Former Paulson Protégé In A Charitable Places About Losses

By

Remember Paolo Pellegrini? For those who need a refresher, the Italian Stallion is the former Paulson and Co. employee who helped John come up with a highly lucrative subprime trade, later leaving the firm to set up his own shop (the delightfully named PSQR AKA Pellegrini Squared) after some reported friction re: whether or not he was getting enough credit for netting the hedge fund billions via ‘the greatest trade ever.’ PSQR returned 40% in 2008 and 61.6% in 2009 and then in August 2010, Pellegrini gave back all outside investor capital, stating that he would be focusing on managing his own money. And speaking of Paolo’s pennies, the ones he had invested with Paulson have taken a li’l bit of a hit lately. But according to Big P, who previously dabbled in DJ’ing and efforts to get pot legalized, it’s all good.

At the beginning of last year, Mr. Pellegrini invested in Paulson Advantage Plus, the fund that has stumbled badly. The sum invested was “a significant portion of my personal money,” Mr. Pellegrini says. Two other people familiar with the investment say it was between $10 million and $20 million. Mr. Pellegrini says he withdrew half of his remaining money at the beginning of this year after the previous year’s losses. But Mr. Paulson’s cold streak has continued, with the Advantage Plus fund down more than 16% this year through June, according to an investor…Despite the setback, Mr. Pellegrini, a 55-year-old native of Italy who now lives in Manhattan, says he isn’t bitter. “I’m disappointed but I don’t fault them for not doing their work,” Mr. Pellegrini in an interview. “This is a very difficult market to predict…as an investor, it’s like a game of Russian roulette.” Referring to Mr. Paulson, Mr. Pellegrini says: “Among global fund managers, John’s one of the most talented.”

Considering the fact that that’s one of the nicest things anyone who’s lost money with Paulson has had to say in recent memory, it sounds like all that stuff about JP ‘humiliating‘ and under-appreciating Pellegrini is water under the bridge. And not to get too far ahead of ourselves but perhaps it’s time to get the old gang back to together again? Think about it: Pellegs is unemployed, Paulson needs to pull himself of the mire (and muck) he’s wallowing in and Paolo may or may not be his lucky rabbit’s foot. Just something to consider.

Paulson Ex-Lieutenant Caught in Fund’s Slide [WSJ]

Comments (78)

  1. 1
    Posted by Texashedge | July 11, 2012 at 12:30 PM

    It looks so legal in that pic

  2. 2
    Posted by Brian Hunter | July 11, 2012 at 12:31 PM

    Getting the band back together? Always a good idea in my opinion.

    -The Big Mouth Bass Killer

  3. 3
    Posted by J. Cayne | July 11, 2012 at 12:33 PM

    I'm ready and I know we agree politically on the…important [inhales] issues of the day.
    Do they play bridge in Italy?

  4. 4
    Posted by investorcluzo | July 11, 2012 at 12:34 PM

    "I’m disappointed but I don’t fault them for not doing their work"
    -nothing backhanded about that comment. perhaps it's time for someone to examine his motives…

  5. 5
    Posted by Guest | July 11, 2012 at 12:36 PM

    "As an investor, it’s like a game of Russian roulette." Completely stunned that he had to shut his fund down.

  6. 6
    Posted by ILoveLamp | July 11, 2012 at 12:46 PM

    That last quote must have been edited. What PP actually said was, "Among global fund managers whose performance sucks ass, and who haven't had a good original idea in 5 years, John’s one of the most talented.”

  7. 7
    Posted by Master P | July 11, 2012 at 12:46 PM

    Paulo Pellegrini, Paulson's previously-patient protege, pulled a portion of his placement pursuant to the portfolio's persistent poor performance.

  8. 8
    Posted by Seabass | July 11, 2012 at 12:47 PM

    Pellegrini, what is that, Canadian?

  9. 9
    Posted by Anonymous | July 11, 2012 at 12:53 PM

    My research indicates that success in Russian roulette increases linearly with the number of bullets used.

    – UBS .38 quant

  10. 10
    Posted by pazzo83 | July 11, 2012 at 12:54 PM

    Hey-a Signore Paulson, come-a take a walk with me…

    - P Pellegrini

  11. 11
    Posted by Guest | July 11, 2012 at 12:55 PM

    Worst comment since 8:45. Pretty sure its Italian, dummy.

  12. 12
    Posted by leeminbrahs | July 11, 2012 at 1:20 PM

    Paulson says: Hey Pellegrini, you ever coming back?

    Pellgrini responds: You kidding? I am Queen's Boulevard.

    -Epic Entourage Moment

  13. 13
    Posted by Guest | July 11, 2012 at 1:26 PM

    Do you keep like a spreadsheet of comments and dates/times?

  14. 14
    Posted by guest | July 11, 2012 at 1:29 PM

    Pellegrini says one thing, then does the complete opposite with his money. Good spin, old chap.

    Also, didn't Paulson give Pellegrini his first big shot? I think I remember reading that Pellegrini was a career changer and came into Paulson's fund as a late 30's ANALYST. Fuckin' hell.

  15. 15
    Posted by Guestard | July 11, 2012 at 1:30 PM

    Listen Paulo, at some point you need to stop worrying about performance and returns… what really matters in this business is the ability to raise money.

    - J. Meriwether

  16. 16
    Posted by Guest | July 11, 2012 at 1:43 PM

    Bad month for Paulson Advantage Plus = PAP Smear?

  17. 17
    Posted by güest | July 11, 2012 at 1:43 PM

    Pawesome.

  18. 18
    Posted by Guest | July 11, 2012 at 1:48 PM

    Rough life being a late 30's analyst getting a $175MM bonus. Maybe we should throw food at him, no?

  19. 19
    Posted by guest | July 11, 2012 at 1:52 PM

    it was $45 million.

  20. 20
    Posted by Guest | July 11, 2012 at 2:15 PM

    …women, dates, etc….

  21. 21
    Posted by guest | July 11, 2012 at 2:52 PM

    and your point is…?

  22. 22
    Posted by guest | July 11, 2012 at 2:54 PM

    also, KKR, blackstone, tpg, GS PIA, most VC funds, most mutual funds, most hedge funds…i'm probably forgetting someone.

  23. 23
    Posted by guest | July 11, 2012 at 3:03 PM

    this is not some stupid investment bank he was working at. the "analyst" title does not describe people one to two years out of college. there are analysts at hedge funds in their 40s, making 8 figures. would you rather be an Associate, making 6?

  24. 24
    Posted by guest@guest.com | July 11, 2012 at 3:05 PM

    Well played.

  25. 25
    Posted by Main Street | July 11, 2012 at 3:44 PM

    I stand corrected. We should have a charitable drive for him instead.

  26. 26
    Posted by canadur! | July 11, 2012 at 4:13 PM

    iirc from that book about him, Pelegrini was a failed investment banker in his 40s, forced out of Lazard because his tieriness wasnt quite top and Paulson basically hired him as a favor. Of course Paolo returned it by turning Paulson from some piddling, couple hundred million AUM merger arb into a billionaire genius into a billionaire sucker.

  27. 27
    Posted by Guest | July 11, 2012 at 4:25 PM

    Six figures?! That has to include after the decimal, right?

    – UBS MD

  28. 28
    Posted by Yanni | July 11, 2012 at 4:50 PM

    Jerry Seinfeld's protege wants in.

  29. 29
    Posted by Repo | July 11, 2012 at 8:20 PM

    To be fair, PSQR was probably a play on SPQR, what with the Italian connection and all. I'll give him a little credit (call it strong Caa / weak B3 level) for that one.

  30. 30
    Posted by guest | July 11, 2012 at 9:26 PM

    "Pellegrini says his fund’s name, PSQR, is a play on his own: Paolo or Pellegrini Squared. It’s also an anagram of SPQR, the initials of the ancient Roman Republic that stand for Senatus Populusque Romanus, or the Senate and the People of Rome. "
    http://www.bloomberg.com/apps/news?pid=newsarchiv…

  31. 31
    Posted by UBS MD | July 11, 2012 at 11:43 PM

    BACK TO THE FIELDS, INTERN!

    – Ken Moelis

  32. 32
    Posted by cheap seo services | September 9, 2012 at 7:44 AM

    LvoDns Enjoyed every bit of your blog article. Really Cool.

  33. 33
    Posted by Upholstery Tacks | September 11, 2012 at 6:40 AM

    Thanks-a-mundo for the blog article. Awesome.

  34. 34
    Posted by uygulama | September 11, 2012 at 2:56 PM

    Very informative article.Much thanks again. Will read on…

  35. 35
    Posted by bookmarking submission | September 11, 2012 at 11:50 PM

    tDPyNg Really informative post.Thanks Again. Cool.

  36. 36
    Posted by Michigan Web Design | September 12, 2012 at 5:28 AM

    I appreciate you sharing this article post.Much thanks again. Keep writing.

  37. 37
    Posted by Ravelo Villas | September 13, 2012 at 3:16 PM

    Every time I come back here again and don`t get disappointed..!

  38. 38
    Posted by http://www.homebasework.in | September 13, 2012 at 4:01 PM

    Good day! I do not see the conditions of using the information. May I copy the text from here on my site if you leave a link to this page?!…

  39. 39
    Posted by Discount Beats Headphones | September 13, 2012 at 5:28 PM

    I value the post. Cool.

  40. 40
    Posted by Discount Beats Headphones | September 13, 2012 at 6:38 PM

    As usual, the webmaster posted correctly..!

  41. 41
    Posted by Beats By Dr Dre Store | September 14, 2012 at 1:43 AM

    I envy you. The content and design of your blog is much better than mine. Who made a design for you?!…

  42. 42
    Posted by past live | September 14, 2012 at 5:36 AM

    Great, thanks for sharing this blog.Thanks Again. Will read on…

  43. 43
    Posted by website copywriter | September 14, 2012 at 6:47 AM

    Thanks so much for the post.Really looking forward to read more. Really Great.

  44. 44
    Posted by where to buy nopalea | September 16, 2012 at 3:36 AM

    Very neat blog post.Much thanks again. Want more.

  45. 45
    Posted by bloom | September 17, 2012 at 6:18 AM

    Appreciate you sharing, great blog post.Thanks Again. Cool.

  46. 46
    Posted by dr. reena feider | September 17, 2012 at 11:13 AM

    Really informative blog article.Much thanks again.

  47. 47
    Posted by Property Loan | September 17, 2012 at 1:59 PM

    Major thanks for the article post.Much thanks again. Keep writing.

  48. 48
    Posted by Model | September 18, 2012 at 4:41 AM

    Very informative blog.Much thanks again. Awesome.

  49. 49
    Posted by pikalaina | September 18, 2012 at 7:19 AM

    I really liked your blog post. Want more.

  50. 50
    Posted by TDAP Vaccine Side Effects | September 18, 2012 at 8:12 AM

    Major thanks for the post.Really thank you!

  51. 51
    Posted by Teambuilding | September 18, 2012 at 3:19 PM

    Awesome article.Really thank you! Really Great.

  52. 52
    Posted by pws ua bgalw lefta | September 19, 2012 at 5:24 AM

    Im obliged for the blog post.Thanks Again.

  53. 53
    Posted by Electronic Transfer | September 19, 2012 at 8:07 AM

    Im thankful for the post.Really looking forward to read more. Awesome.

  54. 54
    Posted by 24option | September 19, 2012 at 5:17 PM

    Great, thanks for sharing this blog post.Really thank you! Awesome.

  55. 55
    Posted by violet voss video | September 19, 2012 at 5:55 PM

    Appreciate you sharing, great blog article.Much thanks again. Really Great.

  56. 56
    Posted by cash advance online | September 19, 2012 at 11:02 PM

    Major thankies for the blog.Thanks Again. Cool.

  57. 57
    Posted by buy instagram followers for cheap | September 20, 2012 at 5:37 AM

    This is one awesome blog. Keep writing.

  58. 58
    Posted by horror films | September 20, 2012 at 12:16 PM

    Wow, great blog article.Thanks Again. Fantastic.

  59. 59
    Posted by mums date dads | September 20, 2012 at 2:54 PM

    Thanks again for the blog post.Much thanks again. Want more.

  60. 60
    Posted by ex zurueck | September 21, 2012 at 3:31 PM

    Major thanks for the article.Really looking forward to read more. Will read on…

  61. 61
    Posted by Buy Instagram Followers For Cheap | September 21, 2012 at 5:23 PM

    Thanks for sharing, this is a fantastic blog.Thanks Again. Great.

  62. 62
    Posted by buy instagram followers | September 22, 2012 at 5:48 PM

    Great, thanks for sharing this article.Really looking forward to read more. Fantastic.

  63. 63
    Posted by home based business | September 23, 2012 at 8:32 AM

    Thanks for sharing, this is a fantastic blog article.Really looking forward to read more. Really Great.

  64. 64
    Posted by massage sensuel | September 23, 2012 at 2:04 PM

    Appreciate you sharing, great article.Really looking forward to read more. Want more.

  65. 65
    Posted by Headhunter to the Stars | September 23, 2012 at 3:55 PM

    Thanks for sharing, this is a fantastic blog article.Really thank you! Really Cool.

  66. 66
    Posted by die cutting equipment | September 24, 2012 at 1:17 AM

    Fantastic blog article.Much thanks again. Fantastic.

  67. 67
    Posted by gay dating | September 25, 2012 at 4:27 PM

    Very informative blog post. Fantastic.

  68. 68
    Posted by buy instagram followers | September 26, 2012 at 5:43 AM

    Great, thanks for sharing this article post.Really thank you! Great.

  69. 69
    Posted by christmas tree shop | September 26, 2012 at 6:03 AM

    I appreciate you sharing this article post.Really looking forward to read more. Will read on…

  70. 70
    Posted by houses for sale in Fairfax County | September 26, 2012 at 4:13 PM

    Great, thanks for sharing this blog article.Much thanks again. Really Great.

  71. 71
    Posted by Peter Francis-Macrae | September 26, 2012 at 6:59 PM

    Thanks so much for the blog post.Much thanks again. Much obliged.

  72. 72
    Posted by Peter Francis-Macrae | September 26, 2012 at 8:53 PM

    Beneficial document helps make frequent advance, appreciate it write about, this pile-up connected with expertise is usually to hold finding out, focus is usually the beginning of money.

  73. 73
    Posted by link building | October 1, 2012 at 2:47 AM

    You actually make it seem so easy with your presentation but I find this matter to be actually something which I think I would never understand. It seems too complicated and extremely broad for me. I am looking forward for your next post, I will try to get the hang of it!
    link building http://www.gscraper.com/

  74. 74
    Posted by best site to download | October 2, 2012 at 3:23 AM

    Hi! Everyone who reads this blog – Happy Reconciliation and Accord..!

  75. 75
    Posted by accident injury law | October 3, 2012 at 2:21 AM

    Every time I come back here again and don`t get disappointed..!

  76. 76
    Posted by Wayne Dorey | October 3, 2012 at 5:17 AM

    I’m coming with my cousin Peggy and bringing my close friend Wendi!!!!

  77. 77
    Posted by Know More on African Mango | October 12, 2012 at 1:02 AM

    Needed to write you the very small observation to be able to thank you very much over again regarding the remarkable suggestions you’ve provided here. It has been simply unbelievably generous with you to convey unreservedly just what a few people could have offered for an ebook in order to make some profit for their own end, precisely considering that you could possibly have done it in the event you wanted. These suggestions in addition acted to provide a easy way to understand that other people online have a similar interest like my very own to find out a whole lot more when considering this problem. I’m certain there are some more pleasant times ahead for many who browse through your website.

  78. 78
    Posted by cheap nfl jerseys | October 13, 2012 at 4:52 AM

    cheap jerseys