Top fund manager David Herro, who has beaten the market handily over the long haul by going against the crowd, is now keying on a couple very unloved areas of the world: Europe and Japan.

While many investors are focused on hot-growth emerging market areas, Herro’s exposure to emerging markets is just 7%, SmartMoney reports. Herro tells the magazine that when a sector gets hot, “people like the story — and we avoid those.”

“These days, while Herro stops short of calling emerging markets a bubble, he thinks European and Japanese blue chips are a better way to tap growth abroad,” SmartMoney reports, adding that Herro has about 60% of his fund invested in Europe. He believes the declining Euro will end up helping the economy there.

The article also discusses some of Herro’s past successful contrarian moves, and offers a few of his current picks.