The Norwegian sovereign wealth fund is one of the largest investors in the world, holding a portfolio of stocks worth 1,461 billion francs. Over the past decade, American companies have become increasingly important to the fund, comprising almost 50 percent of its portfolio. Seven American technology companies, including Google, Amazon, Apple, and Tesla, play a significant role in the fund’s investments.
The fund manager, Nicolai Tangen, has expressed concerns about the gap in innovation and technology between American and European companies. Tangen believes that Americans are more ambitious and hard-working than Europeans, leading to the outperformance of US stocks. Despite working longer hours on average, the success of American companies cannot solely be attributed to the number of hours worked.
Tangen also criticizes the regulatory environment in Europe, citing the lack of artificial intelligence and excessive regulation as hindrances to business growth. However, the fund remains committed to sustainability and adheres to ESG criteria in its investment decisions. While there are concerns about potential backlash from Americans towards ESG criteria, the fund’s strategy remains focused on long-term investments in American companies.
As the US prepares for a presidential election, the fund will continue its investment strategy regardless of the outcome. Tangen acknowledges the risks associated with the election, particularly if Donald Trump is re-elected. Despite the uncertainty, the fund’s investments in America will remain unchanged, reflecting its long-term outlook and commitment to investing in great companies.