Britain’s fund management businesses have been hit by a spate of key players joining new firms in recent weeks in what recruiters say may be a sign that the fund job market is emerging from thedoldrums.

Companies such as Schroders, Insight Investments and Edinburgh Fund Managers have seen fund managers quit, while youthful firms like ISIS Asset Management have been snapping up fresh talent.

The moves may suggest Britain’s financial jobs market, still reeling from the three-year bear market in stocks, is showing signs of life although conditions remain tough, say recruiters.

The City has seen an estimated 35,000 finance professionals across different sectors lose their jobs, a fall of about 10 per cent in two years, according to the Centre for Economic and Business Research (CEBR).

Recruiters say although some fund managers still have to cut costs, the worst of the job downturn may be over.

‘We have seen a notable increase in business in the last eight weeks. There has been a sea change. People are interested in getting good people on board,’ said one headhunter for a large City recruitment firm,.

The fund management business, seen at one stage as a bright growth spot, has become much tougher as equity markets tumbled and margins became squeezed.

Much of Britain’s fund management industry is based in the City, although a sizeable chunk is also located in Edinburgh with other firms scattered elsewhere.

Recruiters say although some traditional asset class areas such as equities have seen a fall-off in demand for talent, new specialities such as hedge funds, multi-manager businesses and real estate investment are becoming hot spots for recruitment.