cbs version
By Bambi Francisco & Steve Gelsi, CBS.MarketWatch.com
Last Update: 9:50 PM ET Dec 4, 2000 NewsWatch
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NEW YORK (CBS.MW) -- TheStreet.com co-founder Jim Cramer is leaving his hedge fund to pursue a TV career, write a book and expand his role at the Web site.
"The crystallizing event for me was this book that was written by Howard Kurtz, in which he portrayed me as a maniacal, crazy man," said Cramer, in an interview with CBS.MarketWatch.com. "What am I, Scrooge?"
Cramer's decision to leave his $400 million, Manhattan-based hedge fund, Cramer Berkowitz, to focus on TheStreet.com (TSCM: news, msgs), was first reported by Washington Post media columnist Howard Kurtz.
The decision, Cramer said, stems from a desire to spend more time with his family and less time worrying about profit warnings. It's also partly because Cramer had tired of being accused of using his position as a Wall Street pundit to promote or knock down stocks -- something he has vigorously denied.
'Always a conflict'
"There was always a conflict of interest," said Cramer. "I want to be squeaky clean. I've tried to make disclosures, but my legitimacy was always in question. I don't want anyone saying that I'm pumping and dumping stocks."
Admittedly, Cramer has spoken negatively about stocks that he's held short positions in. This, he said, was always uncomfortable for him -- even if he made the negative remarks during a chat-room discussion.
Now Cramer can pursue his other interests. "TV is fun," he said. "I want to do more TV."
But part of Cramer's popularity came from the fact that his columns were penned from a trader's perspective, and devoted readers wonder whether Cramer can retain his same edge.
Cramer countered that his analysis won't just be for the trading community but for small investors as well, particularly in the current market environment. "I think I can say more," he said, "and I'll be more helpful now that the market is going down."
Cramer is already a prolific writer, but as he focuses on being a full-time journalist, those who've known him for some time expect him to be more vocal than ever.
"Cramer is high RPMs, a lot of brain cycles wailing away," said Andrew Kessler, portfolio manager at Velocity Capital Management and a former contributor to TheStreet.com. "I think concentrating on his journalism side means he will attack it with all his RPMs, which is great for all of us, not just his limited partners."
The lighter side
Cramer plans to turn the hedge fund over to partner Jeff Berkowitz. The fund is up 34 percent for the year prior to Monday's activity, according to Cramer.
According to Van Hedge Fund Advisors International, the average technology hedge fund is up 21.8 percent through the end of third quarter. The average U.S. hedge fund is up 12 percent through the end of October.
Cramer's departure comes amid the steepest and most prolonged fall in tech stocks in some time. It also comes at a time when money managers, after a lengthy ride atop a seemingly unending bull market, are coming to grips with the reality of a bear market.
And there's nothing like a downturn to destroy the credibility of those once-lionized money managers who this year have been humbled time and again.
In Cramer's latest missive, he decried the low barriers of entry for money management and how that fact fueled the extensive wealth destruction. "Can anybody manage money?" he wrote. "I often ask myself that when I look at the carnage in my mutual fund and I think about the hedge fund world I live in."
Cramer also hinted in his piece that rather than manage money himself, he's being called to a higher purpose: "I have become more involved in trying to figure out how to rate and grade managers.
"I think that is a more important calling for me than just writing about my trading. I don't think anybody should be running your money. I want to do something about it. Stay tuned."
TheStreet.com shares rose 3 percent to $2.50 in Monday trading. The stock is down 80-plus percent since the start of the year. Shares are down 30 percent since Nov. 16, when TheStreet.com announced that it would slash 20 percent of its U.S. work force and shut down its U.K. operations. See full story. At the time, observers said the move positioned the company to be sold.
CBS.MarketWatch.com competes with TheStreet.com in delivering real-time financial news over the Internet.
cbs.marketwatch.com
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Hmmmm. 34% over a year is sorta like FIDOs Agressive growth fund being up in the last twelve months. I bet it not YTD, but the run of Dec99 too. Who know since Cramer will not anyone look at it. Of course Cramer never posted those best picks and most of the ones on Realmoney were horrible like NT in OCT. Maybe we were suppose to make that 200% killing on Cramer's words on EMLX false collapse.
Promoted TSCM on FOX and was shocked they thought he was some shameless hustler hyping it. Of course TSMC buyers lost 50% from that stellar pick.
"Higher purpose." Snicker.
"More Cramer on the TV". Mark, you are right. Cramer wants the media TV ball. Sniff. Sniff.
"Prolific writer" Let's see, what awards has Cramer won. Hmmm, I keep digging, but not found any. Wait. He won the TSCM Diary Of Periodical Excellence award.
Hope he retains his "trader's edge". What edge?
What am I, scrooge?
Too kind to yourself, JJC. How about the Penguin in the first Batman movie. Woof woof.
Jack |
