The Insightful Ken Heebner

Not only did the manager of CGM Focus foresee the subprime mortgage mess, but he also realized there would be a bright side to it. So he picked his stocks accordingly.

Give Ken Heebner an A+ for prescience. When Kiplinger's interviewed the veteran mutual fund manager early this year (see The Savviest Stock Picker in America), he immediately began to riff about a problem that, at that point, had shown up on the radar screens of few investors: mortgages made to borrowers with weak credit standing. "The subprime-mortgage disaster is much bigger than anyone can imagine."

Heebner also predicted a bright side to the mortgage mess: It would slow economic growth and deter the Federal Reserve Board from raising short-term interest rates. That, in turn, would preserve the bull market.

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Manuel Schiffres
Executive Editor, Kiplinger's Personal Finance