|Paolo Pellegrini’s hedge fund firm launched in 2008 with much fanfare, but now the famed investor is reportedly returning capital from PSQR Management to outside investors. Before founding his global macro manager PSQR Management, Pellegrini made a big name for himself at Paulson & Co., where he is credited for helping John Paulson make his enormously successful bet against US subprime mortgages.|
Unlike many other star traders that launched their untested hedge funds with hundreds of millions under management, Pellegrini launched his firm with just his own personal capital. According to MarketWatch, during the first two years of PSQR, while managing primarily just Paolo Pellegrini’s own money, the firm returned 40% and 60%.
In late 2009, PSQR opened its doors to outside investors, but its performance since has been less than impressive. Year to date in 2010, PSQR Capital is down 11%. While Pellegrini is returning money to outside investors, he will reportedly continue to operate PSQR to manage his own money.