CGM Focus (CGMFX)

CGM Focus is another Kiplinger 25 fund and another one of my favorites. It's one of the more volatile funds that I like but the long term returns are very impressive. The 04/28/08 issue of Fortune magazine has an article by Jon Birger on "Where to put your money now" that talks about fund manager Ken Heebner's latest big bet - steel.

For Heebner, steel is essentially a proxy for infrastructure - a bet that developing nations like China, India, Brazil, and Saudi Arabia will continue to build new hospitals, roads, bridges, and power plants. "We've never had a global steel shortage before, but all the ingredients for one are present today," he says. Heebner thinks heightened demand could eventually push steel prices up to $2,000 a ton from $800 today.