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Commodities are the new technology stocks. Microsoft (MSFT), Intel (INTC), Cisco (CSCO), and Hewlett-Packard (HPQ) turned into value stocks and the value stocks of the last decade became today’s growth stocks. Several prominent hedge fund managers like Jim Rogers, Julian Robertson, and Ray Dalio expressed their concerns about the US dollar. Hedge funds are flocking into gold, oil, metals and other hard assets that can retain value in an inflationary environment. The demand from high growing emerging market countries also put a floor under these commodities.

Insider Monkey summarized hedge fund holdings in top commodity producers. We follow 175 hedge funds. The industry classifications are obtained from Fidelity. Here are the top commodity producers that at least 5 hedge funds have at least $300 Million invested at the end of 2010:

Company Name

Symbol

Total Investment (x1000)

Number of Funds

ANADARKO PETROLEUM CORP

APC

3,309,985

27

CONOCOPHILLIPS

COP

2,601,609

20

CHESAPEAKE ENERGY CORP

CHK

2,260,364

13

ANGLOGOLD LTD

AU

2,028,209

6

OCCIDENTAL PETROLEUM CORP

OXY

1,693,923

18

BP PLC

BP

1,549,142

24

EXXON MOBIL CORP

XOM

1,532,110

28

WILLIAMS COS INC. (THE)

WMB

1,473,479

27

FREEPORT-MCMORAN

FCX

1,198,024

23

WALTER ENERGY INC

WLT

990,258

19

TECK RESOURCES LTD

TCK

883,951

9

BHP BILLITON LTD

BHP

753,230

11

PLAINS EXPLORATION & PROD

PXP

725,336

13

PIONEER NATURAL RESOURCES

PXD

638,402

14

NOVAGOLD RESOURCES INC

NG

633,822

9

CHEVRON CORP

CVX

613,519

16

VALE SA

VALE

598,069

14

DEVON ENERGY CORP

DVN

572,990

21

MASSEY ENERGY CO

MEE

551,767

22

EL PASO CORP

EP

540,850

12

RIO TINTO PLC

RIO

523,616

7

ALPHA NATURAL RESOURCES

ANR

497,651

15

KINROSS GOLD CORP

KGC

494,047

10

GOLD FIELDS LTD

GFI

486,190

5

APACHE CORP

APA

478,179

12

CENOVUS ENERGY INC

CVE

477,208

8

CNOOC LTD

CEO

454,381

6

CONSOL ENERGY INC.

CNX

448,786

17

PAN AMERICAN SILVER CORP

PAAS

443,951

9

ENCANA CORP

ECA

434,752

11

RELIANCE STEEL & ALUMINUM CO

RS

427,386

7

INTEROIL CORP

IOC

423,298

6

SOUTHWESTERN ENERGY CO

SWN

422,476

13

WHITING PETROLEUM CORP

WLL

414,111

16

NEWFIELD EXPLORATION CO

NFX

391,878

14

RANGE RESOURCES CORP.

RRC

374,266

10

CIMAREX ENERGY CO.

XEC

354,816

15

ENERGY XXI (BERMUDA) LTD

EXXI

354,470

12

NEWMONT MINING CORP

NEM

346,226

20

EOG RESOURCES INC.

EOG

318,579

14

IVANHOE MINES LTD

IVN

313,133

11

AGNICO EAGLE MINES LTD

AEM

304,567

8

BARRICK GOLD CORP

ABX

302,704

19

Anadarko Petroleum (APC) tops our list with 27 funds owning $3.3 Billion in APC. John Paulson, who made $5 Billion in 2010 from his hedge fund, had the largest position in the company, $1.6 Billion. Ken Fisher also had more than $700 Million invested in the company at the end of December.

ConocoPhillips (COP) is owned by 20 hedge funds and ranks second. Warren Buffett had nearly $2 Billion invested in this stock at the end of December, followed by Bill Miller’s $230 Million. The stock returned %15 so far this year.

Chesapeake Energy (CHK) ranks third. Thirteen funds own $2.26 Billion in CHK stock. Legendary activist investor Carl Icahn revealed a 5.8% stake in CHK on December 20th and CHK immediately jumped 3%. However, that wasn’t the end of it. Even if you had waited till the last day of trading in 2010 and bought CHK at the close, your return could have been more than 26% in three and a half months.

El Paso (EP) is the best performer in this list, returning more than 30% since the beginning of this year. Daimondback Capital, Shumway Capital, and Jana Partners were the largest holders of this stock. Dan Loeb’s Third Point also initiated a large position in El Paso during the first quarter of 2011. Dan Loeb also has WMB in his portfolio. WMB returned 25% this year. Steve Cohen is very bullish about this stock, which was one of his top three stock picks for 2011.

We like commodity producers and expect them to perform spectacularly in an inflationary environment. Investors can form a diversified portfolio of these stocks and achieve superior returns if inflation becomes a reality. The equal weighted average return of these stocks was 5.8% since the beginning of this year. The value-weighted average return of these stocks was 6.6% during the same time period. This shows hedge fund managers’ talent in picking winners within this industry.

Source: Top Commodity Producers That Hedge Funds Love