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Goldman Sachs Hires Amaranth Traders

Goldman hopes 17 hedge fund veterans will score big returns, according to <I>The Wall Street Journal</I>.

Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report reportedly is hiring a team of 17 traders from failed hedge fund Amaranth Advisors to beef up its alternative-investment unit.

The investment bank wants the group, led by former Amaranth trader Gregg Felton, to develop credit-trading strategies, according to

The Wall Street Journal

, which reported the hiring, citing people familiar with the matter.

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Goldman's move highlights growing interest on the part of Wall Street firms to use hedge fund-style tactics, or partnerships with established hedge funds, in an effort to score big returns.

Amaranth foundered in September when bets it made on natural gas went horribly wrong. But the fund's demise hasn't tainted many of its traders, who have been eagerly recruited by investment banks and other hedge funds.

Goldman shares rose $4.90 Friday to close at $205.10.