CNBC Video: Mortgage Mess.
Kenneth Heebner, manager of the CGM funds, is up 30% this year in his Focus Fund, and believes that the mortgage mess in the US is isolated, and that it, combined with other factors, might end up being bullish for the economy. His reasoning: mortgage losses are contained in hedge funds and pension funds (gee, great), the ensuing mess might park the Fed in neutral or force it to reverse, and the global economy continues to do well. [Note: He says if he hears that large financial players are under stress his position would change, but so far there are no major financial players who appear to be in trouble.]
He's bullish on oil service, selective oil companies, infrastructure plays, and global mining; i.e. companies benefiting from the global boom and the tightness in supply of various commodities.