The The Wall Street Journal has been reporting on the conflict of interest concerns about politicians trading on advanced knowledge of material insider information (article link below).
I did my own analysis of Nancy Pelosi’s data and found that:
Her performance beat the S&P benchmark by 4%: not too shabby, most professionals can’t do that consistently
Proprietary Disposition Effect (‘selling winners too soon, losers too late’) analysis suggests active management errors reducing her performance (“negative behavioral alpha”); performance delta is rather small relative to others I’ve analyzed
Larger drawdown than S&P: makes sense given portfolio holdings
A really interesting article Amos thanks for sharing. Regulation is the common factor that has an influence all sectors so I am not surprised to see individuals who have a certain level or insider/privileged information gain from this foresight.