Wednesday, 22 October 2014
Last updated 1 hour ago
Sep 10 2008 | 11:02am ET
“America’s hottest investor” is set to try his hand at running a hedge fund.
Kenneth Heebner, who runs the top-ranked U.S. stock mutual fund, aims to raise as much as $5 billion for the new fund, called Wayfarer Capital. The nascent fund has already collected $73 million from high-net worth and institutional investors, according to regulatory filings.
Fortune magazine dubbed Heebner “America’s hottest” in May, as his CGM Focus Fund was posting the best year of any U.S. equity mutual fund. Focus returned 17% in the year through June; during the same period, the Standard & Poor’s 500 fell by 12%. The sizzling performance—and accompanying publicity—sent investors to Heebner’s Capital Growth Management in droves: Focus’ assets under management more than tripled during the year ended in June to $10.4 billion.
So far, those new investors have not been rewarded: Focus has fallen by 29% since the beginning of July. But that apparently hasn’t fazed Heebner, who disclosed the formation of Wayfarer as a private investment partnership in an August filing with the Securities and Exchange Commission.
Heebner’s mutual funds employ a macro strategy. Unlike most other mutual funds, his allow him to ape several tried-and-true hedge fund tactics, including short sales and concentrated sector bets.
Heebner, who has managed mutual funds for almost 40 years, and partner Robert Kemp spun off Boston-based CGM from Loomis Sayles in 1990.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...