Should You Invest in the World’s Most Hated Stock Market?

When I had dinner last fall with Bill Browder, founder and CEO of Russian markets investment fund Hermitage Capital Management, it was an unusual experience.

That’s because Bill didn’t touch his food or drink.

No, Bill isn’t worried about his weight.

It’s just that he doesn’t eat food served to him in public places.

That’s because for the past decade, Bill has led one of the highest-profile anti-corruption campaigns against the Russian government. (You can see a documentary on Bill’s story here.)

Formerly the largest foreign investor in Russia, today Bill lives his life in the crosshairs of Vladimir Putin and the Russian agents bent on destroying his life.

Bill’s abundant caution at our dinner wasn’t just paranoia.

Since I last saw him, both a former KGB agent and his daughter were poisoned by Russian agents in London.

Investing in Russia in the 1990s made Bill Browder a very wealthy man.

I don’t think many foreign investors are likely to repeat Bill’s success anytime soon.

But I do think investing in Russia today offers some exceptional opportunities.

My reasoning is simple: Whenever investors absolutely hate a company, sector or asset class, you can often make a lot of money.

And it applies not only to Russia but to every successful investment I’ve ever made.

As Sir John Templeton famously put it…

People are always asking me where the outlook is good, but that’s the wrong question… The right question is “Where is the outlook the most miserable?”

Whether it’s due to the annexation of Crimea in 2014….

Interference in the 2016 presidential election…

Or Putin’s support for the Syrian regime…

Russia’s market is the most hated I’ve seen in my life.

The most recent sanctions against Russia announced on April 6 took their toll on the Russian stock market.

The RTS Index (Russia’s equivalent of the Dow) slumped by 8.3% on that day, and the ruble lost more than 3%.

But here’s the good new