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What the hedge fund manager who played the mortgage mess better than anyone thinks about where we're headed

Even though I do not have a Bloomberg terminal, I subscribe to Bloomberg Magazine. It's very well done. While perusing the new issue at lunch today I came across a fascinating article about Paolo Pellegrini. A native Italian who attended Harvard business school, Pellegrini was one of the key people at John Paulson's hedge fund when it made its staggeringly successful bet against sub-prime mortgages that propelled Paulson's Credit Opportunities fund to a 589.6% gain in 2007.

Mr. Pellegrini has since left Paulson's fund to work on his own hedge fund, PSQR. It's always difficult to tell if someone is a one-hit wonder as many of the perma-bears who had been calling for the demise of the markets for decades were...even a stopped clock is right twice per day, but the PSQR macro fund has produced extremely strong returns thus far (2008 and 2009 YTD) so that lends even more credibility to Pellegrini.

Here's what he has to say about where he thinks things are headed:

CONTINUED...

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=277339&t=0...

Deej
Global Gains Home Fool
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