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Ken Heebner, my new hero



May 28, 2008 – Comments (8)

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

8 Comments – Post Your Own

#1) On May 28, 2008 at 11:39 AM, reddingrunner (92.97) wrote:

Heebner is amazing and I've been following him for a long while. I've always hesitated to invest in CGMFX just because his frantic trading style is so different from my own but obviously it would have been a smart move to have done so (I'm more comfortable with Thomas Soviero- FLVCX, who is also brilliant).

At any rate I almost pulled the trigger and bought into CGMFX last year, but decided that I could get the same long term results with less risk simply by buying LUK. 

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#2) On May 28, 2008 at 12:28 PM, JDSancho (99.64) wrote:

Deej, thanks for that link, it was a great article.  I jumped on the Heebner bandwagon about a year ago and have learned a lot!  I like to pick and choose which investments I agree with him on by reading the SEC 13F filings.

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#3) On May 28, 2008 at 12:42 PM, madcowmonkey (< 20) wrote:

There is also a TrackHeebner caps port as well. You could have looked at that too. 

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#4) On May 28, 2008 at 12:48 PM, madcowmonkey (< 20) wrote:

You know I have been wanting to discuss the track the wall street advisor issue. How does a caps port accurately portray how well one of these advisors is really doing in RL. The home page of CAPS show how "well or bad" one of them is doing and says, "hey, compare how well you do to your advisor." The rating system caps uses and the system an advisor uses is completely different. I am curious why TMF would even put this type of misinformation out. I think they need to re-word the statements to something similar to. "Look at what this wall street advisor says is a buy, hold, and sell."

Just a thought. 

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#5) On May 28, 2008 at 12:50 PM, TMFDeej (98.34) wrote:

Oooohhhh, good one madcow.  I didn't even think about the fact that CAPS would have a Heebner portfolio.  I'm going to add that one to my favorites ASAP.


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#6) On May 28, 2008 at 1:43 PM, AnomaLee (28.53) wrote:

I read an article about his fund in SmartMoney Magazine last year. I forget all about this guy until I read this post.

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#7) On June 23, 2008 at 4:55 PM, garyb52 (< 20) wrote:

This is a fantastic fund, but if you have it in a taxable account, you're going to get hit with a lot of capital gains, because the fund has a very large turnover. Heebner is continually buying and selling. This fund would be ideal in an IRA or 401-K.

I've been looking at Heebner's picks for some time now. He's almost always right on the ball. Last year I believe the fund went up over 60%. He held short positions in Countrywide and Indymac and made a killing. Smart moves all around!

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#8) On December 17, 2008 at 9:25 AM, Jumonji (83.26) wrote:

I don't suppose anyone is worrying about capital gains from CGMFX these days... I bought in June and now its down nearly 60%, but I'm not selling.

 So this is what intestinal fortitude feels like... kinda queezy, ya know?



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