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FT piece on hedge funds expanding in physical commodities markets, which gives them an informational arbitrage. I wrote about this trend and the history of commodity hedge funds on my Substack a few months ago...
I looked at The Commodities Corp and its cubs Tudor, Caxton, Moore, Blenheim.
How Andy Hall and the likes of GS took on the physical trading houses.
John Arnold...the king of Nat Gas, who with Ken Griffin's Citadel were on the other side of the Amaranth blow up in 2006.
The emergence of multi-strategy HFs in the physical commodities markets - part diversification and part everyone wants to be Citadel. But remember how thoughtful Citadel was in its expansion hiring not the Enron trading desk but its quant researchers and then waiting a decade before getting into the physical space. Citadel's 2020-2023 commodities alpha was decades in the making!
