Heebner Buys Ford, Tesla; Sells BlackRock, Toll BrothersKatie Brennan
Kenneth Heebner, who ranked as America’s No. 1 stock picker before the financial crisis snapped his winning streak, took new positions in Ford Motor Co. and Tesla Motors Inc. during the second quarter, while selling BlackRock Inc. and Toll Brothers Inc.
Heebner’s Capital Growth Management LP purchased 9.82 million shares of Ford, according to a filing with the Securities and Exchange Commission released today. The firm sold $89.4 million of BlackRock shares and $21.6 million of Toll Brothers, in the three months ended June 30.
Heebner’s CGM Focus Fund topped all diversified U.S. stock mutual funds in the decade through 2007. Tumbling commodity prices and a weakening global economy in the second half of 2008 snapped the manager’s streak, as his expectation of a quick recovery failed him. Customers bailed out of the Boston-based fund as it lost an annual 5.1 percent in the past five years, sending its assets plunging to $1.5 billion at the end of October from the June 2008 peak of $10.3 billion, the data show.
The fund has returned 23 percent this year, beating 88 percent of its peers, according to data compiled by Bloomberg.
Capital Growth sold shares of Goldman Sachs Group Inc. and closed its position in JPMorgan Chase & Co. during the quarter, reducing its exposure to financial stocks by 6.2 percent. Citigroup Inc. and Morgan Stanley made up the fund’s largest holdings. The money manager increased his proportion of equity investments in companies that rely on consumer discretionary spending by 14.4 percent, data compiled by Bloomberg show.
Heebner bought 215,000 shares in Tesla, the electric-car company led by Elon Musk. The stock almost tripled in the second quarter. He also bought shares of Gap Inc., Home Depot Inc. and Cisco Systems Inc.
In February, Heebner said a rebound in home prices will lift consumer confidence, leading to a stronger-than-anticipated U.S. economy over the next few years.