Gnomon Alpha Outperforms Peers in Q2 2026 with New Short-Selling Model

Gnomon Alpha LLC reported that its investment strategy generated a 9.6% return in the second quarter of 2026, substantially outperforming the SG CTA Index, which saw minimal gains during the same period. This performance comes as traditional market correlations are challenged by macroeconomic pressures.

Founded by Jay Feuerstein, Chief Investment Officer, Gnomon Alpha leverages over 30 years of experience in systematic global macro investing, complex portfolio engineering, and market arbitrage. Feuerstein's background includes senior roles at institutions such as Drexel Burnham Lambert, Lehman Brothers, and Bear Stearns. Prior to establishing Gnomon Alpha in 2019, he founded Xenon Capital Management, which was seeded by Goldman Sachs Asset Management and later acquired by Manning & Napier.

The firm's strategy is built on a systematic, rules-based matrix trading across global fixed income, equity indices, commodities, and foreign exchange. Its original framework comprised three distinct sub-models: Risk Regime Model, Engel Model, and Vega Model. Notably, the Vega Model focuses on shorting global equity indices during periods of macroeconomic instability. This structural shorting framework demonstrated a correlation of -0.62 to down markets, acting as a portfolio hedge.

In 2024, a divergence between central bank policies and sovereign debt yields presented an anomaly that temporarily impacted performance. Gnomon Alpha has adapted its models, with Feuerstein emphasizing continuous research and real-time evolution of its systematic frameworks. The firm has introduced a new Sigma Model, which prioritizes price velocity and trends over static yield curve assumptions, aiming to provide a non-correlated benchmark for clients amidst market upheaval.