CGM MutualLOMMX

Morningstar Rating

Fund Research and Analysis

by Courtney Goethals Dobrow

If you can withstand the ups and downs, CGM Mutual is worth it.

This fund is no stranger to extremes. In 2008, it was the large-growth category's top performer, keeping its losses to 28.2% while its typical peer lost 40.6% and the S&P 500 lost 37. Read more

Kudos

Heebner's mercurial style has occasionally produced explosive returns at CGM Realty CGMRX and CGM Focus CGMFX.

Lower-than-average expenses.

Strong long-term record. Read more

Risks

Concentrated: The fund owns a handful of securities, which adds to volatility.

Extremely high turnover, which has hurt tax efficiency. Read more

Strategy

Longtime manager Ken Heebner typically holds 20 stocks and bonds, which can lead to short-term volatility, and he trades very rapidly. He is unafraid to make big stock and sector bets. The fund aims to be 75% stocks and 25% bonds. Read more

Management

Ken Heebner has managed this fund since 1981. He also manages CGM Realty CGMRX and CGM Focus CGMFX. Before helping to start CGM in 1990, Heebner began his career as an economist in 1965 and put in time as a portfolio manager at Scudder, Stevens & Clark, and Loomis Sayles & Co. Read more

Inside Scoop

Ken Heebner runs this concentrated portfolio of about 20 stocks and bonds and trades rapidly. The fund can experience short-term volatility but the long-term record is strong. Read more

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