Another One Bites The Dust.. Paolo Pellegrini Returning Clients' Funds

A day after Stanley Druckenmiller announced he was retiring after 30 years, Paolo Pellegrini has also announced he is closing up PSQR Capital to outside investors.

Pellegrini, who runs PSQR Capital, was disappointed at his inability to realize gains this year, and as such, will be returning investors money back to them.

Last year, PSQR Capital earned more than 60% in its inaugural year.

Pellegrini was instrumental in helping John Paulson bet against the U.S. housing market and reaping handsome rewards. Paulson earned more than $15 billion and personally made over $3.5 billion betting against the housing market.

Prior to going to work for Paulson, Pellegrini was a midlevel investment banker at Lazard Freres. Pellegrini would go onto become the main contact at Paulson & Co. for Fabrice Tourre, the Goldman Sachs (NYSE: GS) trader that negotiated the infamous "Abacus" deal.

Pellegrini said that he will continue to manage his own money. He left open the possibility of relaunching PSQR Capital or perhaps another portfolio sometime in the future.