The Buffalo Funds were founded in 1994 by Kornitzer Capital Management, Inc., an independent, privately-owned boutique manager located in America’s heartland.

Like our namesake, the buffalo, we are steady, strong, and proud. We offer a family of 10 funds representing a wide spectrum of capital size and investment objectives. Our record of growth is a testament to our philosophy of trend-based, deeply-researched investing, and commitment to long-term growth.

The Buffalo Funds’ approach to investing focuses on long-term growth of capital.

We are patient, disciplined investors who believe that actively managed, no-load funds are a prudent way to generate the potential for meaningful returns over time.

Rather than adhere to benchmarks, we construct our portfolios based on our own extensive research into how and where we believe long-term growth is likely to occur. The core principle of this investment strategy is our top-down/bottom-up approach.

Top-Down

Trend Identification

Identify broad, secular growth trends, currently numbered at 20+ (e.g., demographic changes, growing demand for bandwidth, globalization, healthcare cost containment) that are:

• Well-defined and measurable
• Long term in nature (at least 3-5 years)
• In industries with long-term growth impetus, which have the potential to exceed Gross Domestic Product (GDP)

Bottom-Up

In-House Research

Search for companies that should benefit from one or more trends, and perform extensive in-house research to select the companies that we believe:

• Have strong, reliable management teams and business plans
• Carry little or no debt
• Generate free cash flow
• Maintain optimal operating margins

Valuation Analysis

Traditional Guidelines + Proprietary Scoring

We use traditional valuation guidelines and a proprietary scoring system to value each stock on our “wish list”. We believe one of the keys to reduced investment risk is close attention to stock valuation. Companies with solid fundamentals that are expected to benefit from secular growth trends are subject to in-depth valuation analysis.

• Our proprietary multi-factor scoring system allows fundamentals/valuation of individual growth companies to be compared to a growth universe
• A price-to-expected value range frames each stock’s potential with an emphasis on the longer-term risk/reward opportunity
• Traditional valuation tools include P/E (price/earnings ratio), P/CF (price/cash flow), EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization)