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Doug Clinton, founder and CEO of Intelligent Alpha Doug Clinton, founder and CEO of Intelligent Alpha <\/p>\nDoug Clinton, founder and CEO at Intelligent Alpha, joins BNN Bloomberg to share his Hot Picks in stocks chosen by AI. <\/p>\n
Artificial intelligence is changing how investors identify market opportunities, offering new ways to spot value and manage risk.<\/p>\n
BNN Bloomberg spoke with Doug Clinton, founder and CEO of Intelligent Alpha, who discussed how AI is reshaping investment research and portfolio strategy.<\/p>\n
Key TakeawaysAI-driven investment models are highlighting opportunities in solar, software and gold stocks based on emerging market and macroeconomic trends.First Solar is viewed as undervalued, with strong domestic manufacturing and potential to benefit from AI-fuelled energy demand.Datadog is positioned within cybersecurity and observability software, sectors more resilient to AI disruption than broader SaaS markets.Gold Fields reflects AI\u2019s broader preference for gold and hard assets as potential inflation hedges if interest rates decline.Intelligent Alpha\u2019s results show that AI models can rival human managers, with performance matching the S&P 500 since launch.Doug Clinton, founder and CEO of Intelligent Alpha Doug Clinton, founder and CEO of Intelligent Alpha <\/p>\n
Read the full transcript below:<\/p>\n
ANDREW: For Hot Picks, our guest is the founder and CEO of Intelligent Alpha, a company that uses large language AI models to build investment strategies. We\u2019re joined by Doug Clinton. Doug, thanks very much for joining us once again.<\/p>\n
DOUG: Thank you, Andrew. Good to be with you.<\/p>\n
ANDREW: I\u2019m looking at GPT, your ETF. It\u2019s not huge, about $20 million right now, and you launched it last September. It\u2019s keeping up with the S&P 500, which is more than you can say for a lot of active fund managers out there.<\/p>\n
DOUG: I appreciate you saying that, Andrew. It\u2019s hard to beat the S&P 500, but it\u2019s fun. If you look at the data from Standard & Poor\u2019s, roughly 30 to 40 per cent of human managers beat their benchmarks in any given year. We\u2019ve seen results at Intelligent Alpha that give us confidence AI is proving to be a better investor than humans so far. The great news for us \u2014 and for customers who want to invest with AI \u2014 is that these models just keep getting smarter. To your point about OpenAI\u2019s recent developer conference, the pace of advancement is remarkable.<\/p>\n
ANDREW: Interesting. So your ETF, GPT, is up about 21 per cent since mid-September last year, matching the S&P 500. Let\u2019s get to some of the names your model is flagging right now. First Solar \u2014 tell us about that one.<\/p>\n
DOUG: First Solar is interesting because we run about 30 different strategies at Intelligent Alpha, and it keeps showing up in several of them. I\u2019ve noticed that consistency as our models evolve. It makes sense, because one of the big unanswered questions in AI right now is how we\u2019re going to power all these data centres. If we spend more than a trillion dollars over the next several years building them, where does the power come from? Solar is likely to be part of that equation. It\u2019s been overlooked as investors focus on nuclear and natural gas. I think First Solar is well positioned to be one of the AI beneficiaries as energy demand grows. It trades at about 12 times forward earnings and hasn\u2019t had that big AI premium yet \u2014 that could be the upside case.<\/p>\n
ANDREW: Talk to us about Datadog. There are fears AI could disrupt the software business. Remind us what it does.<\/p>\n
DOUG: Datadog is an observability platform. For enterprises running software across their organizations, it lets the chief information officer see what\u2019s going on \u2014 how applications are performing and whether there are security concerns. That\u2019s what makes Datadog so interesting. Software has been a difficult place to invest this year, with concerns AI might replace some SaaS applications. But when it comes to security, companies won\u2019t rely on unproven, open-source tools for protection. They\u2019ll want trusted platforms. Datadog, and others like CrowdStrike, are better insulated from those AI risks. In fact, demand for these platforms could rise as AI adoption grows.<\/p>\n
ANDREW: And finally, Gold Fields is showing up in your model. It\u2019s not just a call on that specific miner, but your model\u2019s been bullish on gold overall?<\/p>\n