I am just going over this interesting Fortune magazine article about America's hottest investor - Ken Heebner.
When we think of investment funds, the standard is Warren Buffet.
However, apparently Ken has been doing really well, and has been called the Barry Bonds without the steroids. Since 1998, he has had an average annualized return of 24%, the best record of any US mutual fund, compared to only 4% of S&P 500.
Last year, he soared 80%, as compared to only 5% of the S&P.
While that is still shy of Peter LYnch's gold standard - Magellan recorded an average return of 36% from August 1977 to August 1987, in some ways, he is better than Lyunch. While compartively speaking, Lynch beat the market by 17 percentage points, Ken Heebner beat the market by 20 - in short, the only reason he is behind from Lynch is because the market was less good during this period, but he beat it by more points.
He has some similarities with Warren Buffet, and also much differences. Both are famous for shying away from tech stocks, but while Warren Buffett advocates holding stocks for a long term, he is extraordinarily hyperactive.
The Turnover rate of his investment fund ( which typically holds 20 to 30 stocks) was a whopping 384% last year, which in theory means he traded his entire portfolio nearly four times. ( He could have traded and changed stocks more in a year than Warren would have in his lifetime).
Which just goes to show that there are many roads to wealth, and one style that suits you is as good as another....