Recent years have seen a surge in the trading activities of many U.S. elected officials, sparking concerns and prompting calls for stricter regulations on their investments. This has led to a growing interest in platforms that monitor politicians’ stock market transactions, with one standout being Quiver Quantitative on X.
Quiver has gained recognition for highlighting suspicious and intriguing trades by politicians, as well as offering a range of trading strategies based on their actions. One notable strategy is the “Congress Buys” approach, which focuses on the top 10 stocks purchased by U.S. lawmakers.
While the Congress Buys strategy has shown impressive growth with a 45.83% compound annual growth rate (CAGR) since its inception in 2020, it faced some challenges at the beginning of 2024. Despite initially underperforming compared to the S&P 500 index, it made a significant turnaround by June, posting a 19.18% gain.
In contrast, mainstream indices like the S&P 500 and the Dow Jones Industrial Average (DJIA) saw gains of 14.52% and 2.32% respectively over the same period. Despite its success, the Congress Buys strategy may not be suitable for all investors due to its Sharpe Ratio of 1.265, which indicates moderate risk.
Another noteworthy performer on Quiver in 2024 is the trading bot tracking the activities of Congressman Dan Mauser from Pennsylvania, who has seen an impressive 86.74% increase in the last six months. While not surpassing the overall Congress Buys strategy, Mauser’s bot has showcased a similar CAGR of 45.83%.
Overall, the trading landscape involving politicians continues to evolve, with platforms like Quiver providing valuable insights into their investment decisions. However, it is essential for investors to exercise caution and conduct thorough research before engaging in such strategies.
