Chris Rokos latest dealings suggest the billionaire trader has gone bearish on pharmaceuticals and could be navigating his portfolio for a downturn in cyclicals. 

Chris Rokos, Rokos Capital Management fund based in the famous tailor-suit district of Savile Row, London, made headlines with gains of approximately 51% in 2022. 

Chris Rokos performance was due to placing bets on rising interest rates and the volatility it would trigger across asset classes. 

Last year, 2022, was Rokos Capital Management’s best annual performance since 2015, which was the year he started trading for his own firm. But like most star hedge fund traders, he has had his share of ebbs and flows. In 2021 his fund lost a record 26%. The first quarter of 2023 was also challenging for Rokos Capital Management, clocking a loss of 15% in March. 

Year-to-date, Chris Rokos’s macro hedge fund is down by approximately 9.5% as of March. Chris Rokos, together with some regional banks, was caught on the wrong side of the US treasury market trade as the Fed pushed through with its 10th consecutive rate hike and triggered the bond market turmoil. 

“the billionaire trader has gone bearish on pharmaceuticals and could be navigating his portfolio for a downturn in cyclicals”

WEALTH TRAINING COMPANY

Margin calls; Chris Rokos’s latest dealings to raise liquidity 

US Securities and Exchange Commission (SEC) quizzed Rokos Capital Management about its leveraging ratio and liquidity. 

The SEC chair, Gary Gensler, reportedly discussed Rokos with the UK regulators, highlighting the concerns over margin calls and the potential impact on the US government bond market.

Rokos Capital was then forced to sell, and lock in losses to raise liquidity. Rokos Capital Management must have had a sizable long position in US treasuries to be on the SEC’s radar. 

Could this be a heads-up that treasury yields are heading higher?

The firm stated that its cash levels remained healthy, and it emphasized its open and collaborative engagement with regulatory authorities such as the Financial Conduct Authority (FCA) and the SEC. 

“The firm stated that its cash levels remained healthy”

WEALTH TRAINING COMPANY

Chris Rokos is a macro trader specializing in commodities, currencies, interest rates, and equities. He has a net worth of $1.5 billion. He is best known for implementing a strict approach to fund management, including immediate termination of unsuccessful traders and considering a trader’s first year as an extended interview. Chris Rokos is believed to be a safe pair of hands for handling large debt and option holdings. 

But with lots of shakers and movers, the game has a high mortality rate. Chris Rokos’ Rokos Capital Management assets under management decreased from $2.28 billion in Q4 2022 to $1.35 billion in Q1 2023.

Chris Rokos latest dealings; 13F filings for the first quarter of 2023

The fund made 29 new purchases in the first quarter, increased its stakes in 13 stocks, sold out 30 equities and reduced holdings in six stocks. Some of the famous companies which Chris Rokos sold in Q1 include Zoetis Inc. (NYSE: ZTS), PG&E Corporation (NYSE: PCG), and Bunge Limited (NYSE: BG).

“Could Leslie be the next Bed and Bath Beyond to file for bankruptcy? ”
Wealth Training Company

Chris Rokos latest dealings indicate he is dumping pharmaceuticals  

Chris Rokos bought 28,925 shares of Novavax, Inc. (NASDAQ: NVAX) in the fourth quarter of 2022. 

But, he sold all the shares in Q1 2023. 

Novavax established itself as a significant player in the COVID vaccine market.

Chris Rokos also sold Zoetis Inc. animal health company, and PG&E Corporation, an energy-based holding company.

Chris Rokos latest dealings also show he is reducing exposure to consumer discretionaries

Rokos Capital Management bought a stake in The RealReal, Inc. (NASDAQ: REAL) in Q1 2022 as it bought 1.11 million shares, worth about $8.60 million. However, the hedge fund sold the shares in the first quarter of 2023.

The RealReal, Inc. (NASDAQ: REAL) is a US-based online marketplace for luxury goods resale, including women’s and men’s fashion, jewellery, and watches. RealReal has a consensus rating of ‘Moderate Buy,’ derived from 4 buy ratings, one hold rating, and one sell rating.

Leslie’s, Inc. (NASDAQ: LESL), a prominent direct-to-consumer brand within the US pool and spa care sector, was another discretionary sell. The company has a selection of essential pool and spa care products that serve the residential and professional clientele. Leslie has a network of 1,000+ physical stores and a robust digital platform, Leslie’s offers customers the convenience of shopping in-person or online, accommodating their preferred purchase method.

Could Leslie be the next Bed and Bath Beyond to file for bankruptcy?    

Rokos Capital Management purchased 127,302 shares in Leslie in Q3 2021 then dumped the entire holding in Q1 2023, according to 13F filings. 

“Mobileye Drive could be the most lucrative AI play to automate logistics and global transport” – Wealth Training Company

Here is the odd one in Chris Rokos latest dealings 

As of the end of 2022, Rokos Capital Management held a total of 50,000 shares in Mobileye Global Inc. (NASDAQ: MBLY). However, in the first quarter of 2023, the company decided to break all ties and let go of its entire stake in the company.

According to Insider Monkey’s first quarter database, 22 hedge funds were bullish on Mobileye Global Inc. (NASDAQ: MBLY), compared to 29 funds in the prior quarter.

Mobileye Global Inc. (NASDAQ: MBLY) is a global leader in developing and deploying advanced driver assistance systems (ADAS) and autonomous driving technologies. 

Mobileye Drive could be the most lucrative AI play to automate logistics and global transport

The AI technology will play a leading role in robotaxis, ride-pooling, public transport, and goods delivery.

Intel holds all of Mobileye’s Class B shares, which gives the US chip giant an overall 99.4% voting power.

Chris Rokos latest dealings; dumping major truck manufacturer 

Chris Rokos purchased shares worth $9.45 million of PACCAR Inc (NASDAQ: PCAR) in the fourth quarter of 2022. However, the hedge fund offloaded the entire stake in Q1 2023.

PACCAR Inc (NASDAQ: PCAR) is a global technology leader in manufacturing and supporting high-quality trucks under the Kenworth, Peterbilt, and DAF brands. They also specialize in advanced powertrains, financial services, information technology, and truck parts distribution.

The transport revolution, the movement away from fossil fuels to electricity as a power source means a radical change to the engine and the powertrain of electrically powered vehicles. Moreover, automation could also mean the redesign of cabins.