Former Paulson Protégé In A Charitable Places About Losses

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. Read more »

  • 30 Nov 2009 at 2:52 PM

Paolo Pellegrini Is Making Himself Smile Now

pellegrini2.jpgWho needs John Paulson? Not Paolo Pellegrini.
Canned by JP for his bad attitude, this Italian Stallion knows that living well is the best revenge. And so far, Pellegrini’s PSQR Management is living very well, up almost 65% this year.

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  • 05 Oct 2009 at 6:22 PM

Paolo Pellegrini Made John Paulson Smile Once

Screen shot 2009-10-05 at 6.22.41 PM.pngThis would not be the time he asked for more money to do less work but rather when he pulled John into a room to show his former boss how he was going to make a metric fuck-ton of money for the firm, which Bloomberg gets into in a profile of P-squared (which, awesomely, is actually what he calls himself):

“After hearing a lot of arguments for and against the presence of the bubble, we had a simple and clear insight of our own to go by,” Pellegrini says.
He recalls that Paulson broke into a smile when he showed him the proof that houses were overpriced. “John doesn’t smile,” Pellegrini says. “It felt great.”

Careful analysis shows that this statement is not exactly true. Paulson JP practically grins when seated next to Jack Welch’s German doppelgänger. No matter– Pellegs made Paulson smile once and then the two got back to making money and taking money, only occasionally glancing up to motion to a life-size cutout of Alan Greenspan and go “look at this idiot” to each other.
Fast-forward to the end of 2008 (and a bunch of dollars later) and Pellegrini, by several accounts, proposed to Paulson and Pals that his new purview permit him to indulge himself a bit more. Basically Pellegs wanted the go-ahead to spends his days waxing poetic on larger geopolitical issues that required constant consultations with peers like Henry Kissenger, David H. Petraeus, Tila Tequila, etc, and to spend less of his time slicing numbers to figure out if Ben Bernanke was going to survive the next option arm reset (he also wanted more money to do so). The two parties diverged from there, with P-squared being more encouraged to leave the building (as opposed to leaving on his own terms) than is necessarily suggested here. It’s not that JP and Pals were opposed to P^2 drastically redefining what he did for the firm but apparently the attitude that came with the demand that ‘Legs have a red phone to Putin installed in his office and be referred to as “The Talent” in front of the Limited Partners was rubbing people the wrong way.
And now you’re all going to potentially benefit! P.Legs struck out on his own with PSQR Management, which returned 80 percent through July and will be marketed to outsiders (for now it’s all his money) in 2010. Presumably he’ll be looking to hire a few more man boys to help run the the place sometime soon. Let’s try Pellegs on for size. If you like what you see, if it’s all you ever wanted (superficially) in a boss, considering shooting a res.

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