Norway’s Wealth Fund Reduced US Tech Exposure to Limit Risk
- Change in weighting contributed to last year’s missed target
- CEO sees cheap offerings helping the ‘democratization’ of AI
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Norway’s sovereign wealth fund was underweight on US tech stocks last year, a move that hit 2024 returns but may have helped it weather recent turmoil caused by the challenge posed by Chinese artificial intelligence startup DeepSeek.
Although technology stocks such as including Apple Inc., Microsoft Corp. and NVIDIA Corp. accounted for nine out of its ten largest holdings, the sector was underrepresented compared to its benchmark portfolio. That contributed to the world’s biggest single owner of equities posting its third-worst relative performance in 2024.