Chris Rokos compounds gains as the billionaire investor sits amongst the best-performing macro money funds since May 2024 with his fund gaining about 20% year to date.
Chris Rokos’s Rokos Capital Management fund assets under management now exceed $17 billion, with a gain of approximately 6% in April.
“Chris Rokos’s Rokos Capital Management fund assets under management now exceed $17 billion”
WEALTH TRAINING COMPANY
Chris Rokos compounds gains are due to wild macro trade swings so far this year
Many investors found themselves on the wrong side of interest rate expectations.
The anticipated Fed pivot has gone from six rate cuts to three to none, to maybe two and even rate hikes as conflicting data on inflation expectations has created volatility for macro traders.
Investors recalibrating the interest-rate forecast led to a selloff in the treasury bonds, pushing up their corresponding yields.
Investors expecting aggressive reductions by the Fed were disappointed, while Rokos, who’s known for placing high conviction leveraged bets, profited from the market U-turn.
The first quarter of 2024 saw a wide range of returns across macro investors.
“Many investors found themselves on the wrong side of interest rate expectations”
WEALTH TRAINING COMPANY
Performance among global macro funds was the most widely dispersed of any strategy during the period, according to data from fund administrator Citco, with results for tracked hedge funds varying between -10% to north of +20%.
Rokos’s net worth is estimated at $1.8 billion by the Bloomberg Billionaires Index, which manages one of the largest by market capitalisation macro hedge funds globally.
“The magnitude of rate tightening in 2023 was unprecedented, with a 24-fold increase in interest rates from O.25 to 5% in a little more than a year.”
– Wealth Training Company
Rokos counts among macro traders who have seen their fortunes undergo a wild swing in 2023 because of volatility in the interest rate markets. His hedge fund was down more than 15% at one point in March after bets on short-term interest rates failed to pay off amid the collapse of Silicon Valley Bank. The losses, which followed a 51% surge in 2022, prompted him to de-risk the fund.
The magnitude of rate tightening in 2023 was unprecedented, with a 24-fold increase in interest rates from O.25 to 5% in a little more than a year.
But with escalating wars on multiple fronts, disruptions to supply chains, and the melting of globalization, inflation remains persistent, leaving the pivot trade still wanting.
Chris Rokos co-founded Brevan Howard Asset Management in 2002 before starting the Rokos Capital Management fund in 2015.
Rokos Capital Management LLP is a British Alternative Investment Fund Manager. RCM is based in London, with offices in New York, Washington DC and Singapore. It is authorised and regulated by the UK Financial Conduct Authority. The firm has around 200 employees.
Chris Rokos compounds gains, but the macro trader’s top Tory donor has had his share of ebbs and flows
Last year, 2023, Chris Roko was also hit by the bond market turmoil.
