Goldman Sachs' flagship hedge fund has continued to lose money despite the bank trying to bolster its team by hiring 17 staff from Amaranth Advisors, a US hedge fund manager that collapsed last year.

The bank's $10bn (€7.4bn) Global Alpha hedge fund fell 3.4% in the first four months of this year, according to Bloomberg which cited a letter sent to investors last week, although it gained 0.4% last month. In contrast the Credit Suisse/ Tremont Hedge Fund Index returned 5.4% in the first four months of this year.