In May 2022, Quiver Quantitative, an alternative data platform designed for retail investors, launched a trading bot.
This innovative platform targeted stocks purchased by influential U.S. politicians, offering a unique investment approach.
As we fast forward to November 2, 2023, we take a closer look at the performance of this trading bot’s portfolio and highlight some of its standout stock market winners handpicked by politicians.
Up 20% since launch
The stock portfolio built by Quiver Quantitative’s trading bot is up 20% since it launched last year, the company said in a November 1 post on X.
This means that the bot has outperformed the broader market, which has been flat during the same time period.
Lockheed Martin
In the post, Quiver highlighted four stocks that turned out to be the bot’s most successful purchases so far. One of them is Lockheed Martin (NYSE: LMT), a leading aerospace and defense corporation.
The bot acquired Lockheed’s shares on October 17th, roughly a week after it was disclosed that a US representative Scott Franklin holds a $115,000 position in LMT
“On October 17th of 2022, the strategy entered a position in Lockheed Martin, LMT. This came after purchases of up to $115K of LMT by Representative Scott Franklin on September 12th, which were disclosed on October 11th.”
– Quiver wrote.
One day after the bot bought Lockheed shares, the company announced solid quarterly revenue results, leading to a stock rally. The strategy exited the position in LMT in late December, reaping significant profits.
“LMT rose over 18% before the strategy exited the position approximately two months later, on December 27th.”
It is no surprise that LMT is a popular choice among politicians given the company’s close relationship with the US government.
Tesla (NASDAQ: TSLA)
Another stock that took the bot’s portfolio deeper into the green territory is electric vehicle (EV) giant Tesla (NASDAQ: TSLA).
Quiver said the strategy bought Tesla shares on May 15, 2023, shortly after a number of Congress members acquired the stock, including Senator Tommy Tuberville, Representative Josh Gottheimer, and Representative Dan Newhouse.
The bot exited its TSLA position on June 20, after the stock was sold by Senator Tommy Tuberville, Representative Josh Gottheimer, and Representative Michael Garcia.
During the roughly one-month period that the position was open, Tesla shares surged more than 64% and fell around 22% since the position was closed.
Two other noteworthy stock positions the bot held include NGL Energy (NYSE: NGL) and Channeladvisor, which was later acquired by CommerceHub.
The bot reaped 48% returns during the period it held Channeladvisor shares. As for NGL Energy, the strategy bought the stock just weeks after Representative Mark Green acquired up to $250,000 worth of NGL.
“NGL has risen over 28% since it was added to the Congress Buys Strategy, while the market has risen just 8% in the same time period.”
– highlighted Quiver.
Green continued to buy the stock, with Quiver estimating the representative made more money off this position than off his congressional salary.
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Source: https://finbold.com/this-trading-bot-buys-stocks-bought-by-politicians-heres-how-much-its-up/