BlackRock quietly increased its holdings of Turkish stocks, betting on signs of a market turning point.

A top fund managed by BlackRock is quietly increasing its holdings of Turkish stocks. A year ago, the fund had almost zero exposure to the Turkish market, but now it has risen to nearly 10% of its portfolio, making it the fund's third largest overweight market. The fund believes that the Turkish market is at a potential turning point. Co-managers Samuel Wiebe and Emily Fletcher said that slowing inflation and steady interest rate cuts are laying the foundation for better performance in the Turkish stock market after years of underperformance. "We see an opportunity, so we have a significant allocation to Turkey in our portfolio," Fletcher said. The size of this allocation "is not where we want it to be, but as long as market dynamics remain favorable, we will continue to maintain this exposure." The fund has performed well over the past five years, outperforming 98% of its peers.