Scharf Investments Philosophy
Scharf Investments is an independent registered investment advisor dedicated to providing the highest quality investment advisory services. With over 30 years of investment experience, the firm has employed a consistent investment approach since 1983 and maintains a limited number of portfolios, favoring quality over quantity. By aligning the interests of employees with those of clients, we believe that Scharf Investments is distinctly positioned to deliver long-term value.
Scharf Investments employs a bottom–up, valuation–oriented investment strategy. We believe that companies with low valuation ratios (low price to earnings, low price to cash and low price to book value) outperform stocks with higher valuations over the long term.
Discount to Fair Value
Because value may not be easy to discern and may not be precisely quantifiable, Scharf Investments attempts to purchase securities trading at a significant discount to what we believe to be fair value. By purchasing securities only when they are at a significant discount to fair value, we hope to mitigate downside risk.
Opportunities are not confined within style boxes. Scharf Investments searches for compelling investments in companies large and small, foreign and domestic. Our proprietary screen applies across the investment spectrum.
The Fund will typically be constructed with Scharf Investments' top 25–35 ideas at the time of purchase. We believe that owning too many stocks can be counterproductive to enhancing the risk/reward profile of the Fund.
Scharf Investments believes that the appropriate measurement period for the success of its investment strategy is a complete market cycle; that is, from peak to the succeeding peak or a trough to the succeeding trough. This may enable us to take advantage of opportunities that investors with shorter time horizons may overlook.