Russia's public image has been seriously tarnished over recent months, with accusations of corruption, human-rights abuses and fraud becoming commonplace.
But investors willing to look through the headlines will see the country is improving and could provide impressive returns, Jochen Wermuth, founder of Greater Europe Fund, told CNBC.
"Russia presents two different faces these days. One is the disregard of civil rights and the rule of law… The other face is President Medvedev," Wermuth said.
"He very openly highlights Russia's shortcomings and urges his fellow citizens to fight corruption, backwardness, lack of human rights, election fraud, or drunkenness," he said.
"The outlook for rates of return is unusually good given the very negative perception of Russia among investors," Wermuth said.
Greater Europe Fund, which is focused on investing in Russia, recently won an award from for its September return of 16.71 percent. The fund has seen a 134.86 percent gain over the last 12 months and 212.22 percent over the year to date.
"The glass is at least half full and not half empty. On balance, Russia continues to move in the right direction. This creates outstanding investment opportunities," Wermuth added.
Many investors will likely remain wary of buying into Russian growth after high-profile incidents such as Hermitage Capital Management. Sergei Magnitsky, a lawyer who was imprisoned while representing the firm, died recently in prison while awaiting trail.
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