It's easy to get wrapped up with which S&P 500 stocks billionaires are buying or selling. But the giant global sovereign funds are worth watching — and none is larger than the Government Pension Fund of Norway.
Norges Bank, which manages the $1.7-trillion-in-assets fund, holds huge sway in the market. And right now, despite the market scare last month, it's still holding on to massive bets on many of the S&P 500's largest tech stocks. The fund puts $10 billion or more apiece in just nine stocks, including Microsoft, Apple and Nvidia.
This steadfast conviction shows just how entrenched these positions are despite lots of market-moving news. Shares of the Magnificent Seven fell in mid-July. Warren Buffett sold half of Berkshire Hathaway's Apple stake. And Nvidia reports quarterly results this week. But tech is sailing back like a Viking longship.
"Since the low on August 5, the S&P 500 has risen 7.1% in price, accompanied by all sizes, styles and sectors," said Sam Stovall of CFRA. "Information technology again was the primary driver."
Norway's Top Two Picks
And yet, Microsoft and Apple remain the two top stocks in Norway's public fund. They account for 3.2% each of the portfolio. And unlike Buffett who unloaded shares of Apple, Norway has been modestly adding to both Apple and Microsoft.
The fund's positions in Apple and Microsoft are both valued at north of $40 billion. And it's easy to see why. Despite Microsoft's RS Rating dipping to 69, it still carries an EPS Rating of 93. And at Apple, the RS Rating is 87 and EPS Rating is 86 to blend into a Composite Rating of 91.
With that said, it's important to note that Norway's bet on the two companies is less than that of the S&P 500. Microsoft accounts for 6.6% of the S&P 500 and Apple 6.9%, or roughly double that of Norway's fund.
Not Worried About Nvidia
Norway's fund is also parking a nearly 3% position in Nvidia heading into that company's earnings announcement. That's less than Nvidia's 6.8% position in the S&P 500, but still Norway's third-largest bet, valued at around $36 billion.
The stakes are high for the stock with a perfect 99 EPS Rating. This fiscal year, Nvidia is expected to earn $2.73 a share. That's up 110% from last fiscal year.
You might disagree with Norway's politics. But financially, it's hard to argue with the Scandinavian country's conviction.
Giant Wealth Fund's Big Bets
Top positions by Norges Bank Investment Management
| Company | Ticker | YTD change | Sector | Market value (billions) |
|---|---|---|---|---|
| Microsoft | MSFT | 13.0% | Information Technology | $40.6 |
| Apple | AAPL | 17.6% | Information Technology | 40.1 |
| Nvidia | NVDA | 157.0% | Information Technology | 36.3 |
| Amazon.com | AMZN | 17.7% | Consumer Discretionary | 21.1 |
| Alphabet | GOOGL | 19.7% | Communication Services | 17.5 |
| Meta Platforms | META | 48.8% | Communication Services | 16.1 |
| Taiwan Semiconductor Manufacturing | TSM | 64.1% | Information Technology | 13.4 |
| Novo Nordisk | NOVO | 30.1% | Health Care | 11.5 |
| Eli Lilly | LLY | 63.0% | Health Care | 10.1 |
