Norway’s sovereign wealth fund said it had lost $124B this year

reuters.com

14 points·minkeymaniac··7 comments

>Its investment portfolio dropped 16.2%, all but erasing the 20% gains made last year

When pretty much all major stock indices drop by 30% this is a remarkable win. I'm impressed they it's such a small percentage of the fund that was lost in this climate.

Also how the hell did they make 20% last year. I guess it's true that the big funds like this are simply way ahead of what any individual could ever hope to achieve. Consistently smaller losses and bigger wins year on year.

They largely divested from fossil fuel for both environmental and diversification purposes which certainly helped their returns.

I could see that over the long term, but in one year? If divesting from fossil fuels worked that fast, wouldn't everyone have done it already?

It's not that fossil fuels are a bad investment. They happened to underperform over the past year due to the Russia/Saudi Arabia oil price war.

They timed it well. In other years, divesting from fossil fuels would have meant underperforming the market (which they would probably have been fine with) but they chose a good year to do it.

Can we change the title to something less click-baity? They are still up for the year.

Not to mention that it’s incredible the wealth fund has done so well in relation to such a tremendous bear market.

Most fund managers would probably be happy that their portfolio only dropped 16%, with a gain of 20% one year before...

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