Investment companies primarily invest in equity. Investment strategies can be characterized as style, sector, index, global, or stable value strategies. Style strategies focus on the underlying characteristics common to certain investments. Growth is a different style than value, and large capitalization investing is a different style than small stock investing. Investors, both individual and institutional, need to decide whether and to what extent their portfolios will be managed actively or passively. The question is whether passive or active portfolio management is better? Active managers have a preference simply because active management is necessary for achieving excellent results. The main objective of this research is to investigate the possibility of applying the fundamental strategy of bottom - up, in a way to test the performance of the second formed optimal portfolio, which includes the stocks from the Western Balkans, individual EU countries and developed countries, with the performance of the observed stock market indices.