However, the 2008 financial crisis caused many hedge funds to restrict investor withdrawals and their popularity and AUM totals declined.

By keeping less in cash, fund managers demonstrate that they are less concerned about investor withdrawals.

Yet the investment banker was also worried by the departure of Mr. Bausano and the investor withdrawals.

Of this decline, almost one-fifth is a result of investor withdrawals.

But higher interest rates are scaring investors out of bond funds, with investor withdrawals rising to record levels.

The decline caused Platinum Grove to temporarily halt investor withdrawals from its largest fund.

Junk fund assets, which peaked at $35.2 billion in June 1989, have fallen 43 percent, to $20.1 billion, as a result of investor withdrawals and plunging bond prices.

Within a year, however, some bad bets and administrative troubles resulted in a spate of investor withdrawals and its funds shrank.

This project has been delayed due to investor withdrawal and the project has been downsized from its original plan.

Now, with small stocks continuing a sharp fall, analysts say that funds specializing in shares of small companies are experiencing growing levels of investor withdrawals.