According to filings with the SEC, mutual fund legend Ken Heebner has put his confidence behind the auto bailout plan with a nice stake in Ford Motor Co. (NYSE:F) via his high-flying CGM Focus Fund (CGMFX). Heebner, known for his ~80% return in 2007, runs CGM Focus much like a hedge fund; he invests in companies of any size, anywhere in the world and goes both long AND short.
While I find it difficult to bet against such a coveted fund manager, his position in Ford is pretty hard to justify. If his position was claimed on the September 30th 13F filing, he must have built it up prior to the end of September, at which point Ford was trading in the $4.50-5 dollar range, far above its $2.95 close on Friday. Has Ken joined Legg Mason's Bill Miller on the "Hot-Gone-Cold" list? I don't think so. With $5B in assets in CGM Focus, a mistake here and there is bound to occur.
Disclosure: I have money with CGM LP.
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1 comment:
I find that the very best indication of how undervalued a stock is is the price to sales ratio or what is commonly referred to as market cap
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