Capital Growth Management was founded by Ken Heebner in 1990 and is based in Boston, Massachusetts. It provides services to charitable organizations, pension and profit sharing plans, investment companies, and high net worth individuals. It also manages mutual funds. The firm invests in the public equity markets of the United States. It operates as a subsidiary of Natixis Global Asset Management L.P.
The best performing stocks in the market are usually the highest growing stocks or the stocks with the highest expected growth rates. This doesn’t mean that one should be invested in growth stocks and stay away from the value stocks at all times. Historically value stocks managed to beat the growth stocks hand over fist. The reason is simple. Value stocks are beaten down stocks with very low or negative growth expectations. Not surprisingly it is easier for these stocks to beat the expectations on the average. On the other hand, everybody is extremely bullish about growth stocks and expect them to have higher growth rates in the future. Their stock prices also reflect this fact. Not surprisingly, it is more difficult for these stocks to beat these challenging expectations.
We ranked Heebner’s stock picks based on their expected five-year growth rates. The data are sourced from Yahoo Finance. Contrarian investors should look into the stocks that are at the top of the table.
SL Green Realty Corp is a Real estate investment trust (REIT) that claims to be the biggest owner of office towers in Manhattan. It lost 12.39% since the beginning of this year. It has a market cap of $5.06 billion and a forward P/E ratio of 13.92, and is expected to grow at a rate of 4.50% over the next five years. Heebner invested $120 million in SLG shares. John Paulson held $116 positions in SLG shares.
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. It lost 35.01% since the beginning of this year. It has a market cap of $42.56 billion and a forward P/E ratio of 6.37, and is expected to grow at a rate of 7.96% over the next five years. Heebner initiated brand new $230 million positions in F shares during the second quarter. Bill Miller also had $112 million invested in F at the end of June.
Simon Property Group, Inc. is an American commercial real estate company, ranked #1 in the United States as the largest real estate investment trust. It returned 16% since the beginning of this year. It has a market cap of $32.99 billion and a forward P/E ratio of 15.76, and is expected to grow at a rate of 8.47% over the next five years. Heebner invested $126 million in SPG shares. D.E Shaw also held $106 million positions in SPG.
Occidental Petroleum Corporation is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America. It lost 15.45% since the beginning of this year. It has a market cap of $65.85 billion and a forward P/E ratio of 9.24, and is expected to grow at a rate of 8.56% over the next five years. Heebner invested $228 million in OXY shares. Ken Fisher also had $519 million invested in OXY.
Citigroup Inc. is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. It lost 45.92% since the beginning of this year. It has a market cap of $79.25 billion and a forward P/E ratio of 5.46, and is expected to grow at a rate of 9.75% over the next five years. Heeber invested $229 million in C shares. John Paulson held $1.4 billion positions in C shares.
Ross Stores, Inc. is a chain of American off-price department stores headquartered in Pleasanton, California, operating under the name Ross Dress for Less. It returned 33.09% since the beginning of this year. It has a market cap of $9.76 billion and a forward P/E ratio of 13.87, and is expected to grow at a rate of 11.46% over the next five years. Heebner initiated brand new $163 million positions in ROST shares. Steven Cohen and Jim Simons also held positions in ROST (see billionaire Steven Cohen’s top stock picks).
Herbalife International is a global nutrition, weight-loss and skin-care company. It returned 57.74% since the beginning of this year. It has a market cap of $6.46 billion and a forward P/E ratio of 15.15, and is expected to grow at a rate of 12.73% over the next five years. Heebner initiated brand new $173 million positions in HLF shares. Jim Simons doubled his positions in HLF and held $84 million at the end of June.
