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The largest sovereign wealth fund
The man behind Norway's sovereign wealth fund
Investor Briefcase
December 19, 2024
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Built from Norway’s oil revenues, the Norwegian Sovereign Wealth Fund is the largest in the world, managing assets that include over 1% of all publicly traded companies. With $1.7 trillion dollars in assets, the fund has invested $295,000 per citizen.
This week, we explore how Nicolai Tangen, a former hedge fund manager, is leading Norway’s Oil Fund to reshape sustainable investing:
🪙 Managing over a trillion dollars in assets
🏦 From an art collector to leading the world’s largest fund
🌍 Investing in sustainability and reshaping markets
— Investor Briefcase Team
Norway’s Sovereign Wealth Fund, known as the Oil Fund, is the largest in the world and manages over a trillion dollars in assets. Established in 1990 to invest the surplus revenues from Norway’s oil and gas industry it has focused on securing financial stability for a country heavily reliant on its oil wealth.
“This is about turning a finite resource into a lasting legacy, ensuring that when the wells run dry, Norwegians remain secure”
The fund owns approximately 1.5% of all publicly traded companies globally, with investments in over 9,000 firms across 70 countries. Its holdings include stakes in Apple (1.4%), Microsoft (1.3%), and NVIDIA (1.3%). For the first half of 2024, the fund reported a net return of $138 billion, driven by spikes across its investments in artificial intelligence and clean energy companies.
As CEO of Norway’s Sovereign Wealth Fund, Nicolai Tangen leads the world’s largest single-owner fund. Before this, he founded AKO Capital, building it into a $20 billion hedge fund. However, his appointment in 2020 was far from smooth, sparking controversy over his wealth and ties to the financial world.
In 2020, Tangen stepped away from AKO Capital to become CEO of the Oil Fund, taking on one of the most scrutinized roles in global finance. His appointment caused controversy due to his wealth with ties to his former firm and personal relationship with Norwegian politicians.
Tangen addressed criticism by placing all his assets in a blind trust, selling his stake AKO Capital, and limiting his salary to $700,000 annually—a far cry from his earnings in the private sector. He also donated over 5,000 Nordic modernist artworks, valued at $100 million to the Norwegian government, fully committing to his new role.
“This role is about more than money—it’s about securing the future of Norway’s wealth and values for generations to come.”
Under Tangen’s leadership, the fund has balanced profitability with responsibility, cutting ties with high-emission industries and expanding into renewable energy. Known for his no-nonsense approach, the fund famously sold its holding in Tesla due to Elon Musk’s billion-dollar compensation package.
"Executive pay should focus on value creation and accountability. Excessive compensation is not an ethical decision."
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Sustainability isn’t just a buzzword for the Oil Fund. Since 2015, the fund has divested over $10 billion from coal and other high-emission sectors, selling off its holdings in more than 70 coal-dependent companies.
As a result, it has directed substantial capital into renewables, including a stake in the Dutch offshore wind farm Borssele 1&2, and expanded its portfolio to include solar projects, green tech ventures, and emerging clean-energy startups.
“My role isn’t just to deliver profits, but to drive meaningful change through the power of investment.”
With a long-term approach to investments, the wealth fund is unwilling to take on the same risk in its investments as Wall Street, limiting the YoY returns to 5.6% over the last 5 years of performance. Despite underperforming the S&P 500’s 9.4% average, it remains to be seen whether its focus on sustainability will pay off.
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Other influential wealth fund leaders
> Yngve Slyngstad in Norges BIM: Slyngstad, the former CEO of Norges Bank Investment Management, also managed Norway's Sovereign Wealth Fund, focusing on long-term value creation and sustainable investments.
> Khaldoon Al Mubarak in Mubadala: Al Mubarak, CEO of Mubadala Investment Company, has overseen the growth of the UAE's sovereign wealth fund, diversifying its portfolio across various sectors and geographies.
> Lim Chow Kiat in GIC: Lim, CEO of GIC, has led Singapore's sovereign wealth fund focusing on global investments and long-term returns, ensuring the country's financial stability and growth.
> Peng Chun in China Investment Corporation: Peng, Chairman and CEO of China Investment Corporation manages one of the world's largest sovereign wealth funds, emphasizing strategic investments and global diversification.
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