Live AI Factor Results: Concentration in Microcap Shipping (CTRM, GLBS, EDRY)

General
1

I'm currently running a 20-stock live model powered by an AI Factor predictor. Interestingly, the model recommended a heavy cluster of microcap shipping names (CTRM, GLBS, PXS, EDRY, PSHG, SHIP, PANL).

Here are live gains per ticker since buying (mostly since May/June '26):

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  1. Anybody else in this trade?

  2. Not sure if these microcap shippers are an optimal setup long-term, given their high risk of dilution, reverse splits, and corporate action traps. Are others filtering these out, or letting the model run them?

2

Yep my US & European AI models want to buy every Shipping name out there. Energy overall is the other big trend. I control risk exposures outside of P123 so had to decline new purchases of these.

I own PXS, Ship, GLBS form the above list and these are up 102% / 13% / 4% respectively since purchase.

3

Hey Filip - I'm not using AI factors live yet, but yes, my US traditional strategies are also favouring shipping names, many of the same you've listed as well.

For me, I try and let the models do their thing and not interfere, unless the concentration becomes too over weight (which they're not so, just yet at least).

4

Me too. Top1 and top3 in my portfolio.
I use quant and qual rules to restrict exposure.
Sell : SecWeight < 30 & SubSecWeight < 20 & IndWeight < 15
Buy : Eval(Weight > 7, 0.25, 0)
Qual : Ask AI to select a candidate (out of 3-5 top ranked stocks) that provides max diversification to current holdings, and explain why.

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5

Yes, I am. GLBS up 39%, PXS up 39%, PANL up 23%, EDRY up 155%, SHIP up 14%.

6

Yes. They're a huge part of my outperformance since the Iran Invasion. And they were a huge part of my outperformance in 2022 after Russia invaded Ukraine. Which gets to the crux of my issue ... I don't know if these are necessarily great long term holdings, but they might secretly provide the best asymmetric hedge against geopolitical risk money can buy. And if you're the type of person who gets into "Fourth Turning" and the multi-polar world and the return to 18th Century Mercantilism et. al, the long term secular trend gets a lot more compelling.

7

Appreciate all the insight! It’s clear our models are catching a real underlying macro wave.

Looking at the Baltic Dry Index (BDI), it just hit a multi-month high. I see my models recommending a lot of energy/ oil as well.

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8

Some common names as well. Showing up in shipping and energy/oil isn’t strange if you have momentum factors in the ranking system. Those names tend to move together when the tape is strong. Best control, in terms of volatility, as Ryan Telford pointed out, is a limit of exposure per theme, at least for me :wink: