(Bloomberg) -- Freepoint Commodities LLC’s head of European physical gas trading, Freddie Sizer has resigned to set up an a new gas and power hedge fund.

He plans to start fund-raising for the new venture later this year after a break, with the aim of launching it in 2025, Sizer told Bloomberg News. He joined Freepoint’s Zug office three years ago and previously held other natural gas trading jobs at BKW AG and Vattenfall.

A spokesperson for Freepoint didn’t immediately respond to a request for comment. 

Sizer’s departure follows recent moves by senior traders across the commodities industry to set up independent hedge funds as the transition away from fossil fuels brings in volatility in markets ranging from gas to copper, and extreme weather events restrict supply and boost prices of cocoa and coffee.

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Europe’s power and gas market has become attractive to hedge funds in the past two years as gas prices have been extremely volatile in the aftermath of Russia’s invasion of Ukraine and Europe’s increased dependence on global market events. Even with the volatility and prices easing, traders are warning that the price swings will remain strong until a new wave of supply in 2026, fully replaces Russian flows.

Elite hedged funds, such as Millennium and Balyasny Asset Management have also beefed up their energy trading desks in recent months to focus on Europe’s gas.

Most recently, Trafigura Group derivatives trader Tristan Almada has left to set up an eponymous commodities-focused hedge fund in Geneva. Last year, David MacDonald left Millennium Management to start his own spin-out commodities fund, Aegeri Capital.

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