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American hedge fund %Citadel made $4 billion U.S. in 2023 from trading %Commodities, fueling profits at one of the world’s largest hedge funds.

Bloomberg News reports that most of the commodities trading gains were realized through Citadel’s energy group and from trading in European gas and power.

Specifically, Citadel’s traders took advantage of volatility in Europe’s natural gas market last year, which was caused by Russia’s invasion of Ukraine.

Additionally, Citadel hired Nathan Ohayon, a top energy trader, away from %Oil giant %Shell (NYSE: SHEL) last year as part of its efforts to build-up its trading team in crude and refined oil products.

Commodities are one of five business units at Citadel, along with equities, credit, quantitative, and fixed income trading.

Profits from commodities continue to be a boon for Citadel, which posted a total return of 15.3% last year and returned $7 billion U.S. to its clients.

However, while the $4 billion U.S. earned from commodities trading last year was impressive, it was half the $8 billion U.S. that commodities trading earned for Citadel in 2022.

Citadel has said that it continues to see energy trading as a main profit driver at the hedge fund going forward.

Founded in 1990, Citadel today has more than $60 billion U.S. of assets under management and employs more than 2,500 people.

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