The present invention discloses an aqueous polymerization medium comprising (1) a catalyst composition which contains (a) an organometallic compound and (b) a transition metal compound wherein said catalyst composition is microencapsulated in a polyene product; and (2) water. This invention also discloses an aqueous polymerization medium comprising (1) a catalyst composition which is prepared by dissolving in an inert organic solvent containing at least one polyene (a) a transition metal compound, and (b) an organometallic compound; and (2) water. This aqueous polymerization medium is very useful in the polymerization of unsaturated hydrocarbon monomers. It is of greatest value in the polymerization of conjugated diolefin monomers into stereo-regulated polymers. This invention reveals a very useful process for producing polybutadiene composed essentially of syndiotactic 1,2-polybutadiene in an aqueous medium comprising polymerizing 1,3-butadiene in said aqueous medium in the presence of (1) a catalyst composition microencapsulated in a polyene product which contains (a) at least one cobalt compound selected from the group consisting of (i) .beta.-diketone complexes of cobalt, (ii) .beta.-keto acid ester complexes of cobalt, (iii) cobalt salts of organic carboxylic acids having 6 to 15 carbon atoms, and (iv) complexes of halogenated cobalt compounds of the formula CoX.sub. n, wherein X represents a halogen atom and n represents 2 or 3, with an organic compound selected from the group consisting of tertiary amine alcohols, tertiary phosphines, ketones and N,N-dialkylamides, and (b) at least one organoaluminum compound of the formula AlR.sub.3, wherein R represents a hydrocarbon radical of 1 to 6 carbon atoms; and (2) carbon disulfide.