BIG TECH GETS $$$
There’s been talk about DC turning the regulatory screws on Big Tech. Roughing up Facebook seems popular. But we doubt any meaningful action is coming as long as key members of both parties remain heavily invested in Big Tech’s ongoing success.
For example, Nancy Pelosi and John Roberts may not agree on much, but they do have a surprisingly similar take on the stock market. Both have at least 30% of their public stock holdings in Big Tech, with substantial sector exposure both through their direct, individual stock holdings and through indirect, mutual fund investments.
This year, the House of Representatives is also investing more $’s in Big Tech overall. $19million (net) has gone into the Software-Infrastructure Industry, which includes companies such as Microsoft and Oracle.
On the other hand, the House has moved $56million OUT of its investments in the Financial Services industry, which includes firms like Capital One and Wells Fargo. Clearly somebody isn’t using their AmEx to buy that premium Zoom subscription.
Overall, the House seems less pessimistic than the Senate as stock trades have been fairly balanced between purchases and sales. As we we discussed previously Senators are getting more defensive, with sales outnumbering purchases 2:1. But the House seems more sanguine about the market.
STOCK TRADES / $-FLOW ESTIMATES
US HOUSE of REPRESENTATIVES
1/1-7/31 2021
TOTAL STOCK PURCHASES
2,338 stock purchases
+$166MM
TOTAL STOCK SALES
2,293 stock sales
-$173MM
TOP STOCK PURCHASES by INDUSTRY
by $-Flow
- Software - Infrastructure | +$30.3MM
- Oil & Gas, Midstream | +$21.0MM
- Internet Content & Information | +$9.5MM
by Trade Count
- Oil & Gas, Midstream | 142 purchases
- Software - Infrastructure | 140 purchases
- Internet Content & Information | 81 purchases
TOP STOCK SALES by INDUSTRY
by $-Flow
- Insurance Brokers | -$55.2MM
- Oil & Gas Midstream | -$13.5MM
- Software – Infrastructure | -$11.4MM
by Trade Count
- Internet Content & Information | 90 sales
- Software - Infrastructure | 85 sales
- Semiconductors | 73 sales
Side note: the $55million outflow from “Insurance Brokers” is a statistical outlier, caused almost entirely by Scott Franklin (R-FL). He sold his interest in a private company, Baldwin Risk Partners, on April 27 for $50million+.
RECAP
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