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Invest in Food, Fuels and Forests: Fund Manager

Thursday, 31 Jan 2013 | 6:31 PM ET

Underhill: Commodities Place to Be This Year
Mike Underhill, CIO with Capital Innovations, says commodity stocks in a diversified portfolio is a way to gain capital appreciation and an inflation hedge. He also discusses the three Fs: food, forests and fuel.

Commodity stocks in the food, timber and infrastructure sectors look attractive for 2013, Mike Underhill, founder and chief investment officer of Capital Innovations, told CNBC at the TDAmeritrade Institutional conference on Thursday.

"Commodities have always been an interesting asset class. But playing commodity stocks in a portfolio that's diversified prudently is a way to gain capital appreciation with hard asset ownership as an inflation hedge," Underhill said.

Joe Sohm | Photodisc | Getty Images

He likes stocks with exposure to food, fuel and forests. All three resources will be in demand as the global population only continues to grow.

"Right now population is trending towards 9 billion people by 2050, just to feed those people we need to increase our protein consumption by 75 percent," Underhill said.

Among his picks are Terra Nitrogen, a fertilizer company, timber company Louisiana-Pacific and energy infrastructure company Kinder Morgan.

  Price   Change %Change
TNH
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LPX
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KMP
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