Alaska has offset some their losses from the drop in crude oil prices by having the fund that manages the state's oil royalties back a self-storage magnate who was buying hundreds of millions of dollars worth of foreclosed homes. Wall Street Journal staffer Ryan Dezember looks at the state's push to diversify this fund, called Alaska Permanent Fund, and the decision to back the magnate that would go public a year later as American Homes 4 Rent.

The bulk of the American Homes 4 Rent shares owned by the fund were sold in September for $300 million:

In recent years the fund’s investment profits have exceeded all other state income, including oil revenue. That puts Alaska in an enviable position among petrostates such as Saudi Arabia and others in the Middle East that are trying to diversify by investing oil money in publicly traded securities, real estate and other ventures.

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