Nancy Pelosi’s investment portfolio is once again among the top performers on Capitol Hill – and lately she has gotten a major boost from a controversial use of stock options, according to government disclosures, New York Post said, Report informs.
The 83-year-old, former House speaker – who remains a Democratic congresswoman representing San Francisco – racked up a 65% return on her stocks portfolio in 2023 – more than double the S&P 500’s 24% gain, according to a new analysis from stock-trading data site Unusual Whales.
Pelosi wasn’t alone, with other options-happy members of Congress among the top-performing investors. Those included Rep. Mark Green (R-Tenn.), who logged a return of more than 122%; and Rep. Josh Gottheimer (D-NJ), who was up more than 25%.
Unlike buying individual stocks, options allow for more leverage, which means more exposure to a stock and a greater reward if a bet is right.
Options also could be an indicator an investor has access to inside information, according to ethics watchdogs.
“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,” Jeff Hauser, founder and director of the Revolving Door Project said.
Options trading on Capitol Hill soared to a record of more than $160 million last year, up from $30 million in 2022. That’s even as the total number of congressional trades slumped to 11,000 last year from 14,000 a year earlier, according to filings.
“There are teams of people at sophisticated hedge funds that exist to find minor arbitrage opportunities to make a profit. It’s preposterous to think they are finding profit where Bridgewater or Renaissance Capital is missing it,” Hauser adds.
“It’s either because they know too much or because they can’t stop thinking about money.”
Spokespeople for Pelosi, Green, and Gottheimer did not respond to requests for comment.
Pelosi’s 2023 returns stand in stark contrast to 2022, when her portfolio dropped 19.8% — worse than the 18.2% decline in the ETF that tracks the S&P 500, according to the 100-page report by Unusual Whales.
At the time, Pelosi’s portfolio took a major hit after she and her husband, tech investor Paul Pelosi, announced that they sold 25,000 shares of Nvidia at an average price point of $165.05 a share.
The sale – reportedly made as she came under fire for blocking legislation that would have regulated Congressional stock trading – resulted in a loss of more than $341,000, according to financial filings.