The billionaire investor George Soros has lost a reported $1bn by betting against the market during the rally that greeted Donald Trump’s election win.

Mr Soros, who famously bet against the pound on Black Wednesday, was caught on the wrong side of the rise in stocks and US government bond yields following Mr Trump’s shock victory.

Markets rose on hopes that the president-elect would slash business taxes and stimulate economic growth with projects such as a wall on the Mexican border. The S&P 500 index of American stocks has risen 5.6pc since the election.

According to the Wall Street Journal, Mr Soros took a cautious stance going into the election and became even more bearish after the result became clear on November 9.

He was a supporter of Hillary Clinton’s presidential campaign and committed to give $25m to Democratic causes last year.

Despite the unexpected surge after the vote, Soros Fund Management is said to have grown 5pc over the past year.

The hedge fund tycoon has a track record of bold bets in times of political strain. His aggressive short position against the pound as Britain crashed out of the European exchange rate mechanism in 1992 earned him around $1bn and gained him a reputation as the man who broke the Bank of England.