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Mr Richards said the fund returned 48.11 per cent between the start of the year and 25 May, outperforming a 16.13 per cent average return from its sector, according to data from Morningstar.

But the fund is still down 42.56 per cent in the year to 25 May.

Mr Richards said he moved the fund to a significantly overweight position in Russia during the fourth quarter of last year in a contrarian move that he said has since paid off.

He said: "Relative returns suffered initially because positions were added during the turmoil but we have let those positions run this year, with little turnover in the portfolio, and have made significant profits."

He has stuck to his underweight position in central Europe, citing the "entanglement" between developed market banks and central European banks as the reason.

He said: "With a large proportion of pre-crisis lending by banks conducted in euros rather than domestic currencies, volatility in emerging market currencies could lead to a high level of non-performing loans and defaults."

Mr Richards said central Europe still offered long-term opportunities but in the near future he saw greater returns being generated elsewhere.

Gavin Haynes, investment director of Bristol-based IFA Whitechurch Securities, said he held Hexam in high regard as an emerging markets boutique.

He said: "Emerging markets generally should be an increasing part of a clients' portfolio if they are investing for the long term."

But he cautioned it was a volatile area and not for the risk averse.