Monthly and annual returns are remarkable in private hedge funds established for sale to qualified investors. According to data from the Turkish Electronic Fund Distribution Platform TEFAS, there are funds with monthly returns exceeding 51 percent and annual returns exceeding 1200 percent in private funds that can be established for individuals, a certain group or an institution.
In Turkey, interest in private hedge funds, which offer investors the opportunity to utilize their savings in many investment instruments and sectors, has increased. In fact, according to data from the Central Registry Agency, the number of investors in mutual funds reached 4.32 million as of November 27. At the end of last year, this number was 3.57 million people. The portfolio size of mutual funds reached TRY 1 trillion 683 billion, which was TRY 767.94 billion at the end of last year.
Such hedge funds are defined as funds established and issued for sale to qualified investors. These funds can be established for individuals or issued for a specific institution, family or investor group. Unlike other mutual funds, hedge funds can engage in short selling and swap transactions. According to TEFAS data, there are funds with monthly returns exceeding 51 percent and returns exceeding 989 percent since the beginning of the year in hedge funds that can be established even on a personalized basis.
According to TEFAS data, there are over 600 hedge funds. The publicly available statistics provided by TEFAS also allow for a comparison of the returns of hedge funds.
Monthly returns of the top 10 range between 23-51.7%
According to a comparison of TEFAS data, the fund with the highest monthly return is Deniz Portfoy MER (Foreign Exchange) Private Fund. The fund’s asset allocation is 94.73 percent Eurobonds, 5.17 percent foreign stocks and 0.1 percent foreign currency deposits. This fund has a single investor; it returned 51.73 percent in one month, 25.5 percent in three months and 102.3 percent in six months. The total value of the fund is TRY 566 million 259 thousand 610.
Second place goes to Deniz Portfolio HLC (Foreign Exchange) Private Fund. This fund has 2 investors, its monthly return is 51.63 percent, its quarterly return is 31.68 percent, and its 6-month return is 136.66 percent. 79.1 percent of the fund assets are Eurobonds, 14.1 percent are private sector Eurobonds, 6.73 percent are foreign stocks, and the rest are in foreign currency deposits and TL deposits. The total value of this fund is 539 million 708 thousand 718 liras.
Inveo Portfolio Everest Private Fund, which ranks third in monthly return, also has a single investor. The monthly return is 46.19 percent, the quarterly return is 40.76 percent, the 6-month return is 193.27 percent, and the return since the beginning of the year is 203.5 percent. This fund has 99.22 percent of its assets in equities. Total value of the fund is TRY 501 million 411 thousand 32 according to TEFAS data.
Returns exceeded 1000% since the beginning of the year
A1 Portfolio Second Equity Private (TRY) Fund ranks first in the funds that have provided the highest return since the beginning of the year. The return of the 60-person fund since the beginning of the year is 1035.18 percent. Although it had a monthly loss of 9.84 percent, it provided a return of 11.65 percent in 3 months and 559.11 percent in 6 months to fund investors. In the asset distribution of the fund, 99.98 percent of the fund is stocks. The total value of the fund is TRY 585 million 82 thousand 900.
Hedef Portföy ECE Equity Private (TRY) Fund, which ranked second, returned 989.04 percent to its 49 investors this year. The monthly return of this fund is 4.67 percent and the last three-month return is 12 percent. The share of equities in fund assets is 99.25 percent. The total value of this fund is TRY 56 million 37 thousand 184.
Hedef Portföy ADA Equity Private (TRY) Fund ranks third with 654.8 percent return since the beginning of the year. This fund has 48 investors and although it has returned 26.33 percent in the last month, it has lost 19.19 percent in the last three months. Its last 1-year return is around 777.9 percent. 99.99 percent of the fund’s assets are in equities. The total value of the fund is TRY 820 million 818 thousand 682.
Last 1-year return exceeded 1200 percent in some private funds according to TEFAS data.