SCHARF INVESTMENTS, LLC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Scharf Investments, LLC is an investment management firm based out of Scotts Valley, California. The company was established in 1983 and has grown from its inception to now have 19 employees of which 8 are investment professionals. The firm is employee owned with Brian A. Krawez holding the controlling majority in the company and the remaining ownership split amongst Jeffery R. Scharf and other key executives. Scharf Investments conducts its research internally, utilizing a fundamental methodology to make its investment decisions. The company invests in the value stocks of companies across all market caps in the public equity and fixed income markets within the U.S. The company benchmarks its equity portfolios against the S&P 500 Index and its balanced portfolios against the Lipper Balanced Fund Average Index. Scharf Investments invests most heavily in the information technology sector, which alone makes up over a third of its total asset allocations, and also invests in the consumer discretionary, health care, finance, energy, consumer staples, and utilities and telecommunications sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company’s top 10 holdings make up approximately half of its total holdings and the company has a relatively low turnover rate of 7.8%. Scharf Investments holds over $4 billion in total assets under management spread across over 2,300 accounts, all of which are discretionary accounts except for 2 that make up $120 million of its managed assets. Both the company’s total number of accounts and total managed assets have been increasing in recent years with its total assets under management growing significantly from under half a billion to over 8 times that amount today. Scharf Investments mainly caters to high net worth individuals, which alone makes up over three quarters of its clientele. The company currently offers its Scharf, Scharf Balanced Opportunity, and Scharf Global Opportunity mutual funds.
As of the latest 13F report, the guru’s equity portfolio contained 51 stocks valued at a total of $3.06Bil. The top holdings were MCK(8.04%), BRK.B(7.62%), and CVS(5.52%).
According to GuruFocus data, these were SCHARF INVESTMENTS, LLC’s top five trades of the quarter.
SPDR Bloomberg 1-3 Month T-Bill ETF
The guru established a new position worth 546,116 shares in ARCA:BIL, giving the stock a 1.63% weight in the equity portfolio. Shares traded for an average price of $90.7 during the quarter.
On 02/06/2023, SPDR Bloomberg 1-3 Month T-Bill ETF traded for a price of $91.47 per share and a market cap of $24.58Bil. The stock has returned 1.79% over the past year.
There is insufficient data to calculate the stock’s financial strength and profitability ratings.
Booking Holdings Inc
During the quarter, SCHARF INVESTMENTS, LLC bought 18,181 shares of NAS:BKNG for a total holding of 64,886. The trade had a 1.2% impact on the equity portfolio. During the quarter, the stock traded for an average price of $1898.11.
On 02/06/2023, Booking Holdings Inc traded for a price of $2451.45 per share and a market cap of $95.09Bil. The stock has returned 0.42% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Booking Holdings Inc has a price-earnings ratio of 40.26, a price-book ratio of 26.11, a EV-to-Ebitda ratio of 22.84 and a price-sales ratio of 6.18.
The price-to-GF Value ratio is 0.75, earning the stock a GF Value rank of 10.
Lockheed Martin Corp
SCHARF INVESTMENTS, LLC reduced their investment in NYSE:LMT by 72,980 shares. The trade had a 1.06% impact on the equity portfolio. During the quarter, the stock traded for an average price of $464.67.
On 02/06/2023, Lockheed Martin Corp traded for a price of $464.9 per share and a market cap of $118.69Bil. The stock has returned 23.42% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10.
In terms of valuation, Lockheed Martin Corp has a price-earnings ratio of 21.41, a price-book ratio of 12.74, a price-earnings-to-growth (PEG) ratio of 3.10, a EV-to-Ebitda ratio of 14.92 and a price-sales ratio of 1.86.
The price-to-GF Value ratio is 1.11, earning the stock a GF Value rank of 5.
Comcast Corp
During the quarter, SCHARF INVESTMENTS, LLC bought 689,503 shares of NAS:CMCSA for a total holding of 3,920,433. The trade had a 0.79% impact on the equity portfolio. During the quarter, the stock traded for an average price of $33.08.
On 02/06/2023, Comcast Corp traded for a price of $39.31 per share and a market cap of $169.95Bil. The stock has returned -17.88% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Comcast Corp has a price-earnings ratio of 33.06, a price-book ratio of 2.10, a price-earnings-to-growth (PEG) ratio of 17.40, a EV-to-Ebitda ratio of 9.72 and a price-sales ratio of 1.43.
The price-to-GF Value ratio is 0.75, earning the stock a GF Value rank of 10.
Liberty Broadband Corp
The guru sold out of their 219,809-share investment in NAS:LBRDK. Previously, the stock had a 0.61% weight in the equity portfolio. Shares traded for an average price of $81.33 during the quarter.
On 02/06/2023, Liberty Broadband Corp traded for a price of $92.97 per share and a market cap of $13.73Bil. The stock has returned -39.16% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Liberty Broadband Corp has a price-earnings ratio of 10.56, a price-book ratio of 1.63, a EV-to-Ebitda ratio of 8.09 and a price-sales ratio of 15.75.
The price-to-GF Value ratio is 0.03, earning the stock a GF Value rank of 2.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
Want to provide feedback on this article? Have questions or concerns? Get in touch with us here, or email us at [email protected]!
This article is general in nature and does not represent the opinions of GuruFocus or any of its affiliates. This article is not intended to be financial advice, nor does it constitute investment advice or recommendations. It was written without regard to your individual situation or financial goals. We aim to bring you fundamental, data-driven analysis, The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
