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   Strategies & Market TrendsKen Heebner and CGM Focus Fund CGMFX


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From: JakeStraw11/11/2008 3:48:04 PM
   of 37
 
What's Next for Ken Heebner and CGM?
biz.yahoo.com

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To: Sam Citron who wrote (18)11/15/2008 1:30:39 AM
From: Condo
   of 37
 
"Bigfoot" steps in.

bloomberg.com

Heebner Buys Financials, Abandons Top Energy Stakes (Update2)

By Sree Vidya Bhaktavatsalam

Nov. 14 (Bloomberg) -- Kenneth Heebner, the fund manager who beat all peers last year by buying energy stocks and selling financials, reversed course in the third quarter, snapping up Citigroup Inc., Wells Fargo & Co. and Bank of America Corp.

Heebner's Capital Growth Management LP, based in Boston, bought 15.4 million shares of Wells Fargo, 27 million shares of Citigroup and 15.6 million shares of Bank of America in the three months ended Sept. 30, according to a regulatory filing today. The combined stakes equal about 15 percent of the U.S.- listed stocks reported in the filing.

The firm sold all its shares of Schlumberger Ltd., along with those of Freeport-McMoran Copper & Gold Inc., Peabody Energy Corp., and Consol Energy Inc. The four companies were four of the money manager's top five holdings as of June 30, Bloomberg data show.

Heebner, 68, known for his rapid movements in and out of stocks, exited banks in the second quarter of 2007 after saying that the credit crisis would hobble earnings. He put more than three-fourths of the fund into natural resources and energy, helping his CGM Focus Fund to an 80 percent gain in 2007, the best performance by a U.S. stock fund.

The $7.4 billion CGM Focus has dropped 46 percent this year, lagging behind 99 percent of rival funds, according to Bloomberg data. The fund has been hurt by plunging prices of oil and commodities. Crude oil prices have tumbled 62 percent since reaching a record $147.27 on July 11, as a global economic slowdown cut demand.

Heebner wasn't available for comment on the filing with the U.S. Securities an Exchange Commission, spokeswoman Martha McGuire said.

`Bigfoot'

Nicknamed ``Bigfoot' by industry professionals for his large and sudden trades, Heebner had almost half of the firm's portfolio in financial companies as of Sept. 30, Bloomberg data show. Wells Fargo is the largest holding owned by Capital Growth, while Citigroup and Bank of America rank third and fourth.

Energy and materials companies accounted for 13 percent of Capital Growth's assets, the data show. The firm held 13 million shares of Petroleo Brasileiro SA, the Brazilian oil company. Petrobras is the firm's second-biggest holding.

Heebner also purchased shares of Wal-Mart Stores Inc. and McDonald's Corp. in the quarter, as the companies drew cash- strapped customers looking for cheaper prices. Capital Growth bought 7.95 million shares of Wal-Mart, a new position, and 7.68 million shares of McDonald's.

Wal-Mart shares have risen 13 percent this year, while those of McDonald's have fallen 5.1 percent. The Standard & Poor's 500 Index has declined 40 percent.

Heebner is the co-founder of Capital Growth, which manages more than $10 billion in assets. Besides CGM Focus, Heebner manages the $2.3 billion CGM Realty Fund and the $674 million CGM Mutual Fund.

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To: Sam Citron who wrote (17)12/1/2008 8:55:49 PM
From: Condo
   of 37
 
I expect CGMFX to continue to outperform CGMRX based mainly on its more liberal charter...

Today being a case in point, I suppose:
cgmFx -10.68%
cgmRx -19.14% <==

REITs -19.33%
.:.

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To: Condo who wrote (21)12/2/2008 12:48:37 PM
From: Sam Citron
   of 37
 
Seems a bit odd that KH isn't shorting more aggressively in CGMFX. As for CGMRX, a fund that is so sector specific really should have a charter that allows its manager to sell short. Otherwise it might as well be a long only real-estate ETF.

Sam

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From: Condo1/16/2009 12:51:45 PM
   of 37
 
KH was late getting out of commodities and energy - hey, so was I - and he was early getting into financials. So what?
I'm looking forward to riding with CGM again when the market starts trending upward.


Heebner and CGM Close Out a Harrowing Year
Thursday January 8, 9:26 am ET
By the tickerspy.com Staff

2008 is a year that once high-flying hedge fund manager Ken Heebner will likely want to forget. Though he is one of the most admired investors on Wall Street, Ken Heebner's primary fund, CGM Focus (Nasdaq: CGMFX - News), continued to struggle through Q4.

As the S&P 500 dipped by about -38% during 2008, CGM Focus slid about -49%. And during Q4, the S&P 500 fell about -23%, while CGM Focus dropped -38%. One of CGM's other funds, CGM Mutual (Nasdaq: LOMMX - News), fared better in Q4, down -18%.

At the end of Q2, Heebner's firm Capital Growth Management showed a strong energy and commodities bias among its top holdings across all its funds. Those sectors peaked just as Q3 was getting underway and so did CGM Focus. CGM's shift into financials sometime during Q3 looks to have been ill-timed as well.

Heebner is known to move in and out of positions fairly quickly, but judging by the performance of his mutual fund during Q4 and the performance of the financial stocks the fund reported holding at the end of Q3, it seems likely that Heebner maintained at least some of his bias towards the financial sector for much, if not all, of Q4. Heebner also shifted into some traditionally safer names, which offset the weakness in the financial names in the CGM portfolio.

Looking at CGM's top holdings from the start of Q3, one can see a whole lot of red. The worst of the bunch are large money sector banks Citigroup (NYSE: C - News), Bank of America (NYSE: BAC - News), insurance firm Prudential (NYSE: PRU - News), and Russian telecom firm Mobile Telesystems (NYSE: MBT - News).

None of CGM's top holdings from the end of Q3 is above breakeven, though Wal-Mart (NYSE: WMT - News), McDonald's (NYSE: MCD - News), and Abbott Laboratories (NYSE: ABT - News) were the closest. Investors will be curious to know whether Heebner is sticking with these safer names as 2009 gets underway.

Of course, investors won't be sure of where Heebner stands now until next month, when the deadline for Q4 filings hits.
biz.yahoo.com
.:.

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To: Sam Citron who wrote (22)1/17/2009 5:08:49 AM
From: Condo
   of 37
 
deleted

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To: Condo who wrote (23)1/17/2009 3:13:24 PM
From: timber555
   of 37
 
Looks like Heebner sold his financials Thursday. CGMFX up +1% and financials down -3% on Friday. First divergence in quite a while.

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To: timber555 who wrote (25)1/17/2009 5:38:02 PM
From: Condo
   of 37
 
Looks like Heebner sold his financials Thursday.

Really!? Judging by the articles Sam Citron has posted here on the thread, whenever Mr. Heebner changes his mind about the market, he moves fast. I wonder what he's buying.
.:.

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To: Condo who wrote (26)1/20/2009 4:30:07 PM
From: Sam Citron
   of 37
 
Yes, looks like he has changed course pretty abruptly. Probably buying gold miners and going short most other sectors.

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To: Sam Citron who wrote (27)1/20/2009 9:38:45 PM
From: Condo
   of 37
 
Probably buying gold miners...
That would have been timely. NEM was up about 3% today.

...and going short most other sectors.
In CGMFx, of course.
CGMRx fell nearly 5% more than CGMFx today.
.:.

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