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Richard Lockwood Chilton is the founder of Chilton Investment Company, LLC, which reported $5.6 billion total assets in its last 13F filing. Chilton graduated from Alfred University with a B.S. degree in Finance and Economics. Prior to forming Chilton Investment Company in 1992, Chilton worked at Merrill Lynch and Allen & Company. According to Forbes, he is ranked 773rd on the list of the world’s richest people, with an estimated net worth of $1.3 billion.

Chilton Investment's primary investment strategies are value-oriented, fundamental research and disciplined portfolio management. Chilton Investment lost 23% of net fees in 2008 and gained 24% in 2009. On September 2, 2010, Theorema Asset Management`s Frederic Gautier joined Chilton Capital as Portfolio Manager. Frederic Gautier was employed for four years with Theorema Asset Management as Portfolio Manager before taking the job with Chilton.

According to 13F filings, Chilton had at least 163 securities in its portfolio as of December 31, 2010. The five largest stocks that Chilton sold in the last quarter are American Eagle Outfitters (NYSE:AEO), Coca-Cola Enterprises (NYSE:CCE), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS) and Kinross Gold Corporation (NYSE:KGC).

Here are Chilton’s 10 largest new stock picks:

Top Ten New Holdings

Stock

Value in Millions (USD)
As of Dec 31,2010

Return
Since Dec 31,2010

PROSHARES ULTRASHORT 20+ YEAR (NYSEARCA:TBT)

49.5

-2.7%

AMERICAN EXPRESS CO (NYSE:AXP)

41.3

3.6%

COLGATE-PALMOLIVE CO (NYSE:CL)

23.6

-0.8%

TIME WARNER INC (NYSE:TWX)

23.0

13.6%

NORTH AMERICAN PALLADIUM LTD (NYSEMKT:PAL)

21.8

-8.6%

QUICKSILVER RESOURCES INC (NYSE:KWK)

20.6

-0.9%

JPMORGAN CHASE & CO (NYSE:JPM)

17.0

8.0%

SEMILEDS CORP/TAIWAN (NASDAQ:LEDS)

15.9

-44.6%

WELLS FARGO & CO (NYSE:WFC)

15.8

4.7%

RESEARCH IN MOTION LTD (RIMM)

14.5

9.0%

Value Weighted Return of Top 10 New Holdings

228

-1.1%

SPY

N/A

4.0%

Only four of Chilton’s top 10 new positions managed to beat the market. Chilton’s largest new stock picks have lost 1.1% since the end of 2010, vs. a 4.0% gain for the S&P 500 (NYSEARCA:SPY). Chilton’s biggest new bet, TBT, has lost 2.7% in the last 70 days, underperforming the SPY by 6.7 percentage points. Chilton had $49.5 million in TBT shares at the end of December. Chilton purchased a $164 million put option on SPDR S&P 500 ETF during the fourth quarter to protect his portfolio from market declines.

Time Warner has had one of the best performances in his portfolio since the end of December. Chilton had $23 million in Time Warner shares at the end of December. Time Warner has gained 13.6% since the end of December, beating the SPY by 9.6 percentage points. Leon Cooperman's Omega Advisors and Bill Miller's Legg Mason Capital Management are other hedge funds with Time Warner investments. One of the new investments of Chilton, JPM, has gained 8.0% since the end of December. George Soros, Appaloosa’s David Tepper, John Paulson, Stephen Mandel, Martin Zweig, Lee Ainslie and Joseph Dimenna are other hedge fund managers with JPM positions. The worst performing stock among the new purchases was LEDS, losing more than 44% since the end of December.

We think it’s more appropriate to check out Chilton’s 10 largest positions to understand more about his performance. Here are the results:

Top Ten Holdings

Stock

Value in Millions (USD)
As of Dec 31,2010

Return
Since Dec 31,2010

ALPHA NATURAL RESOURCES INC (NYSE:ANR)

186.2

-14.9%

AVAGO TECHNOLOGIES LTD (NASDAQ:AVGO)

157.6

9.9%

MOSAIC CO/THE (NYSE:MOS)

153.9

0.0%

AGNICO-EAGLE MINES LTD (NYSE:AEM)

145.7

-12.7%

SOUTHWESTERN ENERGY CO (NYSE:SWN)

141.2

-1.4%

EOG RESOURCES INC (NYSE:EOG)

124.6

15.8%

PATRIOT COAL CORP (PCX)

121.8

16.6%

WALTER ENERGY INC (NYSE:WLT)

117.5

-7.4%

AGRIUM INC (NYSE:AGU)

107.3

-2.6%

CONSOL ENERGY INC (NYSE:CNX)

101.6

-0.1%

Value Weighted Return of Top 10 Holdings

1,256

-0.3%

SPY

N/A

4.0%

ANR was Chilton's biggest investment at the end of December 2010. ANR has lost 14.9% since the end of December, underperforming the SPY’s 4.0% return. In January Alpha Natural Resources agreed to buy Massey Energy for a 21% premium. Some of Alpha Natural Resources insiders were selling weeks before the announcement. Chilton bought $16 million of AVGO shares during the last quarter of 2010. AVGO has returned 9.9% since the end of December.

Chilton's 10 largest positions have lost 0.3% since the end of December, underperforming the SPY by 3.7 percentage points.

Return of Long Term Holdings in Last 5 Years

Stock

Value in Millions (USD)
As of Dec 31,2010

Return
Since Mar 10,2006

SOUTHWESTERN ENERGY CO (SWN)

141.2

151.7%

EOG RESOURCES INC (EOG)

124.6

65.9%

ENTEGRIS INC (NASDAQ:ENTG)

93.5

-27.4%

FREEPORT-MCMORAN COPPER & GOLD (NYSE:FCX)

82.6

121.5%

GOLDCORP INC (NYSE:GG)

62.2

85.1%

RANGE RESOURCES CORP (NYSE:RRC)

61.6

110.8%

VIVUS INC (NASDAQ:VVUS)

55.6

78.8%

MICROSOFT CORP (NASDAQ:MSFT)

43.1

4.9%

INTERLINE BRANDS INC (NYSE:IBI)

36.8

-11.3%

APPLE INC (NASDAQ:AAPL)

30.6

457.0%

AFC ENTERPRISES INC (AFCE)

27.9

1.0%

NATIONAL INSTRUMENTS CORP (NASDAQ:NATI)

9.7

55.5%

Average Return

769

91.1%

SPY

N/A

11.7%

The above table shows the performance of Chilton’s top 10 long-term stock holdings. Chilton’s largest investment over the last five years is Southwestern Energy. SWN has returned almost 152% since March 2006, beating the market by a large margin. Chilton’s largest long term holdings have gained 91.1% since March 2006. Considering SPY’s 11.7% return, Chilton's long term picks are extremely successful. This underlines Chilton's talent in picking long term winners. Investors might benefit by paying close attention to his long term investments.

Source: Richard Chilton's Amazingly Profitable Long-Term Commodity Stock Picks