CGM Focus fund (MUTF: CGMFX) Review

CGM Focus fund (MUTF: CGMFX) Review : 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 has managed this fund 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 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 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 five holdings of this CGMFX fund represent 31.83% of total portfolio. They are Priceline.com 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.



CGMFX asset is allocated in stocks predicctions 2011- 2012, CGMFX stock prices 2011, ASML Holding NV, CGMFX shares prices forecast 2012.