CGM Focus Fund (CGMFX)

As part of Forbes best fund, CGM Focus has outperformed many funds over the long term period. While it has been lagging its peers for the past 3 years, it is still one of the choice by investor to diversify his/her portfolio. The following is details CGM Focus fund review.


CGM Focus fund details
The CGM Focus fund is seeking long-term growth of capital. This fund normally invests in the stock of between 20-100 companies at any one time. It may invest in companies of any size, but primarily invests in companies with market capitalizations of more than $5 billion. The fund may also invest in debt and fixed income securities (investment grade & non-investment grade or junk bonds).

G. Kenneth Heebner is the fund's manager since September 1997. This CGM fund has $2.58 billion net assets. The annual expense ratio is 1.03%. Morningstar has rated this fund with 2-stars rating. It has 1.29% beta for over the last three years. The annual holdings turnover of this rate is quite high (363.0%) compared to the average in Large Growth category which is 87.49%. This CGMFX is a no load fund, there is no 12b1 fee and no sales load fee as well.

This CGM fund has -8.45% YTD return. This top rated large growth stock fund has returned 16.23% over the past year and 10.25% over the past ten years. The previous year performance of this fund is as follow:
  • Year 2010: 16.94%
  • Year 2009: 10.42%
  • Year 2008: -48.18%
  • Year 2007: 79.97%
Since its inception in 1997, this large growth stock fund has achieved 11 years in positive return and 2 years in negative return.

If you are interested in investing in this CGM Focus fund, you will need a minimum of $2,500 for the initial investment in regular brokerage account and $1,000 for retirement (IRA) account with $50 minimum subsequent investment applicable for both accounts. This CGMFX can be bought from a limited of 26 brokerages.

As of March 2011, the top 5 holdings of this CGMFX fund represent 31.83% of total portfolio. They are Inc (7.06%), National Oilwell Varco Inc (6.78%), Tata Motors Ltd (6.25%), ASML Holding NV (6.05%) and CBS Corporation B (5.68%). The top sectors of this fund are Technology (24.32%), Energy (21.45%), Consumer Cyclical (19.17%), Basic Materials (16.71%) and Industrials (14.64%). Almost all of the CGMFX asset is allocated in stocks (99.08%), only a small part of 0.92% is allocated in cash.

According to the fund’s prospectus, investing in this fund involves Principal Risks such as Non-diversification risk, Market risk, Industry/ sector exposure risk, Short sale risk, Small and medium-sized companies risk, Fixed income investments risk, Lower rated debt securities risk, Foreign securities risk, Key personnel risk, etc.

Disclosure: No Position

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