Novo Holdings Resumes Investing, Sees Cheaper US Renewables

Back to Normal Allocations

When you manage $109 billion, you don't move money on a whim. "We just wanted to see how the dust settles and have a better read on the direction of a few things, and I think we have that," he said in an interview published August 12, 2026.

The pause was a big deal because Novo Holdings is not a casual investor. It manages money for the Novo Nordisk Foundation, the group behind drugmaker Novo Nordisk, and it focuses on sustainability-minded areas like life sciences and renewable energy.

Now the wait is over. "We're back to our normal allocations now," Kutay said.

Why US Renewables Look Attractive

The renewed interest centers on US renewable energy. "There are issues," he said, "but pricing is much more attractive than where it was. Valuation is much more attractive than where it was."

Part of the shift is accepting that interest rates will stay high. Kutay says US rates now look set to stay elevated for a long stretch, something he called "an era of higher for longer."

That acceptance, knowing rates are not dropping anytime soon, is what let the fund get back to work. "We were in the eye of the storm with a lot of uncertainty," he said.

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The fund also sees demand that won't quit. US electricity needs are surging, especially from artificial-intelligence infrastructure, and Kutay described the country as "very thirsty for energy."

That demand keeps the market appealing even with a political environment that has pushed policies hostile to green investment. Kutay called the US "a very attractive market" that is "still full of opportunities on the renewable side."

Europe and Canada

Novo Holdings is also looking across the Atlantic. Kutay says he is "very excited about the prospects for Europe," citing talent, innovation, and strong institutions.

But he has a warning. Europe must fix its fragmented capital markets, or smaller groups may break off and form their own.

"I think what's going to end up happening is really just these blocs of coalitions of the willing," Kutay said. "You may end up with some kind of capital markets union in the Nordics. Maybe the Benelux joins and then people see the success of that."

The problem, he said, is a "cultural mindset" around how capital is deployed in Europe. Europe has plenty of capital, but individuals, insurers, and pension funds put it to work very conservatively.

The fund is also considering more Canadian investment. Kutay said opportunities are likely to develop over time. "Things will develop in the pipeline and we will see opportunities," he said.

What It Means for Investors

For everyday investors, the interesting part is what a patient fund does when prices drop. Novo Holdings waited, watched, and then stepped in.

This is not a sign that renewable stocks are about to take off. It is a reminder that market fear can create openings for those who wait.

The fund's move also shows that the clean-energy transition is not a passing trend. None of this means the path ahead is smooth. Prices could fall further, and policy could change again at any moment.

Other big funds are worth watching too. When patient money starts moving back into a beaten-down sector, it can be a sign that the worst has passed.

For your own portfolio, the question is not whether to follow Novo Holdings. It is whether you have the patience to let your investments work through uncertain periods. Patience, after all, is what let a $109 billion fund find value in a market everyone else was avoiding.

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