Loser: CGM Mutual
Veteran fund manager Ken Heebner apparently still is in the wrong place at the wrong time, even in a market that has rewarded so many stock-pickers in so many areas of the market.
CGM Mutual (LOMMX) has always been marked by uneven performance, but the past few years have been especially challenging. During the past five years, the fund has advanced 3.5% annually, according to Morningstar data, landing in the bottom 1% of its category. Fund assets have declined to $322 million.
Heebner likes to trade — and does so at a blistering pace, with a turnover rate of 325% for the past year. With so many parts in motion, it is really hard to examine exactly what is working or not working in this portfolio. U.S. Treasuries make up 26.5% of the portfolio, with the lion’s share of the rest in stocks. Most recent top holdings included Morgan Stanley (MS), Citigroup (C) and Ford (F).
Heebner has made some great calls in the past, but recently his approach has been totally out of sync with the market.
LOMMX charges 1.12% in expenses.