Published:May 14, 2016 9:30 a.m. ET CNBC personality’s Action Alerts Plus portfolio trails S&P 500, study finds Getty Images for On the movie “Money Monster,” Jim Cramer says, “I haven’t seen the movie so I can’t speak to it, but any day that George Clooney possibly plays a character rumored to be based on me is a win in my book.” By JENNIFERBOOTON REPORTER Update: The photo caption on this story previously included a partial quote from Jim Cramer, it has been updated to include the full quote. CNBC TV personality and “Mad Money” host Jim Cramer has built a lucrative career as a stock picker, but a new analysis of his charitable fund—a personal stock portfolio he co-manages that the financial website he founded has built a subscription service upon—shows he doesn’t beat the market. Cramer’s Action Alerts Plus portfolio has underperformed the S&P 500 indexSPX,-0.85% in terms of total cumulative returns since its 2001 inception, according toa working paper released Fridayby Jonathan Hartley and Matthew Olson, researchers from the Wharton School at the University of Pennsylvania. While the fund outperformed the 500-member index in the years leading up to the 2008 financial crisis—which Hartley said was partially a reflection of the fund’s previous inclusion of small-cap companies and growth stocks that were outperforming during the pre-recession bull run—things have gotten worse since 2011, with Action Alerts Plus falling 9.5% in that year, when the S&P 500 was unmoved. It rose just 1.3% in 2014, versus an 11.4% increase for the S&P, the study found. http://www.marketwatch.com/story/jim-cramer-doesnt-beat-the-market-2016-05-13
A key paragraph from the article: "The business had 71,900 total paid subscribers as of March 31, which, a source close to the matter said, primarily comprises Action Alerts Plus subscribers. That is a decrease of 11,700, or 14%, from the year-earlier period. Nearly 5,000 of those dropouts, 4,900, have occurred since the end of 2015. TheStreet declined to comment on the loss in subscribers." "TheStreet declined to comment on the loss in subscribers." Well, of course they declined to comment. The evidence speaks for itself. Cramer says he never promised "outperformance" and that his Action Alert Plus services is "largely educational." At $15 a month per subscriber, Cramer's "Action Alerts" generates over a $1,000,000 per month revenue stream. The "Mad Money" is in selling education rather than managing the portfolio, lol!
The fact that he can't beat the market isn't much of a surprise. The surprise is why he is still getting artime and subscription payments even though he has already been exposed several times
why not? aren't airways for entertainment ? that's just entertainment on demand when one will stop confuse entertainment with investing, then everything will become illuminated and nothing to expose...
Yes, but one would think at some point the public outrage would be big enough that he would be fired. I mean, now there is a movie starring George Clooney and Julia Roberts where he is exposed as the charlatan that he is
It's a monetary decision that is made by the networks. If his show brings in enough viewers, then the ad revenues will support keeping the show open. In time, however, people will figure out that "he is the charlatan" and that is probably why there's a rapid decline in his Action Alerts subscriber base. Still, he's generating at least $1 million a month from the service. Also, people love entertainment, and tend to believe what they see on television.
If you had truly successful traders with their own show...it would bore people to death. Sex Sells...if you can call Jim Cramer...'sex'...