When Thailands military coup spurred foreigners to pull money out of the equity market late last month, the nations top-performing stock investors jumped at the chance to take the other side of the trade.

BBL Asset Management Co., the manager of Thailands best-performing equity fund during the past five years, has been boosting stock holdings as a bet the junta will accelerate spending to shore up the economy. The Thai unit of Aberdeen Asset Management Plc, which runs the nations second-best performing fund, is also buying amid inflows from local clients.

No other stock market in Southeast Asia has rallied more than Thailands since the May 22 coup as local investors piled into shares at the fastest pace this year last month. While bears say the military takeover has failed to resolve conflicts that led to more than six months of political deadlock, Thai money managers are betting the junta will fast-track measures needed to bolster an economy that contracted by 0.6 percent in the first quarter.

The military governments plan to restore business confidence and accelerate spending will revive the economy, Voravan Tarapoom, the chief executive officer at BBL Asset, which oversees about $13 billion, said by phone on June 2. The firms BBL Bualuang Thanakom Open-end Fund has returned an annualized 29 percent in the past five years, the most among 165 Thai-domiciled stock funds tracked by Bloomberg.

The SET index yesterday erased its losses since anti-government protests that led to the coup. The Oct. 31 demonstrations marked the start of an escalation in tensions between opposition politicians and the ruling Pheu Thai party that eventually led to Prime Minister Yingluck Shinawatras ouster and spurred the army to take over power for the 12th time since 1932. The measure slipped 0.3 percent at 10:27 a.m. in Bangkok.

The Thai stock gauges 3.5 percent rally from May 22 through yesterday compares with a 0.7 percent drop in the MSCI Southeast Asia Index. The SET is valued at 17 times reported earnings, versus 15 times for the regional measure, according to data compiled by Bloomberg.

The junta plans to speed up infrastructure spending, including a dual-track train project that was ruled unconstitutional under Yinglucks government. The military will boost investment in projects along the nations borders with Malaysia, Myanmar and Laos, according to Air Chief Marshal Prajin Juntong, its head of economic affairs.

Domestic individual and institutional investors bought about 34 billion baht ($1 billion) of Thai shares in May, the most since December, according to exchange data compiled by Bloomberg.

Violent political demonstrations in Bangkok havent been reported since May 15, when grenade and gunshot attacks killed 3 and injured 22 anti-government protesters, according to the Bangkok Emergency Medical Services website. The military has banned political gatherings nationwide, deploying troops to suppress anti-coup demonstrators.

For Thai investors, they are here and know that the situation is much calmer, probably calmer than before the coup, Adithep Vanabriksha, a Bangkok-based money manager at Aberdeen Asset, which oversees about $541 billion worldwide, said by phone. The firms Thailand-domiciled Aberdeen Small Cap Fund (ABESMF) has returned an annualized 29 percent in the past five years. This boosts their sentiment and confidence in the economy and stock market.

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Top Thai Funds Use Foreigners Coup Jitters to Buy Stocks