This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ken Heebner: Best Fund Manager Alive?

Perusal of Ratings fund database fails to identify a clear challenger to CGMFX's claim to the diversified domestic equity fund performance championship. While the Leuthold Grizzly Fund (GRZZX) holds the top spot for the latest 12 months and placed second to CGMFX for the year to date, its "inverse" performance will hold it off when the stock market resumes its upward path.

A more serious competitor is the Pacific Advisors Small Cap Fund (PASMX), runner-up by more than 10 percentage points to Heebner's fund over the past five years. PASMX also placed first among 2,779 funds in the group in calendar 2006, when CGMFX ranked 959th with a mediocre return of 14.95%.

PASMX's largest holdings include Hornbeck Offshore Services (HOS), Mitcham Industries (MIND) and Kirby (KEX).

Similarly, using Sharpe ratios as proxies for risk-adjusted returns, the Ivy Fund-Asset Strategy Fund (WASAX) topped the group by that measure for the three years ended June 30, a span when Heebner's flagship fund placed a very respectable third. However, when absolute returns are used, CGMFX placed first among the diversified equity funds for the past three years with WASAX capturing the silver medal.

For the past five years, a period when SGMFX placed first for both absolute and risk-adjusted returns, WASAX captured second spot in the risk-adjusted race, only a small fraction of a percentage point behind the CGM fund.

The Ivy Fund-Asset Strategy Fund focuses on broad asset categories with investment positions in index futures and precious metals.

Heebner's fund, on the other hand, has been riding high on the burgeoning worldwide demand for industrial metals. Its major holdings in that area include United States Steel (X - Get Report), Nucor (NUE), ArcelorMittal ADR (MT - Get Report), Freeport-McMoRan Copper & Gold (FXC) and Southern Copper (PCU).

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs