The Blubber

Per CNBC

The sovereign wealth fund of Norway, called the Government Pension Fund Global, lost $164 billion in 2022. The year resulted in the fund's value dropping by 14.1%.

Nicolai Tangen, Norges Bank Investment Management CEO, gave a statement regarding the global economic factors that affected the fund's performance. Among these factors were the war in Europe as well as high inflation.

Tangen: “The market was impacted by war in Europe, high inflation, and rising interest rates. This negatively impacted both the equity market and bond market at the same time, which is very unusual,”

The $164 billion loss is recorded as the largest in the fund's history, with its previous record-high loss in 2008. During that time, the fund only lost 633 billion kroner or around $62.9 billion USD.

This massive fund was established in 1990 as a way for the country to invest its surplus revenue from the gas and oil sectors of Norway. The fund is worth $1.3 trillion and invests in 70 countries with 9,300 companies around its portfolio.

Nicolai Tangen also shared the specific sector that remained positive despite the bearish market. He noted that all the other sectors within the equity market resulted in negative returns.

In 2022, global hedge funds hit a 14-year low, but this was not as bad as the performance of the equity and bond markets. Global hedge funds dropped by 4.8% during the first three quarters of last year, with a $109.8 billion outflow.

The fund's drop is not as much as the total lost by global billionaires in 2022. Throughout the year, global billionaires lost a total of $2 trillion, with American billionaires alone losing $660 billion.

Of all the American billionaires, Elon Musk lost the most wealth in 2022 as his net worth dropped by $115 billion.

See flow at unusualwhales.com/flow.

Other News:

• Global Hedge Funds Set to Hit 14-Year-Low Performance But Not as Bad as Equity and Bond Markets
• Global Billionaires Lost Almost $2 Trillion in 2022: American Billionaires Lost $660 Billion

Resources:

CNBC