Hedge fund investors are more concerned about the investment risks to their portfolios than regulatory changes or the possibility of defaults by counterparties, says a new survey, in a sign the industry has stabilised following the financial crisis.

Topping the list of investor concerns were crowded trades, sovereign default risk and exposure to market moves, said Credit Suisse's annual hedge fund investor survey, which collects responses from institutional investors representing $1.2 trillion of hedge fund investments.