The UK hedge fund industry employs an estimated 40,000 people, according to the Alternative Investment Management Association, the trade body for the hedge fund industry.

The UK hedge fund industry employs an estimated 40,000 people, according to the Alternative Investment Management Association, the trade body for the hedge fund industry.

Aima estimates that the number of people employed directly by hedge funds and funds of hedge funds is 10,000, while there are also at least 30,000 jobs among the industry's advisers and service providers, such as prime brokers and legal and accounting services, which are dependent on the industry.

The figures were produced by Aima's research department based on a consultation with the Association's members. Aima has 400 corporate members in the UK, including hedge fund managers, fund of hedge funds managers, advisers and service providers.

Tom Kehoe, Aima's research manager, says: 'We came up with these figures through surveying our members and using all the latest research to extrapolate total figures for the industry. These figures are estimates, but they are informed by all the data at our disposal as the industry's trade body. These are conservative estimates, our calculations were cautious rather than optimistic.'

The association's chief executive Andrew Baker says: 'These figures are the first to be produced for the hedge fund industry in the UK, and what is striking about them is they show how big the sector is. The hedge fund industry is a major part of the financial services sector of the UK economy and it does contribute substantially in terms of employment figures.'