Top-Performing Hedge Fund In 2022 Has This Strategy To Thank: How Much Did It Make Last Year?
Macro trading is an investment strategy that takes into account both domestic and global macroeconomic trends.
Macro trading is an investment strategy that takes into account both domestic and global macroeconomic trends.Most global macro trading ideas are in essence so simple that even the most inexperienced investor could grasp them. The difficulty comes not from the trades themselves, but from the timing of execution.What Happened: Macro trading emerged as the prominent strategy among hedge funds in the previous year, according to Bloomberg, with some firms achieving significant returns through investments in macroeconomic events.These returns were reported to be in the range of double and triple digits in 2022. Conversely, other firms that had a focus on technology stocks experienced substantial losses in the volatile market conditions.Why It Matters: Rokos Capital, managed by Chris Rokos, traded macro in 2022, gaining 51% on the year.
Rokos' former employer, Brevan Howard Asset Management, gained 20.14% trading macro.What stocks and indices did Rokos Capital have in its portfolio?By weight, according to the fund's most recent 13F-HR at the end of the third quarter, it held: Issuer Name Ticker % of Portfolio 2022 Performance Microsoft Corp MSFT 4.7% -28.69% Energy Select Sector SPDR Fund XLE 4% +57.60% Southwestern Energy Company SWN 3.6% +25.54% Financial Select Sector SPDR Fund XLF 2.6% -12.2% EQT Corp EQT 2.4% +55.11% Bank of America Corp BAC 2.4% -25.56% Nvidia Corp NVDA 1.2% -50.31% Apple Inc AAPL 1.1% -26.83% iBoxx $ High Yield HYG 1.1% -15.38% Salesforce Inc CRM 0.9% -47.83% While the performance of the individual stocks in the above list has been mixed, Rokos Capital has hedged its positions with options. Here's how much it held in 2022. Issuer Name Ticker % of Portfolio Call/Put Financial Select Sector SPDR Fund XLF 23% Call Invesco QQQ Trust Series 1 QQQ 13% Put Financial Select Sector SPDR Fund XLF 3.7% Put Pinterest Inc PINS 2.8% Call iShares China Large-Cap ETF FXI 2.3% Call EQT Corp EQT 2.1% Put Taiwan Semiconductor Mfg. TSM 2% Put Eli Lilly And Co LLY 1.8% Put Salesforce Inc CRM 1.5% Call AbbVie Inc ABBV 1.4% Put Read Next: 2022's Worst Performing Hedge Fund Saw Negative 56% Returns, Has These Stocks To BlamePhoto: Golden Dayz via Shutterstock