Two days after funder Stanley Druckenmiller announced he was retiring after 30 years, Paolo Pellegrini, the man who was instrumental in helping John Paulson rake in more than $15 billion in profits with bets on a U.S. housing crash, has also announced he is closing up shop, saying he plans to return money to investors of his own hedge fund after suffering double digit losses this year.
Mr. Pellegrini’s fund PSQR Capital has lost about 11% YTD, after returning 40% in 2008 and 61.6% in 2009. According to AR Magazine, the decline included a drop of about 8% in July, after bearish positions on financial assets, the greenback and U.S. Treasurys went against the fund.
In a letter to his investors this morning, Mr. Pellegrini informed his clients he will be returning all outside investors’ capital in the fund. Pellgrini wrote that while his views on global economies haven’t changed, he had “concluded that substantial additional work is required to position the Fund to profit consistently from those views”.
PSQR LLC, which Pellegrini started in 2009, plans to give clients their money by the end of next month.