Nicolai Tangen’s Critique: Why American Companies Are Outpacing Europe in Innovation and Regulation

The Norwegian sovereign wealth fund, with its $1.5 trillion portfolio, is one of the largest investors in the world, and American companies are increasingly becoming a significant part of its holdings. Nicolai Tangen, the fund manager, believes that Europe is lagging behind America in terms of ambition, innovation, and regulation.

Tangen has expressed concerns that American companies are outpacing their European counterparts in technology and innovation, leading to outperformance of US stocks. While Americans work longer hours on average compared to Europeans, the number of hours worked may not be the only indicator of success in innovation and technology. Tangen also criticizes the regulatory environment in Europe, which he believes hampers business growth compared to the less regulated landscape in America.

Despite his criticism of European regulation, Tangen prioritizes sustainability and excludes investments that do not meet environmental, social, and corporate governance criteria. He is also wary of potential backlash from Americans towards sustainability criteria. However, the fund’s long-term investment strategy in American companies remains unchanged regardless of the outcome of the US presidential election.

Overall, Tangen’s views highlight the growing importance of American companies in global investments but also raise questions about the balance between innovation, regulation