Mad Money: Game Plan: Piggybacking to Profits - Game Plan

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Jan.04

8:01 PM ET

Friday, 4 Jan 2008

Game Plan: Piggybacking to Profits

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 [RIMM Loading... () ].

Game Plan

Mad Money host Jim Cramer has a game plan to make you some mad $$$.

Heebner’s fund owns Posco [PKX Loading... () ] and Mittal Steel [MT Loading... () ] in metals, and a slew of companies in the mining sector. CVRD [RIO Loading... () ], Rio Tinto [RTP Loading... () ], BHP Billiton [BHP Loading... () ] and Freeport-McMoRan [FCX Loading... () ] were all in the portfolio.

Canadian energy stocks Canadian Natural Resources [CNQ Loading... () ] and Suncor [SU Loading... () ] also had a presence, as did Brazil’s Petroleo Brasileiro [PBR Loading... () ]. Apparently, Heebner doubled his stake in China’s CNOOC [CEO Loading... () ] not too long ago as well.

Infrastructure stocks McDermott [MDR Loading... () ], Foster Wheeler [FWLT Loading... () ] and Flour [FLR Loading... () ] were there, and so were ag names like Potash [POT Loading... () ] and Mosaic [MOS Loading... () ]. Heebner was even bullish on the Russian mobile phone business, with holdings in Vimpel Communications [VIP Loading... () ] and Mobile Telesystems [MBT Loading... () ].

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But what didn’t Heebner like? He recently sold all his holdings in Embraer [ERJ Loading... () ], the Brazilian jet firm, Hansen Natural [HANS Loading... () ], Mastercard [MA Loading... () ]and Transocean [RIG Loading... () ].

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.

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