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‘Mad Money': New Investment Fund Aims to Counter Jim Cramer’s Stock Picks

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thewrap.com

Jim Cramer, whose prognostications on CNBC’s “Mad Money” have long earned him both adoration and derision.Matthew Tuttle of Connecticut-based Tuttle Capital Management has filed a prospectus with the Securities and Exchange Commission to sell a security called the “Inverse Cramer ETF.”An ETF is an exchange traded fund, or a group of stocks developed around a theme that is similar to a mutual fund, but trades throughout the day like a stock rather than just once a day.

ETFs have grown to an astonishing $5.75 trillion in assets since the first one was introduced in 2002, according to investment manager Blackrock.“The Inverse Cramer ETF seeks to provide investments results that are approximately the opposite of, before fees and expenses, the results of the investments recommended by television personality Jim Cramer,” the prospectus states.

Describing its principle investment strategies, a requirement with the SEC, it says at least 80% of the fund will be invested in “the inverse of securities mentioned by Cramer.”It says the fund will monitor the one-time hedge fund managers stock picks on television and Twitter throughout the day and either sell those recommendations short, meaning placing bets that those stocks will fall, or buy derivatives like futures, options or swaps that produce a negative correlation to “The Street.com” founder’s choices.“The Fund goes long on stocks or ETFs that represent sectors that Cramer is negative on.

The Fund uses Index ETFs and inverse Index ETFs to take the opposite side of Cramer’s announced market view,” the prospectus states.

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