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"The Intelligent Livermore ETF uses AI to build a global equity portfolio inspired by the world’s greatest investors. Our process leverages three leading large-language models to analyze the philosophies and strategies of a selection of great investors, identify relevant stocks, and build an intelligent portfolio."
Well, it does appear to be up almost +8% in just a few weeks. Go AI!
The fund normally rebalances once a quarter. It would be interesting to see what fail proof measures the fund has in place / adapts to counteract a change in a major trend soon after a rebalance. Some trend following funds rebalance once a month, if not dynamically active.
The fund is currently benefitting from a good dose of Chinese stocks at inception, a couple of weeks ago.
The **LIVR ETF** (Intelligent Livermore ETF) uses a **proprietary AI-powered stock selection process** that integrates human expertise to construct a portfolio of large-cap stocks. The selection process follows these key steps:
1. **Human Analyst Involvement**: A human analyst initiates the process by setting parameters, such as the portfolio’s target investment universe, sector focus, and weighting limits. They gather historical and forecasted data (like revenue and earnings growth) for quantitative analysis and set an investment philosophy, inspired by the world's greatest traders.
2. **AI Stock Analysis**: The AI then takes over by identifying **4 to 6 major trading trends** based on these famous traders' strategies. These trends are used to guide stock selection, focusing on companies with strong business fundamentals, market momentum, and favorable macroeconomic conditions.
3. **Final Stock Picks**: The AI selects 60 to 90 stocks from global large-cap companies, each with a market capitalization exceeding $1 billion. The portfolio is **equal-weighted**, meaning each stock carries a similar weight, ensuring diversification without over-concentration in any single stock. No individual holding exceeds 10% of the portfolio.
### Example: One prominent stock in the LIVR ETF is **Meta Platforms (META)**. The ETF’s AI likely selected Meta based on its strong market position, future growth potential, and alignment with tech sector momentum, a major trend identified by famous traders that the AI incorporates【29†source】【30†source】【31†source】.
This approach blends quantitative metrics (like revenue and earnings) with qualitative insights from historical trends, giving the LIVR ETF a dynamic, AI-driven stock-picking mechanism.
It would be nicer if this was a fund that was concentrated into, 25-30, holdings. A bunch of 1-2% allocations not only doesn't move the needle but feels like dart-throwing vs conviction buying.
Interesting they call it Livermore (implying Jesse, I presume) but there's no mention of him or the other 'greats' they're trying to emulate on their site.
And a huge red flag to me: "Doug’s investments in AI inspired him to experiment with using ChatGPT to create investment portfolios. The results convinced Doug that AI can be a great investor, and Intelligent Alpha aims to prove that insight."
ChatGPT has only been around for a year-ish in any mainstream way ... you could've held SPY and also been convinced that your strategy is working. IMO this statement right there reeks of hype, sensationalism, and herd-thinking. Oooh, AI! ChatGPT! *throws money* Puh-lease...
If you look at the current holdings weight, the equal weight statement makes you scratch your head. These guys first need a compliance department staffed with humans. Do not forget that the total personnel at the subadviser is only 1 person (for a global fund).
Obviously someone thought it is not their money to lottery with to give these guys $20M to start the fund. There has never been a seller without a buyer!
For a concentrated fund, see if you like this three month old fund, FCTE. Only 20 holdings, equal weighted upon monthly rebalance / reconstitution. Better staffed and resourced. Three month old.
One of the best sponsored ETFs I am aware of with nearly $400M inflows, right out of the gate. Not much inflows the past month though.
BaluBalu: Interesting, albeit new, fund! I'll track it over time, but it might have a place for people. Another one to consider are the Capital Group ETFs (CGDV, CGGO, etc) which are also fairly concentrated. BBLU is another one, too.
Comments
Well, it does appear to be up almost +8% in just a few weeks. Go AI!
The fund is currently benefitting from a good dose of Chinese stocks at inception, a couple of weeks ago.
The **LIVR ETF** (Intelligent Livermore ETF) uses a **proprietary AI-powered stock selection process** that integrates human expertise to construct a portfolio of large-cap stocks. The selection process follows these key steps:
1. **Human Analyst Involvement**: A human analyst initiates the process by setting parameters, such as the portfolio’s target investment universe, sector focus, and weighting limits. They gather historical and forecasted data (like revenue and earnings growth) for quantitative analysis and set an investment philosophy, inspired by the world's greatest traders.
2. **AI Stock Analysis**: The AI then takes over by identifying **4 to 6 major trading trends** based on these famous traders' strategies. These trends are used to guide stock selection, focusing on companies with strong business fundamentals, market momentum, and favorable macroeconomic conditions.
3. **Final Stock Picks**: The AI selects 60 to 90 stocks from global large-cap companies, each with a market capitalization exceeding $1 billion. The portfolio is **equal-weighted**, meaning each stock carries a similar weight, ensuring diversification without over-concentration in any single stock. No individual holding exceeds 10% of the portfolio.
### Example:
One prominent stock in the LIVR ETF is **Meta Platforms (META)**. The ETF’s AI likely selected Meta based on its strong market position, future growth potential, and alignment with tech sector momentum, a major trend identified by famous traders that the AI incorporates【29†source】【30†source】【31†source】.
This approach blends quantitative metrics (like revenue and earnings) with qualitative insights from historical trends, giving the LIVR ETF a dynamic, AI-driven stock-picking mechanism.
Interesting they call it Livermore (implying Jesse, I presume) but there's no mention of him or the other 'greats' they're trying to emulate on their site.
And a huge red flag to me: "Doug’s investments in AI inspired him to experiment with using ChatGPT to create investment portfolios. The results convinced Doug that AI can be a great investor, and Intelligent Alpha aims to prove that insight."
ChatGPT has only been around for a year-ish in any mainstream way ... you could've held SPY and also been convinced that your strategy is working. IMO this statement right there reeks of hype, sensationalism, and herd-thinking. Oooh, AI! ChatGPT! *throws money* Puh-lease...
For a concentrated fund, see if you like this three month old fund, FCTE. Only 20 holdings, equal weighted upon monthly rebalance / reconstitution. Better staffed and resourced. Three month old.
One of the best sponsored ETFs I am aware of with nearly $400M inflows, right out of the gate. Not much inflows the past month though.
https://www.3fourteensmi.com/
Let me know what you guys think.
Disclosure: I own it but I am always looking for your objective evaluation.