In this article, we discuss the top 15 stock picks of billionaire Chris Rokos.
Chris Rokos is a highly regarded British hedge fund manager and the founder of Rokos Capital Management, one of the most successful global macro hedge funds in the world. With a reputation for astute market predictions and exceptional returns, Rokos has established himself as a leading figure in the financial industry. His career trajectory reflects both his expertise in macroeconomic analysis and his ability to manage risk effectively in volatile markets. Chris Rokos was born in 1970 and grew up in the United Kingdom. A brilliant student from an early age, he attended Eton College, one of the UK’s most prestigious schools. He later studied at Pembroke College, Oxford, graduating with a degree in mathematics. Rokos’ strong analytical skills, honed during his academic career, became a foundation for his success in the world of finance.
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After university, Rokos joined Goldman Sachs as an investment banker, where he gained valuable experience in financial markets. In 1993, he moved to UBS and later joined the fledgling hedge fund Brevan Howard Asset Management in 2002, a move that would mark a turning point in his career. As one of the co-founders of Brevan Howard, Rokos played a pivotal role in the firm’s rise to prominence. He specialized in global macro trading, focusing on interest rates, currencies, and government bonds. Rokos was one of the firm’s star traders, reportedly generating over $4 billion in profits for the fund during his tenure. Rokos left Brevan Howard in 2012, taking a sabbatical from trading.
In 2015, Rokos launched Rokos Capital Management with approximately $3 billion in assets under management (AUM) from institutional investors. The firm focuses on global macroeconomic strategies, leveraging Rokos’ expertise in trading interest rates and currencies. Rokos Capital Management has grown its 13F assets to over $6 billion by the end of the third quarter of 2024, making it one of the largest hedge funds in Europe. Despite challenging market conditions, Rokos has delivered strong returns, often outpacing peers in the industry. For instance, in 2022, the fund gained 50%, benefiting from rising interest rates and inflation volatility.
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For this article, we selected stocks by combing through the 13F portfolio of Rokos Capital Management at the end of the third quarter of 2024. These stocks 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A broker trading stocks on a financial trading floor, representing the investment approach of the company.
Billionaire Chris Rokos’ Top 15 Stock Picks
15. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 56
Rokos Capital Management’s Stake: $60 million
International Business Machines Corporation (NYSE:IBM) provides integrated solutions and services worldwide. The following factors make the company a prime candidate for investment. Firstly, as per the report of the third quarter of 2024, the company’s generative AI book of business stands at more than $3 billion, up more than $1 billion quarter to quarter. Secondly, the company is planning to launch the largest quantum computer in 2025, which will feature over 4,000 qubits. This may hold an investment opportunity as it aims to revolutionize technology and industry by solving complex problems beyond the capabilities of classical computers. Moreover, International Business Machines Corporation is also releasing a new version of the IBM I operating system, along with new processors and servers, which will modernize systems while maintaining reliability and innovation, catering to the evolving needs of businesses.
14. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 78
Rokos Capital Management’s Stake: $66.1 million
Constellation Energy Corporation (NASDAQ:CEG) generates and sells electricity in the United States. The company’s investment potential is reinforced by the following aspects. Firstly, as per the report of the third quarter of 2024, GAAP Net Income for the third quarter of 2024 increased to $3.82 per share from $2.26 per share in the third quarter of 2023. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2024 increased to $2.74 per share from $2.13 per share in the third quarter of 2023. Secondly, the company has made an agreement to acquire Calpine in a cash and stock transaction valued at an equity purchase price of approximately $16.4 billion, composed of 50 million shares of Constellation stock and $4.5 billion in cash plus the assumption of approximately $12.7 billion of Calpine net debt. Moreover, the firm partnered with New York State and pursued funding from the US Department of Energy for the development of advanced nuclear reactors.
13. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Hedge Fund Holders: 38
Rokos Capital Management’s Stake: $70.7 million
Monolithic Power Systems, Inc. (NASDAQ:MPWR) engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. The following factors make the company a prime candidate for investment. Firstly, as per the reports of the third quarter of 2024, revenue was $620.1 million for the quarter ended September 30, 2024, a 22.2% increase from $507.4 million for the quarter ended June 30, 2024, and a 30.6% increase from $474.9 million for the quarter ended September 30, 2023. This demonstrates the company’s ability to expand in its target markets and the increase in demand for its power solutions. Secondly, the company is expanding into the automotive sector, focusing on developing power solutions tailored for electric vehicles (EVs). This move aims to capitalize on the growing demand for energy-efficient power systems in the automotive industry.
12. Ciena Corporation (NYSE:CIEN)
Number of Hedge Fund Holders: 40
Rokos Capital Management’s Stake: $70.8 million
Ciena Corporation (NYSE:CIEN) is a global leader in networking systems, services, and software, enabling customers to anticipate and meet ever-increasing digital demands. The following factors make this company a strong investment case. First of all, as per the report of the fourth quarter of 2024, reported product inventory turns were 2.7 and 2.3 for the fiscal fourth quarter and the fiscal year 2024, respectively, suggesting efficient inventory management, with products being sold and replenished more frequently. Secondly, the company has introduced WaveLogic 6 Extreme (WL6e) technology that will enhance data transmission speeds and spectral efficiency. Southern Cross Cable Limited has connected the world’s first transpacific 1 Tb/s single-carrier wavelength across its 13,500km live production network. Another project that may attract significant investment is the launch of high-bandwidth interconnect innovations for next-generation data center designs, including the industry’s first 448G PAM4 electrical lane measurements, at the OCP Global Summit.
11. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 97
Rokos Capital Management’s Stake: $71.3 million
Vistra Corp. (NYSE:VST) operates as an integrated retail electricity and power generation company. The stock is attracting the attention of investors due to stellar financial performance. Firstly, as per the report of the third quarter of 2024, the net income reported was $1,837 million, the reported net income from ongoing operations was $1,855 million and the Adjusted EBITDA was $1,444 million. Secondly, the company announced two new utility-scale solar projects in Illinois that have connected to the grid. The firm is also pushing back the retirement of its 1,185-megawatt (MW) Baldwin Power Plant in Baldwin. The company intends to run the Baldwin plant through 2027 instead of retiring in 2025. Moreover, the company aims to extend its nuclear capacity to support energy-intrusive applications, including data centers.
10. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Rokos Capital Management’s Stake: $73.8 million
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. The following qualities make this company a lucrative investment. First of all, as per the report of the third quarter of 2024, share repurchases were $8.86 billion of Class A common stock and total dividend and dividend equivalent payments were $1.26 billion. This demonstrates that the company holds confidence in its financial strength and is returning value to shareholders by minimizing the number of outstanding shares. Moreover, cash, cash equivalents, and marketable securities were $70.90 billion as of September 30, 2024 and free cash flow was $15.52 billion. This shows the company’s ability to generate significant cash after operational expenses, which may boost investor’s confidence in the company. Secondly, the company is launching GenAI tools to businesses on WhatsApp that may attract investors as these generative AI chatbots could deliver incremental revenue of $16.6 billion in 2025 and up to $45 billion by 2030, with an estimated 2.7 billion users on WhatsApp.
9. Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 84
Rokos Capital Management’s Stake: $80.6 million
Workday, Inc. (NASDAQ:WDAY) markets enterprise cloud applications and is headquartered in California. The following factors make the company a prime candidate for investment. First of all, the turnaround in operating income, as illustrated in the reports of the fourth quarter of 2024, was exceptional. The reported operating income was $183 million, or 2.5% of revenues, compared to an operating loss of $222 million, or negative 3.6% of revenues, in fiscal 2023, which highlights the company’s successful recovery. Additionally, non-GAAP operating income was $1.7 billion, or 24% of revenues, compared to a non-GAAP operating income of $1.2 billion, or 19.5% of revenues, in the prior year, highlighting the company’s efforts to drive positive growth and higher profitability per dollar of revenue. Secondly, the company has expanded its Peakon Employee Voice platform to incorporate AI capabilities.
8. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 98
Rokos Capital Management’s Stake: $82.6 million
Bank of America Corporation (NYSE:BAC) provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. The following elements highlight the company’s strong investment potential. Firstly, the report for the fourth quarter of 2024 showed enhanced metrics demonstrating financial strength, operational effectiveness, and a strong capacity to generate consistent returns. For instance, net income of $6.7 billion, or $0.82 per diluted share, compared to $3.1 billion, or $0.35 per diluted share, in the prior year. Secondly, the bank plans to inaugurate more than 165 financial centers by the end of next year in new prime locations. Moreover, the company is also launching the Affordable Housing Challenge 2025 to inform, educate, and attract the next generation of affordable housing professionals.
7. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 123
Rokos Capital Management’s Stake: $99 million
Adobe Inc. (NASDAQ:ADBE) operates as a diversified software company worldwide. The company stands out as a worthwhile investment due to multiple factors. Firstly, as per the report of the third quarter of 2024, Adobe achieved revenue of $5.61 billion in its fourth quarter of fiscal year 2024, which represents 11% year-over-year growth as reported and in constant currency and diluted earnings per share was $3.79 on a GAAP basis and $4.81 on a non-GAAP basis. This shows how the company can turn revenue into profit, offering solid returns to shareholders and signaling strong financial health. Secondly, GAAP operating income in the fourth quarter was $1.96 billion, and non-GAAP operating income was $2.60 billion. GAAP net income was $1.68 billion, and non-GAAP net income was $2.13 billion. This demonstrates Adobe’s efficiency in managing costs and generating profits, making it a top choice for investment. Moreover, the company is also enhancing its Creative Cloud suite by integrating AI into Photoshop Elements 2025.
6. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Rokos Capital Management’s Stake: $119.2 million
Alphabet Inc. (NASDAQ:GOOGL) is a California-based technology company that owns and runs the internet search engine Google. The company stands out as a worthwhile investment due to these factors. The first and most compelling factor is the robust financial growth depicted in the report for the third quarter of 2024. For instance, total operating income increased by 34%, and operating margin percent expanded by 4.5 percentage points to 32%. This holds great significance for the company as it reflects sustainable growth potential and profitability, boosting investor confidence and potentially leading to higher stock valuations. Secondly, net income increased by 34%, and EPS increased by 37% to $2.12, showing greater earnings per share, directly benefiting shareholders and making the stock more attractive to investors. The company is planning to launch Android 16 in two phases: a major SDK release in Q2 2025 and a minor update in Q4 2025. This may hold significant value to investors as this new version will incorporate deeper AI integration, enhancing the effectiveness and functionality of Android devices.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Rokos Capital Management’s Stake: $145.7 million
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. The following aspects make the company an attractive prospect for investors. NVIDIA’s outlook for revenue in the fourth quarter of fiscal 2025 is 37.5 billion dollars, plus or minus 2 percent. GAAP and non-GAAP gross margins are expected to be 73.0 percent and 73.5 percent, respectively, plus or minus 50 basis points. Secondly, the company has launched the Cosmos World Foundation model platform to accelerate physical AI development. This holds investment potential as this will help developers generate massive amounts of photoreal, physics-based synthetic data to train and evaluate their existing models. Moreover, NVIDIA has launched the most advanced consumer GPUs for gamers, creators and developers — the GeForce RTX 50 Series for Desktop and Laptop GPUs.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Rokos Capital Management’s Stake: $156.4 million
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The following aspects make the company an attractive prospect for investors. To begin with, the company demonstrated great financial growth as depicted in the report of the third quarter of 2024. For instance, total revenue of $6.8 billion, gross margin of 50%, operating income of $724 million, and net income of $771 million and diluted earnings per share of $0.47, underscore the company’s strong market, profitability, and shareholder value. Secondly, the company has announced new processors ahead of the Consumer Electronic Show (CES), furthering its leadership in the AI PC market and offering mobile users the most innovative PC processors.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 128
Rokos Capital Management’s Stake: $204.4 million
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. The following factors underscore why the company is a solid investment opportunity. First of all, Broadcom’s fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion on the successful integration of VMware. In addition, Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. Total AI revenue grew 220% year-on-year, driven by leading AI XPUs and Ethernet networking portfolio. Additionally, the company’s robust financial health, evidenced by a 75.2% gross profit margin and $25.36 and high-speed networking, positions it well to capitalize on the growing demand for AI infrastructure.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Rokos Capital Management’s Stake: $217 million
Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company engaged in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. These characteristics make the company a desirable choice for investors. The first and most compelling factor is the sound financial growth of the company, as illustrated in the report for the third quarter of 2024. For instance, free cash flow, fewer principal repayments of finance leases and financing obligations increased to $44.9 billion for the trailing twelve months, compared with $15.9 billion for the trailing twelve months ended September 30, 2023. Secondly, the company has been the world’s largest corporate purchaser of renewable energy for the fourth year in a row. With more than 500 solar and wind projects globally, Amazon’s portfolio is now big enough to power 7.2 million US homes each year, Moreover, as the world is now shifting to AI, the company is investing in AI technologies, mainly within its AWS division. This integration of AI services will drive revenue growth, with AWS projected to see a 21% revenue increase in 2025.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Rokos Capital Management’s Stake: $340.7 million
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The company’s investment potential is driven by a mix of strong fundamentals and strategic positioning. As per the reports of the third quarter of 2024, net income witnessed a 22% rise, $88.1 billion, and Diluted Earnings Per Share (EPS) were $11.80, increasing by 22%. This massive increase in revenue and net income shows the effect of cost management on the company and its successful expansion strategy, which is great for both the company and its investors. Moreover, the company also returned $8.4 billion through share repurchases and dividends, as illustrated in the report of the third quarter of 2024. This return of capital shows Microsoft’s commitment to enhancing shareholder value. Secondly, the company is planning to invest about $80 billion in fiscal 2025 in developing data centers to train artificial intelligence models and deploy AI and cloud-based applications. Analysts expect Microsoft’s fiscal 2025 capital expenditure, including capital leases, to be $84.24 billion, according to Visible Alpha. Moreover, the company plans to introduce a development center in Abu Dhabi, one of Microsoft’s first engineering centers to be launched in the Arab world, joining the company’s global portfolio of development centers across key strategic locations around the world.
While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Microsoft Corporation (NASDAQ:MSFT) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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