The Norwegian sovereign wealth fund, facing missed profit opportunities in U.S. tech stocks, saw its 2024 returns decline. Reportedly, despite major holdings in companies like Apple and Microsoft, the fund ranked third worst in performance globally. Deputy CEO Trond Grande noted strategies to reduce risk while CEO Nicolai Tangen emphasized continued investments in profitable tech companies.
Key Highlights
– The world’s largest sovereign wealth fund, Norway’s fund, declined in returns for 2024, missing profit opportunities in U.S. tech stocks.
– According to Bloomberg data, major investments included Apple Inc., Microsoft Corp., and NVIDIA Corp., but these were lower than the benchmark portfolio.
– The fund’s performance ranked as the third worst globally in 2024, as reported by sources.
– Deputy CEO Trond Grande indicated a decision was made to mitigate risks related to corrections in the tech sector’s overvaluation.
– Despite these adjustments, the fund maintained its investments in technology, citing strong profitability from top companies, according to CEO Nicolai Tangen.
Overview of Investment Decisions
The Norwegian sovereign wealth fund, recognized as the largest of its kind, faced notable challenges with returns in 2024. Reports indicate that the fund did not capitalize sufficiently on stocks from prominent U.S. tech companies, resulting in diminished financial performance.
Performance Insights
Despite holding assets primarily invested in leading tech firms like Apple and Microsoft, the fund struggled to meet the benchmark portfolio expectations. Such shortcomings led to a disappointing ranking among shareholders on a global scale. As reported, it recorded the third worst performance overall, reflecting ongoing challenges in investment strategies.
Strategy and Risk Management
Trond Grande, the Deputy CEO, explained that the fund utilized a strategic approach aimed at reducing potential risks from corrections in the tech sector. The adjustments sought to stabilize the fund’s investment performance amid economic fluctuations in technology valuations.
Continued Investment in Technology
Nevertheless, the fund’s leadership chose to increase their tech investments last year. Nicolai Tangen, the CEO, stated that the decision stemmed from the exceptional returns generated by what he referred to as ‘fantastic companies’ in the tech industry. Investment in these firms remains a key part of their strategy moving forward.
Norway’s sovereign wealth fund encountered challenges in capitalizing on U.S. tech investments, resulting in disappointing returns in 2024. Despite holding significant shares in major tech companies, their performance fell short of benchmarks. The fund’s executives underscore a strategy focused on risk management while still promoting investments in robust technology firms for future growth.
Original Source: 112.ua
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