The $10M Fund Managed by ChatGPT

ChatGPT is going to replace fund managers too. At least that’s the theory one team has committed $50k to testing… a theory that has already attracted 18,000+ investors with $10M+ to invest alongside the AI tool.

First, some background.

In early April 2023, two finance professors at the University of Florida – Alejandro Lopez-Lira and Yuehua Tang – published a paper outlining how ChatGPT could trade stocks by ingesting macroeconomic data and financial news, learning sentiment analysis, and deploying its own day-trading theories. Their experiment in LLM-led investing would have resulted in ~400% returns over 15 months (Oct ‘21 to Jan ‘23).

This was just an experiment. However, it inspired the team at Autopilot to put real money behind a ChatGPT-led fund to see if it actually works.

The GPT Portfolio is technically not a public fund. But anyone can copy the exact same trades as the ChatGPT Investor through Autopilot. As I said before, 18,000+ people have committed $10M+ to following this GPT Portfolio.

Autopilot is a social investment platform where users can copy-trade people like Nancy Pelosi, Michael Burry, Warren Buffett, and now ChatGPT. The platform connects directly to your brokerage account and automatically executes the trades. Although it only supports TD Ameritrade, Robinhood, and Webull.

They are using the PortfolioPilot plugin for ChatGPT which gives users the ability to access current market news, real-time stock prices, and other valuable information.

It’s unclear exactly how they’re prompting this ChatGPT plugin to analyze the markets and pick what stocks to buy/sell. However, they say they’ll be sharing the process transparently on The GPT Portfolio Twitter.

They’ve also shared this quick summary of what they’re generally doing:

First, what a great marketing campaign for Autopilot. Considering you must use their app in order to invest alongside this AI, marketing this ChatGPT-powered “fund” was genius. They basically spent $50k to get 18,000 more users. Not to mention, the $10M invested already accounts for 25% of their entire AUM (assets under management). Huge success on the marketing side.

Second, what a fascinating experiment. There’s so much interest and fear surrounding AI. Its unexplainable nature creates the enigma of “what can’t it do?” Now, there’s an opportunity for the average person to feel like they are benefiting directly from AI’s incredible intelligence.

Notably, after two days of operation (May 16, 2023 to May 18, 2023) it outperformed $SPY slightly – clocking a 1.1% gain compared to the ChatGPT Trader’s 1.4% return.

I’m very curious. On the off chance that ChatGPT can really pick stocks well, then I wouldn’t mind having a little exposure to it. Given that it buys/sells every 3-5 days, I’m a little worried about the tax implications of all those trades. But who knows, maybe by the year’s end ChatGPT will understand how to do tax-loss harvesting.

I think it goes without saying. Nonetheless, this is not financial advice. Please do your own due diligence.

On a side note, here are 7 other AI tools to supercharge your investing.

1. PortfolioPilot – Automated portfolio monitoring, macro analysis, and personalized portfolio recommendations.
2. Stocked AI – Stock predictions based on advanced machine learning algorithms.
3. Babbl – AI stock market news and social media monitoring tools to help you find market-moving news and sentiment.
4. Stocknews AI – Stock news curated by AI.
5. Finchat.io – Generates answers to questions about public companies and investors
6. Chaplin – Customizable ChatGPT-powered investing platform for plotting strategy and deploying AI trading scripts.
7. DYORAI – Provides comprehensive sentiment and fundamental analysis for any crypto coin.