Chris Rokos is a highly respected British hedge fund manager who co-founded Brevan Howard Asset Management in 2002 before departing to establish his own firm in 2015, Rokos Capital Management, which now stands as one of the world’s largest macro hedge funds. After graduating from university, Rokos joined UBS in London. Within a year, he joined Goldman Sachs, where he spent three years, first in derivative structuring, then swap market making, and finally proprietary trading. Later on, he would join the budding Brevan Howard Asset Management, becoming one of the firm’s most successful traders, delivering almost $4 billion in profits for the fund during his time there. He later brought this expertise over to his own fund, with Rokos Capital specializing in global macroeconomic strategies, utilizing the billionaire’s skill in trading interest rates and currencies.
Rokos Capital Management’s 13F assets had risen to more than $6 billion by the end of the fourth quarter of 2024, placing it among Europe’s largest hedge funds. While it seems contradictory, the hedge fund’s main selling point might be the volatility of its returns. The firm went through a 44% rise in 2020, which was followed by a 26% decline in 2021. Later in 2022, when the S&P 500 fell more than 18%, the hedge fund enjoyed its best year on record, rising 51%.
According to Bloomberg, Chris Rokos’ hedge fund climbed 4.5% in the first two weeks of April as bond rates rose after President Trump’s announcement of punitive tariffs aimed at reshaping global trade. These gains increased Rokos’ returns this year to 8%. Trump’s April 2 tariff announcement shook global markets, with uncertainty spreading even to Treasuries, which are typically seen as a safe haven. A variety of explanations have been proposed as to what triggered the turbulence, including foreign governments dumping US debt and hedge funds unwinding highly leveraged deals. That said, this isn’t the first time Rokos has benefited from Trump’s presidency. The billionaire made almost $1 billion in profit in a single day in November, one of his largest trading sessions since establishing his firm in 2015, as Trump’s election triumph spurred a global spike in asset prices.
Stocks
Our Methodology
For this list, we picked stocks from Rokos Capital Management’s 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among other hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Morgan Stanley (NYSE:MS)
Rokos Capital Management’s Stake as of Q4 2024: $102.2 million
Number of Hedge Fund Holders: 64
Morgan Stanley (NYSE:MS) is a multinational financial company that offers investment banking, wealth management, and trading services. It provides advisory, brokerage, financing, and asset management services to individuals, corporations, and governments.
On April 14, UBS analyst Erika Najarian maintained a Neutral rating on Morgan Stanley (NYSE:MS), with a price target of $120. The company had a strong quarter, with earnings climbing 26% to $4.32 billion, or $2.60 per share, and revenue up 17% to a record $17.74 billion. Equity trading was the highlight this quarter, with revenue rising 45% to $4.13 billion, or $840 million more than the Street expected.
Morgan Stanley (NYSE:MS) reported robust equities earnings throughout its franchise, notably in Asia and hedge fund operations, which were “driven by strong client activity amid a more volatile trading environment.” Investment banking revenues were also positive, totaling $1.56 billion, 6% more than analysts had predicted. The success was owed to the strength of Debt Capital Markets (DCM), which helped offset lower advisory and Equity Capital Markets (ECM) results.
Nightview Capital stated the following regarding Morgan Stanley (NYSE:MS) in its Q4 2024 investor letter:
“Finance is transforming. Technology is democratizing access, reshaping wealth management, and enabling entirely new models of investing. From algorithmic trading to digital-first advisory platforms, the sector is evolving rapidly. Investors demand smarter, more sustainable options. The potential is significant, and we are focused on companies shaping how people save, invest, and transact in the years to come.
Morgan Stanley (NYSE:MS): Core Opportunity: Morgan Stanley’s diversified business model supports robust growth across investment banking, wealth management, and investment management.
Key Highlights: Investment Banking Momentum: Revenues rose 55% YoY in Q3 to $1.5 billion, driven by market recovery and large public offerings.
Wealth Management Leadership: Record revenues of $7.2 billion, with total fee-based assets reaching $2.3 trillion.
AI Integration: Cutting-edge partnerships enhance advisor productivity and deepen client relationships.
Investment Case: Morgan Stanley offers a compelling blend of growth and resilience, with strong revenue diversification and a dominant wealth management franchise. Its forward P/E of ~14x suggests attractive valuation upside.”
9. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Rokos Capital Management’s Stake as of Q4 2024: $107 million
Number of Hedge Fund Holders: 51
Monolithic Power Systems, Inc. (NASDAQ:MPWR) produces and markets small, ultra-efficient, user-friendly power management systems for various industries, including computers, automotive, data centers, and communications. The company’s major focus is on DC-DC integrated circuits and power management systems for cloud computing, storage, and automotive applications.
On March 24, Truist Securities reiterated its outlook on Monolithic Power Systems, Inc. (NASDAQ:MPWR), keeping a Buy rating and a $897 price target. Following the company’s analyst day on March 20, the firm emphasized Monolithic Power’s position as a pioneer in the analog semiconductor field. Despite the fact that the event did not provide the expected favorable catalyst, Truist Securities noted the company’s ongoing strength in product innovation. Truist also predicted that Monolithic Power Systems, Inc. (NASDAQ:MPWR) is poised to hit about 20% in sales growth and low-20% EPS growth over a business cycle.
Monolithic Power Systems, Inc. (NASDAQ:MPWR) has raised its first-quarter revenue guidance to $635 million, up from the prior estimate of $620 million, as reported by analysts. The company expects long-term revenue growth to outperform the market by 15-20%, while gross margins are projected to remain between 55-60%. Monolithic Power Systems, Inc. (NASDAQ:MPWR) is also expanding its footprint in the automobile industry, hoping to capitalize on the transition to 48-volt systems.
TimesSquare Capital Management U.S. Focus Growth Strategy stated the following regarding Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its Q4 2024 investor letter:
“Monolithic Power Systems, Inc. (NASDAQ:MPWR) designs and develops integrated semiconductor solutions for power delivery architectures in computing, storage, automotive, industrial, communications, and consumer applications. Their stock came under pressure during the quarter due to a research report alleging technical issues with Monolithic’s products on Nvidia’s Blackwell AI platform and that it was in danger of completely losing that business. Our research indicated there is little merit to this claim and while Nvidia is going to multi-source, it is unlikely that Monolithic will be fully displaced. That gave us an opportunity to add this stock to the portfolio.”
