U.K.-based Ebullio Capital Management has launched a commodity hedge fund, and plans to launch a power and emissions vehicle sometime in the third quarter.

The Ebullio Commodity Fund, an event-driven offering, debuted in January with $4 million in partner capital. The fund opened to outside investors on May 1. It returned 27% in the first quarter, according to Monica Kotzee, marketing director.

The vehicle trades metals such as copper, aluminium, gold and silver, as well as energy complexes such as crude and agricultural and soft commodities, including wheat, corn, coffee and sugar. It is managed by founder Lars Steffensen, a former senior partner in charge of commodity trading at Next Energy.

The firm plans to offer the Ebullio Power & Emissions Fund in the third quarter, headed by a yet-to-be-named energy trader from a U.K.-based brokerage house. The event-driven fund will trade electricity, carbon emissions, coal and the natural gas sectors.

Both offerings will soft close at US$500 million, according to Kotzee, and will charge a 2% management fee and a 20% incentive fee with a €50,000 or US$100,000 minimum investment requirement.

Kotzee said the firm is currently in talks with funds of hedge funds and family offices in Switzerland about investing in the funds.

Grahme Benson, managing director of sales, and David Sutcliffe, a commodity trader, round out the Ebullio team.