The Norwegian sovereign wealth fund, which is one of the largest investors in the world, has been increasing its investment in American companies. This shift in the fund’s portfolio reflects a belief by its manager, Nicolai Tangen, that Europe is lagging behind America in terms of ambition, innovation, and regulation.
Tangen is particularly concerned about the technological advancements of American companies like Google, Amazon, and Apple. He believes that these companies are outpacing their European counterparts and leading to significant outperformance of US stocks. While Americans work longer hours on average compared to Europeans, Tangen argues that this may not be the sole indicator of success in innovation and technology.
Despite his criticism of European regulation, Tangen also prioritizes sustainability for the Norwegian sovereign wealth fund. The fund excludes investments that do not meet environmental, social, and corporate governance criteria. However, Tangen is wary of potential backlash from Americans towards sustainability criteria.
Tangen’s views highlight the growing importance of American companies in global investments but also raise questions about the balance between innovation, regulation, and sustainability in different regions of the world. Despite his criticisms of European regulation, Tangen maintains that the fund’s long-term investment strategy in American companies remains unchanged regardless of the outcome of the US presidential election.
