There’s no shame in piggybacking a top investor’s success, as far as Cramer’s concerned. So for this week’s Game Plan he highlighted the holdings of CGM Focus Fund’s Ken Heebner.
Cramer doesn’t usually recommend mutual funds on Mad Money. He’s a firm believer in individual stocks for those with the time to do proper homework. But Heebner’s success is astonishing: up 80% in 2007 and 53% and 47% in 2000 and 2001, respectively, which were two tough years in the market. That’s why CGM Focus Fund was Cramer’s top mutual fund pick in Stay Mad for Life.
So Cramer researched Heebner’s holdings from his latest two filings to find out which stocks the money manager likes long term and which he doesn’t. It turns out that, like Cramer, Heebner is bullish on oil, metals and mining, infrastructure, agriculture and Research in Motion.
Heebner’s fund owns Posco and Mittal Steel in metals, and a slew of companies in the mining sector. CVRD, Rio Tinto, BHP Billiton and Freeport-McMoRan were all in the portfolio.
Canadian energy stocks Canadian Natural Resources and Suncor also had a presence, as did Brazil’s Petroleo Brasileiro. Apparently, Heebner doubled his stake in China’s CNOOC not too long ago as well.
Infrastructure stocks McDermott, Foster Wheeler and Flour were there, and so were ag names like Potash and Mosaic. Heebner was even bullish on the Russian mobile phone business, with holdings in Vimpel Communications and Mobile Telesystems.
But what didn’t Heebner like? He recently sold all his holdings in Embraer , the Brazilian jet firm, Hansen Natural , Mastercard and Transocean .
Cramer’s not a fan of Heebner’s move on RIG, but for the most part, the two gurus seem to agree on what’s working best on Wall Street. And while Cramer would never suggest Homegamers buy a stock just because a great investor is, “someone with a great track record of getting it right is worth following,” he said – as long as you do your homework.
Jim's charitable trust owns Freeport-McMoRan and Transocean.
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org