Follow The Leaders

I always like to keep tabs on what the best fund managers are buying or selling. The Money magazine web site had a nice little write on Ken Heebner, manager of the CGM family of funds.

"Heebner, the co-founder of Capital Growth Management, said in a recent interview with Money magazine that in the first quarter he sold all of the home-building stocks in CGM's four mutual funds: CGM Capital Development, CGM Focus, CGM Mutual, and CGM Realty. Heebner had long been a fan of the group."

"I am concerned about speculation at the high-end of the [real estate] market," said Heebner. If home prices were to fall, worries Heebner, real estate activity would slow, including home building.

He's one of the fund mangers I really admire. He doesn't follow the crowd. In 2000 he went short on many of the tech stocks in his CGM Focus fund.

Here's a site I've started to check out: http://www.GuruFocus.com. It updates what the leading fund managers are buying and selling.