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The sovereign wealth fund has a value of 1.8 trillion in Norway, the value of its first investments through an external hedge fund that is betting on the high and decrease in stock prices, and plans to allocate billions of dollars to this strategy as it tries to enhance returns.

Investment Department at Nurges BankWho runs the giant oil and gas fund and headed by Nikolai Tangin, the former hedge fund, to the Financial Times that it had invested in a long strategy in January, and was looking to provide delegations of about $ 250 million to other managers.

“We are currently evaluating long -lead strategies in Europe and the United States,” said Eric Hilde, the global head of external strategies at NBIM.

He added that “the market is changing” and has grown both in terms of the number of smaller managers and owners of the private sector that NBIM may invest and the amount of assets managed by these funds.

The NBIM step comes with the increasing concern of some investors that the stock market evaluations seem to be extended and that just having a long portfolio of stocks may not be the best way to earn money from the market.

Global stocks were sharply sold on Tuesday amid fears of the impact of the commercial tariffs of US President Donald Trump.

Ownership is long A pioneering strategy by Alfred Winslo Jones in 1949 – It is the oldest type of hedge. Managers are betting on stocks that they believe will work well and against the names they believe will decrease in the price.

Many of these funds have suffered from external flows in recent years, however, due to poor performance and older institutional investors turning into a cheaper portfolio and running them negatively.

NBIM, who is investing with 110 external managers who only run long strategies, said it hopes that the new states will provide more than average external external managers in the long term of 1.8 percent higher than their standard annually after fees. NBIM already runs long stock strategies immediately.

Hilde said the strategies will be held in the calculated accounts separately. Managers who run these accounts will bet on low prices by borrowing the shares held in the large NBIM index portfolio for sale in the market, which means that the fund will not be network in general.

He added that the managers will be shortened “to be subjected to high evaluation, fraud and unusual business models.”

The company said that it did not decide the number of teams that must be granted and that depend on the managers who applied to them. The fees will be largely based on the performance of the box. In the United States, managers will initially target technology and health care sectors.

She said that NBIM is looking to invest with the smaller organizations that are managed from the private sector because it “often has a higher surplus return than the greatest return because of a better alignment than attention, and the compensation structure that enhances this alignment, and improves in attracting talents and keeping them and growing.”

The company is looking for a set of long stock strategies, including those that balance short bets with long bets, and those that were supplied towards high prices or low prices.

Tangen, CEO of NBIM since September 2020, has been appointed from AKO, Hedge box Founded in 2005.

The sovereign wealth fund, which was established to manage the country’s oil and gas revenues in the country, has achieved annual revenues of 7.5 percent over the past decade. Last year, the year of the American Technology Associate shares helped the fund to achieve a return of 13.1 percent.

More than 70 percent of the box is invested in the shares, 27 percent in a fixed income and 2 percent in the unlikely real estate. The fund constantly asked the government to authorize investment in private markets, a request that the Ministry of Finance has rejected.

Calum Kapoor is a reporter in Mintatewire, a news service published by FT specialist