The new fund aims to use AI to replicate some of the best investment minds in history, significantly enhancing clients' portfolios.
Intelligent Livermore Exchange-traded funds Developed by fintech startup Intelligent Alpha, LIVR uses OpenAI's ChatGPT, Anthropic's Claude, and Google's Gemini to create a collection of securities with a little human help. To put together a portfolio, a human feeds LLM's “committee” reams of publicly available financial information, which the AI combines with a particular investment philosophy to follow. For example, a strategy might emphasize value over growth.
Named after the famous 20th century stock trader Jesse Livermore, this ETF is owned by Berkshire Hathaway. Warren BuffettIntelligent Alpha CEO Doug Clinton has many clients, including billionaire hedge fund managers Stanley Druckenmiller and David Tepper. luckClinton said that while humans would actually execute the trades to avoid hallucinations and mistakes, it's the AI investor who is really in control.
“An AI can mimic or pretend to be any investor, that's one of its superpowers,” Clinton said. “You can make it a super aggressive growth investor or a super value-oriented Buffett follower.”
This ETF is It began trading on Wednesday. It lists Meta, Nvidia, and TSMC as its major holdings. Expense ratio 0.69%.
Before launching Intelligent Alpha, Clinton first experimented with ChatGPT and then other AI chatbots in an attempt to build a portfolio that could outperform the S&P 500. The LIVR ETF is the company's first ETF, but Clinton said it plans to develop a suite of AI-centric investment products aimed at both institutional and retail investors, with the goal of reaching $1 trillion in assets under management.
“We want to build a BlackRock powered by AI,” he said.
For now, Clinton is the startup's only employee, and he also works as an investor at Deepwater Asset Management, a Minneapolis-based investment firm he helped launch in 2017. Deepwater has an equity stake in Intelligent Alpha and is backing the company. Though his company is a one-man show, Clinton said he isn't worried.
“The power of AI is its ability to enhance human productivity, and Intelligent Alpha is a testament to that,” he said in an email.
Intelligent Alpha has already applied 4 The company has filed applications for other ETFs with the Securities and Exchange Commission, and Clinton predicted the company will launch more funds by the end of the year or early 2025.
Hedge funds have already I started incorporating AI into my work.Clinton said Intelligent Alpha is one of the first companies to use AI as a “true stock picker” and that the company is working at breakneck speed to innovate to stay ahead of the competition.
Ultimately, Clinton believes the next shift in the financial world will be a shift toward AI-centric funds like LIVR, especially since this type of investing offers advantages over both active and passive investing.
“It's a little bit more intelligent than just a static index and a little bit less emotional than the active side of things, so I think it's the best of all worlds,” he said.
