Top Hybrid Funds in April: CGM Mutual

Although the list of the 10 top performing equity-fixed income "hybrid" mutual funds is dominated by six asset-allocation vehicles, a traditional balanced fund captured the top spot by a comfortable margin.

The CGM Mutual Fund(LOMMX Quote) has established a habit of turning in double-digit annual returns in the 27 years since Kenneth Heebner assumed the helm. In April, it jumped into double digits in a single month.

With 9.25% of its portfolio in Brazilian Petroleum Corp. ADR(PBR Quote) and 6.53% in Schlumberger(SLB Quote), the price surge in petroleum boosted LOMMX to an 11.88% total return for the month. With 32% of the fund's assets, energy was a dominant force in the CGM fund's portfolio.

Whereas balanced funds tend to hold a relatively steady ratio of roughly 60% to 80% in equity investments, with the remainder primarily in fixed-income investments, asset allocation funds have a broader mandate that allows their managers to adjust their proportions more radically.

The energy sector also helped the Purisima Total Return Fund(PURIX Quote) secure the second spot in the hybrid category for the month. Its top holding is Schlumberger, followed by German electronics giant Siemens AG ADR(SI Quote). Other major energy holdings in PURIX's portfolio include Baker Hughes(BHI Quote), Transocean(RIG Quote) and Total SA ADR(TOT Quote).

Aside from the CGM fund, the only two funds on the adjoining list with positive results year to date are convertible funds. The Franklin Convertible Securities Fund(FISCX Quote) and the Fidelity Convertible Securities Fund(FCVSX Quote) were each up more than 7% in April and fractionally above water for the year so far.

APRIL'S BEST PERFORMING
NAME, TICKER & TheStreet.com RATINGS GRADE	INVESTMENT OBJECTIVE	1-MO. TOTAL RET'N (%)	YR.-TO- DATE RET'N (%)	TOTAL EXPENSE RATIO (%)	MIN. INITIAL INVEST.
CGM Mutual Fund (LOMMX) B+	Balanced - Domestic	11.88	2.52	1.07	$2,500
Purisima Total Return Fund (PURIX) C+	Asset Allocation - Domestic	7.84	-3.02	1.41	$25,000
TCW Agg LifePlan Fund N (TGPGX) U	Asset Allocation - Domestic	7.78	-2.51	1.21	$2,000
Franklin Convertible Securities A (FISCX) D+	Convertible	7.55	0.39	0.89	$1,000
Evergreen Balanced A (EKBAX) D+	Balanced - Domestic	7.37	-2.12	1.03	$1,000
Fidelity Convertible Securities (FCVSX) A+	Convertible	7.22	0.45	0.79	$2,500
Ivy Fund-Mngd Euro Pacific Cl A (IVMAX) U	Asset Allocation - Global	7.03	-7.89	1.72	$500
TCW Moderate LifePlan Fund N (TGPOX) U	Asset Allocation - Domestic	6.92	-0.70	1.10	$2,000
Oppenheimer Transition 2030 Fund A (OTHAX) U	Asset Allocation - Domestic	6.78	-3.26	1.33	$1,000
MSIF Strategies Fund A (GVIAX) U	Asset Allocation - Domestic	6.70	-4.34	1.74	$1,000
S&P 500 Composite Total Return		4.87	-5.03
Lehman Brothers Aggregate Bond		0.18	1.95
Source: TheStreet.com Ratings - Data as of 4/30/2008. For an explanation of our ratings, click here.