The CGM Mutual Fund may be nearly 80 years old, but its acting like a fund half its age, writes the Motley Fool.
Established on Nov. 6, 1929, the fund formerly known as the Loomis Sayles Mutual Fund had an impressive return of 38.5% in 2007, a five-year average return of 21% annually and a 10-year average of 7.5%, all well above the S&P 500.
The fund is now under the advisement of Capital Growth Mgt Ltd Partnership.
Ken Heebner, the funds manager for more than 25 years, has made some savvy bets recently. Its top three stock holdings were in energy and machinery companies Petrobras, CNH Global and Schlumberger. The fund is also holding nearly 28% of its fixed-income assets in cash through Treasury bills.
The fund takes concentrated positions and has a portfolio turnover in excess of 400% in each of the last two years, making it unsuitable for most tax accounts.
If what youre looking for from an almost 80-year-old fund is peace and quiet, CGM Mutual isnt your pick, the Motley Fool writes. But if you want a fund that acts half its age, youll want to take a closer look.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.