Jan 10, 2025 Story by: Editor
For years, reports from organizations like Unusual Whales have highlighted financial trends among lawmakers, focusing on their stock trading activities. These reports have increasingly drawn attention to potential conflicts of interest, especially given lawmakers’ access to insider information about forthcoming policies. The latest report dives into the stock portfolio performance of Congressional members in 2024, with Byron Donalds standing out for notable gains.
Historical Context and Growing Scrutiny
Unusual Whales’ first report on Congressional financial activities went unnoticed. Over time, however, the organization gained traction, with its third report in 2023 going viral and prompting Congress to address stock trading concerns. While bipartisan efforts to pass legislation banning stock trading by lawmakers have stalled, financial disclosures have become a critical tool for public accountability.
Financial Disclosure Mechanics
Congressional members are required to submit Periodic Transaction Reports (PTRs) for trades exceeding $1,000 within 45 days. These disclosures include transaction types, dollar ranges, and dates but often lack granularity, making precise gain or loss estimations challenging. Despite these limitations, Unusual Whales analyzed data to estimate portfolio performance for 2024, using historical prices and averages from disclosed ranges.
Key Findings: Byron Donalds Outpaces the Market
According to the report, members of Congress, on average, outperformed the S&P 500 (SPY) in 2024. Republican portfolios grew by 26%, driven largely by investments in financials and commodities. Among these, Byron Donalds showed exceptional returns, placing him among the top-performing Congressional traders.
“You have no way to better yourself,” remarked Texas Representative Dan Crenshaw in defense of lawmakers trading stocks. This sentiment underscores a controversial debate on whether lawmakers should leverage their positions for personal financial gain.
Methodology and Performance Highlights
Unusual Whales calculated portfolio changes by tracking gains from January 1, 2024, to December 31, 2024. Their analysis included:
- Evaluating changes in stock prices for assets held throughout the year.
- Estimating gains for stocks bought or sold within the year.
- Aggregating these metrics to assess individual and party-wide performance.
Donalds’ portfolio benefited significantly from his holdings in financials and commodities, outperforming SPY and rivaling Democratic portfolios that saw a 31% increase, thanks to big tech investments.
Broader Implications
Despite calls for reform, Congress has yet to implement a stock trading ban. Public reliance on financial disclosures highlights the importance of transparency and accountability. Reports like these aim to inform voters about potential conflicts of interest and advocate for a fairer financial system.
Congressional Portfolio Performance in 2024: Key Highlights and Trends
David Rouzer’s portfolio stood out this year due to its remarkable returns, primarily driven by his long-term holdings in stocks such as NVDA, MA, V, and the JETS ETF, alongside a few smaller investments. While Rouzer is not an active trader, his earlier investment choices yielded substantial growth. Despite having one of the best-performing portfolios in Congress, Rouzer’s approach contrasts with more active traders like Nancy Pelosi, Dan Crenshaw, and Ron Wyden, who often achieve higher returns through frequent trading.
Returns and Trading Insights
Larry Bucshon, for instance, achieved nearly a 100% return in 2024. However, his primary active stock position, DWAC (now DJT), purchased in 2021, has only recently broken even following DJT’s surge post-election. Bucshon predominantly invests in ETFs, which limits the scope of his gains, underscoring the term “assumed performance.”
Many Congressional members have leveraged the compounding effects of long-term investments in sectors like big tech and finance. While our calculations focus on returns from January 1 to December 31, 2024, they might undervalue the true performance of Congressional portfolios due to their conservative methodology.
“Our error in calculating true returns is evident as Congressional net worth continues to rise, often exceeding expectations based on publicly available disclosures,” the report noted. A detailed analysis of these discrepancies is forthcoming.
Spotlight on Trading Patterns
A notable mention is Marjorie Taylor Greene, whose 2023 disclosure reflected no tech stocks. Following her divorce in late 2022, she made several trades in 2024 to rebuild her portfolio. Despite significant portfolio value growth, her returns were modest. Of approximately 100 members actively trading, only half outperformed the S&P 500. Those who exceeded the S&P, such as Nancy Pelosi, demonstrated exceptional gains, especially in options trading.
Tech-Driven Success
Big tech stocks—Amazon, NVDA, and META—were significant contributors to Congressional portfolio performance in 2024. “These investments were not coincidental,” the analysis noted. “Many politicians hold shares in companies they oversee legislatively, raising concerns about potential conflicts of interest.”
Nancy Pelosi: A Case Study
Nancy Pelosi’s trading strategy, often credited to her husband, Paul Pelosi, remains a benchmark for financial acumen. Her trades focus on deep-in-the-money options in mega-cap tech firms. For instance, her $NVDA contracts yielded a 273% return, and her $AVGO calls returned 97%. Pelosi’s strategic timing and investments in tech, such as her $1 million stake in Databricks, exemplify her family’s financial expertise.
Pelosi’s portfolio also extends to non-public ventures, such as the Auberge du Soleil hotel, which benefited from over $9 million in COVID-19 relief funds. This investment, previously known for modest gains, delivered unprecedented returns during the pandemic era.
Unusual Trades by Members of Congress
The trading activities of several Congressional members have raised eyebrows, especially when viewed in conjunction with their legislative duties and committee assignments.
Michael McCaul’s Trades
Representative Michael McCaul, a Texas Republican, was notably involved in trades related to Meta Platforms ($META). Ahead of the April passage of the TikTok ban-or-divestment bill—a legislation McCaul himself authored—his family disclosed significant investments in $META, reportedly in the hundreds of thousands. This timing has sparked concerns, as Meta could benefit from a TikTok ban.
Similarly, Oklahoma Senator Markwayne Mullin, who purchased up to $50,000 worth of $META shares in January, later supported the TikTok-related legislation. When questioned about these trades on CNBC, Mullin claimed ignorance of his holdings, attributing them to “third-party management.”
McCaul’s financial disclosures further revealed a substantial purchase of up to $250,000 worth of Howmet Aerospace ($HWM) stock in October. As a defense contractor, Howmet benefits from government contracts, while McCaul serves on the House Committee on Homeland Security, creating potential conflicts of interest.
Pelosi’s Strategic Investments
Former Speaker Nancy Pelosi continues to attract attention for her financial disclosures, largely due to her husband Paul Pelosi’s astute trading decisions. Known for purchasing deep-in-the-money options, the Pelosi family has demonstrated a remarkable track record, particularly in technology stocks.
For instance, Pelosi disclosed trades in Nvidia ($NVDA), Palo Alto Networks ($PANW), and Broadcom ($AVGO), yielding returns of 273%, 93%, and 97%, respectively, on options contracts. These gains highlight the significant financial acumen of the Pelosi household.
In addition to public markets, the Pelosis have profited from private investments. Notably, their stake in the Auberge du Soleil luxury resort in Napa Valley saw significant returns during the pandemic. The resort received over $9 million in taxpayer-funded relief, including $5 million from the Restaurant Revitalization Fund in 2021. This financial assistance coincided with a reported income surge for the Pelosis, ranging between $1 million and $5 million, according to 2021 disclosures.
Democratic vs. Republican Performance
Congressional portfolios largely reflect investments in big tech companies, such as Amazon, Nvidia, and Meta, which performed exceptionally well in 2024. While approximately half of active traders in Congress outperformed the S&P 500, those who excelled did so by significant margins, particularly in the options market.
Democrats, in particular, saw strong portfolio growth, bolstered by legislative initiatives like the CHIPS Act and measures to regulate or support the tech sector.
General Findings and Observations
Congressional members frequently hold stocks in sectors where they have policymaking influence. Big tech, financial services, and energy were among the top sectors represented in their portfolios.
A summary of Congressional holdings:
- Individual Stocks: $524 million
- ETFs/Funds: $40 million
- Top Sectors: Technology ($159 million), Financial Services ($72 million)
However, the data also underscores disparities in trading activity, with less active trading observed in 2024 compared to prior years.
Congressional Stock Trading: Lawmakers Under Scrutiny for Their Financial Gains
Tina Smith
Minnesota Senator Tina Smith disclosed purchasing up to $100,000 worth of Tactile Systems ($TCMD) in November. As a member of the Senate Committee on Health, Smith oversees matters directly related to Tactile Systems, a medical device company discussed in the committee. This is not the first time her investment decisions have drawn attention. In late 2023, her purchase of $TCMD faced criticism from Minnesota’s Republican Party Chairman, David Hann. Notably, Smith’s investment has outperformed the market.
Debbie Wasserman Schultz
In August, Florida Representative Debbie Wasserman Schultz invested in Hecla Mining Company ($HL), which has connections to the Environment, Manufacturing, and Critical Minerals Subcommittee she serves on. The company, having actively campaigned to this subcommittee, saw a 45% rise following her purchase. Additionally, she acquired shares in Viasat ($VSAT), a military contractor, which surged by 41% after her investment. She is also on the House Appropriations Subcommittee on Military Construction.
Marjorie Taylor Greene
Ahead of the election, Georgia Representative Marjorie Taylor Greene made several stock purchases, including Tesla ($TSLA). Reports indicate that the Trump administration has considered removing car-crash reporting requirements opposed by Tesla, with Elon Musk reportedly advising Trump on policy matters. Greene’s investment in Tesla has appreciated by 73% since her purchase.
Jared Moskowitz
Florida Representative Jared Moskowitz invested in Lockheed Martin ($LMT) multiple times in 2024. As a member of the House Committee on Foreign Affairs, his role intersects with defense-related decisions, particularly as Lockheed Martin secured an $11 billion Department of Defense contract. The company’s stock reached several all-time highs this year. Moskowitz also invested in Nvidia ($NVDA), Meta ($META), and Merck ($MRK).
Markwayne Mullin
In February, Oklahoma Senator Markwayne Mullin purchased $30,000 in Badger Meters ($BMI), a company producing automated water technology. Oklahoma, his home state, announced plans to upgrade water meters shortly after his investment. Mullin, who serves on the Senate Environmental Services Committee, saw his investment rise by 55%. He also bought shares in Sprouts Farmers Market ($SFM), which soared over 200%.
Dan Crenshaw
Texas Representative Dan Crenshaw acquired $15,000 worth of Wynn Resorts ($WYNN) stock on October 25, 2022, just days before Houston billionaire Tilman Fertitta’s significant investment in the company became public. Since Crenshaw’s purchase, Wynn Resorts’ stock has risen 56%.
Michael Guest
Mississippi Representative Michael Guest invested in Tesla ($TSLA) stocks shortly after the election. Tesla has benefited from supportive stances by former President Trump, including potential changes to the EV credit program. Guest, who chairs the House Ethics Committee, has seen Tesla’s stock climb 34%.
Maria Salazar
Florida Representative Maria Salazar purchased $50,000 in DT Midstream ($DTM), a natural gas pipeline company. Her role on the House Committee on Foreign Affairs makes this purchase notable. The stock rose 60% following her investment.
Josh Gottheimer
Representative Josh Gottheimer of New Jersey is known for trading Microsoft shares, having worked there previously. However, he also invested in Fair Isaac Corporation ($FICO) and Crinetics Pharmaceuticals ($CRNX), the latter a day before it announced an FDA drug application. His investments in these stocks yielded substantial returns.
Thomas Carper
Delaware Senator Thomas Carper, an active trader, invested in Arcadium Lithium ($ALMT) in March, shortly before acquisition talks involving the company. Carper’s spouse also reported gains from Valero Energy Corporation ($VLO) earlier in the year.
Darrell Issa
California Representative Darrell Issa has faced criticism for violating the STOCK Act by failing to disclose $355 million worth of Treasury bill sales on time. Penalties for such violations are minimal, often limited to a few hundred dollars, raising questions about accountability in Congress.
Dan Newhouse
Washington Representative Dan Newhouse purchased Raytheon ($RTX) stock in April. As a member of the House Appropriations Subcommittee on Homeland Security, he benefits from government contracts awarded to Raytheon, which has seen its stock rise.
Ethical Concerns and Legislative Inaction
The idea of lawmakers trading stocks while influencing policies raises ethical concerns. Despite consistent market outperformance by congressional members, none of the ten bills introduced to regulate this behavior have reached the floor for a vote. Public pressure remains crucial in addressing these conflicts of interest.
For detailed insights into these trades, ETFs tracking congressional stock disclosures, such as $NANC and $KRUZ, are available. These ETFs offer a unique perspective on how lawmakers’ trades align with market trends. However, the ongoing debate underscores the need for transparency and reform. Source: Unusual Whales
