Betting Against Small-Cap Stocks
According to disclosures filed with the Securities and Exchange Commission (SEC), Moore purchased shares of the Direxion Daily Small Cap Bear 3X Shares ETF (TZA) in August. The fund is designed to deliver three times the inverse daily performance of the Russell 2000 index, meaning Moore stood to gain 3% for every 1% drop in small-cap stocks.
The filings show Moore invested at least $81,000 and potentially as much as $215,000 in four separate trades. While these figures fall within the broad reporting ranges required for members of Congress, they confirm his position was significant.
The revelation sparked a wave of criticism. Some commentators accused Moore of “betting against the American economy,” especially given his public support for Republican economic policies under Donald Trump.
A Hedging Strategy, or a Contradiction?
Moore’s critics point to the contradiction between his rhetoric and investments. However, the reality may be more complex. Alongside his bearish bets, Moore has also been active on the long side of the market, investing heavily in the Direxion Daily Small Cap Bull 3X Shares ETF (TNA), which moves three times higher when the Russell 2000 rises.
In July, Moore disclosed buying between $105,000 and $350,000 worth of TNA shares, while also selling between $100,000 and $250,000 of the same ETF. Earlier in 2025, he had traded even larger sums in TNA—investments ranging from $890,000 to $2.3 million on the buy side, and between $900,000 and $1.85 million on the sell side.
This dual exposure has led some observers to suggest Moore was simply hedging his positions, balancing bullish and bearish bets to manage risk until his holdings could qualify for long-term capital gains treatment.
Transparency Gaps in Congressional Trading
The controversy highlights a recurring issue: the limited transparency surrounding congressional trading. Under current rules, lawmakers must disclose transactions within broad dollar ranges, but they are not required to reveal exact amounts or the reasoning behind their trades.
This system makes it nearly impossible for the public to know the true scale of a lawmaker’s market exposure. In Moore’s case, only he knows the full extent of his long and short bets on the Russell 2000.
A Lawmaker and a Trader
Tim Moore has quickly become one of the most active traders in Congress since being sworn in on January 3, 2025. Reports suggest his total trading volume this year has already exceeded $11 million.
But this isn’t the first time Moore’s financial activities have raised eyebrows. According to Fortune, he previously failed to disclose trades worth hundreds of thousands of dollars in violation of the 2012 STOCK Act, which was designed to curb insider trading by members of Congress. Some of those trades coincided with major policy announcements, including the imposition of tariffs by Donald Trump.
The Bigger Picture
Whether Moore’s short bets on small caps represent a lack of faith in U.S. small businesses, a sophisticated hedge, or simple opportunism, the episode underscores growing unease about lawmakers trading stocks while shaping economic policy.
As calls mount for stricter rules—or even outright bans—on congressional trading, Tim Moore’s case may become another flashpoint in the ongoing debate over the intersection of politics, money, and markets
