Two London-based commodities hedge funds have turned the biggest-ever decline in commodities into a gold mine for investors.

Pierre Andurand’s $1.1 billion Bluegold Capital Management has almost tripled its returns since its February debut by betting on higher oil prices in the first half of 2008 and then reversing the strategy, Bloomberg reports.

Andurand based his trading on an analysis of production, consumption and stockpiles of commodities. “We stuck to what we know best: keep it simple,” he said, in an interview.

Cris Levett’s $3 billion Clive Capital returned 44% in the first 11 months of the year. Clive Capital made money from energy, precious and industrial metals in November, according to the firms’ monthly performance report.

Both firms plan to raise more money in 2009. Andurand, who worked for four years at Rotterdam-based energy trading company Vitol Holding BV, will limit his fund to about $3 billion when it accepts new investors in February, and Levett is capping Clive Capital at $3.5 billion, according to a monthly performance report.