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Portfolio construction strategies can also vary, with Intelligent Alpha targeting a range between 50 to 100 stocks, depending on the strategy's goals. The models have autonomy to determine position sizes based on their conviction levels while adhering to regulatory limits.
Human Oversight in AI-Powered Processes
Despite the advanced capabilities of AI, Clinton emphasized the importance of human oversight in investment management. A layer of human review ensures that AI-generated portfolios align with intended strategies and are devoid of errors, such as including stocks outside established criteria. This oversight serves as an essential safety valve, maintaining the integrity of the investment process.