Russia, Poland Are Big Bets for This Fund Manager

The press is portraying Russia's new president, Dmitry Medvedev, as a puppet of now-Prime Minister Vladimir Putin. But for all the reheated Cold War rhetoric, the market does not seem to mind.

"You often hear that the market hates uncertainty, so politics aside, from an investing standpoint the continuity is good," says Vlad Milev, co-manager of the $525 million Metzler/Payden European Emerging Markets fund(MPYMX Quote).

Milev's fund has been a steady performer, returning an average of 40% annually over the past five years. Year-to-date, the fund is down close to 12% as investors globally rein in their riskiest bets.

The fund holds 7% of its assets in oil and natural gas giant Gazprom, which is the company where Medvedev previously served as chairman. Another 5% of the fund is in Russian energy powerhouse Lukoil. ...