UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
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Investment Company Act file number |
811-1731 |
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Source Capital, Inc. |
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(Exact name of registrant as specified in charter) |
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11400 West Olympic Boulevard, Suite 1200, Los Angeles, California |
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90064 |
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(Address of principal executive offices) |
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(Zip code) |
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J. Richard Atwood, Treasurer, Source Capital, Inc., 11400 West Olympic Boulevard, Suite 1200, Los Angeles, California 90064 |
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(Name and address of agent for service) |
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Registrant's telephone number, including area code: |
(310) 473-0225 |
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Date of fiscal year end: |
December 31 |
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Date of reporting period: |
September 30, 2005 |
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ITEM 1. Schedule of Investments.
Source Capital, Inc.
Portfolio of Investments
September 30, 2005 (unaudited)
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Shares or |
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Principal |
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Amount |
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Value |
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COMMON STOCKS |
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ENERGY — 14.4% |
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Cal Dive International, Inc.* |
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600,000 |
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$ |
38,046,000 |
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Noble Corporation |
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460,000 |
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31,491,600 |
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Tidewater Inc. |
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380,000 |
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18,494,600 |
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$ |
88,032,200 |
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BUSINESS SERVICES & SUPPLIES — 14.3% |
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Brady Corporation (Class A) |
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145,000 |
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$ |
4,486,300 |
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CDW Corporation* |
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305,000 |
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17,970,600 |
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Charles River Laboratories International, Inc.* |
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410,000 |
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17,884,200 |
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Invitrogen Corporation* |
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170,000 |
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12,789,100 |
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Manpower Inc. |
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300,000 |
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13,317,000 |
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ScanSource Inc.* |
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425,000 |
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20,714,500 |
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$ |
87,161,700 |
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PRODUCER DURABLES — 13.8% |
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Graco Inc. |
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495,000 |
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$ |
16,968,600 |
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HNI Corporation |
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270,000 |
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16,259,400 |
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IDEX Corporation |
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495,000 |
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21,062,250 |
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Oshkosh Truck Corporation |
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360,000 |
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15,537,600 |
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Zebra Technologies Corporation (Class A)* |
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365,000 |
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14,267,850 |
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$ |
84,095,700 |
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TECHNOLOGY — 11.2% |
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Cognex Corporation |
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590,000 |
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$ |
17,741,300 |
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Microchip Technology Incorporated |
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200,000 |
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6,024,000 |
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Plantronics, Inc. |
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620,000 |
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19,102,200 |
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SanDisk Corporation* |
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530,000 |
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25,572,500 |
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$ |
68,440,000 |
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RETAILING — 8.4% |
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CarMax, Inc.* |
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750,006 |
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$ |
23,452,688 |
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O’Reilly Automotive, Inc.* |
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1,000,000 |
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28,180,000 |
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$ |
51,632,688 |
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FINANCIAL — 8.4% |
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Brown & Brown, Inc. |
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290,000 |
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$ |
14,410,100 |
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First American Corporation, The |
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155,000 |
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7,078,850 |
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Gallagher & Co., Arthur J. |
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440,000 |
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12,676,400 |
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North Fork Bancorporation, Inc. |
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682,500 |
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17,403,750 |
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$ |
51,569,100 |
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HEALTH CARE — 7.7% |
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AmSurg Corp.* |
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180,000 |
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$ |
4,924,800 |
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Bio-Rad Laboratories, Inc.* |
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200,300 |
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11,014,497 |
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Health Management Associates, Inc. |
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555,000 |
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13,025,850 |
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Lincare Holdings, Inc.* |
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440,000 |
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18,062,000 |
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$ |
47,027,147 |
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ENTERTAINMENT — 4.4% |
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Carnival Corporation |
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536,600 |
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$ |
26,819,268 |
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CONSUMER DURABLES — 3.0% |
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Briggs & Stratton Corporation |
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370,000 |
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$ |
12,798,300 |
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Polaris Industries Inc. |
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115,000 |
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5,698,250 |
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$ |
18,496,550 |
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TRANSPORATION — 2.9% |
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Heartland Express, Inc. |
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670,000 |
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$ |
13,627,800 |
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Knight Transporation, Inc. |
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170,000 |
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4,141,200 |
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$ |
17,769,000 |
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MATERIALS — 2.2% |
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Engelhard Corporation |
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480,000 |
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$ |
13,396,800 |
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TOTAL COMMON STOCKS — 90.7% (Cost$333,049,809) |
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$ |
554,440,153 |
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PREFERRED STOCKS |
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REAL ESTATE INVESTMENT TRUST |
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CBL & Associates Properties, Inc. (Series C) |
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100,000 |
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$ |
2,577,000 |
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Duke-Weeks Realty Corp. (Series B) |
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40,000 |
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2,119,000 |
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Pennsylvania Real Estate Investment Trust (Series A) |
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59,000 |
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3,407,250 |
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ProLogis Trust 6.75% (Series G) |
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120,000 |
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3,027,600 |
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TOTAL PREFERRED STOCKS — 1.8% (Cost $10,179,446) |
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$ |
11,130,850 |
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CONVERTIBLE BONDS AND DEBENTURES |
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TECHNOLOGY — 1.0% |
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BEA Systems, Inc. — 4% 2006 |
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$ |
2,000,000 |
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$ |
1,980,000 |
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International Rectifier Corp. — 4.25% 2007 |
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2,000,000 |
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1,972,500 |
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LSI Logic Corporation — 4% 2006 |
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2,000,000 |
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1,990,000 |
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$ |
5,942,500 |
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BUSINESS SERVICES & SUPPLIES — 0.3% |
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Pegasus Solutions, Inc. — 3.875% 2023 |
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$ |
2,000,000 |
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$ |
1,725,000 |
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TOTAL CONVERTIBLE BONDS & DEBENTURES — 1.3% (Cost $7,690,000) |
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$ |
7,667,500 |
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NON-CONVERTIBLE BONDS AND DEBENTURES |
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CORPORATE — 3.8% |
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Central Garden & Pet Company — 9.125% 2013 |
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$ |
2,000,000 |
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$ |
2,135,000 |
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HMH Properties, Inc. — 7.875% 2008 |
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1,338,000 |
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1,369,777 |
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Host Marriott Corporation — 9.25% 2007 |
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2,000,000 |
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2,150,000 |
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Manitowoc Company, Inc., The — 10.5% 2012 |
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1,300,000 |
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1,469,000 |
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Metaldyne Corporation — 11% 2012 |
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2,000,000 |
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1,330,000 |
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OM Group, Inc. — 9.25% 2011 |
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4,000,000 |
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4,080,000 |
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Orbital Sciences Corporation — 9% 2011 |
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3,000,000 |
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3,270,000 |
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PolyOne Corporation — 10.625% 2010 |
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950,000 |
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995,125 |
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Realty Income Corporation — 8.25% 2008 |
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2,000,000 |
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2,168,000 |
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Unisys Corporation — 7.875% 2008 |
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1,500,000 |
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1,522,500 |
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Windmere Durable Holdings Inc. — 10% 2008 |
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3,000,000 |
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2,895,000 |
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$ |
23,384,402 |
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U.S. GOVERNMENT AND AGENCIES — 0.1% |
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Federal Home Loan Mortgage Corporation |
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— 6.5% 2023 (Interest Only) |
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$ |
63,263 |
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$ |
4,033 |
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— 10.15% 2006 (REMIC) |
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27 |
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27 |
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Government National Mortgage Association (Mobile Home) |
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— 9.75% 2010 |
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292,795 |
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293,736 |
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$ |
297,796 |
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TOTAL NON-CONVERTIBLE BONDS AND DEBENTURES — 3.9% (Cost $23,584,683) |
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$ |
23,682,198 |
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TOTAL INVESTMENT SECURITIES — 97.7% (Cost $374,503,938) |
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$ |
596,920,701 |
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SHORT-TERM INVESTMENT — 1.2% (Cost $7,523,382) |
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Short-term Corporate Note: |
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Rabobank USA Financial Corporation — 3.87% 10/3/05 |
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$ |
7,525,000 |
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$ |
7,523,382 |
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TOTAL INVESTMENTS — 98.9% (Cost $382,027,320)(A) |
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$ |
604,444,083 |
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Other assets and liabilities, net — 1.1% |
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6,422,899 |
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TOTAL NET ASSETS — 100% |
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$ |
610,866,982 |
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*Non-income producing security
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(A) The cost stated also approximates the aggregate cost for Federal income tax purposes. Net unrealized appreciation consists of: |
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$ |
226,724,754 |
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Gross unrealized appreciation: |
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$ |
4,307,991 |
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Gross unrealized depreciation: |
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Net unrealized appreciation: |
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$ |
222,416,763 |
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ITEM 2. CONTROLS AND PROCEDURES.
(a) The principal executive officer and principal financial officer of the registrant have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective based on their evaluation of the disclosure controls and procedures as of a date within 90 days of the filing date of this report.
(b) There have been no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
ITEM 3. EXHIBITS.
(a) Separate certification for the registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940. Attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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SOURCE CAPITAL, INC. |
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By: |
/s/ ERIC S. ENDE |
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Eric S. Ende, President |
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Date: |
November 18, 2005 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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SOURCE CAPITAL, INC. |
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By: |
/s/ J. RICHARD ATWOOD |
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J. Richard Atwood, Treasurer |
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Date: |
November 18, 2005 |
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