In this article, we discuss the 5 stocks to consider in the latest portfolio of that Nancy Pelosi. If you want to skip our detailed analysis of these stocks, go directly to Nancy Pelosi Latest Portfolio: 2 Stocks to Watch.
The stock trading activities of lawmakers on both sides of the aisle have come under increased scrutiny in the media in recent months as the Senate and House members debate legislation that would effectively bar members of Congress from trading individual stocks. The bill, named the Ban Conflicted Trading Act, is set to be introduced by Senator Jon Ossoff of Georgia and has the support of prominent members like Senator Jeff Merkley of Oregon and House Representative Raja Krishnamoorthi.
Pelosi Opposes Ban on Congress Trading
House Speaker Nancy Pelosi, however, remains tight-lipped on the issue. Last month, after reports of the bill being introduced into Congress gathered pace and Pelosi was asked to explain her stance on the issue at a press conference, the House Speaker opposed the ban, stating that it was a “free market economy” and lawmakers should be “able to participate” in stock trading if they wished. The comments have naturally attracted a lot of controversy, especially from within the Democratic Party.
The storm is in part due to the fact that Pelosi is one of the wealthiest members of Congress. It is estimated that she owns $46 million worth of stocks, mutual funds, property, and other assets. Her husband, Paul Pelosi, runs a venture capital firm and has a long history on Wall Street. Pelosi is also one of the most active members of Congress on Wall Street, regularly disclosing her trading activities through a mandatory Periodic Transaction Report. Some of the stocks that Pelosi just bought include Alphabet Inc. (NASDAQ:GOOG) and Salesforce.com, Inc. (NYSE:CRM), among others discussed in detail below.
Our Methodology
The stocks listed below were picked from the Periodic Transaction Report(s) that Nancy Pelosi is obliged to file. 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.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Nancy Pelosi Latest Portfolio: Stocks to Watch
5. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 50
Roblox Corporation (NYSE:RBLX) owns and runs an online entertainment platform. Latest filings show that Pelosi purchased 100 CALL options on Roblox Corporation (NYSE:RBLX) stock with a strike price of $100 and an expiration date of January 2023. Roblox Corporation (NYSE:RBLX) stock is, as of January 12, trading at around $89 per share. The purchase was made by Pelosi on December 20 and disclosed on the same day. The total value of the purchase was between $250,000-$500,000.
Hedge funds have been piling into Roblox Corporation (NYSE:RBLX) stock as well over the past few months. At the end of the third quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in Roblox Corporation (NYSE:RBLX), up from 49 in the previous quarter worth $4.9 billion.
Just like Alphabet Inc. (NASDAQ:GOOG) and Salesforce.com, Inc. (NYSE:CRM), Roblox Corporation (NYSE:RBLX) is one of the stocks on the radar 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.”
4. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 63
Micron Technology (NASDAQ:MU) has proven to be one of the most popular chip stocks among hedge funds as chip prices skyrocket and lead to a sustained boom for the industry. At the end of the third quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $3.8 billion in Micron Technology (NASDAQ:MU), compared to 87 in the preceding quarter worth $6.3 billion.
Disclosures by Pelosi, dated December 29, reveal that the Democrat leader acquired 100 CALL options on Micron Technology (NASDAQ:MU) stock with a strike price of $50 on December 21 with an expiration date of September 2022. Micron Technology (NASDAQ:MU) stock, as of January 12, is trading at around $94 per share. The purchase was disclosed on the same day it was made and cost between $250,000 to $500,000.
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
3. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 101
The Walt Disney Company (NYSE:DIS) is a diversified entertainment company. It owns and runs theme parks, film studios, television channels, and streaming platforms. A Periodic Transaction Report from late December shows that Pelosi purchased 50 CALL options on The Walt Disney Company (NYSE:DIS) stock with a strike price of $130 on December 17 with an expiration date of September 2022. The purchase was worth between $100,000 and $250,000. It was disclosed on the same day it was made.
The Walt Disney Company (NYSE:DIS) stock, as of January 12, is trading at $157 per share.
Some of the positive recovery momentum around The Walt Disney Company (NYSE:DIS) has been hit by emergence of new virus variants. At the end of the third quarter of 2021, 101 hedge funds in the database of Insider Monkey held stakes worth $9.4 billion in The Walt Disney Company (NYSE:DIS), compared to 112 in the preceding quarter worth $10.8 billion.
In addition to Alphabet Inc. (NASDAQ:GOOG) and Salesforce.com, Inc. (NYSE:CRM), The Walt Disney Company (NYSE:DIS) is one of the stocks that hedge funds are buying.
In its Q4 2020 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, wasready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.
A century after its founding in 1923, Disney is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed Disney to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”
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Disclosure. None. Nancy Pelosi Latest Portfolio: Stocks to Watch is originally published on Insider Monkey.
