Editing Jim Cramer (section)

===Hedge fund===
In 1987, Cramer left Goldman Sachs and started a [[hedge fund]], Cramer & Co. (later Cramer, Berkowitz & Co.). The fund operated out of the offices of hedge fund manager [[Michael Steinhardt]]. Early investors included friend and Harvard classmate [[Eliot Spitzer]],<ref>{{cite news |last=Celizic |first=Mike |date=March 12, 2008 |title=Jim Cramer on pal Spitzer: 'Eliot screwed up |url=https://www.today.com/news/jim-cramer-pal-spitzer-eliot-screwed-1C9014765 |access-date=March 3, 2025 |work=[[Today (American TV program)|Today]]}}</ref> [[Steven Brill (journalist)|Steve Brill]], and [[Martin Peretz]]. Cramer raised $450 million in $5 million increments and received a fee of 20% of the profits he generated.<ref name=danrather/>

Cramer says he sold all of his stocks on the Friday before [[Black Monday (1987)]].<ref>{{cite web |title=Interview with Jim Cramer |url=https://www.pbs.org/wgbh/pages/frontline/shows/betting/pros/cramer.html |access-date=March 3, 2025 |website=[[Frontline (American TV program)|Frontline]] |publisher=[[PBS]]}}</ref> From 1988 to 2000, Cramer says he had only one year of negative returns – 1998, a year when the [[S&P 500 Index]] rose 29%. The underperformance in 1998 led to significant investor withdrawals.<ref name=wild/> In 1999 the fund returned 47%, and in 2000 it returned 28%, beating the S&P 500 by 38 percentage points. Cramer said he produced a 24% average annual return over 14 years, and "routinely [took] home $10 million a year and more."<ref name=madman/> However, his results have been [[#Controversies|disputed]].

In 2001, Cramer retired from managing the hedge fund.<ref name=madman/> The fund was then taken over by his former partner, Jeff Berkowitz.<ref name=insider/>