We investigate the loss mechanisms in hybrid photovoltaics based on blends of poly(3-hexylthiophene) with CdSe nanocrystals of various sizes. By combining the spectroscopic and electrical measurements on working devices as well as films, we identify that high trap-mediated recombination is responsible for the loss of photogenerated charge carriers in devices with small nanocrystals. In addition, we demonstrate that the reduced open-circuit voltage for devices with small nanocrystals is also caused by the traps.