In this episode of Excess Returns, we sit down with Doug Clinton of Intelligent Alpha to explore the fascinating intersection of AI and investment strategy. We discussed how Doug is using large language models (LLMs) like ChatGPT, Claude, and Gemini to build portfolios that aim to beat the market over time. Doug shares insights from his experience launching managing AI-powered investment strategies. We dive deep into how these models actually work behind the scenes, exploring everything from portfolio construction and stock selection to position sizing and rebalancing.
Doug explains how LLMs can combine quantitative and qualitative analysis in ways that traditional quant models can’t, while maintaining the advantage of being free from emotional biases that often plague human investors.
We also explore broader implications for the future of investment management, discussing whether AI might eventually replace human analysts and portfolio managers, or if the future lies in human-AI collaboration. The conversation wraps up with Doug’s thoughts on the rapid evolution of AI technology beyond investing, including his predictions for personal AI assistants and the potential emergence of artificial general intelligence (AGI).
Whether you’re an investment professional curious about AI’s role in the industry or simply interested in understanding how technology is reshaping asset management, this episode offers valuable insights into what the future might hold.
