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CGM Mutual Lags

Quirky CGM Mutual falls behind other hybrids.

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When manager Ken Heebner gets it right, CGM Mutual Fund (LOMMX) can soar. However, he hasn't gotten it right so far this year, and the fund lands in the group's bottom quartile for the year through April 25, 2001.

A big culprit of the fund's poor recent performance has been its fairly aggressive asset-allocation stance. The fund's equity stake edged up to about 75% by the end of 2000, which stung in 2000 and early 2001, as bonds have generally outperformed stocks. What's more, Heebner's sector weightings haven't helped. The fund is weighted mostly in technology and financials, both of which have had a rocky ride thus far in 2001. Indeed, financials like Cigna (CI) appear to be one of the key reasons for the fund's underperformance thus far this year.

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Catherine Hickey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.