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Charles Mizrahi

Investment Guru of the Year 2007: Ken Heebner

December 20, 2007

We are very glad to announce that Ken Heebner has been named Investment Guru of the Year 2007 by GuruFocus readers.

Ken Heebner is the co-founder of Capital Growth Management, a money management firm with more than $9 billion under management. Ken Heebner is the manager of CGM Focus Fund. Since the beginning of the year, the fund has rocketed more than 60%, thumping the S&P500 index by some 57%. Over the past ten years, CGM Focus has chalked up astounding average returns of 25% a year.

We started this year by asking readers to nominate their favorite Gurus, these Gurus are then listed as candidates for readers to vote. The candidates were Ken Heebner, Bruce Berkowitz, Robert Rodriguez, Martin Whitman and David Winters.

Out of all the readers that voted, Ken Heebner received 34.8% of the votes, declaring him Investment Guru of the Year 2007. Bruce Berkowitz received 27.5% of the votes at second place. He is followed by Robert Rodriguez, who received 16.4% of the votes. Martin Whitman and David Winters tied for 10.6% of the votes.

GuruFocus reader Generaljoe said, “KEN HEEBNER. CGMFX Mutual fund was the top fund for the month, year, and five year. He deserves it hands down.” Many would agree.

Ken Heebner calls himself a “plain vanilla” kind of fund manager, he looks for opportunities wherever he can find them and then pursues them aggressively, quickly diving in and out of stocks of all sorts. He sold short financial stocks due this year’s mortgage crisis, which helped him gain while others lost.

Robert Rodriguez, another candidate for Investment Guru of the Year 2007, has predicted the financial crisis a few years back (Read: Robert Rodriguez's Perspective on Financial Stocks and Sub-Prime Loans.) He avoided losses by investing little in financials during the past years. User Highroi says: “His returns / risk factor is the best on Wall Street this year in my humble opinion.” and this is agreed by Valuefan.

Congratulations, Mr. Heebner!


Rating: 3.2/5 (35 votes)

Comments

kanajan
Kanajan - 13 years ago    Report SPAM
Ken Heebner has not received the kind of adulation that his peers( like Bill Miller )have been lavished with.By any standard,his accomplishments will eclipse that of his contemporaries except maybe Warren Buffet. kanajan
yhlbb
Yhlbb - 13 years ago    Report SPAM
Sold LMVTX two years ago and have my check ready for CGMFX.

Form this Morningstar.com article:

"Heebner's superaggressive style means there are some blowups, however. And he's one of the few managers who doesn't give us regular interviews so it's been tough for us to warm up to his funds and grow comfortable enough with the risks. That said, we want to be sure to recognize the outstanding job he's done over the long haul for investors."

http://biz.yahoo.com/ms/071217/219092.html

Frank Lind
Frank Lind - 12 years ago    Report SPAM
He has made a LOT of money from oil.

But he made be die for a big loss due to the fact oil is a bubble that, like all speculation, will pop at some point.

No wait...its different this time right?

China and India didnt exist before 2002. Suddenly they "woke up" and decided they wanted a better life.

I have a different view on the reason.

see this link please http://www.star-telegram.com/ed_wallace/story/651928.html
danielw
Danielw - 12 years ago    Report SPAM


Sigh. There that phrase is again. Let me point out the absolute uselessness of such a phrase again--this time with China and India as subject matter.

One of my recent posts pointed out that the phrase offered no useful advice because it can be taken to meet anything.

In the case of China and India, one can look at past rises and falls in developing markets and say it's not going to be different this time, so go short--or stay cleer of what they are buying at the very least (in this case all kinds of commodities).

Or one can look at centuries of history where China and India were the two largest economies and say that the world is returning to normal--which, as it does so, would require them to continue growing (especially building out the infrastructure that the nations need so badly). In this case, you'd want to go long sectors in the country, their currencies, or the things that they want to buy.

In any case, an investment strategy which seeks to act on the premise that things never change is useless because it depends entirely on one's point of reference. More importantly, it causes you to not think much at all about the real important issues.

By the way, as per capita income gets above 2500 dollars or so, consumption of materials in those nations has always sky-rocketed. Will this time be different? Again, I wouldn't invest on that assumption--just another point.

One needs to look at real issues like supply and demand, the direction of the incomes, and balance sheets, of the people doing the buying--as well as their needs and desires. (In this case, plumbing, ports, electricity, protein, and so on...)

Heebner to his credit has focused on the real issues despite everybody saying commodities were in a bubble since 2003--and tech/finance/real estate was going to come roaring back any time! He actually did a lot of work on water problems in Chile that go unrecognized because too many people see a price rise in think "bubble"--having as they do no clue the causes for such a rise...

--Daniel

http://danielwahl.blogspot.com/

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