Sep 19, 2024

I came across news about a new exchange-traded fund (ETF) that will use artificial intelligence to mimic the investment strategies of renowned investors like Warren Buffett, Stanley Druckenmiller, and David Tepper. The firm behind this initiative has roots in engineering and emerging technologies and plans to use large language models to emulate the personalities of these investors. The ETF will focus on selecting 60 to 90 global firms across various sectors and geographies, based on the personas of these famous investors.

The ETF will rely on a human analyst to establish the intended strategy for the underlying portfolio and then use a large language model AI algorithm to identify major trading trends inspired by the greatest traders in the world. The AI will analyze various information sources related to the identified traders and trends to create a portfolio of up to 20-30 stocks with weightings for each position. The ETF plans to launch with the ticker symbols LIVR and AIWB.

Additionally, I learned that Steve Cohen, the billionaire hedge fund founder, has transitioned from investing clients’ capital to focusing on driving his firm’s growth and mentoring and developing talent. Cohen, who has been a dominant force in the industry for more than three decades, will now spend less time in front of his computer screens and more time working with investment teams and developing talent at the firm.

Lastly, the SEC has fined Prager Metis CPAs LLC $745,000 for issuing two audit reports for FTX Trading Ltd. that falsely misrepresented compliance with auditing standards. The audits failed to understand the increased risk stemming from the relationship between FTX and Alameda Research LLC, a crypto hedge fund controlled by FTX’s CEO.

Overall, the news highlights the growing role of AI in investment strategies, the transition of influential figures in the finance industry, and the regulatory scrutiny faced by audit firms in the crypto space.

Stay Well!