When it comes to investing in companies in Eastern Europe, understanding the macro environments in which companies are based is important.
At least that's how Markus BrÃ¼ck, portfolio manager of the Metzler/Payden European Emerging Markets Fund (MPYMX), sees it. Since the fund's inception in 2002, its shareholders have seen about a 44 percent increase in the per-share value of this five-star Morningstar-rated fund.
What you'll find in this fund--in addition to the ability to invest in companies from the Balkans to Siberia and Turkey--are roughly 70 stocks, two-thirds of them large caps.
One thing BrÃ¼ck likes about managing this fund is the diversification of his investment universe. "There's limited broker coverage of most of the small and mid caps, which makes this region a paradise for a stock picker," he says.
On the other hand, there is significant volatility in stocks in this region, and currency changes impact the fund's performance. BrÃ¼ck says the ideal investor in this fund is someone who takes a long-term--as in 10 years or so--approach to investing.
Dian Vujovich is an author, syndicated columnist and publisher of fund investing site www.fundfreebies.com