Political leaders' involvement in sovereign wealth funds leads to short-term gains.
Sovereign wealth funds, big investors worldwide, may prioritize short-term goals over long-term returns when political leaders are heavily involved in managing them. Transparency can be a challenge, as it may lead to others copying their strategies. The size of these funds can also make it hard to scale up successful investment strategies. Learning from successful investors, like hiring top talent and exploring new types of investments, could help sovereign wealth funds tackle these issues.