Ken Heebner’s Latest Stock Picks

Page 1 of 2

Famed fund manager Ken Heebner of Capital Growth Management may be best known for his outstanding returns generated for investors (in excess of 290% from 2000-2010). Despite the extremely volatile market conditions during that time period, Heebner has kept his investing hand steady and sought solace in some of the biggest financial names like Citigroup and Morgan Stanley. In his latest 13F filing from September 30th, 2012, Heebner took on a number of new positions, with five of them standing out as his largest plays during that previous quarter. Here is our take on Heebner’s latest stock market moves:

Ford Motor Co. (NYSE:F) was a huge addition to Capital Growth’s portfolio, with almost $125mm worth of stock purchased. The automaker emerged from tumultuous times at the end of the last decade, hitting some harrowing lows in 2008 and early 2009. The company has seen a loss of market share globally and has seen stronger competition from brands such as Hyundai and Kia; union issues have also plagued the automaker in the recent past. However, as Ford resolves these problems and poises itself to operate and market itself more efficiently going forward, the car manufacturer may see glory days again, but we aren’t betting on that anytime in the near future (read more about Ford’s European woes here).

Historically, Heebner hasn’t devoted much of his capital to tech stocks, but he is hoping to change that with his new stake in Google, Inc. (NASDAQ:GOOG). Investing almost the same amount as he did in Ford, Heebner isn’t just wetting his feet; he’s making a statement by dropping 3% of his fund into the tech giant. The stock continues to be rewarding to investors, despite two earnings misses last year (including a 17.2% miss last reported quarter that brought on a slew of downgrades). Many just see these dips as opportunities to buy, and if your pockets are deep like Capital Growth’s are, you can do exactly that. By focusing on advertising and continually pushing into the operating system and hardware markets, Google is expected to grab even more market share in 2013. (Just how far can Google go from here?)

PulteGroup, Inc. (NYSE:PHM) was another addition, and the homebuilder joins Heebner’s other housing and REIT holdings such as Simon Property Group and SL Greene Realty Corp (SLG). PHM saw an incredible winning streak in 2012, netting investors who bought a year prior a triple-digit gain of 176%. This increase in price caused the trailing price to trade at 49 times earnings, but 2013 projections are a much more modest 18, which could spell out a combination of two possibilities for the next year: better earnings, and/or a drop in stock price. Wall Street analysts are agreeing with the latter, saying the stock is overheated and should see a drop in order to be inline with mean price targets. Heebner won’t have any solvency issues if this downturn occurs; we don’t recommend this play unless you have an extended holding horizon like Heebner.

Where else did Heebner put his fund’s billions?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!