For years, critics have pointed to former House Speaker Nancy Pelosi as the face of lawmakers who grow wealthy while serving in Congress. But Pelosi is far from alone. A New Jersey Democrat has quietly built a fortune of his own, using an aggressive Wall Street strategy that closely mirrors hers.
U.S. Rep. Josh Gottheimer has seen his net worth explode since taking office, relying heavily on sophisticated financial instruments and a level of trading activity that stands out even among wealthy members of Congress. An investigation by The Center Square found that Gottheimer’s wealth surge coincided with extensive use of call options, a powerful and risky investment tool often favored by professional traders.
According to data from Quiver Quantitative, which tracks lawmakers’ financial disclosures, Gottheimer’s net worth jumped by nearly $40 million in just two years. In 2019, his wealth was estimated at $11.05 million. By 2021, it had soared to $50.5 million. While his net worth has since dipped, the 50-year-old lawmaker remains the 36th-richest member of Congress and one of its most active traders.
A review of Gottheimer’s House financial disclosures from his first year in office in 2017 through last year shows that much of his fortune was built through call options. These contracts give investors the right, but not the obligation, to buy stock at a set price before a certain date, allowing for outsized gains if the stock rises sharply.
Gottheimer’s use of call options intensified in 2019, when he purchased 47 options tied exclusively to Microsoft Corp., with values ranging from $1.3 million to $3.4 million. That year was pivotal for Microsoft, which was competing with Amazon for a massive $10 billion Pentagon cloud-computing contract.
In March 2019 alone, Gottheimer bought six Microsoft call options worth up to $140,000, the largest single-month options purchase of his career. Weeks later, The New York Times reported that Microsoft and Amazon were the final contenders for the Pentagon deal.
At the time, Gottheimer was not only a former Microsoft employee but also a sitting member of the House Financial Services Committee, which oversees major public companies, including Microsoft. That same year marked the largest percentage increase in his net worth, which jumped from $11.05 million to $28.3 million.
Gottheimer’s office did not respond to multiple requests for comment.
The scrutiny surrounding lawmakers’ investments has intensified, with bipartisan efforts underway to restrict stock trading by elected officials. Several bills have been introduced in the House, including one sponsored by Rep. Chip Roy, a Texas Republican, and Rep. Seth Magaziner, a Rhode Island Democrat, that would bar members of Congress and their immediate families from trading stocks.
Craig Holman of Public Citizen said momentum is building for reform, predicting a bill could pass the House this year. Polls consistently show broad public support for banning congressional stock trading, even though no comprehensive ban has yet reached a floor vote.
Despite public suspicion, most members of Congress do not actively trade stocks. Only about a quarter of lawmakers reported securities investments last year. Among those who do, many lose money or build wealth gradually through real estate rather than the stock market.
That makes Gottheimer’s trading activity stand out. Of his estimated $40.8 million net worth, nearly three-quarters is tied up in stocks and options. Like Pelosi, whose husband is a venture capitalist, Gottheimer frequently relies on call options to magnify gains.
After Microsoft was officially awarded the Pentagon contract in October 2019, Gottheimer continued buying options, including deep-in-the-money calls that carry lower risk and higher upfront costs. One such trade in early 2020 may have earned him as much as $300,000, according to analysis by a University of Florida finance professor.
Holman said the pattern raises serious questions.
“Anyone who uses call options is very bullish and quite confident that the stock market value will go up significantly,” he said. “The amount of money he gained alone is suspicious.”
Gottheimer’s finances are jointly held with his wife, Marla Tusk, who serves as general counsel for Tusk Strategies, a political consulting firm founded by her brother, venture capitalist Bradley Tusk. His firm specializes in industries heavily regulated by government, a fact the company highlights as a competitive advantage.
Gottheimer has said he does not personally manage his investments, telling CNBC in 2022 that his portfolio is handled by an investment firm and that he has “literally no idea” what trades are made on his behalf.
Because Congress does not require disclosure of exact trade dates or prices, the full extent of Gottheimer’s profits remains unclear. What is clear is that his rapid wealth accumulation, fueled by high-risk Wall Street strategies, has placed him squarely alongside Pelosi as one of Capitol Hill’s most financially successful — and controversial — traders.
The post NJ Democrat Rep Leverages Pelosi Style Wall Street Strategy To Make Millions While In Congreess appeared first on Red Right Patriot.
