Former Tory donor receives $1 billion from successful US bet

Mr. Rokos has grown Rokos Capital into a large institutional company operating in London's Mayfair. Photo: Les Wilson

Hedge fund manager and billionaire former Tory donor Chris Rokos made more than $1 billion (£793 million) in profit after a successful bet on US interest rates.

Rokos Capital Management , a macro trading firm that bets on economic trends, profited from the sell-off in U.S. bonds.

Macro hedge funds typically seek to benefit from market movements in government and corporate bond prices, which are often tied to expectations regarding interest rates.

The Federal Reserve kept interest rates at 5.25% to 5.5% last month and warned it was too early to be optimistic about rate cuts.

Inflation also appeared more resilient than expected in January, at 3.1%, dampening market hopes for a significant cut in interest rates.

Surprising economic data and skepticism about faster, faster rate cuts led to big sell-offs. decline in US bonds.

That has helped the $16 billion fund return 8.8% year-to-date, according to the Financial Times.

A spokesman for Rokos Capital declined to comment.

Mr. Rokos, who is the fund's chief investment officer and made his name as a star trader at Brevan Howard, the hedge fund founded by billionaire Alan Howard.

The 53-year-old was one of the fund's most successful traders. successful traders who twice generated annual fund profits of more than $1 billion while there.

He has since built Rokos Capital into a large institutional firm operating in London's Mayfair.

< p >Although the fund size is still smaller than UK hedge fund giants such as Marshall Wace, which manages $62 billion, the fund has grown to a significant size.

With four offices around More than 250 employees work worldwide.

Mr Rokos was previously a major donor to the Conservative Party, donating around £2 million to the party between 2009 and 2015. Its last donation was in 2018.

Rokos Capital's flagship fund, Rokos Fund, has previously suffered from bond market turmoil.

The fund managed to return positive returns last year after The collapse of a Silicon Valley bank roiled prices. .

Rokos Capital lost 15% in March 2023 due to the chaos, erasing profits by 5% in the first two months of the year.

After trimming positions, it managed to recoup losses by July and provided investors with a return of 8.8% for the year as a whole.

In 2022, the fund provided investors with a return of 51%.

According to the latest report filed by the accounts, Rokos Capital in last year distributed £445 million of profits to the firm's partners, including Mr Rokos.

Revenue rose to £643 million for the year ended March 2023 from £120 million in the previous year thanks to good results in 2022.