The Norwegian sovereign wealth fund is one of the largest investors in the world, and its portfolio has seen a significant increase in American stocks, particularly in tech giants like Google, Amazon, and Apple. Nicolai Tangen, the fund’s oil fund manager, believes that Europe lags behind America in terms of ambition, innovation, and regulation. He is concerned that American companies are outpacing their European counterparts in technology and innovation, leading to significant outperformance of US stocks.
While Americans work longer hours on average compared to Europeans, Tangen believes that this may not be the sole indicator of success in innovation and technology. He also criticizes the regulatory environment in Europe, which he believes hampers business growth compared to the less regulated landscape in America. However, 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 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. Overall, 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.