Major Loss Leads to Ouster of Top Investor at Alecta
Posted on 04/04/2023
Sweden’s largest pension fund, Alecta, has announced that it is putting its head of investing on leave after being responsible for an investment of US$ 2.1 billion in U.S. banks and a potential loss of US$ 1 billion ahead of the banking crisis that took down Silicon Valley Bank, and cratered the share prices of many others. CEO Magnus Billing called the move a “big failure.” Board Member Ann Grevelius will step into the role. A change in asset management strategy is expected.
Alecta manages the pensions of 2.6 million private individuals and 35,000 companies in Sweden. Alecta’s business model is to keep the number of its holdings small, around 100, to maintain greater insight into them throughout the investment cycle.
