Skip to content
Subscriber Only
Mark Gilbert

Norway’s Sovereign Hedge Fund Prepares to Flex Its Muscles

Nicolai Tangen has been in charge of the world’s biggest wealth fund since September. He’s starting to steer a riskier course.

A risk taker at heart.

A risk taker at heart.

Photographer: Hakon Mosvold Larsen/AFP via Getty Images

What happens when a hedge fund star takes charge of the world’s biggest sovereign wealth fund, with $1.3 trillion to play with? The fund starts to act a little less like a massive index tracker, and a little more like an adventurous hedge fund. So far, the shifts are subtle. But how much risk could wind up being too much for the owner of about 1.5% of the world’s equities?

Norway’s sovereign fund, whose proper title is Norges Bank Investment Management, has just released its Strategy Plan for 2021-2022. Naturally the fingerprints of Nicolai Tangen, who took over as chief executive officer in September after a successful career running Ako Capital LLP, are all over it.