"We have a trillion dollars of subprime mortgages and we're going to have huge defaults," Heebner, 66, said in a telephone interview from his office in Boston. "If you're looking at the housing market, it's not the darkest before dawn, it's the darkest before pitch black," Heebner said.
Heebner, cofounder of Capital Growth Management LP, has been selling shares of real-estate investment trusts that buy apartments because they are no longer cheap. At the end of 2006, his CGM Realty Fund had 35 percent of its assets in REITs. He's made a "significant reduction," though he wouldn't be more specific.
