Commodities trades stung hedge funds this year. It's not stopping firms from piling in.

Investors trading commodities, such as oil, have been in high demand.

Jeri Clausing/AP

• Hedge funds that trade commodities struggled in 2025.
• Big-name managers with exposure to energy or agriculture trades, such as Citadel, trailed peers.
• However, hedge funds are still flocking to the space, seeking to diversify from stock and fixed-income trades.

All strategies mix good days and bumper years with bad days and market-lagging returns. For commodities traders in 2025, it was more of the latter.