Billionaire Investor Who Returned 51% in 2022 is Selling These 12 Stocks in 2023

In this article, we discuss 12 stocks billionaire Chris Rokos is selling in 2023.

Rokos Capital Management, led by billionaire trader Chris Rokos, made headlines earlier this year amid reports that the fund posted gains of approximately 51% in 2022. This performance was attributed to bets on rising interest rates and volatility across various asset classes. It was Rokos’ best annual performance since 2015, the year he started trading for his own firm, and it helped the fund recover from a record 26% loss suffered in the previous year.

However, Rokos Capital Management faced challenges in early 2023. The hedge fund experienced a 15% decline in March. Year-to-date, the macro hedge fund is down by approximately 9.5% as of March. The firm was caught off-guard by the bond market turmoil, and its bets on US government bonds backfired. This led to concerns from the US Securities and Exchange Commission (SEC) regarding the size of potential margin calls on the firm.

In response to the losses, Rokos Capital Management decided to de-risk its portfolio and reduce exposure to market volatility. The firm stated that its cash levels remained healthy, and it emphasized its open and collaborative engagement with regulatory authorities such as the Financial Conduct Authority (FCA) and the SEC. The SEC chair, Gary Gensler, reportedly discussed Rokos with the UK regulators, highlighting the concerns over margin calls and the potential impact on the US government bond market.

According to Forbes, Chris Rokos, the CEO and founder of Rokos Capital Management, has a net worth of $1.5 billion. Rokos is a macro investor who specializes in commodities, currencies, interest rates, and equities. He is known for advocating a strict approach to fund management, including immediate termination of unsuccessful traders and considering a trader’s first year as an extended interview. Rokos is recognized as an exceptional manager in handling large debt and option holdings. Chris Rokos’ Rokos Capital Management 13F portfolio value decreased from $2.28 billion in Q4 2022 to $1.35 billion in Q1 2023. The fund made 29 new purchases in the first quarter, increased its stakes in 13 stocks, sold out 30 equities and reduced holdings in six stocks. Some of the famous companies which Chris Rokos sold in Q1 include Zoetis Inc. (NYSE:ZTS), PG&E Corporation (NYSE:PCG), and Bunge Limited (NYSE:BG).

Our Methodology

Taking into account this background information and the overall industry outlook, we will now present the stocks billionaire Chris Rokos is selling in 2023. In this article, we examined Rokos’ 13F filings for the first quarter of 2023 and identified the stocks that he completely sold during that period.

Billionaire Chris Rokos is Selling These Stocks in 2023

12. Novavax, Inc. (NASDAQ:NVAX)

Number of Hedge Fund Holders: 12

Novavax, Inc. (NASDAQ:NVAX) is a global biotech company headquartered in Gaithersburg, Md., U.S.

H.C. Wainwright lowered Novavax, Inc.’s price target to $35 on May 10, maintaining a ‘Buy’ rating after Q1 results. The company’s commercialization strategy requires restructuring and cost reduction, but it has established itself as a significant player in the COVID vaccines market.

Chris Rokos bought 28,925 shares of Novavax, Inc. in the fourth quarter of 2022. However, he sold all the shares in Q1 2023.

Along with Zoetis Inc., PG&E Corporation, and Bunge Limited, Novavax, Inc. is one of the stocks billionaire Chris Rokos sold in 2023.

As of the first quarter of 2023, 12 hedge funds in Insider Monkey’s database held stakes in Novavax, Inc.. The most prominent shareholder in Novavax, Inc. is Philippe Laffont’s Coatue Management, with 1.77 million shares valued at $12.24 million.

11. The RealReal, Inc. (NASDAQ:REAL)

Number of Hedge Fund Holders: 19

The RealReal, Inc. (NASDAQ:REAL) is a US-based online marketplace for luxury goods resale, including women’s and men’s fashion, jewelery, and watches. RealReal has a consensus rating of ‘Moderate Buy,’ derived from 4 buy ratings, one hold rating, and one sell rating.

Rokos Capital Management acquired a stake in The RealReal, Inc. in Q1 2022 as it bought 1.11 million shares, worth about $8.60 million at the time. However, the hedge fund offloaded the shares in the first quarter of 2023.

10. Leslie’s, Inc. (NASDAQ:LESL)

Number of Hedge Fund Holders: 22

Leslie’s, Inc. is a prominent direct-to-consumer brand within the U.S. pool and spa care sector. Their extensive selection of essential pool and spa care products serves residential and professional clientele. Through their network of 1,000+ physical stores and robust digital platform, Leslie’s offers customers the convenience of shopping in-person or online, accommodating their preferred purchase method.

On May 8, Stifel analyst W. Andrew Carter reduced the price target on Leslie’s, Inc. to $11 from $12 while maintaining a ‘Hold’ rating on the shares. The analyst attributed the stock’s performance impact to “disappointing” fiscal Q2 results and ongoing uncertainty.  According to Insider Monkey’s first quarter 2023 database, 22 hedge funds were long Leslie’s, Inc., compared to 27 funds in the prior quarter. John W. Rogers’ Ariel Investments is the leading stakeholder of the company, with 11.85 million shares.

In its Q4 2022 investor letter, Ariel Investments shared its insights on Leslie’s, Inc. and made the following comment:

“We also added Leslie’s, Inc., the leading direct-to-consumer pool and spa care services company in the U.S. The company differentiates itself through its loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience. Shares have recently sold off on near-term operational issues at a distribution facility, as well as concerns around the sustainability of the company’s growth profile in a normalized, post-pandemic environment. Although we believe new pool installments will likely experience a slowdown, the install base has materially increased and ~80% of LESL’s business is tied to recurring maintenance. We found this entry point as an attractive opportunity to own a differentiated retailer, well positioned to benefit from secular tailwinds in an industry, permanently elevated by the pandemic.”

9. Mobileye Global Inc. (NASDAQ:MBLY)

Number of Hedge Fund Holders: 22

Mobileye Global Inc. (NASDAQ:MBLY) is a global leader in developing and deploying advanced driver assistance systems (ADAS) and autonomous driving technologies. Mizuho increased the price target on Mobileye Global Inc. from $39 to $43 and retained a ‘Buy’ rating on the shares following the announcement of a collaboration with Porsche to integrate SuperVision into future models.

As of the end of 2022, Rokos Capital Management held a total of 50,000 shares in Mobileye Global Inc.. However, in the first quarter of 2023, the company decided to break all ties and let go of its entire stake in the company.

According to Insider Monkey’s first quarter database, 22 hedge funds were bullish on Mobileye Global Inc., compared to 29 funds in the prior quarter.

Baron Funds made the following comment about Mobileye Global Inc. in its Q4 2022 investor letter:

“During the fourth quarter, we participated in Mobileye Global Inc.’s IPO. Mobileye is a leading ADAS and autonomous driving technologies and solutions provider with over 125 million vehicles across 800 models that have incorporated its products to date across 50-plus vehicle manufacturers (OEMs) including 13 of the top 15 global OEMs. The company was founded in 1999 and effectively pioneered the ADAS market introducing its first EyeQ system-on-chip (SoC) in 2007, enabling the vehicle to gain ADAS capabilities (such as real-time detection of vehicles, pedestrians, and lane markings) for a price of around $50. While the company remains a leader in ADAS today (with an approximate 70% market share), we believe the bigger opportunity is in leading the autonomous driving revolution. This would, in our view, significantly improve safety; meaningfully increase the vehicle utilization rate, which today is only around 4%; and dramatically grow the company’s content per vehicle. Mobileye’s SuperVision, a fully operational point-to-point assisted driving navigation solution, is the next step in the company’s progress towards autonomous driving, and it has a price tag of over 20 times that of its basic ADAS SoC. At the last Consumer Electronics Conference, the company announced a $3.5 billion backlog for its SuperVision solution across six OEMs and nine vehicle models. In addition, the company announced a $1.5 billion design win for its consumer AV program and a $3.5 billion backlog for its Mobility-as-a-Service or robotaxi solution. CEO and Founder, Amnon Shashua discussed his long-term vision in the company’s shareholder letter:

 “More than two decades ago, I founded Mobileye on the belief that computer vision technology could help prevent automobile crashes and save lives. From that simple idea, a global industry was born… By 2030, we expect Mobileye driver-assistance systems to be deployed in another 270 million vehicles globally… We believe that we will be positioned to deliver an autonomous driving solution that can enable the mass adoption of AVs [Autonomous Vehicles] including both Mobileye-powered robotaxis and consumer-owned autonomous driving vehicles. And Mobileye will be well on the way to delivering the future I first envisioned more than two decades ago.””

8. New Fortress Energy Inc. (NASDAQ:NFE)

Number of Hedge Fund Holders: 28

New Fortress Energy Inc. (NASDAQ:NFE) is a global energy infrastructure company that offers integrated gas-to-power solutions and development services to end-users worldwide. Chris Rokos first bought New Fortress Energy Inc. shares worth $123,000 in Q1 2022. However, he completely sold his position in the company in Q1 2023.

Barclays reduced New Fortress Energy Inc.’s price target to $34 on April 24, maintaining an ‘Equal Weight’ rating. The analyst believed the company’s Q1 earnings update, along with its subdued positioning, offered a favorable setup for the quarter.

As of the end of the first quarter, there were 28 hedge funds in Insider Monkey’s database that held stakes in New Fortress Energy Inc., compared to 43 funds in the prior quarter. Fortress Investment Group, with 13.4 million shares, is the biggest stakeholder in the company.

7. Teladoc Health, Inc. (NYSE:TDOC)

Number of Hedge Fund Holders: 30

Teladoc Health, Inc. (NYSE:TDOC) is a global provider of virtual healthcare services operating in the United States and internationally. The company is structured into two segments: Integrated Care and BetterHelp. Following the Q1 report, Deutsche Bank analyst George Hill increased the price target on Teladoc Health, Inc. to $29 from $27 while maintaining a ‘Hold’ rating on the shares.

After maintaining a position in Teladoc Health, Inc. since Q1 2022, Rokos Capital Management divested its stake in the company during Q1 2023. The hedge fund held shares worth $4.23 million in the company at the end of the fourth quarter of 2022.

According to Insider Monkey’s first quarter database, 30 hedge funds held stakes worth $890.2 million in Teladoc Health, Inc., compared to 33 funds in the prior quarter worth $849.8 million. Catherine D. Wood’s ARK Investment Management holds the most stock in Teladoc Health, Inc., with 20.58 million shares.

6. PACCAR Inc (NASDAQ:PCAR)

Number of Hedge Fund Holders: 33

PACCAR Inc (NASDAQ:PCAR) is a global technology leader in manufacturing and supporting high-quality trucks under the Kenworth, Peterbilt, and DAF brands. They also specialize in advanced powertrains, financial services, information technology, and truck parts distribution.

Argus downgraded PACCAR Inc to ‘Hold’ on May 2 due to concerns about slower economic growth affecting the global trucking industry. Rokos Capital Management initiated its investment in PACCAR Inc by purchasing shares worth $9.45 million in the fourth quarter of 2022. However, the hedge fund offloaded the entire stake in Q1 2023. Out of the hedge funds tracked by Insider Monkey, 33 hedge funds were long PACCAR Inc during the first quarter with aggregate stakes worth $886.3 million. This compares to 38 hedge funds holding $712.8 million in PACCAR Inc in the previous quarter.

Like Zoetis Inc., PG&E Corporation, and Bunge Limited, PACCAR Inc is one of the stocks billionaire Chris Rokos sold in 2023.

In its Q1 2023 investor letter, Madison Investments stated the following regarding PACCAR Inc:

“Heavy duty truck manufacturer PACCAR Inc has quietly been one of our best performers over the past year. It, too, has surprised us to some extent, with the resiliency that it’s showing in a slowing trucking market. We think there’s a decent chance that weakness in its end markets will eventually catch up with PACCAR, but we believe the stock is cheap, and its steady parts business will act as a moderate stabilizer in such a scenario.”

5. Bunge Limited (NYSE:BG) 

Number of Hedge Fund Holders: 37

Bunge Limited is a global company connecting farmers to consumers, delivering essential food, feed, and fuel. With a focus on sustainability and global food security, the company collaborates with partners to improve agricultural efficiency and provide innovative solutions. Headquartered in St. Louis, Missouri, Bunge Limited operate in over 40 countries with nearly 23,000 employees.

BMO Capital analyst Andrew Strelzik initiated coverage of Bunge Limited on April 13, giving it an ‘Outperform’ rating and setting a price target of $120, indicating a potential upside of 30%.

Rokos Capital Management initially purchased 164,150 shares of Bunge Limited in the second quarter of 2022. However, in the first quarter of 2023, billionaire Chris Rokos’ fund divested its entire stake in the company.

According to Insider Monkey’s first-quarter database, 37 hedge funds were bullish on Bunge Limited, with collective stakes worth $378.5 million. Anand Parekh’s Alyeska Investment Group held the most prominent position in Bunge Limited.

4. Prometheus Biosciences, Inc. (NASDAQ:RXDX)

Number of Hedge Fund Holders: 37

Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a clinical-stage biotech company focused on precision medicine for immune-mediated diseases. Their Prometheus360 platform uses machine learning and a vast gastrointestinal bioinformatics database to discover therapeutic targets and develop treatment candidates.

Prometheus Biosciences, Inc. received a downgrade from Jefferies analyst Michael Yee, shifting its rating from ‘Buy’ to ‘Hold,’ with a price objective of $200. According to an analyst’s research note, Merck (MRK) plans to acquire Prometheus by Q3. The agreement is anticipated to be finalized according to the planned timeline.

Rokos Capital Management bought 20,000 shares in Prometheus Biosciences, Inc. in Q4 2022 but offloaded its entire stake in the first quarter of 2023.

As of the first quarter of 2023, 37 hedge funds in Insider Monkey’s database held stakes in Prometheus Biosciences, Inc.. The most prominent shareholder in Prometheus Biosciences, Inc. is Steve Cohen’s, 72 Investment Holdings, with 1.85 million shares valued at $198.33 million.

In its Q1 2023 investor letter, Baron Funds provided its assessment of Prometheus Biosciences, Inc. with the following comment:

“We added to our position in Prometheus Biosciences, Inc., a clinical stage biotechnology company. Prometheus’ lead product candidate, PRA023, is a monoclonal antibody that has been shown to block a target called TL1A that is associated with intestinal inflammation and fibrosis. In December 2022, the company reported promising Phase 2 clinical trial results, suggesting potential for PRA023 to be a novel treatment for ulcerative colitis and Crohn’s disease. The company plans to advance PRA023 into Phase 3 clinical trials for ulcerative colitis and Crohn’s disease in 2023. The company is also studying PRA023 as a treatment for Systemic-Sclerosis-associated Interstitial Lung Disease and plans to announce a fourth potential indication for PRA023 in 2023. We believe PRA023 has blockbuster potential. Prometheus also has a pipeline of earlier stage product candidates. On April 16, Merck issued a press release announcing its agreement to acquire Prometheus for $200 per share in cash.”

3. Chart Industries, Inc. (NYSE:GTLS)

Number of Hedge Fund Holders: 43

Chart Industries, Inc. (NYSE:GTLS) is a global leader in designing and manufacturing process technologies and equipment for gas and liquid molecule handling in clean power, clean water, clean food, and clean industries. They specialize in serving the Nexus of Clean, regardless of the molecule involved. On May 8, CL King analyst Thomas Hayes initiated coverage of Chart Industries, Inc. with a ‘Buy’ rating and a price objective of $165.

Chart Industries, Inc. has been in the portfolio of Chris Rokos’ Rokos Capital Management since the fourth quarter of 2022. The hedge fund bought 25,000 shares of the company worth $2.85 million. However, in the first quarter of 2023, the hedge fund completely sold off its position in the company.

 In the first quarter of 2023, 43 hedge funds had stakes worth $377.83 million in Chart Industries, Inc., down from 55 in the preceding quarter worth $663.57 million. The most prominent shareholder in Chart Industries, Inc. is Marshall Wace LLP.

In its Q1 2023 investor letter, Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Chart Industries, Inc.:

“Chart Industries, Inc. is a leading independent global manufacturer of highly engineered equipment servicing multiple applications in the Energy and Industrial Gas markets. Its unique product portfolio is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair. Being at the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 Capture amongst other applications. Chart’s customers are mainly large, multinational producers and distributors of hydrocarbon and industrial gases. The company generates about half its sales in North America.

We see Chart Industries as a leading manufacturer of highly engineered cryogenic solutions that are used for the production and storage of industrial gases. With the exposure to energy end markets including liquified natural gas (LNG), compressed natural gas (CNG) and hydrogen, the company has the technology to ship gas from oversupplied markets to markets that do not have access to enough energy resources. Hydrogen is gaining traction as a renewable fuel due to the focus on climate change. The recent acquisition of Howden is complementary to Chart’s existing product and service offerings.”

2. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 52

Headquartered in Oakland, PG&E Corporation is a holding company that serves as the parent company of Pacific Gas and Electric Company. This energy provider caters to approximately 16 million residents in Northern and Central California, covering a service area spanning 70,000 square miles. Ladenburg analyst Paul Fremont initiated coverage of PG&E Corporation on April 4, assigning it a ‘Buy’ rating and setting a price target of $20.50.

In Q2 2021, Rokos’ fund initiated a position in PG&E Corporation by acquiring shares worth $51.34 million, only to sell off its stake in Q1 2022. The fund then purchased 100,000 shares of the company in Q4 2022, but quickly offloaded them in Q1 2023.

According to Insider Monkey data, PG&E Corporation had 52 hedge funds at the end of the first quarter 2023. Dan Loeb’s Third Point is the company’s notable stakeholder in Q1 2023, with 59.25 million shares worth $958 million.

In its Q4 2022 investor letter, the ClearBridge Global Infrastructure Value Strategy offered its perspective on PG&E Corporation with the following comment:

“Turning to the U.S. and Canada, U.S. electric utility PG&E Corporation and U.S. water company American Water Works (AWK) also made strong contributions. PG&E is a regulated utility operating in central and northern California that serves 5.3 million electricity customers and 4.4 million gas customers in 47 of the state’s 58 counties. PG&E outperformed given several positive catalysts: it was included in the S&P 500 Index, the Fire Victim’s Trust sold some of its stake in the company, easing a market overhang, and the company displayed evidence of its operational improvements, with no major fires seen so far this fire season.”

1. Zoetis Inc. (NYSE:ZTS)

Number of Hedge Fund Holders: 55

Zoetis Inc. is a global company that specializes in animal health products, including medicines, vaccines, and diagnostics. Piper Sandler analyst David Westenberg lowered the price target on Zoetis Inc. to $210 from $220 while maintaining an ‘Overweight’ rating. This adjustment was made after updating estimates to align with the company’s earnings release, mainly focusing on operating expenses and margin forecasts in line with guidance.

Rokos Capital Management joined the Zoetis Inc. bandwagon in the second quarter of 2022 by purchasing shares worth $21.23 million but promptly exited in the first quarter of 2023, completely divesting its stake.

According to Insider Monkey’s first quarter database, 55 hedge funds in the database of Insider Monkey held stakes worth $1.19 billion in Zoetis Inc., down from 58 in the preceding quarter worth $1.50 billion. William Von Mueffling’s Cantillon Capital Management is the biggest position holder in the company, with 1.79 million shares worth $ 297.7 million.

In its investor letter for Q1 2023, Baron Funds stated the following regarding Zoetis Inc.:

“Zoetis Inc. is a global leader in the discovery, development, and manufacturing of companion and farm animal health medicines and vaccines, selling in more than 120 countries across eight core species. Shares rose after the company reported a fourth quarter revenue beat and issued 2023 guidance that met Street forecasts, calling for 6% to 8% operational growth and 7% to 9% adjusted net income growth despite higher R&D spend on late-stage pipeline products and manufacturing spend. Zoetis, which is growing 100 to 200 basis points above the industry’s 4% to 5% CAGR, should benefit from expanding demand for animal health products, driven by increasing consumption of animal proteins and the humanization of pets. Five key catalysts include products for osteoarthritis pain, parasiticides, dermatology, diagnostics, and emerging markets. Longer term, Zoetis should be able to achieve double-digit earnings growth on consistent revenue increases and an improving cost structure due to a more favorable product/species mix and manufacturing efficiencies. Strong operating cash flow helps facilitate capital deployment opportunities to supplement expansion.”

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This article is originally published at Insider Monkey.