Acknowledged as America’s top stock picker before the financial crisis of 2008, Kenneth Heebner purchased 215,000 shares of Tesla Motors in the second quarter this year to include in his CGM Focus Fund while shedding shares of Blackrock Inc. and Toll Brothers.
His Boston-based firm, Capital Growth Management LP, also purchased 9.82 million shares of Ford making for a second (and stronger) positive vote for an automaker. It also purchased shares of Gap Inc., Home Depot Inc. and Cisco Systems Inc.
According to Bloomberg, Heebner led all other fund managers for the decade prior to 2007, but with the slower than anticipated recovery following that year, his streak was broken.
His fund lost 5.1 percent annually for the past five years and whittled away what had been $10.3 billion in June 2008 to $1.5 billion in October 2012.
However this year his fortunes are looking up.
The fund is outperforming 88 percent of his peers and has returned 23 percent year to date.
Citigroup Inc. and Morgan Stanley make up its largest holdings, and his firm also shed its position in JPMorgan Chase & Co. last quarter.
TSLA has trended down the past couple of days and as of mid-day, it is down almost 7 percent from yesterday.
The stock nearly tripled in the quarter in which Heebner took up his position.
His U.S. economic prediction is that rising home prices will have a positive impact on consumer confidence. He says the anticipated recovery for the next five years should therefore be stronger than expected citing these and other indicators.