Ken Heebner of the CGM Focus Fund (CGMFX) has made a game-changing move in his portfolio. In a CNBC interview with Erin Burnett, Heenber was asked about his positions in two key stocks in the oil sector Schlumberger (NYSE: SLB) and Petroleo Brasileiro (NYSE: PBR), or Petrobras. Heebner said that because of the slowing in emerging growth markets such as China and India, HE HAS CUT COMMODITY STOCKS DOWN TO UNDER 10% OF THE PORTFOLIO. He said Schlumerger is gone and he’s hanging on to Petrobras, but is watching oil prices. This is a major change. If you go back to his last filing, it showed how Heebner had stuck with commodities. That was hurting him. Based upon how the markets have been performing he hasn’t seen a reprieve from the selling pressure in whatever his new holdings were. With the market drop yesterday, the CGM Focus Fund was down 5.5% at $42.82. Heebner’s performance until recently has been incredible. But the CGM Focus Fund has lost nearly one-third of its value since the end of June.
Jon C. Ogg
September 16, 2008