After helping Paulson & Co. (the hedge fund, not the guys running the Treasury) make a tidy $3 billion profit from the collapse of the U.S. real estate market in 2007, Paolo Pellegrini is leaving to start his own shop.
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Bloomberg is reporting that the hedge fund manager left Paulson on Dec. 31 under "amicable" terms and plans to start his own
hedge fund. Even in these tough times, Pellegrini is likely to have
investors lining up to put money with him, following his successful 2006
bet that investors were overvaluing mortgage-backed securities. When
the market turned in 2007, the firm's Paulson Credit Opportunities and
Credit Opportunities II fund took off like a rocket, soaring about
sixfold in 2007.
According to Bloomberg:
Pellegrini's new fund, New York-based PSQR LLC, will use a strategy
known as fundamental macro investing, which trades everything from
commodities to currencies and seeks to profit from changes in global
economies. He will start with his own money before opening to outside
investors later this year, the person familiar with the plans said.
The departure of one its superstars doesn't appear to be slowing
Paulson down though. The hedge fund is part of a consortium
that
bought the assets and operations of failed California mortgage
lender IndyMac Federal Bank for $13.9 billion Monday morning.-
George White
See Bloomberg story
