Saturday, 30 August 2014
Last updated 1 day ago
Jul 11 2012 | 1:10pm ET
A former John Paulson lieutenant is being punished for his belief in his former boss.
Paolo Pellegrini, who helped engineer the subprime mortgage strategy that put Paulson & Co. on the map, left Paulson to start his own hedge fund three years ago only to pull the plug on that effort less than a year later. Then, a year-and-a-half ago, he invested "a significant portion of my personal money" in Paulson's Advantage Plus Fund.
Pellegrini did so just in time to see that fund lose more than half its value last year. And the fund, Paulson's largest, continues to lose ground this year, having shed a further 16%.
"I'm disappointed but I don't fault them for not doing their work," Pellegrini told The Wall Street Journal. "This is a very difficult market to predict… as an investor, it's like a game of Russian roulette."
But, Pellegrini said, "among global fund managers, John's one of the most talented." And his team works "very hard on their investment ideas and generally get things mostly right."
The Journal reports that Pellegini invested between $10 million and $20 million with Paulson, and that he redeemed half of what was left at the beginning of this year.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...