Rokos hedge fund makes 900 million pounds in profit at the beginning of the pandemic

British hedge fund manager Chris Rokos (Chris Rokos) and his partners made more than £900 million in profits during the initial wave of the pandemic. They performed well in the bond market turmoil before, but have not performed well since.

Rokos Capital Management is one of the world’s largest macro hedge fund companies. It has created a profit of 914 million pounds in the 12 months ending March 31, 2021. These revenues can be distributed among hedge fund partners. According to one Document display Company buildingRokos was previously the co-founder of rival Brevan Howard and earned 509 million pounds, the largest share of profits.

Rokos’ fund achieved a 44% return in 2020, which is the best annual performance to date. The company did not immediately comment on its latest financial status.

In the following months, the fortune of the fund changed, and several rounds of violent fluctuations in the debt market dealt a heavy blow to its performance.

The fund achieved a negative return of 26% in 2021. A person familiar with the fund’s records said that the fund’s performance was “disappointing” after a year of “good harvest”. These figures were first reported by Bloomberg.

The person familiar with the matter said that despite losses last year, Rokos was able to raise $1 billion in additional funds from investors in recent days, indicating that some customers believe that the decline in performance is temporary. The company also plans to raise another US$1 billion, bringing its total assets to approximately US$14 billion.

Data from Goldman Sachs shows that the average return of macro funds last year was negative 1% because many managers are trying to measure the impact of rising inflation on the bond market.

Mayfair-based Rokos bet specifically on how broad economic trends will affect global markets, but it is on the wrong foot Early 2021 When a sudden rise in inflation expectations triggers a decline in the stock and bond markets.

Rokos was hit October againWhen concerns about rising global inflation prompt people to bet that central banks will need to accelerate their withdrawal from the radical stimulus measures that have supported the world economy since the worst of the coronavirus crisis in 2020.

At the same time, investors are beginning to worry that policymakers may overcompensate in response to rapid price growth, thereby weakening the long-term economic outlook.

Short-term bonds, which are highly sensitive to monetary policy expectations, sold off sharply in October, pushing up the yields of these assets. During this period, long-term bond yields rose more moderately.

The so-called flattening yield curve breaks a popular hedge fund bet that as the world economy continues to recover from the pandemic, long-term yields will rise faster than short-term yields.

Rokos’ painful run in 2021 coincides with the industry Difficult to attract new capital, In view of concerns about the poor performance of managers this year, major changes in private equity and debt, and doubts about the fund’s fee structure.

According to the “Sunday Times” Rich List, Rokos has a personal wealth of 1.25 billion pounds and is one of the most successful hedge fund traders in the UK. During Brevan Howard’s tenure, his trading profits in 2007 and 2011 were both over $1 billion.

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