Feb. 13 (Bloomberg) -- Kenneth Heebner sold positions in Wells Fargo & Co., Citigroup Inc. and Bank of America Corp. last quarter that had represented 15 percent of his assets and bought shares of insurance companies.
Heebner’s Capital Growth Management LP held 1.4 percent of outstanding shares in insurer MetLife Inc., a total of 11 million as of Dec. 31, according to a document filed with U.S. Securities and Exchange Commission today by his Boston-based firm. Heebner also owned 4.6 percent of shares in Hartford Financial Services Group Inc. and 1.1 percent of Aflac Inc. shares.
Heebner, 68, is known for his swift and large movements in and out of stocks, earning him the nickname “Bigfoot.” The moves disclosed today reversed his move into bank stocks in the quarter ended Sept. 30, when he sold his biggest energy holdings. Heebner last quarter also added to health-care holdings such as Abbott Laboratories and consumer stocks, including Wal-Mart Stores Inc., which tend to fall less during recessions.
In 2007, Heebner put more than three-fourths of his assets in natural resources and materials companies in 2007 and exited bank stocks, saying that the credit crisis would hobble earnings. The shift helped his CGM Focus Fund generate an 80 percent return in 2007, the best performance by a U.S. stock fund. Last year, the $3.8 billion fund fell 48 percent, trailing 96 percent of rival funds, data from Morningstar Inc. in Chicago show.
CGM Focus has declined 6.6 percent this year.
In the most recent quarter, Heebner’s firm bought more shares of Abbott Laboratories and Baxter International Inc., the largest maker of blood-disease treatments. Capital Growth owns about 0.6 percent of Abbott’s shares, and 1 percent of Baxter.
He also added to shares of Wal-Mart, the world’s largest retailer, and restaurant chain McDonald’s Corp., whose sales rose in January as consumers sought less-expensive products. Heebner owns 0.2 percent of Wal-Mart, and 0.5 percent of McDonald’s, Bloomberg data show.
In the three months ended Dec. 31, Heebner also added 4.8 million shares of Prudential Financial Inc., bringing the number of shares to 10.4 million, or 2.5 percent of the company’s shares, the filing shows. He bought 1,300 Class A shares of Warren Buffett’s Wells Fargo & Co, Berkshire Hathaway Inc.representing 0.12 percent of those outstanding, the filing shows.
Wells Fargo, Citigroup and Bank of America were previously three of the money manager’s four largest holdings, data compiled by Bloomberg show. Heebner also sold another former top pick, Petroleo Brasileiro SA, Brazil’s state-controlled oil company.
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