If AI stocks are a bubble, I honestly do not spend much time worrying about it.
The entire point of my systematic portfolio is that I do not need to depend on the direction of the S&P 500 or the continued dominance of a handful of large technology companies. While markets have increasingly behaved like one concentrated AI-driven trade, over the last 2 years my fully systematic multi-strategy portfolio has delivered close to 100% returns with roughly 3% correlation to the S&P 500.
That is the advantage of building a portfolio around independent short-term market edges instead of traditional long-only market exposure.
The strategies are fully automated through my own infrastructure at getundiluted.com and across the last 2 years have executed thousands of trades, primarily capturing intraday momentum and short-term mean reversion opportunities. The portfolio is built around the idea that markets constantly create smaller inefficiencies and dislocations that can be captured systematically and diversified across strategies, timeframes and instruments.
Independent Edges vs. Traditional Exposure
What makes the current environment particularly interesting is that many traditional hedge funds still cannot efficiently deploy these types of strategies at scale because of capacity, operational complexity and mandate constraints.
At the same time, technology has become dramatically more accessible. With modern broker APIs, cloud infrastructure and AI-assisted research workflows, rising systematic firms can now research, test, deploy and monitor sophisticated portfolios at a level that previously belonged almost exclusively to larger institutions.
The technology itself is no longer the real barrier. Finding durable edges, validating them rigorously and adapting before they disappear is still the hard part.
Past performance does not guarantee future results.