The number of investors withdrawing their investments with hedge funds has slowed to about one-fifth of the record redemption levels at the end of 2008, according to new research, but they are still holding off putting new money into an industry recovering from its worst year to date.

Morgan Stanley has published a report called 'Wholesale Financials' has found that so far during the second quarter, investors might have redeemed 5% of all money invested in the $1.3 trillion (€920bn) hedge fund industry.