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CEF. SOR. Source Capital

Trading at not an awful discount. Just unearthed it. Consistent dividends. Global equities, with bonds, too. Playing shorts with some cash. Is this the needle in the haystack?


  • edited March 15
    SOR - Source Capital is a storied CEF with lots of history. Warren Buffett once thought so highly of the fund that he considered buying it, but that didn't happen. Activist Saba owns a stake. There was a big management change in 2016 and also changes in objectives from aggressive-allocation (70-85% equity) to moderate-allocation (50-70% equity) - so ignore record prior to 2016. Historically, the equity portion has been small/mid-cap using the GARP approach and fixed income riskier preferreds/convertibles, HY; there is income/distribution tilt - there are not many allocation funds with this mix. Effective-equity is 76% vs 61% nominal. Leverage is not indicated but there are common and preferred shareholders, so check this aspect. There is some value bounce lately. Also look at the info at CEFConnect.
  • edited March 15
    @yogibearbull. Thanks you for that. Fund Managers: I recognize the name of Steve Romick.
  • I'm not personally familiar with this CEF, but one word of possible caution...with an average daily volume of 12,497 shares, if you ever wanted to enter a position, or more importantly exit a position, you might find yourself waiting a bit.
  • Romick also runs FPACX which is a sorta go anywhere moderate allocation fund that used to have stellar results with low risk. ( I think David has a chunk in his IRA, but I could be wrong. At one point it was closed although Schwab had special shares they sold somehow. It has done better than SOR in the last few years, but you would have to get really down in the weeds to figure out why.
  • thanks for that, @sma3.
  • I agree with @sma3 re: how to figure out why a CEF zigs or zags. I thought SOR was an attractive option about the time of the changes noted above, but decided to bail after holding for a year.
  • @Crash

    For a fund with similar composition, I use's now selling at discount, maintains 80-85% equity holdings, has a good track record plus a 7.15% distribution.

  • I like and hold EVT. Good stuff so far.
  • Is that Eaton Vance? "EV?" I consistently owe zero federal tax. Would this EVT be advantageous for me, too?
  • Yes, Eaton Vance. Since everyone's tax situation is different take a look at last years distributions/share and see how you may be affected. The distributions were all either long-term capital gains or income.

  • edited March 17
    Giant fish eat big fish, big fish eat small fish, small fish eat tiny fish,....and so it goes.

    So Eaton Vance was a acquisitive company that acquired ESG firm Calvert, etc.

    Then the big gobbler Morgan Stanley gobbled Eaton Vance (but the name lives in funds), and before that it gobbled E*Trade, Smith Barney, Dean Witter, Discover, etc.

    Morgan Stanley itself needed rescue during the financial crisis.
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