How much does Cramer make a year? How did Jim Cramer make his money?

American television personality and former hedge fund manager, Jim Cramer makes $5 million annually as the host of CNBC’s Mad Money. He joined CNBC full-time to host the show Mad Money with Jim Cramer in 2005. The show is set to provide people engaging in do-it-yourself investing with “the knowledge and the tools that will empower you to be a better investor.”

How did Jim Cramer make his money?

Jim Cramer made most of his money through hedge funds. He began a hedge fund called Cramer & Co. after he left Goldman Sachs in 1987. The fund was operated out of the offices of hedge fund manager Michael Steinhardt. Some of its investors include Eliot Spitzer, Steve Brill, and Michael Peretz.

Cramer raised $450 million in $5 million increments and received a fee of 20% of the profits generated. He once shared that he sold all of his stocks on the Friday before Black Monday in 1982. He also shared that he had only one year of negative returns from 1988 to 2000. He retired from managing the hedge fund and was taken over by his former partner, Jeff Berkowitz in 2001.