Guy Shahar, former co-head of equity derivatives trading at Goldman Sachs, has teamed up with a colleague from Marble Bar Asset Management to set up a new hedge fund firm, DSAM Partners.

Shahar is chief investment officer of the new venture and James Diner, who was managing director of trading at Marble Bar, is chief executive. The pair are planning to launch in the fourth quarter a European long/short equity fund that will combine short-term trading with fundamental investing, according to several people familiar with the situation. It will use derivatives to take positions, not just as hedging instruments, the sources said.