Neptune's founder and manager of the £286m Global Equity fund Robin Geffen has introduced a Russian position for the first time in two years, as he begins to add to emerging markets ahead of another era of "multi-year returns".
Geffen (pictured) has added 1.5% in Russian Sberbank in the past few weeks and increased exposure to Chinese internet stocks, some of the few emerging market holdings he has retained over the past couple of years.
"Clearly, EMs go through cycles of five to seven great years, and then five to seven lean years. We have recently seen the lean years but these countries are not going away, especially if you look at the populations and their strategic positions in the world.
"They are very large countries and can absolutely deliver multi-year returns again."
Chief economist and CIO for the group James Dowey added recent moves by China's government have helped the country, after the uncertainty caused last year.
People had completely written off EMs, but we think wholesale selling is now over. We are probably the last people to keep our Russia fund going but it has been a positive for us.
He said: "The biggest development this year has been an improvement in the conditions in China. It was a huge headwind for stockmarkets last year due to the region's economics and politics. China found itself in a position where the currency regime was untenable.
"I think they are where they need to be now and we are seeing growth accelerating."
Geffen, who also runs the group's £77m Global Alpha fund, said he will not be adding large positions to EMs straightaway, instead slowly upping exposure.
However, he said performance could move higher for the region by the summer. Year to date, the MSCI Emerging Markets index is up 9.9% to 20 April, already reversing the 10% loss it made for the whole of 2015.
"We might see at the halfway point of the year that EMs are outperforming developed markets. We may look back at 2016 as the year people should have been buying EMs, not selling," he said.
"People had completely written off EMs, but we think wholesale selling is now over. We are probably the last people to keep our Russia fund going but it has been a positive for us," he said.
But the fund manager added he has not yet bought Latin American stocks in the global funds as there are "many layers of corruption" in Brazil, among other issues.
Meanwhile, the funds retain overweight positions to the US and Japan.
Geffen commented: "The US environment remains positive, despite the impending election."
Dowey added: "There is a lot of noise surrounding the US but we do not see the risks. We see the political risk to be in Europe, not the US. The migration crisis is a huge problem for the viability of the euro."
The group's global funds also retain zero exposure to the UK and Europe.
Neptune's Global Equity fund has returned 18.8% over the past three years to 20 April, compared with the IA Global sector average return of 25.3%, according to FE.