In this article, we discuss the 10 stocks to consider in the portfolio of Nancy Pelosi.
Former United States President Barack Obama had signed into law the Stop Trading on Congressional Knowledge (STOCK) Act in April 2012. The law was designed to combat insider trading and required members of the US Congress to disclose their equity trading activities within 45 days of transactions. As a result, US lawmakers now regularly disclose their trading activity to the public through a Periodic Transaction Report that is available for viewing on the official websites of the US House of Representatives and the US Senate.
Nancy Pelosi, the Speaker of the US House of Representatives, has recently been in the news after her trading activity created a buzz on social media and resulted in her becoming the subject of a famous meme, especially on the TikTok platform. According to House Stock Watcher, a database of trading activity of lawmakers maintained by Tim Carambat, she has so far disclosed 48 transactions worth $51 million.
34 of these transactions involved a purchase of some kind while 14 involved selling. The latest transaction was disclosed more than three months ago. Some of the top stocks to consider in the portfolio of Nancy Pelosi and her husband, according to the disclosures made in the documents, include Facebook, Inc. (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL), among others discussed in detail below.
The trades of the Pelosi family involving Alphabet Inc. have become especially controversial since retail traders who have large social media platforms closely follow the trading activity of the politician and analyze it in context of larger developments. For example, Pelosi became the subject of a meme after it was revealed that Paul, her husband, had exercised CALL options to buy 4,000 shares of Alphabet just before an antitrust vote involving the firm in the House Judiciary Committee, making about $5.3 million in the process.
Our Methodology
With this context in mind, here is our list of the 10 stocks to consider in the portfolio of Nancy Pelosi. It is important to clarify that the stocks listed below were picked from the public record of investments 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. However, the official documents disclosing the transactions do not differentiate between the purchases made by Pelosi herself and those made by her husband.
The list is compiled according to the number of hedge funds having stakes in each firm. The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey.
Retail investors are paying a special attention to the stock picks of famous investors, and rightly so. Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Nancy Pelosi Stock Portfolio: Stocks To Consider
10. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 49
According to a Periodic Transaction Report from April 9, Pelosi purchased 10,000 shares in Roblox Corporation (NYSE:RBLX) worth between 500,000 and $1,000,000 in March this year. The report was signed by Pelosi herself.
At the end of the second quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in Roblox Corporation, up from 46 in the previous quarter worth $3.3 billion.
Just like Facebook, Inc., Microsoft Corporation, and Alphabet Inc., Roblox Corporation is one of the stocks attracting the attention of elite investors.
In its Q2 2021 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.
Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.
Over the first quarter of 2021, Roblox reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”
9. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 66
A regulatory filing dated October last year reveals that Pelosi purchased 5,000 shares worth somewhere between $500,00 and $1,000,000 in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in early September 2020.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in CrowdStrike Holdings, Inc. with 7.5 million shares worth more than $1.8 billion.
In addition to Facebook, Inc., Microsoft Corporation, and Alphabet Inc., CrowdStrike Holdings, Inc. is one of the stocks that hedge funds are buying.
In its Q1 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was one of them. Here is what the fund said:
“CrowdStrike provides cloud-based software used in the security of computers, servers, and mobile phones. The stock pulled back a bit during the quarter as investor sentiment shifted away from stocks with higher valuation multiples. We remain shareholders, as the protection of enterprise assets and cloud workloads from various forms of cyberattacks remains more important than ever for many enterprises, and we believe this will continue to result in a strong demand environment for CrowdStrike’s innovative products and services.”
8. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Mandatory filings from late January show that Pelosi exercised 25 CALL options on Tesla, Inc. (NASDAQ:TSLA) stock worth somewhere around $500,000 and $1,00,000 in late December 2020, at the beginning of a record rally for the stock that lasted well into 2021.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc., down from 62 in the previous quarter worth $10 billion.
Alongside Facebook, Inc., Microsoft Corporation, and Alphabet Inc., Tesla, Inc. is one of the stocks on the radar of institutional investors.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
7. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 86
NVIDIA Corporation (NASDAQ:NVDA) is the latest purchase of the House Speaker. According to the data available publicly, she bought 5,000 shares in the firm worth somewhere between $500,000 and $1,000,000 in late July this year.
At the end of the second quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $9 billion in NVIDIA Corporation, up from 80 the preceding quarter worth $6 billion.
Facebook, Inc., Microsoft Corporation, and Alphabet Inc. are some of the top stocks to buy now, just like NVIDIA Corporation.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
6. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
A financial disclosure report shows that Pelosi exercised 50 CALL options (5,000 shares) on Netflix, Inc. (NASDAQ:NFLX) shares in June 2020 at a strike price of $250. The report is dated July 2020 and signed by Pelosi herself.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. with 4.6 million shares worth more than $2.4 billion.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is what the fund said:
“We purchased Netflix in March, initiating a 3% position in the Portfolio. We believe Netflix is a highly competitively advantaged company. It has recently met all our investment guardrails, and we anticipate it will remain sustainably above our guardrails over the next five years and beyond. We know Netflix for its ubiquitous streaming service and deep library of owned content. The company has made investments in this content (currently running at nearly $20 billion/year), generally keeping subscribers highly engaged and loyal to their service. The company has number one market share in 99% of markets globally, but it is our view that video streaming on-demand is still an underpenetrated space with many years of attractive growth likely ahead. The service is also relatively affordable at roughly $11/month on average globally.
We believe Netflix’s growth in content spend is beginning to moderate, which could allow margin expansion to continue for many years when paired with ongoing subscriber growth and price increases. While there is competition from the likes of Apple (Apple TV+), Amazon (Prime Video), Disney (Disney+ and Hulu), and others, we believe there can be a handful of winners in this industry. Already, we see many people subscribe to multiple streaming video services, with Netflix being their “anchor” service. That said, the barriers to entry are high, and we believe they are getting higher given the substantial amount of capital and size of the subscriber base required to maintain a competitive service for both viewers and content producers. Over the next five years, we expect Netflix’s earnings growth to be approximately 30% annualized and free cash flow to grow at an even higher rate.”
5. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 143
A financial disclosure report shows that Pelosi purchased 5,000 shares of PayPal Holdings, Inc. (NASDAQ:PYPL) shares in June 2020 worth somewhere between $500,000 and $1,000,000. The report is dated July 2020 and signed by the Speaker herself.
At the end of the second quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $16.3 billion in PayPal Holdings, Inc., the same as in the preceding quarter worth $14.7 billion.
In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 138
Apple Inc. (NASDAQ:AAPL) is a recent purchase of the House Speaker. According to the data available publicly, she bought 5,000 CALL options with a strike price of $100 in the firm worth somewhere between $100,000 and $250,000 in late May this year.
At the end of the second quarter of 2021, 138 hedge funds in the database of Insider Monkey held stakes worth $145 billion in Apple Inc., up from 127 in the preceding quarter worth $131 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 190
Mandatory filings from early February show that Pelosi exercised 40 CALL options (4,000 shares) on Alphabet Inc. stock worth somewhere around $1,000,000 and $5,00,000 in late June 2021.
At the end of the second quarter of 2021, 190 hedge funds in the database of Insider Monkey held stakes worth $26 billion in Alphabet Inc., up from 185 in the preceding quarter worth $24 billion.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 238
A regulatory filing dated April this year reveals that Pelosi exercised CALL options on around 20,000 shares worth somewhere between $1,000,000 and $5,000,000 in Microsoft Corporation in early March 2021.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation with 24.8 million shares worth more than $6.7 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
1. Facebook, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 266
According to a Periodic Transaction Report from September 2020, Pelosi contributed 5,000 shares of Facebook, Inc. worth between $1,000,000 and $5,000,000 in August last year to a charity under the name of her family.
At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Facebook, Inc., up from 257 in the preceding quarter worth $40 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
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This article is originally published at Insider Monkey.
