Friday, February 9, 2018

The Gartman File (It's about time this fraud was exposed)

Well, after publicly calling out Dennis Gartman, celebrity investment advisor and frequent guest on CNBC, and trying to sign up for his newsletter (thegartmanletter.com), Money Daily editor Fearless Rick has received no response.

Now, maybe it's because the people at The Gartman Letter are really, really busy, tracking stocks and currencies and ETFs and what not, though that's a serious doubt. It would make more sense to believe that Gartman is indeed lying - to his subscribers, primarily - about his year-to-date (as of March 10) performance of 12.3% and outperforming the S&P by 14%, especially after digging into Mr. Dennis Gartman's history.

On March 29, 2016Gartman "admits" that he's up 8.2%.

At one time, Gartman was pegged to manage an ETF for Horizons, a Canadian-based investment firm with various funds and ETFs under management. Specifically, the fund was known as the Horizons AlphaPro Gartman ETF, which was founded in March 2009 (perfect timing, being that was the market bottom), and went out of business four years later, on March 22, 2013.

Gartman, expert trader and analyst he claims to be, managed to lose money for the ETF and its clients while the S&P was up something on the order of 132% (from about 670 to roughly 1550).

Here's an article from the UK's Guardian (note: no mention of this on CNBC or any other US news media), published just before the AlphaPro Gartman ETF closed its doors at 7.90 per share, after opening four years earlier at $10.00.

But the Gartman ETF, named after advisor Dennis Gartman, ubiquitous author of the Gartman Letter, an investment advisory, couldn’t harness the benefits of its fortunate timing. The fund went public at $10 a share. Those same shares now fetch around $7.90.

More astonishing is that this closed-end fund actually saw the equivalent of massive redemptions. That’s unheard of in the closed-end world. With the asset base, and therefore fees, down sharply, it’s no surprise that Horizons Alphapro has decided to shut the fund down next month.

Here's an earlier article on Seeking Alpha, (June 23, 2011) that notes the fund had done OK for some time, but as of the article's writing, was down 7.7%.

Here is a rather humorous note from Peter Grandich, on Gartman's performance with a chart comparing his fund to the price of gold.

Nowhere to be found on any of Mr. Gartman's various postings and appearances are mention of his Hedge Fund, formed in August of 2009, as the River Crescent Fund (apparently named for the street on which he lives and likely does business from, in Suffolk, Virginia). At the time, Gartman was looking to raise the modest sum of $200 million from investors, and, according to his SEC filings, would accept a minimum of $5 million for starters.

Apparently, anybody with five million bucks didn't need Gartman's advice, because since its inception, there's been no news, no investments, no nothing, except for a lonely SEC filing. That's probably a good thing for most investors.

So, what does Gartman manage today, after failing miserably during one of the great bull markets of all time? According to sources, he manages his own retirement fund. And that's the one he claims is up 12.3% on the year, while the stock market was beaten down severely in January and early February, and gyrating in negative territory for the better part of the past month.

Essentially, from March 2009 through March 2013, Gartman should have had worn disclaimers every time he appeared on CNBC. whether he was or not is a question for the way-back machine. Certainly, there are clips from that time period and Money Daily will investigate further. Oddly enough, no mention is made of Gartman's failure with the AlphaPro Gartman EFT on his official CNBC biography.

Here's a particularly bad call, when Gartman said he was getting out of stocks in August of 2012, just prior to the Fed's launch of QE3, a mammoth stimulus, less than a month later.

Also, as far as can be discerned, Mr. Dennis Gartman is neither a registered equity trader, a member of FINRA, nor a futures trader (since 2005). Nor is Mr. Gartman a registered investment advisor.

The only conclusions one can reasonably assume is that Dennis Gartman, being well past his prime, is living off the $50 to $100 per day he makes appearing on CNBC and whatever meager earnings he derives from his newsletter.

Speaking of his newsletter - which I have never seen and doubt ever will as my request on his website has not elicited so much as a response - here are a few reviews. They're generally unflattering, again, begging the question as to why the clownish Gartman is even on CNBC at all.

Updating on April 21, 2016, Gartman says he likes Alcoa (AA) and Gold in Yen or Euro terms. Naturally, as soon as he had finished his on-air mouthings, gold fell $20... in US dollar terms, of course. As for the Alcoa call, it's a pretty safe one, since AA has been as high as 17.75 (November, 2014) and, recently, down to a multi-year low in January of 6.12 (intra-day). Calling it a buy around $10 a share isn't exactly rocket science. Gartman may actually have a winner here, but it won't be much of one.

UPDATE: Gartman has gone from bearish (in light of a face-ripping 200-point rally on the Dow, May 24) to bullish in 24 hours. This is the typical Gartman flip-flop and more evidence that he's a complete buffoon and plays with imaginary money.

What a clod!

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