The Intelligent Livermore ETF (LIVR) has made its debut, bringing a new wave of AI-driven investing to the financial world. This exchange-traded fund, designed to mirror the investment philosophies of prominent investors, has sparked excitement and offers a glimpse into the future of portfolio management.
LIVR, the brainchild of Intelligent Alpha, a firm co-founded by Doug Clinton, leverages cutting-edge AI technology to identify and select portfolio assets. The ETF draws upon the insights of three leading large-language models: OpenAI’s ChatGPT, Anthropic’s Claude, and Alphabet’s Gemini.
The name LIVR pays homage to the legendary 20th-century investor, Jesse Livermore, renowned for his pioneering role in day trading. The fund’s initial portfolio focuses on promising opportunities in AI, Latin American and Asian equities, renewable energy, and defensive stocks. These selections are carefully curated by the AI investment committee.
Clinton, a seasoned investor in emerging technologies, believes that large-language AI models will revolutionize asset management, transitioning from traditional passive and active strategies to AI-powered portfolios. He envisions a trillion-dollar shift in the industry, driven by these intelligent algorithms.
LIVR’s investment approach is unique, drawing upon a vast repository of financial information, including public letters, interviews, and statements from financial giants like Warren Buffett, Stanley Druckenmiller, and David Tepper. The AI’s ability to emulate different investing styles is remarkable, allowing it to adapt to various risk profiles and market conditions.
Since its launch on September 18th, 2023, LIVR has captured significant attention. The ETF began trading with a net asset value of $25.21, experiencing a slight dip to $25.05 by the end of the day. However, it quickly gained momentum, ending Tuesday’s session at $26.08, representing a 4.1% increase over the past week.
The ETF’s performance has outpaced the Invesco QQQ Trust (QQQ) and the SPDR S&P 500 ETF Trust (SPY), both of which experienced gains of just over 3% and 2% respectively. Furthermore, LIVR’s gains are comparable to the Global X Artificial Intelligence & Technology ETF (AIQ) which has increased by 4.6%.
While it’s still early to definitively assess LIVR’s long-term success, its heavy weighting in AI-leveraged stocks suggests a strong alignment with the current AI boom. With the AI bubble projected to last for three to five years, LIVR is poised to capitalize on this momentum. However, it’s essential to acknowledge that the Federal Reserve’s interest rate cuts may act as a potential brake on the tech rally.
The Intelligent Livermore ETF (LIVR) represents a fascinating intersection of AI and finance. It’s a powerful illustration of the transformative potential of AI in the world of investing, offering investors a unique opportunity to participate in the AI-driven revolution. As the ETF continues to evolve and adapt to the dynamic financial landscape, it will be interesting to see how it performs in the long run.
