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Yapı Kredi Asset Management Annual Report 2012
29
Alternative Investments
Hedge Funds
YKB’s hedge fund, registered by Capital Markets Board (CMB) in September
2008, was offered to qualified investors at the end of June 2009. Since
hedge funds in Turkey are regulated as “on-shore” funds, they fall under
the supervision of the local regulator, the CMB. The fund is designed as
a market-directional fund that aims to profit from volatility in the equity,
fixed income and currency markets. The fund targets investors with assets
totaling TL 1 million in terms of cash and/or money/capital instruments.
Active Fund Management
Hedge funds are managed through a team-based investment approach
including fundamental, quantitative and technical analyses. The fund is
managed by a team of professionals with an average minimum of 16 years
of experience in the industry. Trend analysis and stock selection are the
main drivers of returns while capital preservation is the top priority.
Assets held within the portfolio are made up of local stocks, bonds, futures
and options whereas instruments invested in include fixed income,
currency forwards, futures, OTC options and listed warrants.
Extensive Research Process
Extensive in-house research and valuation is the key for stock selection.
In the research process, top-down analysis in asset allocation decisions
is applied while bottom-up analysis is made for instrument selection.
Global macro themes, trends and their effects on the Turkish markets
and domestic macro trends are the main elements of top-down analysis;
extensive fundamental analysis together with quantitative and technical
analysis are the instruments used in bottom-up analysis.
Strict Risk Management Practices
Hedge Fund Unit follows strict risk management procedures, which place
at the heart of all investment processes at YKAM. The Unit takes advantage
of its state-of-the-art information technology and applies the best risk
management practices with daily reports derived from RiskTürk market risk
analysis software developed by a third party. The leverage ratio is kept at a
maximum of 1.4 times as it is believed the high market volatility justifies a
low leverage ratio.
Products and Services
Uğur BOĞDAY
Head of Hedge Funds