Warren Buffett and David Tepper's Investment Prowess Drives Launch of New Chatbot Exchange-Traded Fund

In a bold move, Intelligent Alpha, an independent registered investment adviser, has launched its first fund, which leverages large-language AI models for portfolio management. The new ETF, dubbed LIVR, pays homage to Jesse Livermore – one of the early 20th century’s most legendary stock traders.

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How it Works

The ETF uses ChatGPT, a cutting-edge large-language model, to generate investment strategies that can outperform traditional passive investing. According to Intelligent Alpha’s CEO, Gene Munster, the fund has already developed 40 different strategies whose performances are measured against various indexes.

Unique Features

LIVR charges a relatively low fee of 0.69% and invests in companies that may not be held by giants like Warren Buffett’s Berkshire Hathaway.
The fund has final human oversight to ensure compliance with regulatory requirements and prevent potential "hallucinations" in the portfolio.

Market Reaction

While AI-centered ETFs have struggled to gain traction, Intelligent Alpha is optimistic about its chances. Clinton notes that many of these funds rely on traditional machine-learning techniques and may not be incorporating large-language models like LIVR.

A Glimmer of Hope?

One of the 16 AI-centered ETFs in the U.S., Franklin Intelligent Machines (IQM), has managed to outperform the S&P 500 this year, returning 19% against the index’s 18%.

Challenges Ahead

The space is still largely experimental and untested. Little evidence exists that AI is disrupting and displacing investing units en masse. Moreover, there’s no proof yet that investments chosen by AI have a leg up over passive investing.

Will LIVR Break the Mold?

Only time will tell if LIVR can overcome these challenges and deliver on its promise of outperforming traditional investing strategies. One thing is certain: the world of finance is about to get a lot more interesting.

About Intelligent Alpha

Intelligent Alpha is an independent registered investment adviser that uses large-language AI models for portfolio management. The company was founded by Gene Munster and has already filed for other ETFs in addition to LIVR.