Thomas White Jr.
Thomas White Jr.
Thomas White International

Pick: Lukoil

Emerging markets don't spook Thomas White Jr., whose fund (TWWDX) has averaged 6.8% returns over the past decade, topping 96% of peers. He invests a quarter of the $583 million fund's assets in developing areas. A favorite in that realm: Lukoil, the Russian energy giant. With a trailing P/E of less than 4, it's "one of the cheapest oil companies in the world," White says. Investors are still afraid of Russian lawlessness, and he says Lukoil, with its skilled management and strong balance sheet, is unfairly punished. (The ADR doesn't trade on a major exchange, but White says it's liquid.) He thinks Russian President Vladimir Putin has lost popularity and will be pressed to speed economic growth. Lukoil may be allowed to form a joint venture with another oil major to drill in Siberia. Says White: "The government has a confluence of interest with the company being successful."

--M.K.


By Katie Benner, Ryan Derousseau, Amy Feldman, and Mina Kimes @FortuneMagazine - Last updated June 20 2012: 10:46 AM ET
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