Strategies
The Scharf Core Equity portfolio seeks to identify common equities with low valuations combined with growing earnings, cash flow and/or book value. The portfolio team maintains a strict focus on valuation, margin of safety and consistent earnings growth, but maintains investment flexibility (not confined to style boxes) towards market capitalization and domicile. We seek to add measurable value to client accounts over the course of a market cycle while losing notably less than relevant benchmarks in falling markets.
The Scharf Multi-Asset portfolio seeks to combine the appreciation potential of equities with the capital preservation and income generation qualities of fixed income and alternative investments. In the equity allocation the portfolio team maintains a strict focus on valuation, margin of safety and consistent earnings growth, but maintains investment flexibility (not confined to style boxes) towards market capitalization and domicile. On the non-equity allocation, the portfolio team emphasizes credit quality and capital preservation. We seek to deliver a compelling risk-adjusted absolute return.
The Scharf Fixed Income portfolio seeks to provide current income, consistent with preservation of capital. Investments include high quality bonds and fixed income alternatives at attractive valuations which are suitable for either taxable or non-taxable investors. Securities are evaluated through our quantitative and qualitative research process. The portfolio team seeks investments based on their relative value with a focus on minimizing risk.
The Scharf Hedged portfolio seeks to provide returns above inflation with significantly less volatility than a typical equity portfolio. The portfolio team seeks to identify common equities with low valuations combined with growing earnings, cash flow and/or book value. In addition, Scharf seeks to mitigate portfolio volatility by shorting one or more exchange-traded funds that mimic market indexes such as the Standard & Poor’s 500.
The Growth Equity portfolio seeks to produce long-term rates of return in excess of the Standard & Poor’s 500 while incurring only relatively moderate amounts of risk. The portfolio team practices a narrow investment discipline that heavily emphasizes earnings growth, free cash flow, returns on capital and financial strength.