|Out of energy and into financials as he awaits the next theme|
Heebner says the fund lost ground when he sold off big holdings in energy, metals, and other commodity-oriented stocks over the summer. Once market favorites, these holdings were losing ground fast. He says those positions, which had dominated the CGM Focus portfolio, are all but gone now. Financial stocks, the market sector that terrifies investors, now rank as the fund's biggest portfolio category today.
Heebner declined to name any financials stocks purchased for the fund. He said most were bought when selling pressure made the shares irresistibly cheap, not because they fit into any new economic theme.