Source: Wall Street News
Author: Gao Zhimou
After Graticule Asia fell last week, Rokos, who performed well last year, was also “alerted to risk” this week.
The banking crisis triggered a sharp shock in the bond market, and a large number of macro-hedge funds that have suffered a sharp retracement are at risk of collapse. Since Graticule Asia fell last week, Rokos, who performed well last year, was also alerted to risk by the US Securities and Exchange Commission.
Earlier this month, Rokos, one of the world's largest macro hedge funds, was forced to deliver large amounts of cash to banks as security deposit due to a major failure in US government bonds.
The media quoted people familiar with the matter as saying that US Securities Regulatory Commission Chairman Gary Gensler mentioned the fund during a conversation with British regulators this week because it faced greater security deposit requirements than his peers.
Although the US regulator does not oversee London-based Rokos, after a series of recent explosive incidents in the banking industry, the agency is on high alert to the tense situation in the financial markets.
According to another person familiar with the matter, UK regulators have agreed to keep a close eye on the hedge fund.
A large number of macro hedge funds have been hit hard, and Rokos may become the “biggest loser”
The collapse of Silicon Valley Bank raised concerns about the overall health of the banking system in the US region. The market immediately bet that the Federal Reserve (Fed) would slow the pace of interest rate hikes to support financial stability. People competed to buy US Treasury bonds, causing a large number of hedge funds that bet in the wrong direction to be hit hard by rising bond prices.
Last week, senior macro trader Adam Levinson announced the closure of his Graticule Asia macro hedge fund. This is also the first well-known fund to go out of business during the recent bond market turmoil. People familiar with the matter revealed thatThe Singapore-based fund has plummeted more than 25% so far this year, mainly after SVB Bank went out of business.
Wall Street reports that in the month ending last Friday, London's macro hedge fund Maniyar lost 22%. Another British hedge fund, Haidar Macro's Jupiter fund, fell 32%, and the fund rose 193% in 2022.
Furthermore, Graham Capital Management's Tactical Trend Fund, which profit from betting on rising interest rates last year, lost about 10%. Lynx Program, the diversified trend tracking strategy fund of Lynx Asset Management, headquartered in Stockholm, also fell about 10% over the same period.
Industry insiders say Rokos is one of the biggest losers in the short term. According to reports, as of March 17, Rokos, which managed about 15.5 billion US dollars, fell as high as 12.5% that month and faced additional security deposit requirements from several counterparties. According to media reports, several Rokos counterparties said that they are currently not concerned about Rokos' ability to meet additional security deposit requirements.
According to reports, Chris Rokos, the founder of Rokos, was a co-founder and star trader of Brevan Howard, a 10 billion dollar British hedge fund company. At the end of 2021, Rokos staked in the wrong direction of the bond market and made headlines in major financial media over and over again because of the huge losses of its funds. However, in 2022, Rokos achieved a 51% rebound and quickly became one of the best-performing macro hedge funds last year.
Editor/Somer