Investor Sues AlphaQuest Founder Over $45 Million Stake as $2 Billion Fund Lost Trading Control
Updated
Updated · Bloomberg · Jul 10
Investor Sues AlphaQuest Founder Over $45 Million Stake as $2 Billion Fund Lost Trading Control
1 articles · Updated · Bloomberg · Jul 10
Summary
Stichting QSV Beheer sued AlphaQuest and founder Nigol Koulajian in New York, alleging management failures after Koulajian admitted he had lost control of trading before moving to shut the fund.
The Dutch foundation also says AlphaQuest violated an agreement that gave it first priority for distributions in a liquidation, turning the wind-down into a dispute over repayment terms.
QSV says the fund has offered to return just $2.7 million of its original $45 million investment, underscoring the scale of losses at the $2 billion quantitative hedge fund.
The lawsuit adds legal pressure to AlphaQuest's planned closure and centers scrutiny on how trading oversight and investor protections broke down before the fund's collapse.