The Intelligent Livermore ETF, launched by investment firm Intelligent Alpha last week, aims to mimic the investment strategies of prominent investors like Warren Buffett and hedge fund managers Stanley Druckenmiller and David Tepper using artificial intelligence. The ETF, which trades under the ticker LIVR, relies on three popular large-language models: OpenAI’s ChatGPT, Anthropic’s Claude, and Alphabet Inc.’s models. These AI systems analyze financial information, public letters, interviews, and statements from finance legends to construct the portfolio.
“My experience investing in emerging technologies over the last decade makes me believe that large-language AI models will drive a trillion-dollar shift in the asset management industry from traditional passive and active portfolios to AI-powered portfolios,” said Doug Clinton, co-founder and Managing Partner at Deepwater Asset Management, who established Intelligent Alpha. LIVR’s portfolio focuses on opportunities in AI, Latin American equities, Asian equities, renewables and energy, and defensive stocks. The ETF’s top five holdings include PDD Holdings Inc., Meta Platforms, Inc., Nvidia Corp., Taiwan Semiconductor Manufacturing Co. Ltd., and Procter & Gamble Co.
Chatbot-powered ETF trades on Nasdaq
The ETF began trading on the Nasdaq on Wednesday, Sept. 18, with an expense ratio of 0.69% and $13.8 million in assets under management.
Over the past week, LIVR has gained 4.1%, outperforming the Invesco QQQ Trust and the SPDR S&P 500 ETF Trust, which are up just over 3% and 2%, respectively. While it’s still early to assess the long-term success of the ETF, the heavy weighting of AI-levered stocks could keep it on track to perform in line with these stocks. However, the Federal Reserve’s anticipated interest rate cut might apply brakes on the tech rally.
Clinton remarked on the versatility of AI, stating, “They can sort of replicate or pretend to be any investor. You could have it be a super aggressive growth investor, or you could have it be a super value-conscious Buffett acolyte.”
Although AI technology responds to prompts to determine which equities to add to the ETF, Clinton clarifies that “a human analyst will review the portfolio to ensure there’s no hallucinations that just don’t make any sense.”
- CNBC.”A new ETF uses AI to emulate Warren Buffett’s investment style”.
- Yahoo.”AI powers this ETF. Here’s how it works”.
- Benzinga.”Did Aping Warren Buffett And Hedge Fund Managers Bring Success To This AI-Powered ETF That Launched Last Week? – Intelligent Livermore ETF (NASDAQ:LIVR)”.