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Saturday, July 4, 
2:13 pm

Paulson & Co. loses a superstar manager

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superstar1.gifAfter 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

 




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