My portfolios are full but when screening on Barchart for stocks hitting the most frequent new highs I came across the Turkish Investment Fund (TKF). It's a non-diversified, closed-end management investment company managed by Morgan Stanley. The Fund's investment objective is long-term capital appreciation through investments primarily in equity securities of Turkish corporations. The fund is concentrated in 23 issues and the top 5 comprise over 45% of the portfolio. 87% of the fund is in 5 sectors: Financial Services, Consumer Goods, Telecom, Industrial and Energy.
I'm considering the fund on technical reasons but after researching the economy in Turkey I've got some other reasons too. The IMF is predicting that the Turkish economy is stable and expected to grow between 3.5% - 4.0% in the next few years. Turkey has the 17th largest economy in the world and S&P just raised their sovereign bond rating a notch. Turkey has instituted financial restraints on their economy and didn't need to be bailed out like some of the smaller Euro countries. The country stands at the cross-roads of trade between Europe and Asia and even Israel makes sure to stay on Turkey's good side although recently some problems with relief efforts to Arab areas had to be worked out.
The Fund hit new highs on 15 of the last 20 trading sessions including 4 of the last 5. In the past month the price has appreciated 14.23% and trades around 15.25 with a 50 day moving average of 13.73. Barchart gives the Fund both an 80% short term technical buy and a Trend Spotter (tm) buy signal.
Wall Street brokerages have an unwritten rule about recommending other firms managed investment funds but over on Motley Fool the CAPS members think the Fund will beat the market by a vote of 101 to 8 with the All Stars in agreement 32 to 2.
If you'd like to invest in the Middle East here are some points to consider regarding the Turkish Investment Fund:
- There are some ETFs available to invest in Turkey but I'd rather go with a managed fund instead of an index fund when investing in foreign countries
- Morgan Stanley has a pretty good reputation and track record investing overseas
- The Fund had a recent and consistent appreciation in price
- Barchart has both an 80% technical buy and a Trend Spotter (tm) buy signal
- Turkey is the most stable country in the region and seems to be able to keep Europe, Asia and even Israel in their good graces
- These is a large and positive investor sentiment in the Fund's ability to beat the market.
While researching for this piece I came across How to Invest In Turkey by World Market Pulse on Seeking Alpha. I'm not familiar with their analysts but the article is well written and warrants your attention.
Disclosure: No positions in TKF at the time of publication