The Norwegian wealth fund—one of the biggest foreign buyers of US real estate—has announced a strategy change, revealing it will be investing even more in real estate and infrastructure projects.

The fund's been struggling to meet its 4% return target, posting a $32B loss last quarter, its biggest loss in four years.

Due to its size, chief investment officer Ole Christian Bech-Moen says Norway’s $860B wealth fund can no longer rely on conventional analysis and research methods.

But one thing Bech-Moen is relying on is US real estate. In addition to its existing multibillion-dollar US holdings, the fund recently cut a deal to manage an 11-building, $3.6B portfolio.

In addition to adding more risk to its strategy, the fund will be banking on real estate to help reverse the Q3 trend. The changes could take a while to implement, however.

“If you have no inflow and you want to change the portfolio composition, you have to sell something before you buy something,” Bech-Moen says. [Bloomberg]