Heebner Bets on JPMorgan, Tiffany, While Selling Apple Stake
August 12, 2011, 12:43 PM EDTBy Inyoung Hwang
(Updates with additional stocks in the fourth paragraph.)
Aug. 12 (Bloomberg) -- Kenneth Heebner, one of the top- performing diversified U.S. stock mutual-fund managers over a 10-year period, added financial and consumer discretionary shares in the second quarter and sold all shares of Apple Inc.
Heebner’s Capital Growth Management LP purchased about 1.38 million shares of JPMorgan Chase & Co. in the three-month period ended June 30, as well as stakes in automaker Ford Motor Co., casino-owner Wynn Resorts Ltd., and Tiffany & Co., the New York- based jewelry-store operator, according to a filing today with the U.S. Securities and Exchange Commission. The Boston-based firm sold its $111 million stake of Cupertino, California-based Apple, the maker of iPhones and iPads.
Heebner, 70, ran the best-performing diversified U.S. stock fund over a 10-year period for 11 straight quarters before he was unseated in the first quarter of 2011 by Thomas Soviero, manager of the $4.2 billion Fidelity Advisor Leveraged Company Stock Fund. He had boosted shares of Apple in the first quarter and is known for making concentrated bets in industries from homebuilding to commodities and for his willingness to shift gears quickly.
Financial companies were the biggest allocation of Capital Growth’s portfolio in the second quarter, making up 36.7 percent of the firm’s holdings. Consumer discretionary stocks had the second-biggest weight with 25.8 percent. Moody’s Corp., Discover Financial Services and Vornado Realty Trust are other financial and real estate companies Heebner added during the second quarter. He exited Morgan Stanley and General Growth Properties Inc.
Capital Growth had sold all 109,900 shares of New York- based Goldman Sachs Group Inc. in the first quarter. Heebner also exited Ford and General Motors Co. during that period.
In the second quarter, he built his stake in Dearborn, Michigan-based Ford back up to $230.1 million. Ford lost 35 percent this year through yesterday to $10.94, compared with a 6.8 percent decline in the Standard & Poor’s 500 Index.
--With assistance from Charles Stein in Boston. Editors: Joanna Ossinger, Michael P. Regan
To contact the reporter on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net
To contact the editor responsible for this story: Michael P. Regan at mregan12@bloomberg.net.
