AIVL - AIVL: Consider Drawbacks Of AI-Guided Value Strategy

• The underperformance of value-tilted portfolios in the past pointed to inefficiencies the traditional low-multiple strategies have.
• AIVL has a unique active investment strategy guided by artificial intelligence that delves into myriads of data points to pick overlooked pearls.
• Though the fund itself was incepted in June 2006, it has been restructured in January 2022, thus we simply do not have enough data on returns it can achieve.
• Investors should understand that AIVL can invest in companies trading at premium to their sectors, depending on circumstances. The examples are provided in the article.
• Though profitability characteristics of the portfolio are close to perfect, a Hold rating, for now, seems justified.

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