Ken Heebner, my new hero
As my investing style has evolved over the past few years, I have become more of a macro, big picture, top down sort of investor. I have become fascinated with trying to pick up on major national and global trends and then look for solid companies that will benefit from them rather than just screening for cheap stocks like I used to in the past.
Fortune magazine recently published an outstanding article on a famous investor who follows a similar philosophy, Ken Heebner (see article: America's hottest investor) . Reading as much about investing as I do, I had heard the name in the past, but I never realized just how successful Heebner has been. He has produced Peter Lynch-like results as manager of the CGM Focus fund (CGMFX) over the past decade. Since 1998, this fund has produced an average annualized return of 24%, compared with a rise of only 4% in the S&P 500 over the same time period. That is the best ten-year record for any fund.
With such an outstanding track record, I wondered to myself what Heebner is buying now. With a few mouse clicks, here’s what I came up with (isn’t the web great…how did we live without it): After Another Quarter of Gaudy Returns, CGM's Funds Show Off Latest Moves. It appears as though Heebner is still bullish on copper, agriculture, oil, and Latin America…particularly Brazil. For the most part, my portfolio is focused on the same sectors. Are we right? Who knows, but I’m glad to see that someone with such an outstanding track record holds many of the same companies that I do. I plan on keeping an eye on what Heebner does in the future.
No position in CGMFX