Martin Currie, a Scottish fund firm, says that investors seem to return to the sector as customers have put more money into its hedge funds at a faster rate than before the credit crisis, according to Reuters’ report. Between October and June net client outflows made up $300 billion and now there are signs of the market recovery.

According to Andy Sowerby, managing director of sales, marketing and client service at Martin Currie, which runs $1.2 billion in hedge fund assets, inflows were at or above levels seen in late 2006 and early 2007, when the industry was near its peak. Meantime, he declined to detail how much the firm had seen in inflows.

Last year losses suffered by hedge funds increased by 19% as reported by Credit Suisse Tremont, but in the first eight months of 2009 they are up 11.57%.

Martin Currie's Japan hedge fund rose by 0.8% the previous year and jumped 15% to date during this year. Its Global Resources fund fell 10.2% in 2008 and increased by 8.6% in 2009. Its China fund dropped by 14.4% last year and climbed up by 18.6% this year.

Sowerby said net flows at Martin Currie turned positive in February and said investors who had pulled out assets last year were returning to hedge funds.