A detailed look into Ken Heebner, America's hottest investor

Fortune does a profile on Ken Heebner.

Heebner has no patience for the pet theories of this or any other analyst (or economist or strategist). "I want information, not opinions,".....

Since May 1998, Focus has an average annualized return of 24%, the best ten-year record of any U.S. mutual fund, compared with only 4% for Standard & Poor's 500....

Asked how long it takes him to identify those stocks, Heebner answers, "About ten minutes. I've been at this a long time." It's an investing style that will never be taught in business schools and is definitely not something any amateur should try at home....

His biggest stakes are in steel (ArcelorMittal, Nucor, and United States Steel) and in oil (Apache, Devon Energy, Petrobras, and Schlumberger).....

The turnover rate in CGM Focus, which typically holds 20 to 30 stocks at a time, was a whopping 384% last year, which in theory means he traded enough to buy and sell the entire portfolio nearly four times....

-Stock Article Link

CGM Focus fund (CGMFX) crushing the S&P 500 by 65 %

Ken Heebner, in my opinion, is one of the best money managers around. At CGM Focus, Heebner has made a mint by buying metals producers and energy names. He saw trouble in mortgages and shorted Countrywide Financial. All told, CGM Focus is up an amazing 75% for the year to date.

Company	Symbol	% Assets	YTD Return %
COMPANHIA VALE ADS	RIO	7.10	135.64
CNOOC LTD ADS	CEO	6.01	101.67
VIMPEL COMMUN	VIP	5.99	116.31
COUNTRYWIDE FNL CP	CFC	5.92	-73.90
POTASH CP SASKATCHEW	POT	5.82	158.62
BHP BILLITON LIMITED	BHP	5.78	94.15
ARCELOR MITTAL NEW	MT	5.72	78.74
CUMMINS INC	CMI	5.67	99.60
PETROLEO BRASILEIRO	PBR	5.62	93.29
SCHLUMBERGER LTD	SLB	5.61	48.96

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. -Stock Link

Investing guru, Ken Heebner bullish on energy and infrastructure and global mining

Ken Heebner is an excellent forecaster of future events. So when he talks, I listen.

"Energy is now 26% of the portfolio. Industrial raw materials -- we're talking copper, steel, coal, nickel. That sector is 24%. Infrastructure is 16% and fertilizer is 11%. These businesses will not be affected, in my judgment, by a slowdown in consumer spending and a continued decline in the housing market....

Mosaic(MOS) is one stock. We also added a couple of infrastructure companies, Foster Wheeler (FWLT) and McDermott International (MDR). As of June 30, they, along with Fluor, account for 12% of the portfolio. McDermott is in offshore oil platforms and boilers for power plants. Fluor (FLR) builds the whole power plant, and it builds refineries. And Foster Wheeler is pretty similar. The big businesses for all three companies are energy and power plant construction."-Stock Article Link 1

"recent purchases are Fannie Mae (FNM) and Freddie Mac (FRE), which I think are huge opportunities."-Stock Article Link 2

CGM Realty Fund

CGM Focus Fund

CGM Capital Development Fund

Morgan Stanley (MS) destroys estimates!

If you get the sector right, you'll get the stock right too. That's why Ken Heebner is money in the bank for choosing once again the right sector to be in, investment bank stocks.

Sweet Home, Morgan Stanley - Article
"Overall, Morgan's results were stellar, with continuing operations earnings soaring to $2.56 billion, or $2.40 a share, from the year-ago $1.6 billion, or $1.51 a share. Revenue jumped to $11 billion from $8.55 billion a year earlier. Analysts surveyed by Thomson Financial were looking for a profit of $1.88 a share on revenue of $9.42 billion." (That's 28% better than expected!)

Ken Heebner's view of the market.

When Ken Heebner talks, you should listen. Achieved over 17% in the past 30 yrs!

"The subprime mortgage disaster is much bigger than anyone can imagine," Heebner begins....He forecasts massive foreclosures -- a 30% default rate on subprimes.....

Heebner's biggest play these days -- 25% of assets at the end of 2006 -- is in investment banks: Lehman Brothers (LEH), Merrill Lynch (MER), Bear Stearns (BSC), Morgan Stanley (MS) and Goldman Sachs (GS). Explains Heebner: "They are in three new businesses. One is feeding the private-equity companies. I've seen a study that shows that between 2000 and 2006, the fees the investment banks got from private-equity companies equaled 10% of the assets of the private-equity companies. They are in the hedge fund business, too. Goldman has one. Finally, they sponsor these hedge funds by providing them with seed capital, providing brokerage services and making very profitable arrangements in terms of trading. As long as global liquidity remains robust, they will enjoy new avenues of profit...."

He goes to mentioning Deere (DE) and Las Vegas Sands (LVS)...

-Full Invesment Article Link

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-Ken Heebner of CGM funds - 17.2% in the last 30 yrs (since 1976)