In this article, we discuss 10 latest stocks to consider in the portfolio of Nancy Pelosi.
The stock trading activities of lawmakers in the United States have come under increased scrutiny in the past few months amid calls for amendments to the Stop Trading on Congressional Knowledge (STOCK) Act to ban Congress members from stock trades. Nancy Pelosi, the House Speaker and a member of the ruling Democratic Party, is at the center of this controversy. Pelosi, who is married to venture capitalist Paul Pelosi, earlier this year opposed this ban, citing a “free market economy” but has since relented.
Under the STOCK Act of April 2012, US lawmakers are required to disclose their stock trading activities to the public through a Periodic Transaction Report within 45 days of the transaction. These reports are available on official websites of the US House of Representatives and the US Senate. Per Conflicted Congress, a project of news platform Business Insider, in late 2021, 63 members of Congress and 182 staffers had violated the STOCK Act since 2020. They usually got away with these violations through small fines.
Pelosi has since called for tougher fines to discourage late reporting of stock trades by Congress members. According to Capitol Trades, a database that monitors the stock disclosures made by lawmakers, Pelosi has so far disclosed 78 trades through 21 filings. Some of the top stocks to consider in the portfolio of Nancy Pelosi, according to the disclosures made in mandatory filings, include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG).
Our Methodology
The companies listed below were picked from the Periodic Transaction Report(s) that US politicians who trade stocks are obliged to file. It is important to clarify that the stocks listed below were picked from the public record of investments Nancy Pelosi and her family have made in the past few months. The purchases may not have been made by Pelosi herself but only disclosed on behalf of her husband, Paul Pelosi, who runs a venture capital firm.
Data from around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Nancy Pelosi Stock Portfolio: Latest Stocks To Consider
10. AllianceBernstein Holding L.P. (NYSE:AB)
Number of Hedge Fund Holders: 4
AllianceBernstein Holding L.P. (NYSE:AB) is a New York-based investment manager. According to a Periodic Transaction Report from February 28, Pelosi purchased 10,000 shares in AllianceBernstein Holding L.P. worth between $250,000 and $500,000. The report was signed by Pelosi herself.
At the end of the first quarter of 2022, 4 hedge funds in the database of Insider Monkey held stakes worth $14 million in AllianceBernstein Holding L.P., compared to 5 in the previous quarter worth $32 million.
Just like Apple Inc., Microsoft Corporation, and Alphabet Inc., AllianceBernstein Holding L.P. is one of the stocks on the radar of elite investors.
9. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 78
Micron Technology (NASDAQ:MU) makes and sells semiconductor products. A regulatory filing dated late last year reveals that Pelosi purchased 100 CALL options worth somewhere between $250,000 and $500,000 in Micron Technology stock on December 17. The transaction was disclosed the same day it was made.
On July 1, Evercore ISI analyst C.J. Muse maintained an Outperform rating on Micron Technology stock with a price target of $90, noting that there was “excess conservatism” in the updated outlook on the stock given macro weaknesses.
At the end of the first quarter of 2022, 78 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in Micron Technology, compared to 83 in the previous quarter worth $5.5 billion.
In its Q3 2021 investor letter, Hazelton Capital Partners, an asset management firm, highlighted a few stocks and Micron Technology was one of them. Here is what the fund said:
“It’s hard to explain how shares of Micron Technology, manufacture of DRAM and NAND semiconductor chips, can fall during a global chip shortage. In most industries, focusing on demand can give you a clear insight into what lays ahead for a company. Today, the memory and storage chip industry is no different. However, in the past, companies focused on market share led to the reckless build out of chip fabrication plants (FABs), oversupply, falling average selling prices (ASPs) of memory and storage chips, lower margins, and declining cash flows. As the industry consolidated – there are now just 3 major producers of DRAM and 5 on the NAND side – rational behavior among the key players began to take hold as competitors began focusing more on R&D. Currently, chip pricing remains cyclical although less so than in the past and that cyclicality has a long-term upward bias. The ongoing transition to newer and more robust platforms (3D 176-layer NAND & 1-Alpha node DRAM) has provided the memory and storage chip industry with improved supply capacity under its current manufacturing footprint, ultimately pressuring ASPs. Over the past three years, as most of the large platform conversions have already taken place, being able to add more bits per wafer has reached a saturation point. With no major FAB build outs planned in the near-term by competitors Samsung or SK Hynix, constrained supply and flattening cost curves should lead to durable and upward sloping ASPs once the recent volatility from the chip shortage subsides.
Currently Micron Technology trades at just 8x 2022 estimate earnings. Micron Technology is expecting growth in both DRAM and NAND not just from the supply of more chips to data centers, artificial intelligence, the auto sector, and mobile devices, but also from greater demand for gigabyte capacity per unit within those segments. With a healthy balance sheet, improving return on invested capital, and expanding cash flows, not only should Micron benefit from improving future earnings but its multiple should also reflect the transition to a flattening cost curve.”
8. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 80
Tesla, Inc. (NASDAQ:TSLA) markets electric vehicles and clean energy solutions. Mandatory filings from late March show that Pelosi exercised 25 CALL options on Tesla, Inc. stock worth somewhere around $1,000,000 and $5,000,000 on March 17. The strike price was $500 and the options were due to expire on March 18.
On July 5, Bank of America analyst John Murphy maintained a Neutral rating on Tesla, Inc. stock with a price target of $925, underlining that the firm had missed consensus estimates for EV deliveries in the second quarter of 2022.
At the end of the first quarter of 2022, 80 hedge funds in the database of Insider Monkey held stakes worth $11 billion in Tesla, Inc., compared to 91 in the previous quarter worth $12 billion.
Here is what Grantham Mayo Van Otterloo & Co. LLC has to say about Tesla, Inc. in its Q1 2022 investor letter:
“To put the demand growth for clean energy materials into perspective, let’s look at Tesla, Inc.. At its Battery Day last year, Tesla, Inc. projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”
7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA) operates as a visual computing firm. According to the data available publicly, the House Speaker bought 5,000 shares in the firm worth somewhere between $500,000 and $1,000,000 in late July last year.
On June 29, Bank of America analyst Vivek Arya maintained a Buy rating on NVIDIA Corporation stock and lowered the price target to $220 from $270, noting that the market should prepare for another downturn in the chip space.
At the end of the first quarter of 2022, 102 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in NVIDIA Corporation, compared to 110 the preceding quarter worth $10.4 billion.
In its Q1 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation was one of them. Here is what the fund said:
“NVIDIA Corporation is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVIDIA Corporation chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
6. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 69
American Express Company (NYSE:AXP) provides payments solutions. A financial disclosure report shows that Pelosi exercised 50 CALL options (5,000 shares) on American Express Company shares in January 2022 at a strike price of $80. The report is dated late February 2022 and signed by Pelosi herself.
On June 17, investment advisory Baird upgraded American Express Company stock to Outperform from Neutral with a price target of $175. Analyst David George issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in American Express Company, with 15.6 million shares worth more than $2.9 billion.
In addition to Apple Inc., Microsoft Corporation, and Alphabet Inc., American Express Company is one of the stocks that hedge funds are monitoring.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company was one of them. Here is what the fund said:
“In financials, American Express Company has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”
5. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 100
PayPal Holdings, Inc. (NASDAQ:PYPL) is a digital payments firm. A financial disclosure report shows that Pelosi exercised 50 CALL options (5,000 shares) on PayPal Holdings, Inc. stock in January 2022 worth somewhere between $500,000 and $1,000,000. The report is dated late February 2022 and signed by the Speaker herself.
On June 20, Truist analyst Andrew Jeffrey maintained a Hold rating on PayPal Holdings, Inc. stock and lowered the price target to $80 from $85, noting the firm was losing “US branded SMB market share to Digital Native disruptors”.
At the end of the first quarter of 2022, 100 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in PayPal Holdings, Inc., compared to 110 in the preceding quarter worth $9.9 billion.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. was one of them. Here is what the fund said:
“PayPal Holdings, Inc. enables digital payments for consumers and merchants worldwide. Shares fell on disappointing 2022 guidance that called for 15% to 17% revenue growth but flat EPS growth due to higher credit costs and a higher tax rate. Management also tempered user growth expectations due to a strategic shift toward improving engagement of existing users and away from less-productive new user acquisition. Despite reduced earnings expectations, we believe the share price decline is overdone given PayPal’s growth opportunities and competitive advantages. We reduced PayPal Holdings, Inc..as it became clear that strong growth trends during the early part of the pandemic were not persisting in a more normal environment.”
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
The Walt Disney Company (NYSE:DIS) operates as an entertainment company. According to the data available publicly, she exercised 100 CALL options (10,000 shares) with a strike price of $100 on The Walt Disney Company stock worth somewhere between $1,000,000 and $5,000,000 in late January this year.
On July 7, Citi analyst Jason Bazinet maintained a Buy rating on The Walt Disney Company stock and lowered the price target to $145 from $165, noting that recession fears were leading to a decline in advertising and entertainment stocks.
At the end of the first quarter of 2022, 113 hedge funds in the database of Insider Monkey held stakes worth $5.1 billion in The Walt Disney Company, up from 111 the preceding quarter worth $6.9 billion.
In its Q1 2022 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and The Walt Disney Company was one of them. Here is what the fund said:
“The war in Ukraine has given new urgency to the question of whether globalization has reached a tipping point and if the familiar web of decentralized, just-in-time, global supply chains will be a casualty of the inward turn dividing countries into competing trading blocs. It is probably too soon to know. We sold The Walt Disney Company, due to some concerns about the increasing capital intensity of its business amid signs of rising competition and slowing growth in streaming media consumption.”
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 131
Apple Inc. is a consumer electronics firm. Mandatory filings from early June show that Pelosi purchased 100 CALL options on Apple Inc. stock worth somewhere around $500,000 and $1,000,000 in mid-May 2022. The options have an expiration date of March 2023.
On July 1, Morgan Stanley analyst Katy Huberty maintained an Overweight rating on Apple Inc. stock with a price target of $185, noting that the net revenue of the App Store was growing compared to the previous year.
At the end of the first quarter of 2022, 131 hedge funds in the database of Insider Monkey held stakes worth $182 billion in Apple Inc., compared to 134 in the previous quarter worth $186 billion.
In its Q1 2022 investor letter, Weitz Investment Management highlighted a few stocks and Apple Inc. was one of them. Here is what the fund said:
“Changes to the Apple Inc. mobile operating systems have temporarily impacted growth of Meta’s advertising business just as the company’s investments in Instagram’s “Reels” feature ramp ahead of full monetization. (Shareholders can read research analyst Jon Baker’s in-depth discussion of current events impacting Meta and reasons why we’re optimistic about the company in our recent Analyst Corner feature.) CoreCard (formerly Intelligent Systems) struggled early in the fiscal year to hire and train staff to handle growth from new and existing clients. Lately, Apple-related headlines also took a bite out of CoreCard shares, as reports suggest Apple Inc. is exploring a transition of its credit card and other financial services to internally built solutions. Such a move would create revenue headwinds for its partners, which CoreCard is widely believed to be. We are monitoring these developments and stress-testing our model accordingly.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
Alphabet Inc. is a diversified technology company. A regulatory filing dated late last year reveals that Pelosi purchased 10 CALL options worth somewhere between $500,000 and $1,000,000 in Alphabet Inc. stock in mid-December 2021. The options have a strike price of $2,000.
On July 7, Evercore ISI analyst Mark Mahaney kept an Outperform rating on Alphabet Inc. stock and lowered the price target to $3,110 from $3,300, noting that recession risk and inflation pressures were weighing on large cap internet stocks.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc., with 2.3 million shares worth more than $6.6 billion.
In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. was one of them. Here is what the fund said:
“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet Inc., performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following Alphabet Inc. and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet Inc. (Google) again with a margin of safety.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation is a Washington-based technology firm. According to a Periodic Transaction Report from June 2022, Pelosi purchased 40 CALL options shares worth between $250,000 and $500,000 in Microsoft Corporation stock in May this year. The options have a strike price of $180 and expire in June 2023.
On July 7, KeyBanc analyst Michael Turits maintained an Overweight rating on Microsoft Corporation stock and lowered the price target to $330 from $373, noting the recent reductions to 2022 PC shipment outlook as one of the reasons behind the decrease.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation, with 27.8 million shares worth more than $8.5 billion.
In its Q1 2022 investor letter, Carillon Tower Advisers, an investment management firm, highlighted a few stocks and Microsoft Corporation was one of them. Here is what the fund said:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft Corporation reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
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This article is originally published at Insider Monkey.
