@article {Hartley45, author = {Jonathan S. Hartley and Matthew Olson}, title = {Jim Cramer{\textquoteright}s Mad Money Charitable Trust Performance and Factor Attribution}, volume = {6}, number = {1}, pages = {45--54}, year = {2018}, doi = {10.3905/jor.2018.1.039}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article analyzes the complete historical performance of Jim Cramer{\textquoteright}s Action Alerts PLUS portfolio from 2001 through 2017, which includes many of the stock recommendations made on Cramer{\textquoteright}s TV show, Mad Money. Both since inception of the portfolio and since the start of Mad Money in 2005 (when the portfolio was converted into a charitable trust), Cramer{\textquoteright}s portfolio has underperformed the S\&P 500 total return index both on an overall returns basis and in Sharpe ratio. Being the first to analyze Cramer{\textquoteright}s post-crisis return history, these findings contrast with previous studies, which analyzed Cramer{\textquoteright}s outperformance in short windows before the 2008 financial crisis. Using factor analysis, we find that Cramer{\textquoteright}s portfolio returns are primarily driven by underleveraged exposure to market returns and, in some specifications, tilting toward small-cap stocks, growth stocks, and stocks with poor earnings quality.TOPICS: Portfolio construction, fundamental equity analysis, performance measurement}, issn = {2326-6899}, URL = {https://jor.pm-research.com/content/6/1/45}, eprint = {https://jor.pm-research.com/content/6/1/45.full.pdf}, journal = {The Journal of Retirement} }