From tariffs to tech: Mike Frazis leverages AI as fund rockets 83% off April's lows

Market maverick Mike Frazis says artificial intelligence is his new risk manager as his investment fund rides a market rollercoaster fuelled by President Trump's declaration of a global trade war on April 2. 

The investor, known for a love of growth, says his own AI systems now produce buy or sell signals based on price momentum and other quantitative factors, which should allow him to avoid a repeat of 2022's horror drawdown. 

"We're using AI and ChatGPT to build risk models with my full-time software developers," Frazis told Livewire. "The models moved us to 50% cash in April, and then in late April and early May, we got buy signals on growth stocks we liked."

According to data from Morningstar, the Frazis Fund has rocketed 83% from its April 17 low to July 18 as the high-octane investor's big bets on semiconductors, superclusters, next-gen biotech and Reddit (NYSE: RDDT) paid off handsomely. 

"Nvidia has been the easiest way to invest in AI, but there are a number of higher-returning opportunities in smaller companies that are growing faster than the sector," he says. 

"We had companies like Credo and Astera Labs. If you look at those charts, you'll see over 100% moves [since April]. We also bought some of the fallen angels - so companies like Elf Beauty and Transmedics that dropped 60% or 70%, but then also recovered over 100% from the April lows."

He also says internet rabbit hole and social news aggregator Reddit is posting growth rates to justify its 255% share price rise over the past 12 months. 

"If you search on Google now, you'll get Reddit results," he says. "That authentic conversation [on Reddit] around niche issues is also helpful to AI. Users are growing 21% and revenue growth was up 78% for the June quarter. Gross margin 91%. It's a really good ad business, growing fast. So there are different ways to invest in AI."

Risk management

Frazis says he's now confident in the potential of his in-house AI systems to manage downside, and even adds that their price-modelling signals would've saved his investors from 2022's horror run.

"If we had these systems in January 2022, we would've sold and moved to cash, then it could've been a great year for us, as we would've got back into the market in January 2023," he says. 

"So we'll stay volatile and high risk/return, but we've got a structured process to move to cash during sell-offs and to re-enter the market."

Overall, Mr Frazis says he expects the latest unit pricing will show the fund is up around 41% net of fees over calendar year 2025. 

Biotech bets

The stock picker, who boasts a chemistry degree from the University of Oxford, has also profited from a dramatic rebound in the ASX biotech sector, as investors' risk appetite returned on a pivot to the TACO (Trump Always Chickens Out) trade. 

Three of the Frazis Fund's ASX holdings include Amplia Therapeutics (ASX: ATX), Syntara Ltd (ASX: SNT) and Clarity Pharmaceuticals (ASX: CU6). They have all surged since President Trump's April 2 Liberation Day shattered investors' confidence before it returned with gusto.

"In both Amplia and Clarity, we invested in their recent capital raises," says Frazis. "We've now put $30 million into pre-revenue Australian biotech. Amplia is developing treatments for pancreatic cancer. It announced two complete responses in [patients] in a small trial."

Exchange-traded fund plans

Looking ahead, the investor will soon bring his brash style directly to the ASX as he plans to launch an exchange-traded fund tipped to hit the boards under the ticker ROAR in a nod to lions and their symbolic association with boldness.  

The ETF will hold around 20-25 US businesses on market caps of at least US$1 billion, with an October 1 date pencilled in to ring the bell on its launch.