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Ken Heebner Top Holdings: Goldman Sachs Group, Ford Motor Company, FreeportMcMoRan Copper & Gold, Baidu.com Inc., FedEx Corp., Southern Copper Corp.

November 23, 2009 | About:
Ronald Sommer

guruek

80 followers
(GuruFocus, November 23, 2009) It is hard to pin down on Investment Guru’s positions as he trades his chips at such a fast pace. It is equally hard to pin down his performance as well. The performance of the flagship CGM Focus Fund is as follows:

YearReturn (%)S&P500 (%)Excess Gain (%)
2008-48.2-37-11.2
2007805.6174.4
20061515.79-0.8
200525.24.9120.3
200412.4120.4
200366.528.737.8
2002-17.8-22.14.3
200147.4-11.959.3
200053.9-9.163.0
19998.521-12.5


It tends to surprise investors either way, depending on the year. You can dismiss the manager for playing momentum, but you cannot dismissed the fact that the manager made money for his investors.

In fund’s the semi-annual report for 2009, the fund manager discussed his strategy of buying or selling a security in rather general terms:
In making an investment decision, the investment manager analyzes:
  • the overall economic factors that may affect a potential investment; and
  • certain industries and companies, evaluating the fundamentals of each on a case-by-case basis and focusing on companies that it determines are attractively valued.


The investment manager will sell a security if it determines that:
  • its investment expectations are not being met;
  • better opportunities are available; or
  • its price objective has been attained.




OK, if Heebner is a value investor, he certainly is not a Buffett type of value investor.

On the other hand, he is not a Kenneth Fisher type of trader either, for he tends to take a heavy bet on a few companies in a very selective few industries at any given time. 2008 was a disastrous year for him, but the years before that were spectacular.

As of now, Heebner is rather optimistic, thinking the inflation is low, interest in low, the capacity utilization and labor market support years ahead good growth with little worry about inflation. Now is the ideal environment for investing in stocks, according to Heebner:

























So will he bet his money. As of Sepetember 30, 2009, These are companies that shared his wallet the heaviest:

No. 1: Goldman Sachs Group Inc. The (GS), Weightings: 7.71% - 2,809,100 Shares

Goldman Sachs is a global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments, and high net worth individuals. Goldman Sachs Group Inc. The has a market cap of $86.92 billion; its shares were traded at around $170.01 with a P/E ratio of 19.77 and P/S ratio of 1.62. The dividend yield of Goldman Sachs Group Inc. The stocks is 0.82%. Goldman Sachs Group Inc. The had an annual average earning growth of 24.5% over the past 10 years.

No. 2: Ford Motor Company (F), Weightings: 6.43% - 59,963,000 Shares

Ford Motor Company produces cars and trucks. The company and its subsidiaries also engage in other businesses, including manufacturing automotive components and systems and financing and renting vehicles and equipment. The company is divided up into the following four operating segments: Automotive, Visteon Automotive Systems, Ford Motor Credit Company, and The Hertz Corporation. Ford Motor Company has a market cap of $27.83 billion; its shares were traded at around $8.64 with and P/S ratio of 0.19.

No. 3: FreeportMcMoRan Copper & Gold Inc. (FCX), Weightings: 6.11% - 5,984,400 Shares

Freeport-McMoRan is engaged in mineral exploration and development, mining and milling of copper, gold, and silver in Indonesia, and the smelting and refining of copper concentrates in Spain and Indonesia. They are the world's lowest-cost copper producer and one of the world's largest producers of copper and gold. FCX's operations are conducted through its subsidiaries, P.T. Freeport Indonesia (PT-FI), P.T. IRJA Eastern Minerals Corporation (Eastern Mining) and through Atlantic Copper, S.A. (Atlantic). Freeportmcmoran Copper & Gold Inc. has a market cap of $36.37 billion; its shares were traded at around $84.57 with a P/E ratio of 31.44 and P/S ratio of 2.04. Freeportmcmoran Copper & Gold Inc. had an annual average earning growth of 15.1% over the past 10 years.

No. 4: Baidu.com Inc. ADS (BIDU), Weightings: 5.31% - 913,000 Shares

Baidu, Inc., formerly Baidu.com, Inc. is a Chinese-language Internet search provider and is based in Beijing, the People's Republic of China.The company offers a Chinese language search platform and conducts its operations principally through Baidu Online Network Technology Co., Ltd. , a network of third-party Web sites and software applications. Further, the company offers Japanese search services, including Web search, image search, video search, and blog search capabilities. It also offers online marketing services to its customers directly and through other distribution networks. Baidu.com Inc. Ads has a market cap of $11.01 billion; its shares were traded at around $427.59 with a P/E ratio of 75.55 and P/S ratio of 23.48.

No. 5: FedEx Corp. (FDX), Weightings: 4.48% - 4,003,500 Shares

FedEx Corporation is a global transportation and logistics enterprise that offers customers a one-stop source for global shipping, logistics and supply chain solutions. Services offered by FedEx companies include worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery and global logistics, supply chain management and electronic commerce solutions. Fedex Corp. has a market cap of $25.56 billion; its shares were traded at around $81.78 with a P/E ratio of 26.3 and P/S ratio of 0.72. The dividend yield of Fedex Corp. stocks is 0.54%. Fedex Corp. had an annual average earning growth of 17.7% over the past 10 years. GuruFocus rated Fedex Corp. the business predictability rank of 3.5-star.

No. 6: Southern Copper Corp. (PCU), Weightings: 4.4% - 9,630,000 Shares

Southern Peru Copper Corp. objective is to increase stockholder value through earnings and cash flow growth in varied market conditions. The company intends to further realize the potential of there existing operations by expanding our production capacity and reserves, as well as exploring and developing promising mineral deposits. The company believe that there existing operations have significant growth potential that can be financed mainly through internally generated cash flows. They also intend to supplement internal growth by selectively pursuing value-enhancing acquisition opportunities. Southern Copper Corp. has a market cap of $29.64 billion; its shares were traded at around $34.87 with a P/E ratio of 65.79 and P/S ratio of 6.11. The dividend yield of Southern Copper Corp. stocks is 2.06%. Southern Copper Corp. had an annual average earning growth of 46.7% over the past 10 years.

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Rating: 3.0/5 (6 votes)

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