In November 2023 we launched our first AI-managed portfolio. The idea was based on this article. The model initially selected instruments for a medium-term horizon, after which we applied an additional Mean-Variance optimization layer.
As of today, the portfolio has returned 62 %, compared with 47 % for SPY.
Encouraged by these results—and by the rapid evolution of AI models—we decided to build an AI-driven portfolio-construction engine and make it available on our website.
Our line-up of AI Experts
To power the engine, we created a set of specialized AI agents:
- Fundamental-analysis agent
- Macro analyst
- Technical-analysis & price-forecasting agent
- News-analysis agent
- Risk & correlation-assessment agent
When a user requests a portfolio, the screening expert runs first, producing a raw universe of instruments based on the user’s criteria.
Next, each agent analyzes that universe and generates a concise report in its domain.
All reports, together with the user’s profile context, are passed to a final summarizer and weight optimizer, which selects the instruments and allocates them optimally.
Automatic portfolio maintenance
Beyond initial construction, we implemented an automatic-update system:
Weekly review. The AI evaluates every portfolio, watching for material events—news, price moves, earnings, etc. If something significant occurs, the AI proposes changes to holdings or weights.
Monthly re-optimization. Independently of specific events, the system reassesses overall portfolio behaviour and looks for ways to improve the target metrics.
If Autoupdate is enabled, changes are applied automatically; otherwise they are delivered as recommendations that the user can accept manually.
Nearly all of these portfolios have outperformed the market over the period since their inception.
The lone exception is the Defensive portfolio. Here the key metric is a low market beta, and its current beta of 0.19 already provides the desired downside protection.
Beyond the core line-up we also run a Hot Ideas portfolio - high-conviction trades for the current week.
This portfolio is not updated via the automatic weekly/monthly cycle; positions are added whenever new Hot Ideas surface, and the allocation is adjusted at the market close on the day the ideas are published.
You can follow our model portfolios - give it a try! And please let us know what you think of the service, either here or through the feedback form on the site.
And of course, none of this is financial advice; it is offered solely for research and educational purposes.