"Norwegian sovereign" is reservations about US technology stocks to avoid fluctuations

Last year, the Norwegian Sovereign Fund was conservative in its investments in US technology shares, a decision that negatively affected his returns in 2024, but it may have helped him from being influenced by the recent turmoil caused by Chinese artificial intelligence business, Deep Seck. Although the shares of technology companies such as “Apple”, “Microsoft” and “Invidia” 9 of the ten largest investments for the fund formed, the technological sector was represented over the past year with less than its weight in the fund’s reference portfolio. This contributed to the registration of the largest individual institution in the world, its third worst relative achievement during 2024. According to Trond Grande, executive vice president of the fund, which runs 1.8 trillion dollars, this tendency was partly aimed at reducing the risk of being exposed by the correction wave that can be exposed to the prices of large enterprises. The fluctuations and risk of correction “We saw that the market was very focused on some shares of large businesses, and we did not want to increase our possession of these shares,” Grandi told reporters in Oslo. He added: “We made this decision, but it didn’t pay the fruits last year.” Also read: “The Norwegian sovereignty”: Artificial intelligence is a bright point amid inflation despite adjusting weights in its portfolio. The technology sector was still represented last year in the investments of the Norwegian Sovereign Fund. The reason is that “the US technological sector includes large businesses that achieved major profits for the fund,” explained by Fund CEO Nikolai Tangin in an interview with “Bloomberg”. As a long -term investor, Norges Bank Investment Management, the official name of the fund, confirmed that it was not influenced by the recent fluctuations in the market. The expansion of the use of artificial intelligence, Tangin, indicated that many of these companies are dependent on similar growth motors and face the geopolitical risks, adding: “If one of these businesses is correct, it can lead to a large part of your portfolio at the same time.” Although the fund mainly works by following the indicators according to a strict mandate by the Norwegian finance ministry under the supervision of the Norwegian finance ministry, he tries to take advantage of the maximum degree of the limited maneuver available. The fund owns an average of 1.5% of all shares of the internationally listed companies. In his speech, Tangen pointed out that the cheapest artificial intelligence techniques, such as Deep Sick, will result in “artificial intelligence more democratic, and it is a good thing for the world in general.”