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Building the Inverse Jim Cramer Index

quantbase.medium.com

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Re: Building the Inverse Jim Cramer Index

#21

Post by vampiretooth1 »

kadoban wrote: post #19
vampiretooth1 wrote: post #12

Earlier quoted context omitted.

When you say, paid actor, are you proposing that Cramer is being paid by some fund to pump a stock that they already have a position in? I don't know, but I believe it'd be highly unlikely given that he had a pretty good career as a fund manager himself, probably doesn't need more money. The article mentions (or links somewhere to this info) that there's no longer a Cramer pump, although there definitely was a couple…

> probably doesn't need more money. What's he doing on TV all the time then?

Having fun? What are rich founders doing that are still at the helm of their own company, what are rich fund managers doing that have already proven their merit?

Re: Building the Inverse Jim Cramer Index

#22

Post by myvoiceismypass »

tjs8rj wrote: post #2

Very interesting and Quantbase looks neat (as well as the other investing strategies you link to: Pelosi Tracker, leveraged long run investing, etc). Is there a case for this as an actual investment or primarily novelty?

I am running into website issues galore with quantbase today and it is turning me off.

Like: window alert usage for "logging", pages rendering the following as text "Application error: a client-side exception has occurred (see the browser console for more information)."

General session wonkiness.

Lovely console errors: "Uncaught (in promise) SyntaxError: JSON.parse: unexpected character at line 2 column 1 of the JSON data"

Seems neat, though, I don't see why or how I should trust them with bank account access.

Re: Building the Inverse Jim Cramer Index

#23

Post by kadoban »

vampiretooth1 wrote: post #21
kadoban wrote: post #19

Earlier quoted context omitted.

> probably doesn't need more money. What's he doing on TV all the time then?

Having fun? What are rich founders doing that are still at the helm of their own company, what are rich fund managers doing that have already proven their merit?

Mostly making money because they don't know what else to do? Does anyone actually enjoy doing a ~daily tv show? Seems like a lot of work.

Re: Building the Inverse Jim Cramer Index

#24

Post by ProjectArcturis »

vampiretooth1 wrote: post #20
ProjectArcturis wrote: post #18

So, they tried a whole bunch of things, and even with the benefit of that lookforward bias, their final strategy still underperformed the S&P? Color me unimpressed. Edit: I looked at their site and it's clear that their business model is just to gather assets to charge fees on. Which is why they've developed strategies like Inverse Cramer, Pelosi Tracker, WallStreetBets -- these strategies don't have any alpha, they'…

I'd familiarize myself with overfitting ( https://www.investopedia.com/terms/o/overfitting.asp ). That's optimizing your portfolio to historical data so much so that it is no longer generalizable to the future.

I'm well aware of overfitting, but it seems that these folks are not.

Re: Building the Inverse Jim Cramer Index

#27

Post by tstewart314 »

ProjectArcturis wrote: post #18

So, they tried a whole bunch of things, and even with the benefit of that lookforward bias, their final strategy still underperformed the S&P? Color me unimpressed. Edit: I looked at their site and it's clear that their business model is just to gather assets to charge fees on. Which is why they've developed strategies like Inverse Cramer, Pelosi Tracker, WallStreetBets -- these strategies don't have any alpha, they'…

Hey! One of the founders here. We're a recently launched roboadvisor explicitly for "high risk investing" and we develop these portfolios to make it easy to take advantage of more exotic strategies for those without the financial or technical knowledge to do it themselves (while providing tons of data, transparency, and recommendations). This blog post is a fun strategy poking fun at the recent popularity of "Inversing Cramer" and our own spin on it. Note that this isn't a live portfolio on our site.

For these more fun ones (WallStreetBets, Nancy Pelosi) - these are specifically requested from our clients and we provide extensive data and recommendations to suggest portfolios to clients based on their situation. You can see for yourself: the WallStreetBets portfolio is down nearly 40%. Nancy Pelosi is flat - we don't hide that at all and instead make it very clear with large font. Our most popular strategy (pulls the most AUM) is the Quantbase Leverage Flagship, a portfolio based on this paper[0] with nearly 100 years of performance history.

Yes we charge a fee on AUM. All robo-advisors do. This aligns incentives: we make (more) money only when you do. We're not for everyone, and even for those we are for we recommend on our front page to limit investment to a fraction of your total portfolio, but the thesis we believe in is solid: you can improve your absolute returns by taking a higher level of risk. We make it easier to do that intelligently, with proper data, and with the proper risk management. Happy to answer any other questions.

[0]: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2741701

Edit: added "more" to clarify the AUM fee incentives alignment.

Re: Building the Inverse Jim Cramer Index

#28

Post by ProjectArcturis »

tstewart314 wrote: post #27
ProjectArcturis wrote: post #18

So, they tried a whole bunch of things, and even with the benefit of that lookforward bias, their final strategy still underperformed the S&P? Color me unimpressed. Edit: I looked at their site and it's clear that their business model is just to gather assets to charge fees on. Which is why they've developed strategies like Inverse Cramer, Pelosi Tracker, WallStreetBets -- these strategies don't have any alpha, they'…

Hey! One of the founders here. We're a recently launched roboadvisor explicitly for "high risk investing" and we develop these portfolios to make it easy to take advantage of more exotic strategies for those without the financial or technical knowledge to do it themselves (while providing tons of data, transparency, and recommendations). This blog post is a fun strategy poking fun at the recent popularity of "Inversi…

>Yes we charge a fee on AUM. All robo-advisors do. This aligns incentives: we make money only when you do.

This is absolutely false. You charge a 0.94% management fee. That fee gets paid whether or not customers' portfolios go up.

Re: Building the Inverse Jim Cramer Index

#29

Post by tstewart314 »

ProjectArcturis wrote: post #28
tstewart314 wrote: post #27

Earlier quoted context omitted.

Hey! One of the founders here. We're a recently launched roboadvisor explicitly for "high risk investing" and we develop these portfolios to make it easy to take advantage of more exotic strategies for those without the financial or technical knowledge to do it themselves (while providing tons of data, transparency, and recommendations). This blog post is a fun strategy poking fun at the recent popularity of "Inversi…

>Yes we charge a fee on AUM. All robo-advisors do. This aligns incentives: we make money only when you do. This is absolutely false. You charge a 0.94% management fee. That fee gets paid whether or not customers' portfolios go up.

We can't charge performance-based fees as much as we'd like to with mass retail clients, according to the SEC[0]. Not charging except when a client portfolio beats a benchmark or profits counts too. AUM fees are considered by the SEC to be the best way to align incentives between advisors and clients.

Furthermore, up to this point, we've been completely free for current clients to ensure we're providing value before charging anything.

At the same time, we charge a fraction of the fees vs other "high-performance" oriented managed alternatives: Grayscale at 2%, Titan at 1%, typical hedge fund 2/20, etc

We're VC-backed, SEC-registered, our goal at the end of the day here isn't a quick cash grab, it's to be a long-standing, sustainable, valuable experience for clients in a space (high risk investing) that currently lacks exactly those things.

(and by the way: an AUM fee is just about the slowest way one could "cash grab", decades-old robo-advisors are barely profitable with it. It's not a high-margin business at all).

[0]: https://www.sec.gov/rules/other/2021/ia-5733.pdf

Re: Building the Inverse Jim Cramer Index

#30

Post by [deleted] »

tstewart314 wrote: post #27
ProjectArcturis wrote: post #18

So, they tried a whole bunch of things, and even with the benefit of that lookforward bias, their final strategy still underperformed the S&P? Color me unimpressed. Edit: I looked at their site and it's clear that their business model is just to gather assets to charge fees on. Which is why they've developed strategies like Inverse Cramer, Pelosi Tracker, WallStreetBets -- these strategies don't have any alpha, they'…

Hey! One of the founders here. We're a recently launched roboadvisor explicitly for "high risk investing" and we develop these portfolios to make it easy to take advantage of more exotic strategies for those without the financial or technical knowledge to do it themselves (while providing tons of data, transparency, and recommendations). This blog post is a fun strategy poking fun at the recent popularity of "Inversi…

[deleted]
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