Ken Griffin's multi-strategy hedge fund major Citadel is moving into industrial metals trading as record prices and heightened market volatility draw increased hedge fund interest into the sector, according to a report by Bloomberg.

The firm has hired Ylan Adler as a portfolio manager with a cross-commodities remit, with industrial metals expected to form a central part of his mandate, according to people familiar with the matter. The appointment marks a shift in approach for Citadel, which has historically focused its commodities business primarily on energy markets.

Citadel has built one of the most profitable commodity platforms in the hedge fund industry in recent years, generating approximately $8bn in revenues during 2022. Its success has helped spark a broader wave of hiring across the sector as rival funds seek to build or expand commodities capabilities.

Until recently, Citadel’s trading activity has largely avoided base metals such as copper and zinc, reflecting a long-held view that the market offered limited opportunity relative to energy and was dominated by incumbent trading houses with ownership of physical production assets, including Glencore and Trafigura.

That assessment has evolved over the past year as volatility across metals markets has intensified. Tariff threats from US President Donald Trump and shifting global trade dynamics have driven sharp price dislocations, creating conditions that many traders view as increasingly attractive.

Adler, formerly a partner and head of commodities at Brazilian hedge fund SPX Capital, joined Citadel earlier this month and is expected to build a team covering metals and agricultural markets.

Citadel’s move comes amid a broader industry push into metals. Major physical trading houses including Vitol, Mercuria and Gunvor have expanded their metals operations over the past two years, while hedge fund peers have also increased exposure. Squarepoint has emerged as a significant participant in markets such as cobalt and aluminium, highlighting growing competition for talent and capital.

According to Bloomberg, a spokesperson for Citadel declined to comment.