STOCKS | Turkey Issues New Hedge Fund Rules

Turkey's Capital Markets Board has issued updated guidelines for investment funds, including a new set of regulatory rules for hedge funds. According to Sina Finance, the rules set limits on hedge fund investments in a single issuer's free-float shares based on the issuer's free-float ratio, cap aggregate holdings by funds managed by the same manager or established by the same sponsor, require sponsors to apply for a 10% increase in cash capital if hedge funds account for more than 50% of their average monthly assets under management, and limit the number of hedge funds and private funds a portfolio management company may manage to the number of portfolio managers on staff. Existing positions that exceeded the limits as of August 29 may be retained but not increased, and excess positions must be reduced by at least one-third by October 31, at least two-thirds by November 30, and brought fully into compliance by December 31.