Investing with Norges Bank Investment Management’s Nicolai Tangen
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Deep Dive
What is the mission of Norges Bank Investment Management?
The mission is to secure the financial well-being of current and future Norwegians by managing the sovereign wealth fund, which was established to safeguard Norway's oil wealth for future generations.
How large is the Norges Bank Investment Management fund?
The fund has grown from an initial deposit of $250 million to over $1.3 trillion, making it the largest single investor in the world.
Why did Nicolai Tangen decide to take the helm of Norges Bank Investment Management?
He was inspired by the combination of asset management, organizational development, and contributing to his country's well-being, which aligned with his interests and recent studies in social psychology.
What are Nicolai Tangen's key priorities for managing the fund?
His priorities include improving communication and transparency, focusing on people development, and enhancing performance through negative selection, contrarian investing, and long-term strategies.
Why did Nicolai Tangen start the podcast 'In Good Company'?
He aimed to increase transparency by allowing the Norwegian public and others to hear directly from CEOs of companies in which the fund is invested, showcasing what they own and how these companies operate.
What does Nicolai Tangen expect for the investing environment over the next decade?
He anticipates a more challenging environment with lower returns due to high stock prices, low interest rates, and rising inflation, making it harder to generate profits.
How does Nicolai Tangen view active management in the context of managing a large asset base?
He believes in active ownership and management, using tools like voting and expectation documents to influence company behavior, and running part of the portfolio actively to generate returns.
What advice does Nicolai Tangen have for emerging investors in the current environment?
He advises patience, focusing on contrarian strategies, and investing in market share gainers, as the easy money of the past may not be as accessible in the future.
What role does intellectual curiosity play in Nicolai Tangen's life?
He views learning as the key to happiness and personal growth, having pursued studies in various fields like social psychology, art history, and cooking, which he believes enrich life and improve decision-making.
How does Nicolai Tangen approach recruitment and team development at Norges Bank Investment Management?
He emphasizes putting the individual at the center, ensuring they are in the right role, setting goals, motivating, and trusting them to perform, avoiding micromanagement to foster creativity and happiness.
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