Trump's American Sovereign Wealth Fund -- October 4, 2025

Locator: 49290SWF. 

 Addition: Trilogy Metals; sores 250%, link here.

Sovereign Wealth Fund 

Warren Buffett is passing the nation's investment baton to Trump's American Sovereign Wealth Fund. 

I'll be disappointed if Congress does not have America's SWF bill ready for his signature before the end of the 119th Congress (calendar year 2026). This could easily be Trump's "big bill" rivaling "Obamacare" in terms of overall scope.

Just prior to and during his first term, I often mentioned on the blog that folks were not taking Donald Trump. I had to continually remind myself to listen carefully to what Trump said -- to take him seriously, but not literally.

That brings us to the second term, and Trump's American sovereign wealth fund. 

Donald Trump signed an executive order on February 3, 2025, to begin developing a plan for a U.S. sovereign wealth fund (SWF). A sovereign wealth fund is a state-owned investment vehicle that manages and invests national assets to generate returns. 

Since then:

• a visit to Saudi Arabia, poster child for a national sovereign wealth fund;
• investments in one way or a number of companies or sectors: 
• Intel
• MP Materials
• Lithium Americas
• under consideration:
• US Rare Earth;
• Critical Metals Corp
• Lockheed
• Palantir
• already, budgetary and contractual boosts
• RTX (formerly Raytheon)
• Northrop Grumman
• General Dynamics
• Boeing
• L3Harris Technologies
• indications he may be interested in:
• Big Pharma
• "Golden Dome" missile defense (Star Wars expansion) 
• more "blades" -- Nvidia, TSM, AMD 

AI prompt:

Trump's American wealth sovereign fund. Who would manage such a fund, Secretary of the treasury, or Secretary of commerce, or someone completely different? Would it be run by one of the cabinet directors or Congress? 

AI reply:

Under former President Trump's February 2025 executive order, the Secretaries of the Treasury and Commerce were tasked with delivering a plan for a US sovereign wealth fund, including recommendations for its governance

. The order directed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to coordinate with the Assistant to the President for Economic Policy to create this plan

While Bessent and Lutnick are developing the plan, there are several possibilities for who would ultimately manage the fund:

• A new government entity. A new company with dedicated employees could be created to manage government assets. This entity could be established by an act of Congress, which would also define its purpose, structure, and powers.
• An existing agency. The fund could potentially be managed by an existing government agency, although the specific agency has not been definitively identified.
• Private fund partners. Trump also suggested the fund could partner with "very wealthy people" in a private equity-style arrangement, where the fund would co-invest alongside private actors. 

The role of Congress

Regardless of how the fund is structured, Congress will likely play a role in its creation and oversight. Any legislation needed to establish the fund or define its structure would require congressional approval. Congress would also be involved in appropriating funds for the fund's operation or designating a separate funding mechanis

Potential managers

In March 2025, reports indicated that Michael Grimes, a technology investment banker, was expected to lead the new US sovereign wealth fund within the Department of Commerce. Grimes joined the Commerce Department after leaving Morgan Stanley, where he had led several high-profile technology initial public offerings.  

Summary of management possibilities

• The Secretaries of the Treasury and Commerce developed the initial plan for the fund.
• A new, independent government entity created by an act of Congress could be established to manage the fund.
• A senior manager within the Commerce Department, possibly Michael Grimes, could be appointed to lead the fund.
• Congress would likely need to pass legislation and appropriate funds to establish the fund and provide oversight.
• Private sector partners could be involved in a co-investment structure.

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Howard Lutnick vs Gina Raimondo

Their operating styles are completely different. 

I see Gina Raimondo as predominantly a politician. Wiki. In her interviews she always seemed to be defending her anti-Big Market bias. She was a regular on CNBC. 

Howard Lutnick: has he ever been on CNBC? Apparently he has become a regular on CNBC but I've not caught any of his interviews. But seeing him in the White House, I have a good feeling for operating style. 

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Disclaimer
Brief Reminder 

Briefly:

• I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken.
• I am inappropriately exuberant about the US economy and the US market.
• I am also inappropriately exuberant about all things Apple. 
• See disclaimer. This is not an investment site. 
• Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything.
• If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. 
• Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market.
• I am also inappropriately exuberant about all things Apple. 
• And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution.
• I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom.
• Longer version here.