`It's Important To Be Picky'

Pineda's $700 million fund showed a total return of 13.4% through the end of May, beating the emerging-market indexes by around five percentage points.

ON A 1994-STYLE CRASH IN DEVELOPING MARKETS IF U.S. RATES RISE

-- "The 1994 hit [to emerging markets] followed years of hot performance. This time, it has only been a few months. We're still on the heels of a two-year bear market."

ON RED-HOT VENEZUELA

-- "I think a correction and a lot of volatility are guaranteed. There's excitement about policy changes, especially the freeing of capital controls, but there's the risk that inflation will pick up. And interest rates would follow."

ON MALAYSIA'S RUN-UP

-- "We're underweighting Malaysia now, but one of our biggest holdings is [telecom company] TRI. It's a play on fast subscriber growth. In many ways, you wouldn't even call Malaysia an emerging market--but penetration for cellular phones is low."

ON FINDING BARGAINS

-- "We're going to ride out whatever happens in U.S. monetary policy by focusing on value stocks. We've had a rally, so it's important to be picky. But valuations are not too far out of whack."