Hedge funds have attracted much interest not only for their ability to generate relatively high average returns, but also for the large losses that they can incur, a risk that is exemplified by the rise and fall of Long Term Capital Management in the late 1990s. In spite of such risk, the hedge fund industry witnessed rapid growth in the 2000s, with assets under management reaching $1.93 trillion by early 2008. During the recent credit crisis, there was a significant reduction both in the number of hedge funds and in assets under management, which resulted from a combination of trading losses and asset withdrawals by investors.