Neon Liberty Capital Management’s Top 3 Stock Picks For Q3

Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC) was Neon Liberty’s second top stock pick for the third quarter. The fund increased its stake in the largest integrated telecom operator in Turkey by 54% during the quarter, increasing its total holding to almost 1.6 million shares. As of June 30, Neon Liberty’s stake in Turkcell Iletisim Hizmetleri A.S. (ADR)(NYSE:TKC) was worth $18.28 million. The depreciation in the Lira coupled with the political turmoil in Turkey has weighed heavily on Turkcell Iletisim Hizmetleri A.S. (ADR)(NYSE:TKC) during 2015, resulting in the stock falling by over 27% year-to-date. The company is scheduled to report its second quarter results on July 30 and analysts expect the company to declare EPS of $0.26 for the quarter, almost 13% above the $0.23 in EPS it reported for the second quarter of 2014. Apart from Neon Liberty, John W. Rogers’ Ariel Investments and Kerr Neilson‘s Platinum Asset Management held the largest stakes in Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC) at the end of the first quarter.

Moving on to Neon Liberty’s third top pick for the third quarter, Petrobras Argentina SA ADR (NYSE:PZE). The fund didn’t made any changes to its stake as it continued to hold over 1.9 million shares of the company throughout the second quarter. This stake was worth $12.86 million as of June 30, a slight decline of 2.3% from the $13.17 million that it was worth at the end of March, owing to the decline in the company’s stock price during the April-June period. Analysts are overall bullish on the Argentine oil and gas producer, with a consensus rating of ,Buy, and an average price target of $8.70, 36.5% above the $6.37 where it currently trades at. Among the hedge funds we track, Alan Howard’s Brevan Howard and Jim Simons‘ Renaissance Technologies held the largest stakes in Petrobras Argentina SA ADR (NYSE:PZE) after Neon Liberty at the end of the first quarter.

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