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US Politics
Opinion
Alex Lo
Alex Lo

My Take | How to make serious money and misbehave in the US

  • The sense of entitlement of a hedge fund star and the stellar investment records of members of the US Congress are further evidence that crony capitalism is too polite a term

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United States Capitol Building in Washington. Photo: Shutterstock
Alex Lo

Forget about tracking famous hedge fund managers and investment gurus. If you want to make real money, follow members of the US Congress.

While many of them have shown no previous expertise in investment, they handily beat the S&P 500 once they have taken seats in the most powerful legislature in the world. That’s according to Unusual Whales. The stock market news service has just released its second annual report on the trading of congressional members last year. Fascinating reading, highly recommended.

SPY, the popular ETF that tracks the S&P 500 market benchmark, rose 24.8 per cent last year. At least 32 members of Congress beat the market, many by a significant margin. I am sure they have all relied on their investment acumen rather than insider knowledge unavailable to everyone else.

As Nancy Pelosi famously said, “We are a free market economy. Congress should be able to participate in that.” Hmm, not sure about the “free market” bit.

The former House speaker was ranked the fifth-best trader in Congress in the Unusual Whales analysis last year, but that doesn’t even factor in the trading of her husband Paul Pelosi, a professional moneyman, who has an uncanny ability to anticipate new laws and government policies.

This time around, Nancy again does not disappoint. Let’s just pay tribute to her investment genius with a portfolio rise of 65.5 per cent in 2023.

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