John Paulson Protégée Paolo Pellegrini Giving Investors Their Money Back

When Stanley Druckenmiller announced earlier this week that he’d be shuttering his fund, Duquense Capital, and retiring from the business after 30 years, many wondered which luminary would be next to pack it in. Steve Cohen? Paul Tudor Jones? Larry Robbins? So far, just one: Paolo Pellegrini.

Kind of.  Absolute Return reports the former Paulson and Co employee who helped John make a metric fuck-ton on subprime and later left (or was asked to leave, due to what some at P&Co suggested was li’l bit of an attitude problem) and started his own firm, PSQR (a play on his own name), informed investors today that he will be returning all outside investors’ capital in the fund, which was down 8% in July and 11% YTD), after returning 40% in 2008 and 61.6% in 2009. “While my views on global economies haven’t changed, I’ve concluded that substantial additional work is required to position the Fund to profit consistently from those views,” said Pellegrini in his letter. P-squared will continue to manage his own capital and, one would hope, pick up where he left off behind the DJ booth and/or on his efforts to legalize pot. [AR]

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30 Responses to “John Paulson Protégée Paolo Pellegrini Giving Investors Their Money Back”

  1. Pete Crinklescrote says:

    Tap water’s fine, thanks

  2. Bess Levin says:

    @2 because I only have two hands and you pride yourself on being an impatient little bitch?

  3. Anonymous says:

    That would be why.

  4. Anonymous says:

    @2 = Matt Taibbi

    Matt Taibbi

  5. Anonymous says:

    Bess, I had a dream last night that you gave me a long and lazy hand job with your mouth. So good.

  6. PermaGuest says:

    @6 Dude your creep-factor just shot off the meter

  7. Anonymous says:

    whats up with the new layout

    -guy that doesnt browse db til noon

  8. Anonymous says:

    Are bonobos like testicles?

  9. NakedShort says:

    @7/PG probably not the best context to use the words “shot off”

  10. Anonymous says:

    Bonobos are the only thing that can sharpen my pencil manually.

  11. Anonymous says:

    Please let Amanda and Melissa take turns with the shake weight. That would make my day.

  12. Confucius says:

    Man with hands in his Bonobo pockets feels cocky.

  13. Anonymous says:

    anyone know where a guy could get some better fitting pants while saving 20% all at once?

    – Guy who is poor and pantless

  14. Anonymous says:


  15. PermaGuest says:

    @10/NS True, that.

  16. Anonymous says:

    @14 FTW.

  17. Kosta Kovachev says:

    this guy made his 100M and got whipsawed by the Treasuries trade… bit of a lucky roguish Italian but a lucky one… PSQR would have reqiured real work which this guy was not prepared to do…

  18. ChicagoChick says:

    i pick legalize it!

  19. Anonymous says:

    @18 Italians invented financial markets. WASPs just fucked them up.

  20. plang1 says:

    i did the same thing this past spring i now run a fund with my own money and have a lot less headaches and do just fine….langco

  21. short says:

    I’m getting hammered in the treasury trade as well.

    The issue for pellegrini is that investors in hedge funds want consistent gains or they will flee to the manager with the “hot hand”.

  22. Gb says:

    I know the man personally.He’s a great example of how an incredibly tiny bit of knowledge can be a dangerous thing.

  23. MIAMI says:

    So little love for #1, I’m still loling

  24. Billybob says:

    Paolo is a friggin joke

  25. Fixit says:

    Paolo is not a joke, he did what we all wishes we could have.

  26. Fixit says:

    Paolo is not a joke, he did what we all wishes we could have.

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