The latest 13F filing for Capital Growth Management shows that Ken Heebner bought into automotive stocks during the second quarter, including the controversial Tesla Motors Inc (NASDAQ:TSLA). His major sell-offs included JPMorgan Chase & Co (NYSE:JPM) and American International Group Inc (NYSE:AIG).
At the end of the second quarter, the firm’s top five holdings were Citigroup Inc (NYSE:C), Morgan Stanley (NYSE:MS), Lennar Corporation (NYSE:LEN), Whirlpool Corporation (NYSE:WHR) and D.R. Horton, Inc. (NYSE:DHI).
Gates Capital Management's Excess Cash Flow (ECF) Value Funds have returned 14.5% net over the past 25 years, and in 2021, the fund manager continued to outperform. Due to an "absence of large mistakes" during the year, coupled with an "attractive environment for corporate events," the group's flagship ECF Value Fund, L.P returned 32.7% last Read More
Heebner New stocks and position increases
During the second quarter, Heebner’s firm snapped up automotive stocks, initiating positions in Tesla Motors Inc (NASDAQ:TSLA), Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM). The firm also bought into Microsoft Corporation (NASDAQ:MSFT), The Gap Inc. (NYSE:GPS), The Home Depot, Inc. (NYSE:HD) and Cisco Systems, Inc. (NASDAQ:CSCO).
Major position increases for Capital Growth during the second quarter were PulteGroup, Inc. (NYSE:PHM) and D.R. Horton, Inc. (NYSE:DHI), which became the firm’s fifth biggest holding. The firm also increased its position in were Citigroup Inc (NYSE:C), pushing it up to the top of its biggest holding list. Other notable position increases for Heebner during the second quarter were Lennar Corporation (NYSE:LEN), Nike Inc (NYSE:NKE) and DiamondRock Hospitality Company (NYSE:DRH).
Heebner Position reductions and sell-offs
The firm completely closed out its positions in JPMorgan Chase & Co (NYSE:JPM), American International Group Inc (NYSE:AIG), Toll Brothers Inc (NYSE:TOL) and Occidental Petroleum Corporation (NYSE:OXY).
Heebner reduced his firm’s position in United Continental Holdings Inc (NYSE:UAL), dumping more than 2 million shares of the company’s stock. He also reduced his position in Delta Air Lines, Inc. (NYSE:DAL) and financial stocks Goldman Sachs Group Inc (NYSE:GS) and Visa Inc (NYSE:V) and cut his position in energy companies Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX).
Other noteworthy position reductions during the second quarter include Google Inc (NASDAQ:GOOG), Whirlpool Corporation (NYSE:WHR) and Honda Motor Co Ltd (NYSE:HMC).