GAM's Love moves overweight Turkey in 'guts and glory trade'

Despite capital controls risk

Tim Love, investment director and co-manager of the GAM Star Emerging Equity fund, has said Turkey remains an attractive investment case despite the ongoing political and economic issues the country faces.

Love currently has 2% of the fund invested in Turkey versus 0.3% for the MSCI Emerging Markets index, backing names like Halkbank and a number of "high-quality" growth stocks. On this "rare occasion", he highlighted Turkish banks were currently trading where Greek banks were during the European sovereign debt crisis. For example, Halkbank currently has a price-to-book ratio of 0.25x. "Even if [Halkbank's] price-to-book ratio doubled from this point it is still as cheap as at the bottom of the Greek crisis," he added. "Turkish companies have good management that have proven themselv...