetime – which started in early 2021 – the “Inverse Cramer” shorting strategy has achieved notable success with an overall return rate of 83.32%. In the last 32 weeks, it has also proven lucrative, returning 15.81%.
Perhaps proving that winter is Jim Cramer’s season, the strategy has been notably less successful in the short term. As of press time on January 15, “Inverse Cramer” is down 3.62% in the last 30 days and 0.81% in the last trimester.
Other ways of betting against Jim Cramer
Since this type of investing has become increasingly popular, enabling traders to go against Cramer’s advice in multiple ways. The smartphone platform Autopilot, for example. enables investors to copy-trade the Inverse Cramer portfolio.
In March 2023, Tuttle Capital Management – known for its themed index funds – launched two Cramer-focused exchange-traded funds (ETFs) – Inverse Cramer Tracker ETF (SJIM), which attempts to short his recommendations and go long on stocks he is bearish on, and Long Cramer Tracker ETF (LJIM), which offers long exposure to his picks.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
