The Norwegian sovereign wealth fund is one of the world’s largest investors, with American companies becoming increasingly important in its portfolio. Nicolai Tangen, the oil fund manager, believes that Europe lags behind America in terms of ambition, innovation, and regulation. The fund, which holds 1.5 percent of all global stocks, has seen a rise in its investment in American stocks, particularly in tech giants like Google, Amazon, and Apple.
Tangen is concerned that American companies are outpacing their European counterparts in terms of technology and innovation, leading to significant outperformance of US stocks. While Americans work longer hours on average compared to Europeans, the number of hours worked may not be the sole indicator of success in innovation and technology. Tangen also criticizes the regulatory environment in Europe, which he believes hinders business growth compared to the less regulated landscape in America.
Despite his criticism of European regulation, the Norwegian sovereign wealth fund prioritizes sustainability and excludes investments that do not meet environmental, social, and corporate governance criteria. Tangen is also wary of potential backlash from Americans towards sustainability criteria. The fund’s long-term investment strategy in American companies remains unchanged regardless of the outcome of the US presidential election.
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.