Hedge funds are going out of business less quickly this year than last year, according to data released yesterday that offers fresh evidence of a recovery in the $1.4 trillion industry.

But at the same time hedge fund managers are earning lower incentive fees and starting new funds at a slightly slower pace, indicating that last year’s disastrous results have not been completely forgotten.

According to Hedge Fund Research (HFR), 668 funds liquidated in the first half of this year, marking a slower pace than in 2008 when a record 1,471 funds shut down during the entire year.

In the second quarter, 292 funds went out of business.