New analysis from a stunning report is shining light on the most successful stock traders in Congress in 2023.
The analysis, released by data analysis firm Unusual Whales, compares the investment returns of members of Congress to that of the SPY S&P 500 exchange-traded fund.
The top earners include former Speaker of the House Nancy Pelosi, who outperformed the index fund by 65.5 percent this year.
Pelosi’s lucrative stock option trading has long been a source of criticism.
The powerful Democrat’s apparent financial acumen has drawn allegations of insider trading and undue influence from her staunchest critics, as well as within her own party.
In spite of criticism from certain Democrats, Pelosi rejected calls to ban members of Congress from trade in individual stocks in late 2021.
Nancy Pelosi said today she doesn’t think members of Congress should be banned from owning individual stocks pic.twitter.com/aoX78t7tl9
— Evan (@StockMKTNewz) December 15, 2021
Curiously, the then-leader of House Democrats seemingly went on to quietly reverse her opinion when backing a law that would ban individual stock trade, according to CNBC.
Should lawmakers be able to trade while they are in office?
While Pelosi’s returns are eye-opening, she isn’t the most successful congressional stock trader of 2023.
Rep. Brian Higgins of New York had a hefty return of 238.9 percent on his investments in 2023.
However, the Democrat owns financial stock in only two companies, according to WKBW-TV.
A spokesperson for Higgins described him as one of the more financially modest members of Congress in a statement providing context on his returns.
Jeff Hauser of the Revolving Door Project is describing the congressional stock windfall as far too lucrative to be free of corruption, according to the New York Post.
“It’s a sign of quasi-insider trading that’s corrupt and should be banned – it’s either an addiction to risk or a sign of corruption.”
Hauser questioned how members of Congress outperformed Wall Street’s most dedicated investors.
“There are teams of people at sophisticated hedge funds that exist to find minor arbitrage opportunities to make a profit,” Hauser said. “It’s preposterous to think they are finding profit where Bridgewater or Renaissance Capital is missing it.
“It’s either because they know too much or because they can’t stop thinking about money.”
Other congressional stock trading heavyweights include Democratic Sen. Ron Wyden and Republican Rep. Mark Green.
