A Dutch institutional investor has filed a lawsuit against quantitative hedge fund AlphaQuest and its founder, Nigol Koulajian, alleging management failures and breaches of shareholder agreements following the firm’s decision to wind down its operations, according to a report by Bloomberg.
The claim, filed in the New York State Supreme Court, was brought by Stichting QSV Beheer, which alleges that AlphaQuest failed to honour an agreement granting the investor priority in liquidation proceeds.
According to the complaint, QSV invested $45m in the hedge fund but has been offered only $2.7m as part of the liquidation process.
AlphaQuest announced in February that it would close after three consecutive years of losses. The $2bn systematic manager reportedly lost 15.2% in 2025, extending declines that began in late 2022.
Central to the lawsuit are allegations that Koulajian admitted to losing oversight of trading activity at the firm.
QSV claims the founder told its investment adviser in a series of emails that a senior trader had continued allocating capital and executing trades using an investment methodology that had not received his approval. The complaint further alleges that Koulajian acknowledged his lack of control over the trading desk after learning of a significant dislocation in the euro foreign exchange market only following a regulatory enquiry.
The lawsuit also alleges that Koulajian assured the investor it would recover the full value of its remaining investment after liquidation costs, estimating distributions of between $17 million and $20 million. QSV argues that this reflected its status as a preferred shareholder before AlphaQuest allegedly converted its preferred equity into common shares without its consent.
AlphaQuest has rejected the allegations
In a statement, the firm described the claims as “false and without merit”, maintaining that both the company and Koulajian acted appropriately and expect to successfully defend the case.
The firm also disputed QSV’s interpretation of the shareholder agreement, arguing that the investor is attempting to alter contractual terms that were negotiated when it acquired its minority interest in AlphaQuest’s management companies.
When announcing the closure of the fund earlier this year, Koulajian told investors that AlphaQuest’s quantitative models were no longer suited to prevailing market conditions. He said structural changes in financial markets had undermined the effectiveness of the firm’s systematic investment approach, making it inappropriate to continue managing client assets.
Previously known as Quest Partners before rebranding as AlphaQuest in January 2025, the firm specialised in quantitative trading strategies across futures markets, including currencies, commodities and equity and fixed-income indices.
