Commodity-focused hedge fund Farrer Capital Management is seeking to raise up to $400m for a new agriculture strategy, as specialist managers look to capitalise on renewed investor interest in commodities despite a cooling in returns, according to a report by Bloomberg.

Led by founder and chief investment officer Adam Davis, a former head of commodities at Merricks Capital, the Melbourne-based firm is aiming to secure $200m by the end of the first quarter and reach its full $400m target by year-end. The strategy will trade physical agricultural commodities alongside listed and over-the-counter derivatives.

Farrer launched in 2024 with $500m of backing from Millennium Management, although the multi-strategy giant withdrew its capital last year.

Commodity hedge funds have staged a comeback since the energy crisis of 2022 reignited interest in the sector, but most asset growth has flowed to large multi-strategy firms such as Citadel, Millennium and Squarepoint Capital. By contrast, launches of standalone commodity and agriculture-focused funds have remained relatively scarce.

Performance across the sector has moderated from crisis-era highs. An index tracking the 15 largest commodity-focused hedge funds stood at $16.5bn in October 2025, down slightly from $17bn a year earlier, reflecting both softer returns and more cautious investor positioning.