General Description of Adviser and Principal Owners
FPA was formed in July 2004 as a Delaware limited liability company. On October 1, 2018, FPA
was converted to a Delaware limited partnership. Together with its predecessor organizations, FPA
has been in the investment advisory business since 1954. FPA maintains its principal office at
11601 Wilshire Boulevard, Suite 1200, Los Angeles, California 90025. The Firm is controlled by
its general partner, FPA GP, Inc. (the “General Partner”), which is owned and controlled by J.
Richard Atwood and Steven T. Romick as the sole shareholders and directors of the General
Partner. In addition, FPA is owned by the following limited partners: J. Richard Atwood, Steven
T. Romick, J. Mark Hancock, Mark Landecker, Ryan Leggio, Nico Y. Mizrahi, Abhijeet
Patwardhan, Brian A. Selmo, and David S. Brookman. As of December 31, 2022, FPA employed
approximately 82 persons engaged full-time in portfolio management or investment research,
investment operations, trading, client service, legal and compliance, and clerical activities.
Types of Advisory Services
FPA offers investment advisory services in several fundamental, primarily value-oriented,
investment strategies, including: Absolute Fixed Income, Flexible Fixed Income, Contrarian
Value, Contrarian Value Equity, Small-Cap Value, Core Equity, Large-Cap Value, Multi-Advisor,
and Direct Lending strategies. For additional information about these investment strategies please
refer to Item 8.
Under its investment strategies, FPA provides investment advisory services to registered investment
companies, private funds and separately managed institutional accounts. In addition, FPA provides
investment sub-advisory services to investment advisers of third party-sponsored registered investment
companies. Additional information about these advisory services and types of clients are described
immediately below and in Item 7.
Registered Investment Companies (collectively “FPA Registered Funds”)
FPA provides investment advisory services to the following investment companies registered
under the Investment Company Act of 1940, as amended (the “Company Act”):
• FPA Funds Trust’s FPA Crescent Fund (“Crescent”), a diversified, open-end registered
investment company managed under the Contrarian Value strategy;
• FPA Funds Trust’s FPA Flexible Fixed Income Fund (“FFI”), a diversified, open-end
investment company managed under the Flexible Fixed Income strategy;
• FPA New Income, Inc. (“New Income”), a diversified, open-end investment company
managed under the Absolute Fixed Income strategy;
• Bragg Capital Trust’s FPA Queens Road Value Fund (“QR Value”), a diversified, open-end
investment company managed under the Large-Cap Value strategy;
• Bragg Capital Trust’s FPA Queens Road Small Cap Value Fund (“QR Small Value”), a
diversified, open-end investment company managed under the Small-Cap Value strategy;
• FPA U.S. Core Equity Fund, Inc. (“Core Equity”), a diversified, open-end investment
company managed under the Core Equity strategy;
• Source Capital, Inc. (“Source”), a publicly traded (NYSE: SOR), diversified, closed-end
investment company managed under the Contrarian Value and Flexible Fixed Income
strategies; and
• Northern Lights Fund Trust III’s FPA Global Equity ETF (“FPA ETF”), a publicly traded
(Cboe: FPAG), non-diversified, exchange traded fund (“ETF”) managed under the
Contrarian Value Equity strategy.
Separately Managed Accounts/Sub-Advised Accounts (“SMAs”)
FPA provides investment advisory services to a variety of separately managed account clients,
including pension and profit-sharing plans, charitable organizations, endowments, insurance
companies, corporations, and state and municipal government entities. In addition, FPA provides
investment advisory services as a sub-adviser to certain investment advisers to investment
companies sponsored by third parties.
Private Investment Funds (the “FPA Private Funds”)
FPA serves as the general partner, managing member, and/or manager of several private funds:
• The FPA Multi-Advisor Strategy Funds:
o FPA Multi-Advisor Fund, L.P.
o FPA Multi-Advisor Fund II, L.P.
o FPA Multi-Advisor Offshore Fund, Ltd.
o FPA Long Opportunity Fund, L.P., and
o FPA Income Opportunities Funds:
▪ FPA Income Opportunities Master Fund, L.P.
▪ FPA Income Opportunities Offshore Fund, L.P.
▪ FPA Income Opportunities Onshore Fund, L.P.
• The FPA Contrarian Value and Contrarian Value Equity Strategy Funds:
o The FPA Hawkeye Funds:
▪ The following series of FPA Hawkeye Fund, LLC (a Delaware Series
limited liability company):
• FPA Hawkeye Fund
• FPA Hawkeye-7 Fund, and
• FPA Global Opportunity Fund
▪ FPA Hawkeye Offshore Fund, Ltd.
o FPA Select Drawdown Fund, L.P.
o FPA Select Maple Fund, L.P.
o FPA Select Funds:
▪ FPA Select Fund, L.P., and
▪ FPA Select Offshore Fund, Ltd.
o FPA Select II Funds:
▪ FPA Select Fund II, L.P., and
▪ FPA Select Offshore Fund II, Ltd.
o FPA Contrarian Value Equity Funds:
▪ FPA Contrarian
Value Equity Fund, L.P.
▪ FPA Contrarian Value Equity Fund (ERISA), L.P.
o FPA Value Partners Fund, L.P.
• The Direct Lending Strategy Funds:
o FPA WhiteHawk III-Plus Master Fund, L.P.
o FPA WhiteHawk III-Plus Onshore Fund, L.P.
o FPA WhiteHawk III Master Fund, L.P.
o FPA WhiteHawk III Onshore Fund, L.P.
o FPA WhiteHawk Fund III, L.P.
The FPA Registered Funds, SMAs and FPA Private Funds are collectively, “FPA Client
Accounts” or “advisory clients”.
Investment Strategies and Restrictions
FPA manages the FPA Registered Funds and FPA Private Funds based on each such client’s
strategies, restrictions, and guidelines and does not tailor its advisory services to any particular
investor in an FPA Registered Fund or FPA Private Fund.
With respect to SMAs, FPA will consider each client’s risk tolerance, time horizon, tax status,
liquidity needs, return objectives and preferences.
FPA provides its investment advisory services in accordance with the specific investment
objectives and restrictions of each FPA Client Account, in accordance with and subject to the
directions, guidelines, and limitations imposed by the FPA Client Account through, as applicable,
the investment management agreement, prospectus and statement of additional information,
private placement memorandum, limited partnership agreement, and/or other governing
documents (the “Governing Documents”).
FPA’s investment discretion with respect to managing the FPA Registered Funds is also subject
to the parameters provided by and oversight of the respective FPA Registered Fund’s governing
body (e.g., board of directors/trustees).
For certain FPA Registered Funds and FPA Private Funds, FPA has delegated investment
discretion to a sub-adviser pursuant to a sub-advisory agreement.
With respect to FPA sub-advisory relationships where FPA acts as sub-adviser, FPA’s investment
advisory services are provided in accordance with the relevant sub-advisory agreement.
While FPA does not typically provide tailored investment advice to individual investors in the
FPA Private Funds, FPA has entered, and in the future may enter, into “side letters” or similar
agreements with certain investors who are granted specific rights, benefits, or privileges that are
not generally made available to other investors, including preferential fee terms or to address
investment restrictions based on regulatory or policy requirements of a particular investor.
In addition, the investment strategy with respect to certain clients may be restricted due to custodial
limitations. For instance, limitations or operational impediments associated with a client’s
custodian may prohibit such client from holding certain types of securities (e.g., non-U.S.
securities in ordinary form) or participate in certain corporate actions relating to portfolio holdings.
FPA organizes its investment vehicles (i.e., FPA Registered Funds, FPA Private Funds and the
SMAs) across several fundamental, primarily value-oriented, investment strategies, including:
Absolute Fixed Income, Flexible Fixed Income, Contrarian Value, Contrarian Value Equity,
Small-Cap Value, Core Equity, Large-Cap Value, Multi-Advisor and Direct Lending. While
investment vehicles pursuing the same strategy share certain fundamental characteristics, such
investment vehicles are typically structured with significant differences in specific investment
objectives, risk profiles and other investment criteria, and may or may not hold similar securities
and financial instruments. In addition, in circumstances where investment vehicles are intended to
have substantial overlap in securities and financial instruments, the held positions may nonetheless
differ significantly due to various factors, including but not limited to, account size, account
inception dates, client-imposed restrictions, available cash, tax, regulatory, and other
considerations.
FPA generally does not use a formal asset allocation model to specify the percentage of each client
portfolio that must be invested in any particular asset class or category of securities. Rather, FPA’s
asset allocation for each client portfolio is generally a function of the portfolio’s potential risk and
reward compared with available opportunities in the marketplace. Cash, cash equivalents, and/or
securities issued by the U.S. Department of the Treasury (“U.S. Treasuries”) are typically the
default investment choices until FPA identifies new investment opportunities, but FPA may also
use other types of investments (e.g., ETFs that follow a market index such as the S&P 500) to
invest cash. Accordingly, FPA Client Accounts, including the FPA Registered Funds and the FPA
Private Funds, may at any given time hold significant cash balances on an ongoing basis.
FPA does not currently participate in wrap fee programs.
Assets Under Management
As of December 31, 2022, FPA had regulatory assets under management of approximately $24.3
billion on a discretionary basis.
Assets Under Advisement
As of December 31, 2022, FPA had no assets under advisement.