Tuesday, January 31, 2023

Rokos, Brevan Howard make major macro gains during “intense” 2022

Chris Rokos posted a record 51% gain last year in his main fund, one of the top performers in a golden year for global macro.

Macro funds drove industry returns “through an unprecedented, intense and unpredictable environment” in 2022, said Ken Heinz of HFR, the data provider.

The strategy, which has returned to form after several lean years of performance in the last decade, benefited amid widespread market volatility and central bank attempts to control inflation.

HFR’s investable HFRI 500 Macro Index rose 14.3% in the first 11 months on short equity and fixed income, as well as long commodity and US dollar positions.

Rokos, who started his hedge fund in 2015, is looking to raise more capital in his $15.5bn flagship after the big gains last year.

Brevan Howard, which he co-founded prior to starting his own firm, also enjoyed one of the best years in its history. Assets have soared to $30bn, having fallen from a peak of $40bn to less than $10bn in the years after the financial crisis.

The growth was driven by gains of 20% in its Master Fund, which runs $10bn, and a record 28% in its Alpha Strategies fund, which runs $12bn, along with inflows.

Interest rate trading proved most profitable in a year defined by high inflation, which brought various central bank responses and generated a plethora of macro trading opportunities.

Others to advance include Caxton Associates, up 30.2% in the year to mid-December, according to the FT.

Spokesmen for Brevan Howard and Rokos declined to comment. Bloomberg earlier reported their gains.

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