Investment philosophy

“In the fullness of time, a competitive company producing a good or a service that is in demand should be able to generate a reasonable return – if returns are too low, competitors leave and returns normalize; if returns are too high, competitors join and returns normalize.” – Lloyd E. Rowlett

Scheer Rowlett’s philosophy is founded on the belief that inefficiencies in equity markets can be capitalized on over the mid-to long-term through patience and adherence to a value discipline.
Rather than trying to determine the next fad, mimic the benchmark or time the markets, we focus on a company’s earnings-ability, capital structure, management capability and competitive position in order to gain insights into a company’s intrinsic value.

The result is a portfolio of undervalued companies which we expect to outperform the broader market over a business cycle.