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John Paulson Protégée Paolo Pellegrini Giving Investors Their Money Back

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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 Returnreports 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]