Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- As the year draws to a close, there's only one thing on the minds of money managers, Jim Cramer told his "Mad Money" TV show viewers Tuesday, and that's beating the averages and their peers.
Cramer recalled that when he ran a hedge fund, if he was beating the averages at this point on the calendar, he'd simply declare victory and take a vacation so as not to screw anything up before Jan 1. If anything, his fund would become day traders, making a little here or there but not taking any major risks that could undo their gains for the year.
But if a fund is behind the averages, behind their peers, then there's only one thing that matters, Cramer said, and that's catching up by buying into what everyone else was buying into. In today's markets, that means stocks like Priceline.com (PCLN), Google (GOOG) and Amazon.com (AMZN), he said, stocks with lots of momentum.The value of such momentum names like Netflix (NFLX) and Starbucks (SBUX) won't matter to these managers, said Cramer, as they will be solely focused on getting to their goals. Chasing performance is an all-to-common tactic at the close of the year, which is why Cramer said he'd be a buyer of all of these hot names going into December.