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Heebner's World View : The manger of CGM Focus fund shares his outlook for 2008
By admin - Posted on December 16th, 2007
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Ken Heebner played the market like a fiddle in 2007. His CGM Focus fund gained nearly 70% to November 12, crushing the S&P 500 by 65 percentage points. Although the U.S. housing market is mired in a depression, says Heebner, he thinks the economy will still escape recession in 2008. "It really takes a sledgehammer blow to turn this economy down, and I don't think the housing market itself is that blow," he says. Heebner thinks it's important to view investing globally: "You have to look at the entire world. Up until the past year or two, the U.S. consumer was the driver of the global economy." That is no longer the case. "The portfolio remains focused on the beneficiaries of strong global growth," Heebner adds.
His favorite sectors -- energy, industrial raw materials, infrastructure builders and agribusiness -- satisfy the voracious appetites of fast-growing emerging markets. For instance, he recently had 30% of his fund's assets in oil-production and oil-services companies. "As people go from bicycles to motorcycles to cars, there is a big increase in fuel consumption," he says.
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Submitted by payday loans (not verified) on Wed, 09/10/2008 - 10:01.
Another thing to consider is that Heebner is known for rapid changes in his positions. The Bloomberg link provides some evidence of that within the last few weeks; unfortunately, the "chart of the day" referred to is not in the story and is only available now on the prescription Bloomberg service.
With the mortgage crisis
Submitted by microsoft office training (not verified) on Tue, 08/26/2008 - 18:37.
With the mortgage crisis depending instead of improving, it will take a while longer for the recovery.
HMMM
Submitted by www.mycapitalonecard.com (not verified) on Fri, 08/22/2008 - 15:28.
Well, apparently he is wrong because the economy is definitely in the crapper, and does not seem to be heading in a positive direction anytime soon. Maybe there will be some things that stimulate the economy and stabalize it a bit more towards the end of the year, such as decreasing gas prices... but it's not looking good right now.
CGMFX verses FLVCX
Submitted by Ed (not verified) on Sat, 02/23/2008 - 14:23.
In response to the post that FLVCX beat CGMFX by about 10% per year over the past five years. Such a statement is completely false. The facts are a matter of public record. FLVCX five year average 28.91% (excellent), but CGMFX five year average was 35.75 (almost 7% a year better). The risk translates to about 29% higher standard deviation as the five year standard deviation for CGMFX was 21.63 verses FLVCX was 16.71. However, the five year beta for FLVCX was 19% higher @ 1.56 verses CGMFX @ 1.31 so it is without fact to state CGMFX has 50% more risk. Furthermore, FLVCX is predominently a domestic stock fund, while CGMFX goes anywhere and currently is predominantly non-US stocks. So stating they are both mid-cap is also misleading. Both funds are very good funds but facts are facts.
