Our CHATGPTAI, CLAUDEAI, and GEMINIAI portfolios use AI stock analysis. ChatGPT is a large language model (LLM) developed by OpenAI; Claude is an LLM developed by Anthropic, and Gemini is an LLM developed by Google. We offer separate portfolios based on the analysis of each model.

For each portfolio, we follow the following process:

1. Data Gathering: For each potential stock, we compile a comprehensive set of data that a human analyst would typically use to evaluate a company. This includes:
   • Recent news and significant events
   • Current economic forecasts and market trends
   • Detailed company financial information
   • Text of recent corporate filings (e.g., 10-K and 10-Q reports)
2. AI Analysis: The AI model processes this information for each stock. Unlike traditional algorithms, LLMs can understand context, identify patterns, and draw insights from both structured and unstructured data. From this information, the LLM assigns a rating to each stock reflecting its assessment of the stock's potential, considering factors such as financial health, market position, growth prospects, and potential risks.
3. Human review: Our investment team reviews the logic behind each of the top-rated stocks, checking for issues such as “hallucinations” and other material factors.  If issues are found, we either go back to step 2 and refine the analysis for that stock, or in some cases we may exclude the stock entirely.
4. Portfolio Construction: The LLM constructs a portfolio from the top-rated stocks. The portfolio is reviewed by our investment team and then implemented into the app.

Compared to traditional investing, possible advantages of this approach include:

• Breadth of analysis: LLMs can process and analyze vast amounts of data much faster than human analysts, allowing for quick analysis of hundreds of stocks.
• Reduced Bias: AI-driven analysis may help minimize human cognitive biases that can affect investment decisions.
• Consistency: The AI applies the same analytical process to each stock, ensuring consistency in evaluation.

Risks: These portfolios are comprised of stocks and therefore are susceptible to the inherent volatility and potential declines that characterize the stock market. Additionally, they may become heavily concentrated in particular industries or investment themes, making them potentially more risky than a diversified portfolio. In general, this approach to investing is novel and may come with unforeseen pitfalls. While our investment team reviews the stock ratings, this review is fallible; the AI evaluates many hundreds of stocks, many of which no human on our team is familiar with.

Risk score: 5