FPA announced that Eric Ende, portfolio manager of Source Capital, Inc., will step down as portfolio manager of the Fund effective December 1, 2015, and will retire from FPA at year-end. Mark Landecker, Steven Romick and Brian Selmo, portfolio managers of the FPA Contrarian Value Strategy, will join the Source Capital management team as co-portfolio managers, and they will co-manage asset allocation and the equity portion of the portfolio. Thomas Atteberry and Abhijeet Patwardhan, portfolio managers of the FPA Absolute Fixed Income Strategy, will join the team as co-portfolio managers, and they will co-manage the fixed income portion.
The co-portfolio managers will utilize an investment philosophy that is consistent across FPA's strategies one of value orientation, bottom-up analysis, and seeking downside protection. The new managers will transition the portfolio to the balanced strategy in an orderly fashion, taking into account prices, trading volume and market liquidity. This transition will result in the Fund turning over virtually its entire portfolio and thereby realizing significant long-term capital gains, which will result in significant taxable distributions to shareholders, and incurring increased transaction costs for the Fund.
Source Capital, Inc. (the Fund) is a diversified, closed-end management investment company. The investment objective of the Fund is to seek maximum total return for common shareholders from both capital appreciation and investment income to the extent consistent with protection of invested capital. The Fund's investments include semiconductor devices; industrial distribution and rental; cement and aggregates; Internet media; cable and satellite; application software; electrical components; chemicals; insurance brokers; diversified banks; base metals; banks; investment companies; food services; integrated utilities; railroad rolling stock, apparel, footwear and accessory design; e-commerce discretionary, hotels; restaurants and leisure; commercial and residential building equipment and systems; automotive retailers; real estate owners and developers; entertainment content; energy; health care services and others. The Fund's investment adviser is First Pacific Advisors, LP.
SOURCE CAPITAL, INC. 