U.S. senators beat hedge funds at investing

What’s their secret? According to academic studies, it may be access to insider information.

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By Sanford Bragg

Who profits more from non-public information, U.S. senators or hedge funds? Academic studies suggest that the stock portfolios of U.S. Senators significantly outperform most hedge funds, providing positive abnormal returns of 85 basis points per month over extended periods. Pension funds would do better to invest with senators than with most asset managers.

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