Goldman Sachs has pumped $3bn (€2.2bn) into its long/short quantitative strategy hedge fund in response to a sharp decline in the value of computer-driven investment vehicles, as firms try to recover from credit crunch fears that have hit the stock market.

The cash infusion comes in response to a 30% drop in the Global Equity Opportunities fund, which occurred last week when $860bn was wiped from the stock market value of European and US banks, according to analysis by Financial News.