Hedge Funds

Global Alpha and Tykhe miss the quant rebound


By the time the great quant meltdown had subsided in late August, several funds caught in the downdraft had started to post positive returns. Not so for two of the hardest hit, Goldman Sachs's Global Alpha and Tykhe Capital.

In fact, Global Alpha's woes may well have exacerbated the crisis. After close to a year of losses, Global Alpha appeared close to turning around in June when it abruptly turned south again, in large part due to bad currency bets. That was before equity markets started faltering. But by early August, some big institutional investors were apparently fed