From “NASDAQ”:

Doug Clinton, the managing partner at Deepwater Asset Management, has embraced a “sit on your ass investing” approach. Deepwater’s Intelligent Alpha uses generative AI (GenAI) models, including ChatGPT, Bard, and Claude, to select long-term investments driven only by fundamental business performance. The portfolios compete with benchmark ETFs and have shown impressive results so far. However, some caveats remain regarding performance under stressful circumstances, the number of stocks in the portfolios, and the inclusion of major tech companies.

Deepwater Asset Management, run by Doug Clinton, has adopted an AI-driven investment model that aims to outperform benchmark indices. The model, known as Intelligent Alpha, uses generative AI (GenAI) models to make long-term investment decisions based on fundamental business performance. This approach, inspired by the investing philosophies of Warren Buffett and Charlie Munger, emphasizes emotional discipline and the selection of good companies to hold onto.

Doug Clinton’s Intelligent Alpha portfolios have produced impressive results, competing with benchmark ETFs such as SPDR S&P 500 and Invesco QQQ Trust. However, there are some potential challenges to consider, including performance under stressful market conditions and the composition of the portfolios, which include major tech companies.

Despite his unique approach, Doug Clinton acknowledges that there are still uncertainties regarding the performance of his portfolios under more challenging market conditions. The Intelligent Alpha model’s success is based on avoiding emotional decision-making and focusing on strong companies. However, the model’s ability to withstand significant market downturns remains to be fully tested. While the portfolios have demonstrated strong performance, especially during market downturns, questions remain about their resilience in more extreme situations.



Read more: Charlie Munger’s ‘Sit On Your A– Investing’ Strategy Actually Works, Says Market Pro — With Artificial Intelligence