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Heebner At Bottom For Fourth Year In Five Sticks To Bet
Reply to @Shostakovich: I also held CGMFX for several years and finally sold out of it this year (which usually means it is due for a huge comeback heh).
The article also mentions CGMRX's 10 year performance, but like CGMFX, CGMRX has also been lackluster during more recent periods.
I remember the talk on Fund Alarm back in 2007 about what a terrific fund CGMFX was and how good a manager Heebner was. I bought into it, lost money and got out in 2008. Probably a good learning experience.
Today, for me, managed funds have to have a manager at the helm who has allocation flexibility and will go to cash in order to control risk. They won't be high flying returns in bull markets but over market cycles, funds like ARIVX, YAFFX, FPACX are the right managed funds for me.
Interesting the article mentions Heebner's shorting in 2001 - the fund (as far as I know) continues to have the ability to short and I'm not sure why that's gone almost completely unused in the last 3-5 years, it seems like. It's also a matter of timing with Heebner and themes - too early in/too early out.
Reply to @catch22: Doesn't seem like we've had sufficient, sustained upticks for Heebner's style to pay off.
As Scott notes, I don't know why CGM hasn't been shorting.
I track my "lifetime gains" on all my holdings. Still down quite a bit on CGMFX. Very glad I never got suckered into letting it play a larger role in my portfolio. He's really stinking up the joint.
Reply to @catch22: Heebner is really about making fairly concentrated macro bets - banks, commodities, etc. He also moves fairly rapidly. If he gets that timing wrong (in too early, out too early, whatever), the fund falters. The timing (or, as Shosta noted and it's an interesting point), the length of these trends has not been good and it seems like trend-following funds (Managed Futures) have not fared well in the last couple of years, either. Marketfield has been very good in its macro bets, but it's a matter of timing and the right calls - although MFLDX can and does hedge (which also needs the right timing and calls, too.)
It is amazing how much has changed in terms of AUM and CGMFX.
Reply to @scott: Good insights as always, scott. I have to admit, my experience with CGMFX has soured me on other momentum-type funds. I'm strongly thinking of moving toward indices for momentum, and active management for deep-value.
My father actually looked into CGMFX after its last real good year. Thankfully, his common sense prevailed.
Reply to @Shostakovich: AQR's technically driven Momentum fund has actually done fairly well this year. Not something I'm interested in, but was impressed with the record this year. AQR is also apparently coming out with new funds next month, including AQR International Defensive Equity (which is apparently available 7/9. - their EM and commodity funds may be coming out at the same time, I'd guess, but dunno.)
Comments
Problem with Heebner is, if there's no trend in the market, his investing prowess fizzles.
The article also mentions CGMRX's 10 year performance, but like CGMFX, CGMRX has also been lackluster during more recent periods.
Today, for me, managed funds have to have a manager at the helm who has allocation flexibility and will go to cash in order to control risk. They won't be high flying returns in bull markets but over market cycles, funds like ARIVX, YAFFX, FPACX are the right managed funds for me.
Thanks Mr. Heebner for the investment lesson.
There has been a trend for several years, eh; don't understand what he did not or can not see.
We have not, nor do hold any of this fund group.
As Scott notes, I don't know why CGM hasn't been shorting.
I track my "lifetime gains" on all my holdings. Still down quite a bit on CGMFX. Very glad I never got suckered into letting it play a larger role in my portfolio. He's really stinking up the joint.
It is amazing how much has changed in terms of AUM and CGMFX.
My father actually looked into CGMFX after its last real good year. Thankfully, his common sense prevailed.