Top Government Contracts, Congress Trades & Citadel's Q1 Boom

In this newsletter, we will be covering the latest government contracts awarded and highlight our Top Government Contracts Recipient Strategy.

Using our data, we provide an in-depth look at the implications of these government awards on the market and investor strategies.

A reminder that you can always try Quiver Premium for free 👇

In this newsletter, we also cover recent notable Congress trades, run you through our Alternative Data Roundup and discuss Citadel Securities’ whopping 68% revenue surge in the first quarter of 2024.

GOVERNMENT CONTRACTS RECIPIENTS STRATEGY

This strategy selects the top 20 recipients of government contracts, weighted by the values of the announced contracts.

Each company's government contracts are measured with an exponential moving average to favor more recent contracts, while still considering older contracts. This portfolio is rebalanced at the start of every month.

This strategy has returned 5% in the last 30 days and nearly 29% in the last year.

Recently Opened Positions:

• Tetra Tech (added 5/1)

• Northrop Grumman (added 4/1)

Tetra Tech (TTEK)

Tetra Tech: is a leading provider of consulting and engineering services, focusing on water, environment, sustainable infrastructure, renewable energy, and international development. The company delivers innovative solutions to complex problems, assisting clients in both the public and private sectors.

TTEK has been awarded 4 contracts this month all by the Environmental Protection Agency bringing it’s 3 month total to nearly $54M and 1-year total to nearly $179M

Nelnet (NNI)

Nelnet Inc: is a U.S.-based diversified company engaged in four primary segments: Loan Servicing and Systems, Education Technology, Services, and Payment Processing, Asset Generation and Management, and Nelnet Bank.

NNI has been awarded 2 contracts totaling nearly $87M. An $85.1M contract 3/27/2024 and a supplemental award 5/1/2024 for “work within scope” totaling $1.7M (not included in image above)

For more information check out our Government Contracts dashboard below 👇

NOTABLE CONGRESS TRADES

We've been writing code to track politicians' performance in the stock market.

Here are the members of Congress who made the most money this week, per our estimates:

• Representative Josh Gottheimer has disclosed a purchase of stock in Fair Isaac Corporation, FICO is a credit scoring service.

• It has risen +22% since.

  

• Last month, we posted this report on a purchase of Ardmore Shipping stock by Representative Virginia Foxx.

• It has now risen +42% since then.

• Raytheon stock, $RTX, has now risen 47% since Senator Markwayne Mullin bought in back in October. Mullin sits on the Senate Armed Services Committee.

• His position is up +48%

  

ALERNATIVE DATA ROUNDUP

• Boeing approves a $33m pay package for outgoing CEO Dave Calhoun. The highest package ever paid to the company’s CEO.

• The Senate voted 5/16 to overturn an SEC rule preventing highly regulated financial firms from holding Bitcoin.

KEN GRIFFIN’S CITADEL SECURITIES SEES 68% REVENUE SURGE IN Q1 2024

Citadel Securities has reported a net trading revenue of $2.3 billion for the first quarter of 2024, marking a 68% increase year-over-year. This surge sets the market-making firm, founded by billionaire Ken Griffin, on a trajectory for potentially record-breaking revenue as it expands into new asset classes and geographies. The impressive first-quarter performance follows a robust $6.3 billion in net trading revenue in 2023, though this was a decrease from the record $7.5 billion achieved in 2022. The firm’s success highlights its strategic growth and the increasing demand for its services in the equity and fixed-income markets.

Citadel Securities has capitalized on its advanced trading algorithms to profit from small price differences, serving a diverse client base that includes asset managers, banks, broker-dealers, hedge funds, government agencies, and public pension programs. The firm’s recent focus on corporate bonds has further bolstered its market-making capabilities. Citadel Securities reported a 54% margin for the first quarter, up significantly from 42% in the prior quarter and 40% a year earlier, showcasing its operational efficiency and expanding profit margins.

Continued on our News Feed.