Ken Heebner - Poor Man's hedge fund manager?

Name a US Large Cap blend fund that has returned 75% YTD? Yes you heard me right - 75% - its beaten (well beaten is not the right word, thrashed is more like it) the S&P 500 by a whopping 63%. And if you look at its returns in the past - well judge for yourself:

CGMFX - CGM Focus Fund

2003 66.5% (beat the S&P by 37.8%)
2004 12.3% (beat the S&P by 1.5%)
2005 25.4% (beat the S&P by 20.5%)
2006 15.0% (pretty much the same as the S&P 500)
2007 73.3% (beat the S&P by 63.5%)

2004 and 2006 would be considered bad years for Heebner, but for an average fund manager, they would be considered pretty decent :-)

And he's got other funds that have stellar performances as well. Check out the CGM realty fund (CGMRX) - its up 30% YTD while other real estate funds are in the red for the year.

Now, whether he keeps up this performance up in the long run remains to be seen, but he's been doing great lately, we'll have to give him that.

Personally, I've got my eye on the CGMRX as I do not have any RE fund in my Asset Allocation plan (apart from what the total stock market index holds) and I'm looking to add some RE exposure but am wondering if I'm already late to the Heebner party.

So how does Heebner do it? Dont know - maybe he just has a knack for spotting whats "in". The 330% annual turnover (meaning he does tonnes of buying and selling in a short span) seems to suggest so.

So, if you are on the lookout for a poor man's "hedge" fund and dont have the millions to invest in a "real" hedge fund, check out the Capital Group.

Better armour up for the bumpy ride tho......