Yesterday a pair of ETFs from a new asset manager, Scharf Investments, began trading. While this might not seem case for celebration, the firm has a record of 42 years of active management and the funds — KAT and GKAT — launched with approximately $900 million in assets.
Meet the New KATS on the Block
The Scharf ETF (KAT) and the Scharf Global Opportunities (GKAT) started trading yesterday on the Nasdaq. These ETFs had long-term records as active mutual funds until last weekend when they were converted. Additionally, through a 351 exchange this week, the ETFs pooled together more assets. As of yesterday, KAT had approximately $770 million in assets. This puts KAT in the range of products like Davis Select US Equity (DUSA ) and Putnam Sustainable Leaders (PLDR ) that have traded as ETFs for many years. GKAT has approximately $120 million in assets.
“We are thrilled with the strong investor demand for both ETFs,” said Jason Marcus, Chief Operating Officer of Scharf Investments. “Launching with this scale showcases immediate market recognition of our value-driven strategies ability to deliver risk-aware alternatives to the growth-heavy exposures dominating portfolios today.”
A Silicon-Valley-Based Value Firm
Scharf Investments has been an independent investment firm since 1983. The 40-plus year old firm is based in Los Gatos, California. The new ETF tickers, KAT and GKAT, are a nod to the city’s name, as gato is Spanish for cat.
KAT’s predecessor mutual fund employed a bottom-up value-oriented active approach. Management invested in a three-to-five year time horizon for quality companies trading at a significant discount to fair value. This resulted in a low turnover, and a portfolio with relatively low volatility. At the end of June 2025, the concentrated portfolio held stakes in Brookfield Fiserv, McKesson, Microsoft, and Occidental Petroleum.
Meanwhile, GKAT is expected to have more non-US equity exposure yet follow a similar approach. The predecessor global mutual fund owned Franco-Nevada and Heineken along with Brookfield, Fiserv and Microsoft.
Demand for Active ETFs Remains Strong, Creating Opportunities for New Firms
“Investors do not have to pay astronomical prices to own strong businesses if they are willing to look in the right places,” said Brian Krawez, President and Lead Portfolio Manager at Scharf Investments. “With record market concentration in mega-cap growth stocks, KAT and GKAT offer investors something different: a disciplined value approach supported by Scharf’s more than 40-year history.”
Demand for actively managed ETFs has been strong in 2025. Year-to-date through mid-August, active ETFs represented 37% of the industry’s net inflows. The supply of active ETF has also accelerated in 2025 with new ETFs from Allspring Global Investments, T Rowe Price, and Weitz Investment Management over the summer. VettaFi believes there remains room for firms with a proven track record to have success. We are excited for Scharf Investments as part of the ETF industry.
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