Buoyed by improved performance and shrinking investor redemptions, it looks like hedge funds in the UK may have begun hiring again.

Figures from pre-employment screening firm, Powerchex, show that the number of positions being offered in the hedge fund sector increased by 95% in August month on month.

Admittedly, this is from a relatively low base: the total number of jobs secured in the first half of 2009 is still around 65% down on the same period last year.

Peter Elliott, managing director of hedge fund focused headhunters Elliot James Consulting, says there’s been a definite change of sentiment recently.

“The marked difference is that whereas before firms were testing the water without committing to a hire, now they’re actually adding headcount,” he says. “This can either be through recruiting a key individual, but sometimes hedge funds are even taking on whole teams.”

Recent firms to make hires include Brevan Howard, SAC Capital Advisors (which re-hired two people it let go late last year), Carlson Capital, Third Avenue and Spectrum Group Management.

Sadly, it’s not so great in the investment banking space, where vacancies fell by nearly 30% month on month in August.

But Alexandra Kelly, managing director of Powerchex, insists it’s not completely bleak.

“The number of new jobs being offered in investment banking has been rising consistently since the spring,” she says. “However, it’s a very erratic hiring market. If an opportunity presents itself, banks will hire a group of people within a particularly buoyant sector and then it will slow again, so month on month figures can be skewed. Year on year, there are still around 40% fewer investment banking jobs being offered.”