The fund, which emphasises conviction trading based on a limited number of positions across several asset classes, closed to new investment in mid-2007 after deviating from its historic risk profile to focus on emerging markets and seeing returns move into negative territory.

Historically, the fund has returned on average more than 20 per cent.

Cima Group says that in response to the downturn, the fund went back to its roots, taking a number of long and short positions in equities and credit in several countries.

Gerardo Noejovich, a member of the fund's investment committee, based in New York, says: "We are not an emerging market fund. Global macro probably would be a more appropriate category, but we prefer to say that we focus in conviction trading whether in emerging or developed markets.'

The Cima Aconcagua fund has USD135m of assets under management. It will remain closed to new investments for the foreseeable future.

In the meantime, the Cima Group is seeding two new funds, one of which will focus purely on emerging markets.

'We are very optimistic about opportunities in the next two years in this area as we see asset prices coming back to good value territory,' adds Noejovich. 'We have not seen value like this in the last four years and believe this is the right time to deploy new money in these markets.'

The second new fund will be global fixed income, investing in both developed and emerging markets.