Chris Rokos fortune swings over the past few years typify volatile market conditions experienced by macro traders.
It has certainly been an eventful past four years, to say the least, and it would even be reasonable to say that we are living through unprecedented times.
From global lockdowns to global wars and unprecedented monetary easing to the most rapid pace of tightening in generations, this has stirred treacherous waters for investors to navigate.
“Chris Rokos fortune swings over the past few years typify volatile market conditions experienced by macro traders”
WEALTH TRAINING COMPANY
Chris Rokos fortune swings in volatile markets are the downside of being a macro trader
For those playing the markets, global lockdowns, which were then to be accompanied by unprecedented central bank money creation, will be fondly remembered as a bonanza year.
Frankly, even a dart-throwing monkey could have picked winners in 2020. Moreover, the more access to the Central Bank money, the more chips players could wager the greater their winnings.
Chris Rokos’s Macro Hedge Fund Surges 44% in Best Year Ever
Billionaire investor, Chris Rokos, founded his macro hedge fund, Rokos Capital Management, a little more than a decade ago.
“even a dart-throwing monkey could have picked winners in 2020”
WEALTH TRAINING COMPANY
Chris Rokos fortune swings peaked in 2020 with his fund heavily positioned long stocks
Chris Rokos’s bloated profits were not unique in 2020, as a string of hedge funds also posted record profits that year.
Chris Rokos fortune swings in the bond market
Not so long ago, in late 2020 and early 2021, investors thought that long-maturity treasury yields paying slightly above 2% was a good deal.
So banks, pension funds, and conservative investors piled into long-maturity treasuries when yields were near 2%.
“he managed to recover some of the losses by profiting from bets on rising interest rates” – Wealth Training Company
The consensus view of the day was that we would likely see stagflation of the 70s in our lifetime and that long maturity yields near 2% represented good value, low risk during a period when banks were paying near-zero interest rates.
But inflation did come back and throw into the equation war in the Baltics and the Middle East, as Israel expands its military operations into Lebanon, potentially Iran, which means potentially higher and persistent inflation. Expanding wars means supply disruptions, shortages and higher energy costs.
So Chris Rokos’s hedge fund firm Rokos became one of the highest-profile hedge fund casualties of a vicious sell-off in short-dated bonds during the autumn of 2021.
However, he managed to recover some of the losses by profiting from bets on rising interest rates.
Chris Rokos’s letter to investors in Q1, 2023, informed his clients that he de-risked the hedge fund after taking on some nose-bleeding double-digit losses.
Chris Rokos fortune swings in Q3, 2023
Chris Rokos said in August that his hedge fund recuperated all the 2023 losses and posted a slight gain of 3.7 gains in July.
But what will Chris Rokos fortune swings look like going into the final quarter?
