Dinakar Singh, co-head of the principal strategies group at Goldman Sachs, has become the latest top trader to quit the investment bank to set up a hedge fund business of his own.

Sources close to Singh, who is 35, said he was retiring after 14 years with the bank, where he oversaw the management of $10bn (€8bn) of assets. He hopes to raise $3bn for his own hedge fund and has been talking to a private equity firm whose partners may provide some of the capital.