Rokos Capital Management has terminated discussions with Lord Peter Mandelson regarding a potential advisory role, following renewed revelations concerning Mandelson’s past association with convicted sex offender Jeffrey Epstein, according to a report by the Financial Times.

A spokesperson for the London-based macro hedge fund confirmed that talks, which had continued after Mandelson’s removal last year as the UK’s ambassador to the US, were ended late last week after the latest disclosures emerged.

The decision highlights the heightened sensitivity among hedge funds to reputational and governance risk, particularly when engaging politically connected advisers.

Rokos Capital is run by billionaire trader Chris Rokos, one of the industry’s most prominent macro managers. The firm, which manages approximately $22bn, trades global macro themes across rates, currencies, commodities and equities. Rokos reportedly paid himself close to £500m last year after the firm more than doubled revenues to £1.2bn.