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George Michaelis of Source Capital


KinAlberta
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Anyone remember George?

 

I once owned a bit of Source Capital because of his investing record.

Id also read about him in one of Train's books.

 

This one:

https://www.amazon.com/gp/product/0887306373/ref=oh_aui_detailpage_o02_s00?ie=UTF8&psc=1

 

 

 

Anyway found this old article:

 

PORTFOLIO TALK IT PAYS TO GO FIRST CLASS

(FORTUNE Magazine)

By George Michaelis and Joshua Mendes

August 15, 1988

 

(FORTUNE Magazine) – -- ''Bulletproof'' is the word George Michaelis uses to describe the portfolio of Source Capital, the flagship fund of Los Angeles-based First Pacific Advisors. He wins long term by avoiding short-term disasters. During the 15 years he has managed it, the $300 million closed-end fund, which trades on the New York exchange, has only once -- in early 1980 -- experienced a quarterly decline greater than that of Standard & Poor's 500-stock index. In last year's horrific fourth quarter, when the S&P stocks plunged 22.5%, the value of Source Capital dropped just 13.5%. For the past 15 years the fund's total return was over 1,200%, vs. about 400% for the market, according to Lipper Analytical Services. Only 16 of the 314 equity funds in Lipper's universe have done better. For the 12 months ended in June the fund is up 3.3%, vs. a 6.9% decline for the market as a whole. In a recent interview with FORTUNE's Joshua Mendes, Michaelis explains how he does it:

 

What's your secret? Ours is a strictly bottom-up approach. We don't have much talent for predicting where the economy or the market is going. We simply try to invest in good companies at cheap prices. We look for businesses that have ..."

 

 

http://archive.fortune.com/magazines/fortune/fortune_archive/1988/08/15/70905/index.htm

 

 

http://articles.latimes.com/keyword/george-h-michaelis

 

http://compoundmachine.blogspot.ca/2014/10/george-h-michaelis-learning-value.html

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  • 5 years later...

Yes, I do!  I've just been re-reading The New Money Masters, and remembered how impressive he is.  I'd forgotten that he is very much my favourite type of quality compounding investor, like Akre, Terry Smith, Lindsell Train etc.

 

Cheers for these links - I plan to dig around the internet for more features/interviews with him when I have a moment.

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I also well remember him and the mention in New Money Masters.  I was a SC shareholder until several years after his passing when the closed end fund drifted & I sold out.

 

As I recall, he died in a biking accident - far too early in a short lived successful life.

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