Mohnish Pabrai achieved 90x returns in Turkish equities as the lira depreciated 90% over seven years.
Mohnish Pabrai generated approximately 90x returns on a $1 million investment in Turkish stocks while the lira plummeted from 5 to 45 per USD over seven years. The strategy focused on undervalued assets during a currency crisis, a pattern he identifies as repeatable in emerging markets.
Pabrai’s anchor investment was a Turkish warehouse operator, acquired for $1 million after Templeton Funds offered a 5% stake. His approach targets mispriced assets left behind by foreign capital outflows during currency collapses, a playbook he believes remains viable in current emerging market conditions.
The trade highlights opportunities in markets overlooked by Wall Street, particularly during periods of extreme currency volatility. Pabrai’s experience underscores the potential for outsized returns in distressed emerging market equities.