AlphaQuest, a quantitative hedge fund led by Nigol Koulajian, is closing its operations and returning capital to investors after experiencing a three-year losing streak. The fund, which rebranded from Quest Partners in January 2025, fell 15.2% last year and is down approximately 30% since its losses began in October 2022. Early 2026 saw further deterioration, with a more than 4% drop in February and a year-to-date loss of 3.1%.
Koulajian informed investors in a letter that the firm's quantitative models were no longer effective in the current market environment, which he believes could persist for a prolonged period. He noted that market headwinds were "too severe" to continue managing client assets in line with their expectations. This decision comes despite a broader rally in equity markets, which Koulajian interpreted as a signal that it was no longer prudent for him to remain active as a capital allocator.
AlphaQuest, established in 2001, managed around $2 billion and initially focused on trading futures across currencies, commodities, and equity and bond indices using computer-driven strategies. It later diversified into individual stock selection and carry trades. The firm had previously excelled during volatile periods, notably posting gains of nearly 56% during the 2008 financial crisis. Koulajian emphasized that the wind-down was orderly, with no significant redemptions, attributing this to the trust investors placed in the firm.
