Global equity funds not only have outperformed their benchmarks, but also the U.S. stock market, as their stock-picking flexibility enables managers to go anywhere in the world for the best investments. But some fund managers have been focusing on their home turf. Artio Global Investors is among companies putting an emphasis on world funds. Formerly known as Julius Baer Americas, the company is best known for its flagship Artio International Equity Fund ( BJBIX), which returned 5.6% annually during the past decade, outdoing 98% of its foreign large-blend competitors. Called Julius Baer International Equity until last year, the fund delivered outsized returns by following a contrarian style. Early in the decade, portfolio managers Rudolph-Riad Younes and Richard Pell made timely bets on increasing prosperity in Eastern Europe, buying banks in the region. The managers also scored gains with Turkish stocks. Artio International Equity is closed to new investors, and the company is trying to lure investors to Artio Global Equity Fund ( BJGQX). "We expect that the next growth leg at our company will come from the global fund," portfolio manager Keith Walter says. Both the global and international Artio funds follow similar eclectic approaches, but lately the managers have turned decidedly cautious. A year ago, the global fund had 25% of assets in emerging markets. Worried about risks, the managers now have only 2% of assets in the emerging markets. Instead, the global fund is focusing on the bluest of U.S. blue chips, including Johnson & Johnson ( JNJ) and Microsoft ( MSFT). "This is a time to stick with dominant companies that offer the most safety," Walter says. Another fund with a big stake in U.S. giants is Harding Loevner Global Equity ( HLMGX), which returned 1.7% during the past 10 years, exceeding 74% of competitors. Portfolio manager Alec Walsh seeks companies with stable demand and little debt. A big holding is Medco Health Solutions ( MHS), a pharmacy benefit manager. By making bulk purchases of generics, the company helps clients control health costs. "Medco is part of the solution for the health sector," Walsh says.