(Bloomberg) -- Hedge fund LMR Partners added a US-based oil strategy earlier this year and has been bolstering its commodities team to profit from the increasingly popular business, according to an investor letter seen by Bloomberg. 

The multi-strategy firm recently hired Mike Severo, who formerly traded oil, exotics and commodity index options at Goldman Sachs Group Inc., according to people familiar with the matter. London-based LMR also tapped former Vitol oil-derivatives trader Jordan Valer as a portfolio manager, according to the people and LinkedIn. Representatives for LMR didn’t respond to requests for comment.

Commodities trading has gained steam over the last couple of years, particularly as Russia’s invasion of Ukraine created heightened volatility that traders can profit from. Many firms, including merchants and hedge funds, saw returns from commodities trading surge to records in 2022, and profits remained near those levels last year. 

LMR manages about $11 billion from offices in London, Hong Kong, New York, Zurich, Glasgow and Dubai, using both systematic and discretionary strategies, according to its website.  

The firm also hired Hussein Karzoumi, Derek Rogers and James Crandell as commodities portfolio managers over the past couple of years, according to one of the people and LinkedIn profiles. 

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