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.”
8. Bank of America Corporation (NYSE:BAC)
Rokos Capital Management’s Stake as of Q4 2024: $107.2 million
Number of Hedge Fund Holders: 113
Bank of America Corporation (NYSE:BAC) is a financial holding company that offers a variety of services, including savings accounts, deposits, wealth and cash management, investment funds, online banking, and other financial products.
On April 16, RBC Capital Markets adjusted its price target for Bank of America Corporation (NYSE:BAC) shares to $45 from $50, while keeping an Outperform rating. The firm also cited Bank of America’s major de-risking procedures adopted over the last 15 years. RBC Capital thinks that these initiatives will enable the bank to effectively manage a potential slowdown in the US economy and its implications for loan patterns, while avoiding significant damage to its net income or capital.
The bank’s first-quarter 2025 results were strong, with earnings per share jumping to $0.90, up 18.4% from the previous year, and revenue increasing 6.2% to $27.4 billion. The revenue growth was driven by noninterest income growth in all segments. The company’s net interest income came in at $14.4 billion, up 3% year-over-year.
7. Broadcom Inc. (NASDAQ:AVGO)
Rokos Capital Management’s Stake as of Q4 2024: $118.67 million
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is a global technology leader with a significant presence in both hardware and software. The company’s core competency is providing networking and custom chips for a wide range of applications.
On April 10, Cantor Fitzgerald analyst C.J. Muse reduced Broadcom Inc. (NASDAQ:AVGO)’s price target from $300 to $250 while keeping an Overweight rating on the company’s stock. Muse’s comments came after a recent investor call with Broadcom’s top executives. Despite persistent macroeconomic risks such as tariffs and market volatility, Broadcom’s business outlook is stable, according to the analyst. The company continues to see high demand for AI, which is considered crucial for hyperscale computing suppliers. Furthermore, the non-AI semiconductor industry looks to have reached a low point, while the software section remains stable.
In the first quarter of 2025, the company’s Semiconductor Solutions revenue increased by 11% year-over-year, owing mostly to an increase of 77% in AI revenue. This AI revenue is predicted to increase by 44% in the second quarter due to hyperscale clients investing extensively in next-generation AI models.
Renaissance Large Cap Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q4 2024 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”
6. Salesforce, Inc. (NYSE:CRM)
Rokos Capital Management’s Stake as of Q4 2024: $156.3 million
Number of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) is a leading IT company headquartered in San Francisco that specializes in Customer Relationship Management (CRM) technology. The company’s core AI service, Data Cloud, uses 8 trillion data points to improve CRM, resulting in smarter insights and better customer engagement. Overall, the company provides cloud-based software solutions to more than 150,000 enterprises.
On April 9, Truist Securities confirmed its Buy rating for Salesforce, Inc. (NYSE:CRM) and set a price target of $400. The endorsement follows an update on one of the company’s key growth sectors, Salesforce Industries. Salesforce Industries announced a significant $5.7 billion in annual recurring revenue (ARR) for fiscal year 2025, representing a 20% year-over-year growth. This increase more than doubles the company’s total revenue growth of 9% during the same period. The update focused on the success of industry solutions, the potential high-value effect of the company’s agentic AI platform, Agentforce, and the opportunities for collaboration between industry solutions and other applications and data sectors.
Vulcan Value Partners stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q1 2025 investor letter:
“There were five material detractors: Salesforce, Inc. (NYSE:CRM), Amazon. com Inc., Microsoft Corp., Alphabet Inc., and Skyworks Solutions Inc. Salesforce is the world’s leading SaaS vendor for customer relationship management (CRM) and salesforce automation (SFA) software. Growth guidance for the upcoming year was less than anticipated, indicating monetization of Salesforce’s Agentforce will take time. However, the company has already closed thousands of Agentforce deals, it expects Agentforce’s contribution to revenue to ramp throughout the current year, and contribute more significantly the following fiscal year.”
5. Amazon.com, Inc. (NASDAQ:AMZN)
Rokos Capital Management’s Stake as of Q4 2024: $216.67 million
Number of Hedge Fund Holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a leading technology company that operates the world’s largest e-commerce and cloud computing businesses. The company also provides digital streaming and AI technology. Amazon.com, Inc.’s (NASDAQ:AMZN) e-commerce position gives it a considerable competitive edge over competitors, as it accounts for around 38% of total e-commerce sales in the US. The company’s capex for 2025 is projected to be approximately $100 billion, most of which will go toward AI. The company also stated that lower AI inference expenses will drive up AI infrastructure expenditure.
BMO Capital lowered its price target for Amazon.com, Inc. (NASDAQ:AMZN) to $235 from $280, while maintaining an Outperform rating on the stock. Brian J. Pitz of BMO Capital identified many factors that influenced the revised price target. He stated that, while demand for Amazon Web Services (AWS) remains high, it has softened in March. The analyst cited the unpredictable macroeconomic climate and limited visibility for the second half of 2025 to be significant grounds for concern. In light of these developments, BMO Capital has reduced its AWS growth predictions to 19% for the first quarter of 2025 and 18% for the whole year, down from earlier estimates of 20% for both.
Harding Loevner Global Developed Markets Equity Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”
4. Goldman Sachs Group Inc. (NYSE:GS)
Rokos Capital Management’s Stake as of Q4 2024: $226.5 million
Number of Hedge Fund Holders: 81
Goldman Sachs Group, Inc. (NYSE:GS) is an American financial behemoth that serves companies, governments, and individuals worldwide. It operates in three major segments: Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. On April 14, Goldman Sachs Group, Inc. (NYSE:GS) declared a quarterly dividend of $3.00 per share, in line with previous. The dividend will be paid out on June 27 to shareholders on record as of May 30.
On April 15, RBC Capital revised its outlook for Goldman Sachs Group Inc. (NYSE:GS) shares, lowering the price target from $610 to $560 but maintaining a Sector Perform rating. The change comes after Goldman Sachs reported its first-quarter earnings, which were boosted by record equity trading performance. In order to establish more consistent income streams, Goldman Sachs Group, Inc. (NYSE:GS) has expanded its wealth and asset management services, as well as its private banking and lending businesses. In the first quarter of 2025, these sectors generated a combined $3.4 billion in revenue. Equities trading also saw record success, with a 27% rise year-over-year.
Nightview Capital stated the following regarding The Goldman Sachs Group, Inc. (NYSE:GS) 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.
The Goldman Sachs Group, Inc. (NYSE:GS): Core Opportunity: Goldman Sachs continues to lead investment banking while growing in asset and wealth management. Its adaptability and focus on core strengths position it for sustained growth.
Key Highlights: Resilient Revenue: Q3 2023 revenue reached $12.7 billion (+7% YoY), driven by the Global Banking & Markets division, which contributed $8.6 billion (+7% YoY).
Investment Banking Leadership: Fees rose 20% YoY, maintaining Goldman’s #1 position in M&A and stock offerings.
Asset & Wealth Management Growth: Revenue climbed 16% YoY to $3.75 billion, with assets under supervision at $3 trillion.
Investment Case: Goldman’s pivot away from consumer products and focus on higher-margin businesses creates a more sustainable growth trajectory. With strong shareholder returns and potential upside in investment banking, Goldman retains their status as the top tier financial institution.”
3. Meta Platforms, Inc. (NASDAQ:META)
Rokos Capital Management’s Stake as of Q4 2024: $274.54 million
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is a renowned technology company best known for its flagship platforms, Facebook, Instagram, and WhatsApp, as well as its pioneering breakthroughs in augmented reality (AR) and virtual reality (VR).
On April 17, Truist Securities lowered its price target for Meta Platforms, Inc. (NASDAQ:META) from $770 to $700 while maintaining a Buy rating on the stock. The firm justified its change by citing the probable impact of tariffs, notably on Chinese direct-to-consumer imports, as well as a weaker US consumer market. Meta Platforms, Inc. (NASDAQ:META) is expected to announce revenues for the first quarter in line with consensus projections, with the upper end of its guidance at $41.7 billion, representing a 14% growth year-over-year. Truist also revised its growth forecasts for the second quarter and the full year of 2025 in response to the aforementioned tariff implications. The firm expects Meta Platforms, Inc. (NASDAQ:META) management to issue second-quarter revenue projections ranging from $41.5 billion to $44 billion, reflecting a 6% to 13% increase.
Meta Platforms, Inc. (NASDAQ:META) achieved a record $164.5 billion in total revenue in 2024, a 22% increase from 2023. Its net income increased by 59% to a record $62.3 billion in 2024, equivalent to $23.86 in EPS. In fiscal Q4 2024, the total amount of ad impressions supplied across Meta Platforms, Inc.’s (NASDAQ:META) services increased by 6%.
Nightview Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Core Opportunity: Meta Platforms, Inc.’s (NASDAQ:META) platforms—Instagram, Facebook, WhatsApp, and Messenger—reach nearly half the world’s population daily, making it one of the most powerful advertising ecosystems globally. With investments in AI and augmented reality (AR), we believe Meta is also creating significant optionality for long-term growth.
Competitive Advantage: Thriving Core Platforms: In Q3, we saw Meta achieve a 23% YoY revenue growth,—a testament to strong user engagement across its ecosystem. The advertising landscape as a whole continues to evolve and we believe Meta’s existing platforms offer a defined advantage in this new world. Existing platforms in the age of AI continue to be the most powerful indicator of future success in our opinion.
AI Leadership: Meta’s AI capabilities and the Llama AI model are driving efficiency and product innovation. In our view, these assets have been under-appreciated by the market while enhancing Meta’s ability to further scale and innovate its leading advertising business…” (Click here to read the full text)
2. Microsoft Corporation (NASDAQ:MSFT)
Rokos Capital Management’s Stake as of Q4 2024: $290.6 million
Number of Hedge Fund Holders: 317
Microsoft Corporation (NASDAQ:MSFT) is a major technology company known for its main software products, which include the Windows operating system, the Microsoft 365 suite, and the Edge browser.
On April 17, KeyBanc analysts cut Microsoft Corporation (NASDAQ:MSFT) shares from Overweight to Sector Weight, citing uncertainty regarding the timing of artificial intelligence demand and monetization. Microsoft has made huge investments in AI and its cloud computing service Azure, which have become key components of the company’s development plan. The decision comes as analysts forecast considerable capital expenditures with limited flexibility in the coming year, which might have an impact on margins in the short term.
Microsoft Corporation (NASDAQ:MSFT) announced a 12.27% year-over-year revenue gain in its recent earnings report, hitting $69.63 billion, with earnings per share of $3.23 climbing above market forecasts. This performance was mostly driven by the strength of its cloud segment, which accounted for about 43% of total revenue in fiscal year 2024.
Alger Spectra Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2025 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. The company operates through three segments: Productivity and Business Processes (Office365, LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services, Azure, and Enterprise Services), and More Personal Computing (Windows, Devices, Gaming, and Search). During the quarter, shares detracted from performance as Azure revenue growth missed analyst estimates, marking the third consecutive quarter of modest disappointment in this segment. However, AI-related sales growth exceeded expectations, accounting for 13% of Azure’s quarterly growth. Management also maintained their fiscal third quarter earnings guidance while highlighting improved operating profitability and lower tax rates. Despite the disappointing quarter, we remain confident in Microsoft’s ability to sustain its leadership position in AI.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Rokos Capital Management’s Stake as of Q4 2024: $291.36 million
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA), a global pioneer in graphics processing and networking, uses its GPUs to dominate the gaming and AI businesses, leading to its more than trillion-dollar value.
On April 17, Stifel analysts maintained their Buy rating and $180 price target on NVIDIA Corporation (NASDAQ:NVDA), in-line with the broader Wall Street consensus, which remained highly favorable on the semiconductor giant. The confirmation came after NVIDIA announced that the US government has imposed new export controls requiring an indefinite license for exporting H20 processors to China, including Hong Kong, Macau, and D5 countries, as well as companies with headquarters or parent companies in those regions. Due to these limits, NVIDIA expects to incur a significant $5.5 billion inventory charge.
NVIDIA Corporation (NASDAQ:NVDA) reported a record full-year revenue of $130.5 billion for fiscal 2025, a 114% increase over the previous year. Non-GAAP diluted EPS was $2.99, up 130% from a year before. Fiscal Q4 2025 was another record quarter for the corporation, with revenues of $39.3 billion, up 12% sequentially and 78% year-over-year.
Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2025 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality, and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. In our view, Nvidia’s computational power is a critical enabler of AI and therefore essential to AI adoption. During the quarter, shares detracted from performance due to several factors. In January 2025, investor concerns grew regarding the emergence of advanced AI models from China, reportedly developed at lower costs and with reduced computing requirements, raising doubts about Nvidia’s market dominance. Additionally, U.S. President Donald Trump’s announcement of new tariffs targeting industries increased worries about higher operational costs. Despite these headwinds, Nvidia reported robust fiscal fourth-quarter results, highlighted by significant revenue growth driven by its data center segment. On the earnings call, CEO Jensen Huang emphasized the increasing computational requirements of future AI models, noting, “The more computation, the more the model thinks, the smarter the answer,” and adding that future reasoning models could demand substantially more compute resources. We believe Nvidia’s leadership in scaling AI infrastructure—including advancements in inference and reasoning during inference—continues to drive adoption among enterprises and startups, ensuring sustained demand for its high performance chips and software solutions. As older-generation chips are repurposed and new clusters deployed, we see Nvidia as well-positioned to capitalize on rising computational needs across AI applications.”
While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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