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Trading bot that mimics stock trades by politicians is up by double digits

Trading bot that mimics stock trades by politicians is up by double digits

In 2022, Quiver Quantitative, an alternative data platform tailored for retail investors, unveiled a trading bot — ‘Congress Buys Strategy.’ 

This innovative bot strategically mirrors the stock purchases of influential US politicians and their families, presenting a distinctive investment avenue. 

Congress Buys Strategy. Source: QuiverQuant

Today, on January 3, we explore how the bot’s portfolio performed in the last year, showcasing some standout stock market winners meticulously chosen by American politicians.

Trading bot’s winning trades

Driven by several highly successful trades, the trading bot’s portfolio saw an overall return of more than 36% in 2023, Quiver Quantitative revealed on January 2.

Therefore, the strategy outperformed the broader market index, S&P 500, which gained over 24% during this period. 

In its post on X, Quiver highlighted a couple of best-performing investments, including Lockheed Martin (NYSE: LMT), NGL Energy (NYSE: NGL), ChannelAdvisor, and Tesla (NASDAQ: TSLA).

Notably, the bot entered the LMT position on October 17, 2022, following Representative Scott Franklin’s $115,000 investment in the stock.

The day after the bot purchased the shares, Lockheed reported robust quarterly revenue due to strong F-35 fighter jet demand. The stock surged 18% before the bot exited the position roughly two months later.  

Interestingly, Franklin sits on the House Committee on Appropriations, which monitors government expenditures.

What are the returns on these investments?

In a similarly successful move, the strategy entered NGL Energy on April 10th after Representative Mark Green’s $250,000 purchase. The stock soared 32% since the bot added it to its portfolio, compared to an 8% gain in the broader market. 

Green continued to buy the stock in the coming period, and “has made more money off of his NGL trading than he has off of his congressional salary this year,” Quiver estimated.

Another profit-making bet within the bot’s portfolio was the investment in ChannelAdvisor. The move was influenced by Senator Tommy Tuberville’s string of purchases in this stock. Shortly after, the company was acquired by CommerceHub, but the bot generated a 48% return off this trade. 

Electric vehicle (EV) giant Tesla was also a lucrative trade for the Congress Buys Strategy. The bot capitalized on TSLA in May 2023 in the wake of “a handful of congressional purchases” in the stock. 

“The strategy exited this position on June 20th, following sales of Tesla stock by Senator Tommy Tuberville, Representative Josh Gottheimer, and Representative Michael Garcia.”

Quiver noted.

In the 36-day period that this position was open, TSLA surged approximately 64%, Quiver said. 

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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