Hedge Funds

Paolo Pellegrini to return investor capital

by Josh Friedlander

The Paulson protégé is stepping back from managing investor capital given challenging market conditions.

Paolo Pellegrini announced today that he will be returning all outside investors’ capital in his global macro firm PSQR Capital by the end of September, citing the additional work necessary to profit from his bearish views.

The PSQR Master Fund was down about 11% through July 31. The fund, which launched in April 2008 and opened to outside investors in December 2009, had previously produced substantial outperformance, having gained 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