Investment Philosophy
Scharf Fund Scharf Balanced Opportunity Fund

Reports

Applications

Materials

Get Adobe Acrobat Reader Download Adobe Acrobat Reader

 

Equity Process

Through a proprietary screening process, the Advisor seeks to identify investments with low valuations combined with growing earnings, cash flow and/or book value which the Advisor describes as “growth stocks at value prices.” The Advisor regularly screens for stocks that satisfy its criteria. Generally only a small fraction of the stocks screened meet the Advisor’s criteria and qualify for further fundamental research. Such research consists of qualitative confirmation of the potential identified by the screen. This may include examination of a company’s annual reports and other shareholder materials as well as contacting the company’s management. Out of the stocks that qualify, the Advisor generally chooses approximately 25 – 35 individual securities.

Fixed Income Process

The Adviser seeks to identify fixed-income investments with favorable risk-reward characteristics. In screening for suitable investments, the Adviser considers many factors, including yield–to–maturity, credit quality, liquidity, call risk, duration risk, and capital appreciation potential. Generally only a small fraction of the fixed–income securities screened meet the Adviser’s criteria and qualify for further fundamental research. Such research consists of qualitative confirmation of the potential identified by the screen as well as an assessment of the underlying financial condition and prospects of the issuer.

Please see the Funds prospectus for a more complete disclosure of the Fund’s investment guidelines.

Investment Advisor

Scharf Investments, LLC
5619 Scotts Valley Drive, Suite 140
Scotts Valley, CA 95066
Phone: 831-429-6513

Contact

For more information about the Scharf Fund, call 1-866-5SCHARF (1-866-572-4273) or email us at info@scharffunds.com.


Before you invest in the Scharf Funds, please refer to the prospectuses for important information about the investment companies, including investment objectives, risks, charges and expenses. You may obtain a hard copy of the prospectuses by calling 1-866-5SCHARF (1-866-572-4273). The summary or statutory prospectuses should be read and considered carefully before you invest or send money.

The Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of the Funds in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Mutual fund investing involves risk. Principal loss is possible. The Funds are non-diversified, meaning they may concentrate their assets in fewer individual holdings than diversified funds. Therefore, the Funds are more exposed to volatility than diversified funds. The Funds may invest in securities representing equity or debt.  These securities may be issued by small- and medium-sized companies, which involve additional risks such as limited liquidity and greater volatility. The Funds may invest in foreign securities which involve greater volatility; political, economic and currency risks; and differences in accounting methods. These risks are greater for emerging markets. The Funds may invest in ETFs or mutual funds, the risks of owning either generally reflecting the risks of owning the underlying securities held by the ETF or mutual fund.  The Funds follow an investment style that favors relatively low valuations. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment in lower-rated, non-rated and distressed securities presents a greater risk of loss to principal and interest than higher-rated securities.

Book value is the net asset value of a company, calculated by subtracting total liabilities from total assets.
Price to Earnings Ratio is a valuation ratio of a company's current share price compared to its per-share earnings.
Price to Cash Flow Ratio (“P/CF”) is a measure of the market's expectations of a firm's future financial health. Because this measure deals with cash flow, the effects of depreciation and other non-cash factors are removed. Similar to the price-earnings ratio, P/CF provides an indication of relative value.
Book Value is the value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation.
Price to Book Value is the ratio of the company's current price divided by the latest quarter's book value per share.
Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures.
Yield to Maturity is the rate of return anticipated on a bond if it is held until the maturity date.
Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates.
Discount to fair value is when a company is trading at a lower valuation to its estimated of the value of all assets and liabilities.


The Scharf Funds are distributed by Quasar Distributors, LLC

 

© 2012-2013 Scharf Investments, LLC
Disclosure and Use Terms