Ken Heebner Bailed Out of Commodities (SLB, PBR, CGMFX)

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By Douglas A. McIntyre Updated Published

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

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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