Goldman Sachs is aiming to raise $4bn-$6bn for a new hedge fund as the investment bank tries to rebuild its reputation in the hedge fund business, it has told potential investors.

The new fund, run by bank partners Raanan Agus, former head of the proprietary trading desk, and Kenneth Eberts, former head of the US prop desk, will be the first from the bank to focus on picking shares, rather than using computerised, or quantitative, approaches.