In a surprising turn of events, an exchange-traded fund (ETF) designed to invest in stocks endorsed by CNBC personality Jim Cramer is set to be shuttered and liquidated, as announced by its provider, Tuttle Capital Management, on Monday. The Long Cramer Tracker ETF, which traded its shares on Cboe, will see its last day of trading on September 11, marking the end of this unique investment venture that aimed to capitalize on the stock recommendations of the popular financial commentator.

The decision to close the fund comes after unsuccessful attempts to engage in dialogue with Jim Cramer and CNBC regarding his stock picks, according to Matthew Tuttle, the fund’s adviser. Initially, the Long Cramer Tracker ETF was launched as a counterpart to the Short Cramer ETF, with the intention of facilitating a conversation around Cramer’s stock selections. However, with the lack of engagement from Cramer and CNBC, Tuttle Capital Management has decided to focus solely on the short side, thereby ending the run of the Long Cramer ETF.

Closure of the Long Cramer Tracker ETF

Tuttle Capital Management, the provider of the Long Cramer Tracker ETF, has announced the closure and liquidation of the exchange-traded fund. The final trading day for the ETF on Cboe will be September 11, which will also be the last day the fund will accept creation units from authorized participants.

A Conversation Cut Short

The Long Cramer Tracker ETF was set up to buy stocks recommended by CNBC personality Jim Cramer. Matthew Tuttle, the fund’s adviser, stated in a news release that the fund was created to facilitate a conversation with Cramer about his stock picks, offering a contrasting perspective to the Short Cramer ETF. However, the engagement from Cramer and CNBC was not as expected. "Unfortunately, Mr. Cramer and CNBC have been unwilling to engage in dialogue and instead have chosen to ignore the funds," said Tuttle. "Therefore there is no reason to keep the long side going."

Performance of the Cramer ETFs

The Long Cramer ETF opened at $24.96 on March 2, and saw a significant surge in June and early July, closing at a high of $29.42 on July 19. However, it suffered a sharp decline in August, falling 12.1% and ending Monday at $25.79. On the other hand, the Inverse Cramer ETF, which aims to do the opposite of Cramer’s recommendations, witnessed a sharp fall in June and early July. However, it bounced back and is up 13.1% in the month to date. Since their launch, the Long Cramer ETF has risen 3.3%, while the Inverse Cramer ETF has dropped 3.9%.

The Road Ahead

Following this development, Tuttle Capital Management plans to focus on the short side. The firm had filed papers for the ETFs with the Securities and Exchange Commission last October, to which Cramer had responded on Twitter, welcoming people betting against him. When the ETFs were launched in March, a CNBC spokesperson stated that Cramer’s mission was to "encourage long-term investing and a balanced portfolio that includes index funds and individual stocks."

Takeaways

The closure of the Long Cramer Tracker ETF indicates the unpredictable nature of the stock market and the risks associated with betting on individual stock picks. While the market can be influenced by a variety of factors, relying solely on the advice of a single personality can be risky. It is essential for investors to conduct their own research and maintain a balanced portfolio for long-term growth. Cramer’s approach of encouraging long-term investing and a balanced portfolio seems a more reliable strategy, underlining the importance of diversification in investments.