Turquoise Equity Fund seeks superior long-term capital growth by investing in the consumer and commodity potential of Iran which is one of the most under-valued emerging markets in the world. Combining international experience with local expertise allows Turquoise to provide superior returns, with greater diversification and lower volatility and risk by investing in equities listed on the Tehran Stock Exchange (TSE) and Iranian-based securities.



Investment decisions of the Turquoise Equity Fund are made by an Investment Committee based in Tehran. This committee which consists of several professionals and market experts is also in charge of monitoring the performance of the portfolio, conduct sector analysis and provide information on listed firms such as accounts and fundamental analysis reports. There are currently six people on the Turquoise Investment Committee from various professional backgrounds. For more information on the structure of the investment committee please go to The Team.

[top]




Turquoise's portfolio consists of 70% long term investments, 20% medium term investments and 10% short term investments, the definition of which, based on realities and depth of the Tehran Stock Exchange is specified below.

Long Term Investments
Strategic investments in attractive and growing sectors with a time frame of six months to two years. In this type of investment, detailed fundamental analysis of the companies are studied and discussed by the Investment Committee for stock selection. The selection will be presented to the Turquoise Executive Board and upon their final approval the stocks will be added to the portfolio. In addition, a price range for each stock will be suggested by the investment committee to alarm future sell or buy opportunities for holdings in this category. Companies in long-term portfolio should pass all of the Turquoise's selection criteria.

Medium Term Investment
Due to the nature of the Tehran Stock Exchange and the unique regulations imposed, in many occasions investors can take advantage of the positive news and rumours that circulate in the market, for example, regarding a rise in forecasted earnings by a company. Since there is a daily price-change cap, it sometimes takes weeks and maybe even months for a stock to implement the price rise it expects as a result of the positive news. Turquoise investment Committee, which has access to various news sources, could make decisions to add a holding as a medium term investment for a period of two to six months given that the proposed company passes all the basic investment criteria defined by Turquoise. Investment committee should also suggest a time or a price at which exiting the investment should be considered.

Short Term Investment
In the Tehran Stock Exchange trading, there is a great deal of asymmetric information and insider data which could result in significant short term gains if one has access to reliable sources. Given the fact that only 10% of the portfolio is dedicated to short term investment, the Fund Manager can act more aggressively in decision-making process and is free to decide on how and when to invest this money, based on the suggestions and insider news gathered from various sources. If the decisions have to be made quickly, the Fund Manager can discuss the decisions with the Investment Committee members over the phone and not wait for the next bi-weekly meeting. The time frame for investments of these kinds is few days to two months.

[top]




The basic investment criteria proposed for Turquoise portfolio were:
  • High volume of trade (liquidability)
  • Growth potentials
  • Solid fundamental performance
These criteria can expand to include:
  • Limited dependencies on import / export
  • Stable sector
  • Positive reputation of honest book-keeping and reporting
  • History of on-time dividend payment
  • Capable and skilled management team

[top]