SFA’s Core Investment Philosophy

Sherr Financial Associates is committed to providing its clients world-class investment management solutions. Using decades of Nobel Prize-winning research as our guide, we construct and manage portfolios on behalf of our clients.

Our Beliefs
Our investment philosophy is based on key principles that we believe have been repeatedly supported by decades of rigorous academic research.

  • A disciplined asset allocation can deliver superior results across market cycles compared with tactical or dynamic allocation approaches.
  • A portfolio approach that focuses on low-cost underlying investments can deliver superior results over time.
  • A bias toward small-cap and value investments may increase a portfolio’s expected return over long periods of time.
  • Conventional money managers, who rely on stock-picking, forecasts, and predictions, have in general failed to deliver excess returns to compensate investors for the higher fees they charge.

Our Guiding Principles

  • We are committed to share with you our knowledge of markets, financial planning, and all aspects of our investment strategies and philosophy. This continues throughout our relationship with our clients.
  • Maintaining discipline during extreme markets, both up and down, is never easy. Yet our promise to you, and one of our greatest responsibilities, requires that we sustain our focus and keep our heads even when those around us are losing theirs. But maintaining our discipline is not enough. We must also effectively counsel you during difficult times to ensure that clients’ well considered long-term plans are not thrown aside in moments of destructive panic.
  • Investors tend to act rationally and make sound decisions during periods of relative market stability. But when markets become extreme, investors often react impulsively, irrationally, and emotionally. Traditional Wall Street firms tend to exploit this emotional vulnerability to sell products and new investment schemes.
  • At Sherr Financial Associates, we offer our clients knowledge, not hype. We don’t facilitate bad behavior and we don’t succumb to it ourselves. By tuning out the noise of erratic, short-term market behavior and the predictions of market pundits, we can focus on making sure that markets reward our clients over time.
  • We will help our clients to understand and avoid exotic Wall Street investment products, which so often are highly profitable to the firm selling them, but offer disappointing results to investors.