Rokos Hedge Fund Said to Gain 20% in First Full Trading Year

  • Return ranks ex-Brevan manager near the top in macro category
  • Firm gets boost as it prepares to raise another $2 billion

Chris Rokos’s hedge fund rose about 20 percent in 2016, its first full year of trading, to become one of the world’s best-performing money pools betting on economic trends, according to people with knowledge of the matter.

About half of the gain came in the fourth quarter, when Donald Trump’s surprise victory in the U.S. presidential election triggered sharp moves in bond yields and currency markets, said one of the people, who asked not to be identified because the information is private. A spokesman for London-based Rokos Capital Management declined to comment.

Rokos, 46, who previously co-founded Brevan Howard Asset Management, started his own hedge-fund firm in the second half of 2015 and manages more than $4 billion. The performance may boost his plan to raise an additional $2 billion in February following a year that saw investors in the $3 trillion hedge fund industry demanding fee rebates and, for the first time since 2009, pulling money.

Macro hedge funds are rebounding after years of poor performance, when low interest rates and interventions by central banks crimped their ability to make money. Still, they’ve lagged behind the overall industry. Macro managers gained an average of 1.5 percent last year, according to preliminary data compiled by Hedge Fund Research Inc., while the average hedge fund rose 5.6 percent.

In November, Brevan Howard’s main macro hedge fund erased earlier declines to return to profit for 2016. Rubicon Fund Management’s Global Fund surged 21 percent that month, climbing back into the black with a gain of 2.2 percent through the first 11 months of last year.

Element Capital Management, the $9 billion macro hedge fund run by Jeff Talpins, rose 19.4 percent last year, according to a person familiar with the matter. A spokesman for New York-based Element Capital declined to comment.

Rokos, who counts Blackstone Group LP among his initial investors, manages its fund with Borislav Vladimirov, his ex-colleague at Brevan Howard, and Stuart Riley, formerly Asia-Pacific co-head of macro trading at Goldman Sachs Group Inc. He hired former BlueCrest Capital Management money manager Marcus Browning last month as part of his main investment team.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE