Chris Rokos Said to Raise $3.5 Billion for Macro Hedge Fund

  • Rokos said closing fund to new money at start of February
  • Fund started with backing from Blackstone Group last year

Chris Rokos, the Brevan Howard Asset Management co-founder who started his own investment firm last year, will be managing $3.5 billion by the end of this month in one of the largest hedge-fund startups, according to a person with knowledge of the matter.

The 45-year-old money manager, who has hired about 60 people for the fund, will stop accepting new money at the start of February for at least a year, said the person, asking not to be identified because the information is private. Rokos Capital Management opened in September and was overseeing about $1 billion within a month, with half coming from Rokos’s own funds and the remainder from Blackstone Group, people with knowledge of the matter said in November.

A spokesman for Rokos Capital declined to comment on the amount of money raised.

The fund makes bets on macroeconomic trends, a strategy that’s proved costly for peers. The main hedge fund managed by Brevan Howard suffered a second successive annual loss in 2015, while several multi billion-dollar macro funds, including ones run by Fortress Investment Group Inc. and Bain Capital, shuttered after losses driven by wrong-way currency trades. 

Rising interest

Investors poured $4.7 billion into macro funds in 2015, according to data from Eurekahedge. They backed managers with strong pedigrees and track records, betting that volatile markets and diverging monetary policies in the world will create a fertile hunting ground for fund managers speculating across asset classes and countries.

Jack Meyer, the former head of Harvard University’s endowment, holds the startup record with his Convexity Capital Management, which opened with more than $6 billion in 2006. Stan Druckenmiller’s former colleagues at Duquesne Capital Management started PointState Capital with $5 billion in 2011.

’Exceptional trader’

Rokos made his name and fortune at Brevan Howard, the London-based firm he co-founded in 2002 with Alan Howard and three other colleagues from Credit Suisse Group AG. Described by Howard as an “exceptional trader", he traded his way to $4 billion in profits between 2004 and 2012.

He left Brevan Howard in September 2012 and sued the firm in 2014, seeking to void an employment agreement that prevented him from managing client money until 2018. Rokos and Howard settled the suit in January 2015. Brevan Howard said at the time it would take a “financial interest” in the venture, without providing details.

Rokos manages his fund with Borislav Vladimirov, his former colleague at Brevan Howard, and Stuart Riley, formerly Asia-Pacific co-head of macro trading at Goldman Sachs Group Inc.

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