SCHWARTZ
VALUE FUND
a series of
SCHWARTZ
INVESTMENT TRUST
SEMI-ANNUAL REPORT
(UNAUDITED)
for the six months ended
JUNE 30, 1996
<PAGE>
Schwartz Value Fund
a series of
Schwartz Investment Trust
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
(810) 644-8500
Board of Trustees
Donald J. Dawson, Jr.
Fred A. Erb
John J. McHale
Sidney F. McKenna
George P. Schwartz, CFA
Gregory J. Schwartz
Officers
Gregory J. Schwartz, Chairman of the Board
George P. Schwartz, CFA, President
Richard L. Platte, Jr., CFA, Vice President/Secretary
Cynthia M. Dickinson, Treasurer
Robert G. Dorsey, CPA, Assistant Vice President
John F. Splain, Assistant Secretary
Mark J. Seger, CPA, Assistant Treasurer
Investment Adviser
SCHWARTZ INVESTMENT COUNSEL, INC.
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
Distributor
GREGORY J. SCHWARTZ & CO., INC.
3707 W. Maple Road
Bloomfield Hills, Michigan 48301
Custodian
FIFTH THIRD BANK
38 Fountain Square Plaza
Cincinnati, Ohio 45263
Administrator
MGF SERVICE CORP.
P.O. Box 5354
Cincinnati, Ohio 45201
Auditors
DELOITTE & TOUCHE LLP
1700 Courthouse Plaza Northeast
Dayton, Ohio 45402
Legal Counsel
SULLIVAN & WORCESTER
1025 Connecticut Avenue, N.W.
Suite 1000
Washington, D.C. 20036
Schwartz Value Fund is a 100% no load diversified investment company (a mutual
fund). The investment objective is long-term capital appreciation.
<PAGE>
Shareholder Accounts
c/o MGF Service Corp.
P.O. Box 5354
Cincinnati, OH 45201-5354
1-800-543-0407
Corporate Offices
3707 W. Maple Road
Bloomfield Hills, MI 48301
(810) 644-8500
Fax (810) 644-4250
SCHWARTZ VALUE FUND
Dear Fellow Shareowners:
Our investment style -- small-cap value -- seems to be returning to favor, at
least moderately. During the first six months of 1996, the Schwartz Value Fund
was up 11.4% versus 9.7% for the Russell 2000 Index.
Merger and acquisition activity has contributed to this increase. During the
first half of the year, three companies in the SVF portfolio were acquired by
larger corporations at an average profit of 60%. These companies were Conestoga
Bancorp, Inc., Bell Bancorp Inc., and FSB Financial Corporation -- all high
quality thrifts added to the Fund over the past few years. We also sold 11
issues that no longer offered the prospect for exceptional returns. In some
instances reduced growth or deterioration of the companies' fundamentals were
the reason. In other cases, the stocks reached our price objectives.
Since we are in the business of searching for value in neglected and overlooked
stocks, we don't expect instant stock performance. Given this value approach,
it isn't surprising that most of our companies' share prices have lagged behind
their underlying business progress. The following stocks have been happy
exceptions with sharp upward moves in the first half of the year: Reebok
International Ltd. +19%, Nautica Enterprises, Inc. +31%, Gardner Denver
Machinery, Inc. +39%, ABT Building Products Corporation +58%, Helen of Troy
Limited +36%, Universal Electronics, Inc. +55%, and Windmere-Durable Holdings,
Inc. +84%. When these stocks were purchased, they were neglected and
misunderstood issues of good companies. With the passage of time, the popular
view of these companies improved and share prices rose. This is the essence of
value investing, buying straw hats in January. Since stock prices ultimately
reflect the growth of the underlying business, it's more important to invest in
a great business than to purchase shares at a great price. Notwithstanding, we
attempt to do both.
In selecting individual portfolio holdings, there are obviously many factors to
consider in the investment research process. Among them, a powerful and
compelling indicator of value is the existence of a stock repurchase plan. A
stock buy-back plan is often a flag waving to value investors. It says the
Board of Directors not only believe the stock is undervalued, but is acting on
that belief. One of the most important challenges confronting corporate
management, is reinvesting excess cash flow for the greatest benefit of
shareholders. That may entail replacing existing plant and equipment,
constructing additional facilities, developing new products, making
acquisitions, paying dividends or repurchasing shares. When shares are
repurchased, it has the effect of increasing the proportional interest of all
the remaining shareholders.
<PAGE>
Buy-backs can be a great way for corporations to return excess cash flow to
owners. They also have significant tax advantages for shareholders versus
dividends -- the more traditional way of returning capital to owners. A large
number of companies in the Schwartz Value Fund have repurchased their own
shares. Meaningful buy-backs have occurred at Reebok International Ltd., ABT
Building Products Corporation, Craftmade International, Inc., Griffon
Corporation, Windmere-Durable Holdings, Inc., Standex International
Corporation, Calumet Bancorp, Inc., FirstFed Bancshares, Inc., Peoples Bancorp,
UST Inc., American List Corporation, Malan Realty Investors Inc., and Pentech
International, Inc.
Shrinking the size of a company is antithetical to management's basic
instincts. Since management's compensation is usually based on the size of the
company, it takes vision to voluntarily shrink the equity base. Buy-backs show
that management is thinking like owners, not hired hands. Finally, buy-backs
are a good indicator of the company's financial strength and the Board of
Directors' confidence in the future of the business.
There's a lot more to selecting attractive investments than just finding
companies with buy-back programs, but it's a good starting point in the tedious
investment research process. If the buy-backs occur at distressed prices, the
math can be compelling and the leveraging of per share profits is almost
magical. These are the ones that really make us salivate.
Sincerely,
/s/ George P. Schwartz
George P. Schwartz, CFA
President
July 29, 1996
It's amazing how much has happened in the financial markets just over the past
few weeks. I won't try to recount the events, causes and effects. But briefly,
investors have again learned that the stock market is not a one-way street, and
that high-tech and speculative issues can go down as well as up. During the
euphoria which preceded the recent market break, a lot of our value stocks
lagged. I'm happy to report that they also didn't get slammed when the big-cap
elephants were all trying to squeeze through the exit door at the same time. It
serves to underscore the low-risk and conservative nature of SVF.
<PAGE>
SCHWARTZ VALUE FUND
SCHEDULE OF INVESTMENTS
JUNE 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Market
Shares COMMON STOCK -- 91.3% Value
<S> <C> <C>
APPAREL & TEXTILES -- 11.1%
225,000 K-Swiss Inc $ 2,446,875
50,000 Nautica Enterprises, Inc.* 1,437,500
65,000 Reebok International Ltd. 2,185,625
----------
6,070,000
----------
BUILDING MATERIALS & CONSTRUCTION -- 4.2%
20,000 ABT Building Products Corporation* 450,000
33,000 Gardner Denver Machinery Inc.* 870,375
24,000 Industrial Acoustics Company, Inc. 256,500
51,000 MLX Corp.* 692,484
----------
2,269,359
----------
CONSUMER PRODUCTS -- DURABLES -- 6.8%
55,000 Ameriwood Industries International Corporation* 357,500
45,000 Craftmade International, Inc. 315,000
170,000 Griffon Corporation* 1,381,250
70,000 HMI Industries Inc. 490,000
18,000 Orbit International Corp.* 19,125
25,000 Sturm, Ruger & Company, Inc. 1,162,500
----------
3,725,375
----------
CONSUMER PRODUCTS -- NONDURABLES -- 7.5%
<PAGE>
28,500 Helen of Troy Limited* 812,250
440,000 Pentech International, Inc.* 770,000
20,000 Standex International Corporation 570,000
11,950 Velcro Industries N.V. 639,325
7,800 Weyco Group, Inc. 315,900
75,000 Windmere-Durable Holdings, Inc. 984,375
----------
4,091,850
----------
ENERGY & MINING -- 6.4%
15,000 Dawson Geophysical Company* 163,125
125,000 Dravo Corporation* 1,859,375
70,000 Forest Oil Corporation* 953,750
35,000 The Horsham Corporation 485,625
----------
3,461,875
----------
FINANCE -- BANKING & THRIFTS -- 11.8%
7,500 Calumet Bancorp, Inc.* 210,000
40,000 Coastal Bancorp, Inc. 720,000
20,000 Fidelity Bancorp, Inc. 327,500
57,000 FirstFed Bancshares, Inc. 1,004,625
15,000 GreenPoint Financial Corp.* 423,750
4,572 Heartland Bancshares, Inc. 45,720
20,000 Jacksonville Savings Bank 250,000
11,500 Landmark Bancshares, Inc. 175,375
15,000 Liberty Bancorp, Inc. 375,000
15,000 MSB Bancorp, Inc. 258,750
15,900 NHS Financial, Inc. 172,913
125,000 Ottawa Financial Corporation 2,031,250
8,100 Peoples Bancorp 159,975
16,200 TF Financial Corporation 244,519
----------
6,399,377
----------
FINANCE -- INSURANCE -- 5.3%
20,300 CapMAC Holdings Inc. 578,550
40,000 Integon Corporation 805,000
26,000 MMI Companies, Inc. 802,750
96,000 Unico American Corporation 696,000
----------
2,882,300
----------
FOOD & TOBACCO -- 2.2%
35,000 UST Inc. 1,198,750
----------
HEALTH CARE -- 0.9%
15,000 Health Care & Retirement Corporation 356,250
20,000 NovaCare, Inc.* 152,500
----------
508,750
----------
INDUSTRIAL PRODUCTS & SERVICES -- 10.0%
125,000 Core Industries Inc. 1,796,875
20,155 Detroit & Canada Tunnel Corporation 670,154
3,835 Greif Bros. Corporation 122,720
10,055 M.H. Rhodes, Inc.* 47,761
80,000 TriMas Corporation 1,870,000
100,000 UNR Industries, Inc. 962,500
----------
5,470,010
----------
PRINTING & PUBLISHING -- 3.7%
50,000 American List Corporation 1,325,000
465 The Detroit Legal News Company 44,640
50,000 Thomas Nelson, Inc. 668,750
----------
2,038,390
----------
REAL ESTATE -- 3.8%
16,499 I. Gordon Corporation* 156,741
15 LaFourche Realty Company, Inc. 62,250
125,000 Malan Realty Investors, Inc. 1,859,375
----------
2,078,366
----------
RETAIL -- 5.3%
375,000 Best Products Co., Inc. 621,094
150,000 The Dress Barn, Inc.* 1,575,000
56,500 Ellett Brothers, Inc. 353,125
76,500 Evans, Inc.* 153,000
20,000 The Good Guys, Inc.* 175,000
----------
2,877,219
----------
TECHNOLOGY & ELECTRONICS -- 9.6%
33,500 Astrosystems, Inc.* 213,563
20,000 Dallas Semiconductor Corporation 362,500
75,400 Data Research Associates, Inc.* 1,658,800
17,200 Metatec Corporation* 176,300
50,000 Nematron Corporation* 431,250
35,000 Rainbow Technologies, Inc.* 700,000
30,000 SPSS Inc.* 750,000
60,000 Universal Electronics Inc.* 697,500
15,000 X-Rite, Incorporated 228,750
----------
5,218,663
----------
MISCELLANEOUS -- 0.1%
12,500 Bull & Bear Group, Inc.* 45,313
----------
CLOSED-END EQUITY FUNDS -- 2.6%
90,000 Royce Micro-Cap Trust, Inc. 776,250
50,000 Scudder New Europe Fund, Inc. 631,250
----------
1,407,500
----------
TOTAL COMMON STOCK (COST $42,228,821) 49,743,097
----------
PREFERRED STOCK -- .4% (COST $132,739)
Telos Corporation, 12% Cumulative Exchangable
35,000 Preferred $ 210,000
----------
</TABLE>
<TABLE>
<CAPTION>
Par
Value
<S> <C> <C>
U.S. GOVERNMENT & AGENCY BONDS -- 3.7%
$ 1,000,000 Federal Farm Credit Bank , 5.60%, 06/03/97 997,722
$1,000,000 U.S. Treasury Notes, 6.00%, 11/30/97 1,000,625
----------
TOTAL U.S. GOVERNMENT & AGENCY BONDS
(COST $1,997,188) 1,998,347
----------
REPURCHASE AGREEMENTS (1) -- 5.1% (COST $2,830,000)
$2,830,000 Fifth Third Bank, 5.20%, dated 06/28/96, due
07/01/96, repurchase proceeds $2,831,226 2,830,000
----------
OTHER INVESTMENTS -- 0.0% 396
----------
TOTAL INVESTMENTS -- 100.5% (COST 47,188,748) 54,781,840
----------
OTHER LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.5)% (281,881)
===========
NET ASSETS -- 100% $54,499,959
===========
</TABLE>
* Non-income producing securities.
(1) Repurchase agreements are fully collateralized by U.S. Government
obligations.
See notes to financial statements.
<PAGE>
SCHWARTZ VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at market value (cost of $47,188,748)
(Note 1) ............................................ $ 54,781,840
Cash ................................................ 82,536
Dividends and interest receivable ................... 88,167
Receivable for securities sold ...................... 333,562
Other assets ........................................ 6,123
------------
TOTAL ASSETS .................................... 55,292,228
------------
LIABILITIES
Payable for capital shares redeemed ................. 12,840
Payable for securities purchased .................... 552,538
Accrued investment advisory fees (Note 2) ........... 201,621
Other accrued expenses and liabilities .............. 25,270
------------
TOTAL LIABILITIES ............................... 792,269
------------
NET ASSETS .......................................... $ 54,499,959
============
NET ASSETS CONSIST OF:
Paid in capital ..................................... $ 43,692,309
Accumulated undistributed net realized gains on
investments ......................................... 3,265,970
Accumulated net investment loss ..................... (51,412)
Net unrealized appreciation on investments .......... 7,593,092
------------
NET ASSETS .......................................... $ 54,499,959
============
Shares of beneficial interest outstanding (unlimited
number of shares authorized,
no par value) ..................................... 2,488,180
============
Net asset value, redemption price, and offering price
per share ........................................... $ 21.90
============
</TABLE>
See notes to financial statements.
<PAGE>
SCHWARTZ VALUE FUND
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Interest .......................................... $ 124,003
Dividends ......................................... 348,290
-----------
TOTAL INVESTMENT INCOME ......................... 472,293
-----------
EXPENSES
Investment advisory fees (Note 2) ................. 397,852
Administration, accounting, and transfer agent fees
and expenses (Note 2) ............................... 55,878
Legal and audit fees .............................. 29,382
Trustees' fees and expenses ....................... 30,418
Other expenses .................................... 10,175
-----------
TOTAL EXPENSES .................................. 523,705
-----------
NET INVESTMENT LOSS ................................. (51,412)
-----------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains on investments ................. 3,393,588
Net change in unrealized appreciation on
investments . ................................... 2,439,202
-----------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS .... 5,832,790
-----------
NET CHANGE IN NET ASSETS FROM OPERATIONS ............ $ 5,781,378
============
</TABLE>
See notes to financial statements.
<PAGE>
SCHWARTZ VALUE FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, 1996 ended
(Unaudited) Dec. 31, 1995
<S> <C> <C>
FROM OPERATIONS
Net investment loss ............................... $ (51,412) $ (94,454)
Net realized gains on investments ................. 3,393,588 3,912,706
Net change in unrealized appreciation/depreciation
on investments .................................. 2,439,202 3,856,574
----------- ------------
Net increase in net assets from operations .......... 5,781,378 7,674,826
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains on investments ............ -- (3,830,754)
----------- ------------
FROM FUND SHARE TRANSACTIONS ((A))
Proceeds from shares sold ......................... 2,820,599 5,819,563
Reinvestment of distributions ..................... -- 3,580,547
Payments for shares redeemed ...................... (7,238,906) (5,203,945)
----------- ------------
Net increase (decrease) in net assets from Fund share
transactions ........................................ (4,418,307) 4,196,165
----------- ------------
TOTAL INCREASE IN NET ASSETS ........................ 1,363,071 8,040,237
----------- ------------
NET ASSETS
Beginning of period ............................... 53,136,888 45,096,651
----------- ------------
End of period ..................................... $54,499,959 $ 53,136,888
=========== ============
(A) SUMMARY OF CAPITAL SHARE ACTIVITY
Shares sold ...................................... 137,228 291,957
Shares issued in reinvestment of distributions to
shareholders ..................................... -- 182,123
Shares redeemed .................................. (351,950) (260,324)
----------- ------------
Net increase (decrease) in shares outstanding .... (214,722) 213,756
Shares outstanding, beginning of period .......... 2,702,902 2,489,146
----------- ------------
Shares outstanding, end of period ................ 2,488,180 2,702,902
=========== ============
</TABLE>
See notes to financial statements.
<PAGE>
SCHWARTZ VALUE FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding
Throughout Each Period
<TABLE>
<CAPTION>
Six Months
Ended Year Year July 20,((A))
June 30, 1996 Ended Ended To
(Unaudited) Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1993
<S> <C> <C> <C> <C>
Net asset value at beginning of period .............. $19.66 $ 18.12 $20.97 $19.71
------ ------- ------ ------
Income from investment operations:
Net investment loss ............................... (0.02) (0.03 ) (0.05 ) (0.06 )
Net realized and unrealized gains (losses) on
investments ..................................... 2.26 3.09 (1.37 ) 1.95
------ ------- ------ ------
Total from investment operations .................... 2.24 3.06 (1.42 ) 1.89
------ ------- ------ ------
Less dividends and distributions:
From net realized capital gains on investments .... -- (1.52 ) (1.36 ) (0.63 )
In excess of net realized gains on investments .... -- -- (0.07 ) --
------ ------- ------ ------
Total dividends and distributions ................... -- (1.52 ) (1.43 ) (0.63 )
------ ------- ------ ------
Net asset value at end of period .................... $21.90 $ 19.66 $18.12 $20.97
====== ======= ====== ======
Total return ........................................ 22.9%(C) 16.9% (6.8)% 9.6%(B)
====== ======= ====== ======
Ratio of expenses to average net assets ............. 1.97%(C) 2.00% 2.01% 2.13%(C)
Ratio of net investment loss to average net assets .. (0.19 )%(C) (0.18 )% (0.36)% (0.63)%(C)
Portfolio turnover rate ............................. 55%(C) 70% 78% 65%(C)
Average commission rate ............................. $ 0.05 -- -- --
<FN>
- ----------------
(A) Commencement of operations.
(B) Not annualized.
(C) Annualized.
</TABLE>
See notes to financial statements.
<PAGE>
SCHWARTZ VALUE FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1996 (Unaudited)
_______________________________________________________________________________
1. Significant Accounting Policies
Schwartz Value Fund (the "Fund") is a series of Schwartz Investment Trust, a
diversified open-end management investment company established as an Ohio
Business Trust under a Declaration of Trust dated August 31, 1992. The Fund is
registered under the Investment Company Act of 1940 and commenced operations on
July 20, 1993. The Fund determines and makes available for publication the net
asset value of its shares on a daily basis.
The investment objective of the Fund is to seek long-term capital appreciation
through investment in basic value common stocks. This investment in common
stocks, by definition, entails the risk of loss of capital to shareholders. See
the Prospectus for more detailed information regarding the investment
objectives of the Fund.
In 1993, the Fund, prior to offering shares to the public, exchanged its shares
for partnership interests in RCM Partners Limited Partnership, whose General
Partner was Schwartz Management Company, an affiliate of Schwartz Investment
Counsel, Inc.
The following is a summary of significant accounting policies followed by the
Fund.
(a) Valuation of investments -- Securities which are traded on stock
exchanges or are quoted by NASDAQ are valued at the last reported sale
price as of the close of business on the day of valuation, or, if not
traded on a particular day, at the average of the highest current
independent bid and lowest current independent offer; securities traded in
the over-the- counter market, not quoted by NASDAQ, are valued at the
average of the highest current independent bid and lowest current
independent offer as of the close of trading on the day of valuation, and;
securities (and other assets) for which market quotations are not readily
available are valued at their fair market value as determined in good
faith pursuant to procedures established by the Board of Trustees.
Short-term securities are valued at amortized cost, which approximates
market value.
<PAGE>
(b) Income taxes -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code ("Code") applicable to regulated
investment companies and to distribute substantially all taxable income to
the shareholders. Therefore, no provision for income taxes is necessary.
The Fund files a tax return annually using tax accounting methods required
under provisions of the Code which may differ from generally accepted
accounting principles, the basis on which these financial statements are
prepared. The differences arise primarily from the deferral of certain
losses under Federal income tax regulations. Accordingly, the amount of
net investment income or loss and net realized capital gain or loss
reported in the financial statements may differ from that reported in the
Fund's tax return and, consequently, the character of distributions to
shareholders reported in the financial highlights may differ from that
reported to shareholders for Federal income tax purposes.
(c) Security transactions and investment income -- Security transactions
are accounted for on the trade date. Dividend income is recorded on the
ex-dividend date. Interest income is recognized on the accrual basis.
Realized gains and losses on security transactions are determined on the
identified cost basis.
(d) Dividends and distributions -- Dividends from net investment income
and net capital gains are declared and paid annually in December.
Dividends and distributions to shareholders are recorded on the
ex-dividend date.
2. Investment Advisory Agreement and Transactions with Related Parties
The President of the Fund is also the President and Chief Investment Officer of
Schwartz Investment Counsel, Inc. (the "Adviser"). The Chairman of the Board of
the Fund is also the President and CEO of Gregory J. Schwartz & Co., Inc. (the
"Distributor"), the exclusive agent for the distribution of the Fund's shares.
Certain other trustees and officers of the Fund are officers of the Adviser or
of MGF Service Corp. ("MGF"), the administrative, accounting, and transfer
agent for the Fund.
Pursuant to an Investment Advisory Agreement between the Fund and the Adviser,
the Adviser is responsible for the management of the Fund and provides
investment advice along with the necessary personnel, facilities, equipment,
and certain other services necessary to the operations of the Fund. For such
services, the Fund pays the Adviser a quarterly fee equal to the annual rate of
1.5% of the average daily net assets up to $75 million; 1.25% of such assets
from $75 million to $100 million; and 1% of such assets in excess of $100
million.
The Distributor is the exclusive agent for the distribution of the Fund and
receives fees from the Adviser, not the Fund or its shareholders.
Pursuant to an Administration, Accounting and Transfer Agency Agreement between
MGF and the Fund, MGF supplies regulatory and compliance services, calculates
the daily net asset value per share, maintains the financial books and records
of the Fund, maintains the records of each shareholder's account, and processes
purchases and redemptions of the Fund's shares. For the performance of these
services, the Fund pays MGF a fee, payable monthly, at an annual rate of .22%
of average daily net assets up to $25 million; .20% of such assets from $25
million to $100 million; and .15% of such assets in excess of $100 million.
3. Investment Transactions
Purchases and proceeds from sales and maturities of investments other than
short-term investments, for the six months ended June 30, 1996 were $13,344,489
and $19,880,447, respectively. As of June 30, 1996, net unrealized appreciation
of securities was $7,555,469 for federal income tax purposes of which
$9,956,602 related to appreciated securities and $2,401,133 related to
depreciated securities. The aggregate cost of investments at June 30, 1996, for
federal income tax purposes was $47,226,371.
<PAGE>
Schwartz Value Fund
INVESTMENT PHILOSOPHY
Schwartz Value Fund ("SVF") seeks superior, long-term performance through
value investing -- purchasing shares of strong, growing companies at reasonable
prices. Because small and medium size companies offer vast reward
opportunities, fundamental analysis is used to identify emerging companies with
outstanding business characteristics. Sometimes the best values are issues not
followed by Wall Street analysts.
Most value investors buy fair companies at an excellent price. SVF buys
excellent companies at a fair price. This is the essence of value investing.
SVF attempts to find companies with great business characteristics like an
unassailable franchise which by its nature, offers a margin of safety. A truly
fine business requires few assets to produce a consistently expanding stream of
income. SVF also purchases shares which are temporarily out-of-favor and
selling below intrinsic value.
A common thread in SVF investments is that the market price is below what
a corporate or entrepreneurial buyer might be willing to pay for the entire
business. The auction nature and the inefficiencies of the stock market are
such that SVF can often buy a minority interest in a fine company at a small
fraction of the price per share necessary to acquire the entire company.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000891160
<NAME> SCHWARTZ INVESTMENT TRUST
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 47,188,748
<INVESTMENTS-AT-VALUE> 54,781,840
<RECEIVABLES> 421,729
<ASSETS-OTHER> 6,123
<OTHER-ITEMS-ASSETS> 82,536
<TOTAL-ASSETS> 55,292,228
<PAYABLE-FOR-SECURITIES> 552,538
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 239,731
<TOTAL-LIABILITIES> 792,269
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 43,692,309
<SHARES-COMMON-STOCK> 2,488,180
<SHARES-COMMON-PRIOR> 2,702,902
<ACCUMULATED-NII-CURRENT> (51,412)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,265,970
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,593,092
<NET-ASSETS> 54,499,959
<DIVIDEND-INCOME> 348,290
<INTEREST-INCOME> 124,003
<OTHER-INCOME> 0
<EXPENSES-NET> 523,705
<NET-INVESTMENT-INCOME> (51,412)
<REALIZED-GAINS-CURRENT> 3,393,588
<APPREC-INCREASE-CURRENT> 2,439,202
<NET-CHANGE-FROM-OPS> 5,781,378
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 137,228
<NUMBER-OF-SHARES-REDEEMED> 351,950
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,363,071
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 127,618
<GROSS-ADVISORY-FEES> 397,852
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 523,705
<AVERAGE-NET-ASSETS> 53,345,877
<PER-SHARE-NAV-BEGIN> 19.66
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> 2.26
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.90
<EXPENSE-RATIO> 1.97
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
