Billionaire trader Chris Rokos reported a loss in its most recent financial results

Despite the fact that its traders have already been able to profit from a rise in inflation, the hedge fund management company of billionaire trader Chris Rokos reported a loss in its most recent financial results after its fund was struck by a severe sell-off in government bonds, says the report from the Financial Times.

According to a filing with Companies House, Rokos Capital Management, one of the largest macro hedge fund companies in the world with over $15.5 billion in client assets, reported a loss before members' compensation of £3.6 million for the 12 months ending in March 2022.

The most recent results span a very trying time for the media-averse trader, who was one of the most high-profile hedge fund victims of a severe sell-off in short-dated bonds in the fall of 2021. His fund, which had experienced significant gains during the early stages of the coronavirus pandemic, ended 2021 with a loss of almost 26%.

The market in the UK saw a market upheaval in the autumn, but it has since made a robust recovery because of bets on rising interest rates from the previous year. The fund had its best calendar year since its introduction in 2015, finishing last year up over 51% with just one month of losses.

The fund's gain of almost 44% in the calendar year 2020 helped the company's revenues, which are generated by management and performance fees, reach more than £1 billion in the year ending in March 2021. However, earnings fell to just £119.7 million in the year ending March 2022.

Rokos made £509 million in the year ending March 2021. The member with the highest entitlement, however, received just £4.2 million in the most recent results.

Although certain macro funds suffered significantly in the fall of 2021 as markets started to worry about the possibility of swift interest rate increases, the industry appeared to have its best year since the global financial crisis in 2022. According to data provider HFR, macro funds, which trade in international bonds, currencies, and other markets, increased by 8.8% through the end of November 2017.

They have benefited this year from significant and protracted bond market movements brought on by a substantial increase in global inflation. For instance, the yield on the two-year US Treasury note has increased from 0.7% to 4.4%, and in the UK, the yield on the 10-year gilt has increased from just under 1% to roughly 3.7%. With falling prices, yields climb.

At the hedge fund company Brevan Howard, which he helped start, Rokos was a star trader who produced billions of dollars in gains for clients by trading bonds and options. He had a reputation as one of the most carefully followed macro traders in the world.