A Hedge Fund for Heebner

Maverick money manager dumps commodities, sets sights on private fund.

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Ken Heebner, the manager of a top-ranking mutual fund (CGM Focus, which has managed a stunning 27 percent annualized return over the past decade, and just a 1 percent loss year-to-date), is looking to start his first hedge fund, Bloomberg reports. Many would argue that CGM Focus is essentially a hedge fund for retail investors, although the advantage of a private fund is more freedom from regulatory oversight and the ability to buy or sell any assets. Such a fund also could charge much higher fees.

In other Heebner news, the manager recently slashed his exposure to commodities because of slowing emerging-growth markets, according to 24/7 Wall Street. Previously, his fund was gushing with oil and raw materials. In a recent CNBC interview, Heebner said Schlumberger was gone from the portfolio, but he was hanging on to Petrobras (though he was keeping an eye on oil prices).