Paolo Pellegrini, the hedge fund manager best known as the architect of John Paulson’s famous short subprime bet, is returning all outside investors’ capital in his global macro firm PSQR Capital by the end of September. The PSQR Master Fund, which launched in April 2008 and opened to outside investors in December 2009, was down about 11% through July 31. The fund had previously produced substantial outperformance, gaining 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 a letter to investors. He plans to continue managing his own capital.
Josh Friedlander
