Thursday, May 29, 2008

Some Reasons to be Bullish

Fortune magazine has a nice profile up about fund manager Ken Heebner. His CGM focus fund was incredible last year, returning 80%. He has been a believer of international growth driving the global economy, and has scored gains in agriculture, oil services, and miners. He's big on steel right now, as am I. We all know the reasons why, and this article adds some of the details. He owns larges stakes in ArcellorMittal(MT), US Steel (X), and Nucor (NUE). He's also big on Brazil's Petrobras (PBR), although I can't seem to find anyone who isn't.

He's a very active investor, often switching in and out of stocks quickly. He's willing to short stocks, and willing to admit when he's wrong and get out. That's one thing most fund manager's can't quite master.

There's also a valuable portion in the article about when he was talking with a Goldman Sachs analyst about sovereign wealth funds. Here's the excerpt:

Fox mentions that sovereign wealth funds are diversifying out of bonds and bank bailouts and into broad portfolios of common stocks. Coming from Goldman, the world's top trading house, this is valuable information. Heebner is one of the few fund managers who routinely engages in short-selling, and the prospect of a couple of trillion dollars flooding the equity markets should be enough to give any short-seller pause.

That's something very important to consider as an investor. That massive amount of money flooding into the market could really affect stocks to the upside.

Click here for the full article from Fortune.

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