The Norwegian sovereign wealth fund is one of the largest investors in the world, boasting a portfolio worth 1,461 billion francs. Over the past decade, American companies have become increasingly important to the fund, making up 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.
However, Nicolai Tangen, the fund manager, has expressed concerns about the gap in innovation and technology between American and European companies. He believes that Americans are more ambitious and hard-working than Europeans, leading to the outperformance of US stocks. While Americans may work longer hours on average than their European counterparts, Tangen argues that success cannot be solely attributed to this factor.
Tangen also criticizes the regulatory environment in Europe, citing the lack of artificial intelligence and excessive regulation as hindrances to business growth. However, he emphasizes that the fund remains committed to sustainability and adheres to ESG criteria in its investment decisions. Despite potential backlash from Americans towards ESG criteria, Tangen insists that the fund’s strategy remains focused on long-term investments in American companies.
As America prepares for a presidential election later this year, Tangen acknowledges that there are risks associated with any political event. However, he reaffirms that despite uncertainty around potential outcomes – especially if Donald Trump is re-elected – his fund’s investments in America will remain unchanged. This reflects his long-term outlook and commitment to investing in great companies.
In conclusion, while there are concerns about potential backlash from Americans towards ESG criteria or political instability in Europe’s regulatory environment; Nicolai Tangen maintains that his fund’s focus on sustainability and long-term investments will remain unchanged regardless of political events or outcomes.
