Tuttle Capital Management, the manager behind the Inverse Cramer ETF (SJIM), has announced the closure of the fund following a negative 15% return since its launch just 10 months ago.
Launched in March 2023, the ETF was designed to short stock buy tips recommended by CNBC’s Mad Money host Jim Cramer. Despite its unique premise, the fund struggled to attract investor interest, amassing only $2.4 million in assets.
SJIM’s lackluster performance led to the decision to cease operations, with its last trading day scheduled for February 13. This announcement follows the closure of Tuttle Capital Management’s Long Cramer ETF (LJIM) in August 2023, which also failed to gain traction with investors, despite launching alongside SJIM.
Jim Cramer’s stock tips have garnered both praise and criticism among retail crypto and stock traders, with some viewing him as a meme due to occasional inaccuracies in his predictions. Despite his mixed views on cryptocurrency, Cramer has admitted to profiting from Bitcoin after initially expressing skepticism about its value.
Matthew Tuttle, CEO and chief investment officer of Tuttle Capital Management, stated that SJIM was launched to highlight the risks associated with following TV stockpickers like Jim Cramer, emphasizing the lack of accountability in their recommendations. However, retail investors showed limited interest in the long/short portfolio strategy that SJIM offered.
Tuttle explained that the firm’s focus on other, more successful ETFs left them unable to dedicate sufficient resources to managing SJIM effectively, leading to the decision to close the fund. Shareholders of SJIM can expect assets to be liquidated and distributed on February 23, receiving cash at the net asset value of their shares.
Despite the closure of SJIM, Tuttle Capital Management remains committed to offering innovative ETFs, having filed for six ETFs leveraging Bitcoin with varying degrees of leverage for both long and short positions.
