In this article, we will take a detailed look at 10 Stocks That Members of Congress Own.
Members of the US Congress have historically been permitted to own and actively trade stocks, a practice frequently scrutinized and critiqued for potential conflicts of interest and ethical concerns related to insider trading. Although this issue has periodically surfaced in public debate, significant legislative action took place with the introduction of the Stop Trading on Congressional Knowledge Act in 2012, which explicitly prohibited members of Congress and federal employees from using non-public information for personal profit and required prompt disclosure of stock trades. Nevertheless, the enforcement of the act has been unclear, as numerous lawmakers have drawn criticism for late or incomplete reporting of transactions.
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Most recently, in December 2024, President Biden publicly endorsed a full ban on stock trading by members of Congress, asserting that lawmakers should not be able to profit from the stock market while serving in office. The newly inaugurated President Trump has had a similar stance for many years, as he famously stated the following:
“We want a ban on members of Congress getting rich by trading stocks on insider information.”
While it is clear that any US administration has publicly positioned itself against stock trading by high-ranked public officials and members of the Congress, the reality is often much more complex and difficult to enforce. It is even more difficult to prove whether a public official did use non-public information in making his/her investment decisions – particularly because the official may invoke the Mosaic approach, arguing that their trades were based on many pieces of publicly available information and personal analysis and reasoning. The key takeaway for investors is that we may never witness a perfect world in which members of the Congress do not own and profit from their stock investments.
The topic of stock trading by the members of Congress or other highly ranked officials has been widely discussed by investors and market enthusiasts for many years, driven by the perception that lawmakers’ trades might offer insights into upcoming market-moving policies or future legislation. This ongoing scrutiny has even led to the creation of thematic ETFs that track the disclosed trades of US legislators and weigh the stocks by their popularity among the members of the Congress. This allows retail investors to replicate congressional investment strategies and potentially profit. Anecdotal portfolios of individual Congress members or high rank officials emerged as well, some of which even managed to outperform the broad US market. These products highlight how public attention has evolved from merely ethical considerations to practical investment opportunities, reflecting investors’ belief in Congress members’ informational advantage or superior market timing.
We believe that monitoring the trades of lawmakers may be especially useful during times of rapid change, such as a drastic regime change during which the views of the new administration significantly diverge from those of the old one. The Trump 2.0 administration has given investors vertigo so far, as it becomes more and more difficult to predict the next moves related to tariffs, immigration, public spending, healthcare budgets and defense. We believe such periods of massive change would bring significant opportunities for people knowing (or inferring using the Mosaic approach) the next moves of the US administration: for instance, any sudden cuts in Medicare/Medicaid reimbursement policies may drastically hit the Healthcare sector, favoring thematic put options; Defence stocks may witness uplift if President Trump shifts his stance regarding the continuation of military aid to Ukraine; government contractors and consultants, which are currently beaten down, may witness a surge in stock price if the new Government announces any major new projects. All in all, we advise to exercise cautiousness when interpreting congressional trading data, as inferring actionable insights from lawmakers’ investments may lead to misleading conclusions or overlooked risks.
Photo by MIKE STOLL on Unsplash
Our Methodology
We used the Periodic Transaction Reports that US politicians are obliged to file, as well as thematic ETFs to pick the most widely owned stocks by the members of the US Congress. We then compared the list with Insider Monkey’s proprietary database of hedge funds’ ownership as of Q4 2024 and included in the article the top 10 stocks with the largest number of hedge funds that own the stock.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Comfort Systems USA, Inc. (NYSE:FIX)
Number of Hedge Fund Holders: 50
Comfort Systems USA, Inc. (NYSE:FIX) is a provider of mechanical, electrical, and plumbing (MEP) contracting services, specializing in heating, ventilation, air conditioning (HVAC), and building automation solutions. It serves commercial, industrial, and institutional customers across various sectors, including healthcare, education, and manufacturing. The company offers installation, maintenance, repair, and energy efficiency services for both new construction and retrofit projects.
In 2024, Comfort Systems USA, Inc. (NYSE:FIX) achieved record-breaking annual and Q4 earnings, supported by exceptional cash flow and robust growth metrics. The company reported a remarkable 22% same-store revenue growth in Q4, which contributed to an impressive 60% increase in EPS, reaching $4.09 for the quarter and $14.60 for the full year compared to $9.01 in 2023. Its backlog also surged to an all-time high of $6 billion, underscoring the strength of demand across sectors, especially technology. Operating cash flow amounted to a substantial $849 million, paving the way for continued investments. The company’s revenue composition shifted significantly toward the industrial sector, now making up over 60% of total volume, while technology-related revenues grew to 33%, a notable rise from 21% the previous year.
Comfort Systems USA, Inc. (NYSE:FIX) also demonstrated strong operational efficiency, with gross profit margins improving to 23.2% in Q4 2024, compared to 20.6% in Q4 2023. Service revenues hit a record $1.1 billion, accounting for 16% of total revenue and proving to be a consistent profit driver. Looking ahead, management projected high single-digit percentage growth in same-store revenue for 2025, with optimism about maintaining strong margin ranges. Strategic acquisitions, such as the addition of Century Contractors in Charlotte, North Carolina, are expected to generate approximately $90 million in revenue and further bolster growth. With 50 hedge funds owning the stock, FIX is also one of the stocks owned by Congress.
9. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 71
American Express Company (NYSE:AXP) is a global financial services corporation specializing in payment processing, credit cards, and travel-related services. It issues charge and credit cards to consumers, businesses, and merchants, generating revenue from transaction fees, interest income, and annual membership fees. The company also provides corporate payment solutions, travel services, and banking products such as personal and business loans.
American Express Company (NYSE:AXP) provided guidance for 8% to 10% revenue growth in 2025, with Q4 spend reaccelerating and January spend tracking in line with Q4 trends. The company’s premium positioning remains strong, particularly with Millennials and Gen Z cohorts who represent 70% of Platinum and Gold Card acquisitions and demonstrate higher retention rates than older cohorts. Credit performance continues to be industry-leading, with metrics remaining below pre-COVID levels and the gap versus peers widening, reflecting successful premium customer acquisition strategy. International expansion presents significant growth opportunities, with current spend penetration at approximately 6% in international markets and coverage reaching 80% in top 12 markets, up from 72% a year ago.
American Express Company (NYSE:AXP) maintains strong expense discipline, growing operating expenses at a slower pace than revenue, with marketing spend of approximately $6 billion being optimized through data science and AI initiatives. In terms of deposit growth, the company saw a 17% increase in high-yield savings account balances in 2024, with deposits now representing 60% of funding mix, supporting net interest income and ROE. The company’s technology investments, particularly in AI and data science, are driving efficiencies across operations, including personalized welcome offers and enhanced travel assistance services. With that being said, AXP is also one of the stocks owned by Congress.
