Fund launches & closures Hedge Funds

Paulson credit fund co-manager prepares his own fund

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Paolo Pellegrini, a former manager of credit strategies at John Paulson’s standout Paulson & Co., left at yearend 2008 to prepare the launch of PSQR, a macro hedge fund.

Pellegrini’s departure was amicable. He joined Paulson in 2004 and served as co-portfolio manager of the firm’s two credit opportunity funds, which produced phenomenal returns in both 2007 and 2008 by foreseeing the subprime mortgage collapse and anticipating the credit crisis.

Pellegrini is widely credited by investors as helping design the trade’s implementation. Paulson Credit Opportunities and Paulson Credit Opportunities II produced net returns of about 590% and 352% in