Celebrity investor and CNBC host Jim Cramer has made a lot of questionable stock picks.
John Oliver, comedian and host of Last Week Tonight, said in April that Cramer "is the only person who could look you in the eye and say you are going to die tomorrow, and give you an immediate sense of calm knowing that you’re going to live for another 50 years.”
He's been wrong so often that Matthew Tuttle, the CEO and investment lead of Tuttle Capital Management, decided to create an ETF designed to short Jim Cramer.
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"One of the things I've noticed throughout the years is the consensus is almost always wrong," Tuttle told The Street. "And Cramer is the consensus on steroids because he has no choice but to swing at every pitch."
He explained that shorting Cramer is his way of betting against that one friend everyone has who is just confidently wrong when it comes to investing.
"My guess is he's not unlike everyone where there are a couple of stocks that he might know a decent amount about, but you start hitting him left and right with names ... there's no way," he said. "So I just figured Cramer would be a better way to monetize the fact that the consensus is usually wrong."
Tuttle said the fund, which launched in March, is down about 1% since it opened, though that's mainly due to a short position on some of the big-name tech giants like Nvidia and Meta.
Tuttle added that, though Nvidia is well-poised to deliver in a coming world of continued AI demand, the price is too extended to make it worth buying right now.
"He always says 'own it, don't trade it.' I don't think there's any stock you just buy and hold and don't look at," Tuttle said. "But I think Nvidia is a stock that you ought to be trading."
