Turkey reins in hedge-fund concentration

Turkey’s markets regulator has put new limits on how hedge funds can pile into individual companies and related businesses. A fund may now hold only 2% to 8% of a company’s publicly tradable shares, with the ceiling varying according to the company’s free float; affiliated funds are counted together. The rules also bar a fund from putting more than one-fifth of its portfolio into securities issued by related entities and curb portfolios built around several oversized bets. The change responds to concern that funds had come to dominate trading in thinly traded stocks, alongside unusually high returns and sharp price moves, making it harder to tell how much genuine market demand lay behind them.