“Industry Perspectives” 2Q 2019

“Industry Perspectives” 2Q 2019

“Industry Perspectives” 2Q 2019

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Read our view on the economy and key drivers of change in the global equity markets.

Date Published:
July 2019

Pages:
3

OVERVIEW:
The S&P 500 Index posted its best 1st half of a calendar year since 1997, rising 18.54% from January 1 to June 30. As we have discussed previously, two main underlying forces – central banks and trade policies – continued to drive financial markets during the period and will likely continue to do so going forward.

In this latest Industry Perspectives, we discuss:

  • The world’s central banks have been extremely reluctant to increase short-term interest rates given persistently sluggish global growth.
  • For years, nations have used tariffs and regulations to protect internal businesses.
  • The Fed’s challenge in achieving its stated mandate is complicated by the uncertainty surrounding the trade dispute with China and other countries.

Fundamental Approach

We get to know the companies we invest in and learn how they run their business.

Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.

Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.

Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

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Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

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Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

Buffalo Funds Introduces Institutional Class Shares

Media Coverage

Buffalo Funds Introduces Institutional Class Shares

FOR IMMEDIATE RELEASE:

MISSION, Kan. – Kornitzer Capital Management (KCM), investment advisor to the Buffalo Funds, is pleased to announce the launch of an Institutional Class of shares, which are available to eligible investors who meet an initial investment minimum of $250,000 or with no initial or subsequent investment minimums, to:

  • Retirement plans such as 401(a), 401(k) or 457 plans;
  • Certain IRAs if the amounts invested represent rollover distributions from investments by any of the retirement plans invested in the Funds;
  • Registered investment advisers investing on behalf of clients in exchange for an advisory, management or consulting fee;
  • Wrap fee programs of certain broker-dealers.

The new share class became effective on July 1, 2019.

Christopher Crawford, Director of Advisor Relationships, commented, “The decision to launch institutional shares is in response to the ever-evolving investment marketplace and the desire to meet client expectations to the greatest extent possible. In short, institutional shares should increase the marketability of the funds going forward and help to ensure Buffalo Funds ability to thrive long into the future.”

“The introduction of this institutionally-priced share class reaffirms our commitment to align with customer interests,“ said Clay Brethour, CFA, Buffalo Funds President. “The Institutional Class refines our offerings and provides investors access to Buffalo Funds’ specialized investment capabilities, while matching their liquidity and fee requirements.”

The Institutional Class was added for all 10 mutual funds in the Buffalo Funds family, with new ticker symbols and CUSIP numbers. Financial intermediaries and shareholders should check their custodial platforms to see if the new share class is available for purchase. Current investors who qualified for the new share class as of July 1 had their shares automatically converted to the new Institutional Class.

For more information, please review our Frequently Asked Questions.

About Buffalo Funds
The Buffalo Funds are a family of 10 actively-managed mutual funds offering a variety of domestic equity, international equity, and income-generating investment strategies. We believe that patient investing backed by solid, intelligent research is the best way to achieve potential long-term financial rewards. Disciplined investment decisions are made using a distinct, time-tested investment approach guided by trend analysis, rigorous fundamental company research, and strict security valuation parameters.

About Kornitzer Capital Management
KCM is a privately-held, employee-owned corporation, founded in 1989 by John C. Kornitzer. The firm was created to manage customized portfolios for private clients and institutions. We continue to provide client-focused, personalized money management through our Kornitzer Private Client Services (KPCS) group, and pension, corporate, and foundation separate account management through our institutional services group. With our approach to lifetime asset management, KCM helps clients achieve their long-term financial goals throughout the various investment stages including accumulation, preservation, and retirement. Over the years, based on client request or need, we formed companies and alliances to better serve specific niches.

MEDIA CONTACT

Joel Crampton
Director of Marketing
(913) 647-9881
Email

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Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

“Market Call” with Buffalo Emerging Opportunities Fund PM Doug Cartwright

“Market Call” with Buffalo Emerging Opportunities Fund PM Doug Cartwright

Media Coverage

“Market Call” with Buffalo Emerging Opportunities Fund PM Doug Cartwright

Overview

Buffalo Funds Emerging Opportunities co-portfolio manager Doug Cartwright, CFA, recently appeared on the Money Life with Chuck Jaffe podcast. During the call, Doug goes in-depth on his team’s investing methodology in the small cap space, discussing their search for “growth at a reasonable price”. He provides several examples of small-cap companies both inside and outside the Fund’s portfolio that highlight how their investment strategy is applied to stock selection:

  • 8×8 – EGHT (NYSE)
  • Playa Hotels & Resorts – PLYA (Nasdaq)
  • Inspire Medical Systems – INSP (NYSE)
  • Simon Property Group – SPG (NYSE)
  • Comcast – CMSCA (Nasdaq)
  • Visa – V (NYSE)

We’re really looking for opportunities on a granular level. Companies that have a chance to be much larger than they are today, that we can acquire at what we think is a reasonable price.
~ Doug Cartwright, CFA, Co-Portfolio Manager, Buffalo Emerging Opportunities Fund

MORE ABOUT DOUG


Doug Cartwright, CFA
Portfolio Manager
13 Years of Experience
 View full bio

Opinions expressed are those of the author or Funds as of 6/28/19 and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. References to other mutual funds should not to be considered an offer to buy or sell these securities. Past performance does not guarantee future results. Earnings growth is not representative of the Fund’s future performance. A complete list of the Fund’s holdings can be found here. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security. The expense ratio for BUFOX is 1.49% as of 6/30/19.

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Standardized performance can be obtained here.

Sign Up for Automatic Updates

Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

These European Companies Benefit from High Health-care Prices in the U.S.

These European Companies Benefit from High Health-care Prices in the U.S.

Media Coverage

These European Companies Benefit from High Health-care Prices in the U.S.

Overview

Buffalo Funds International co-portfolio manager Nicole Kornitzer, CFA, was recently interviewed by MarketWatch about her team’s top-down strategy of focusing on secular growth trends. She goes in-depth to discuss two trends around health care — “cost containment and increasing consumption as the middle class quickly expands in developing countries and as populations age”. She also provided several examples of European companies within the Fund’s portfolio that highlight their investment strategy at work:

  • Fresenius SE – FRE.XE
  • Grifols SA – GRF.MC
  • Sartorius Stedim Biotech – DIM.FR

The concern about health-care pricing is not limited to U.S. companies, it is a concern for all companies around the world that sell in the U.S. market. ~ Nicole Kornitzer, CFA, Co-Portfolio Manager, Buffalo International Fund

To access the MarketWatch article click here.

HIGHLIGHT

During an interview with MarketWatch, Nicole Kornitzer, CFA, (Buffalo International Fund co-portfolio manager) described her team’s top-down strategy when studying secular growth trends within the health care industry and identifies 3 companies which are well-positioned to benefit from these long-term trends.

MEDIA CONTACT

Joel Crampton
Director of Marketing
(913) 647-9881
Email

Opinions expressed are those of the author or Funds as of 6/27/19 and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. Past performance does not guarantee future results. References to other mutual funds should not to be considered an offer to buy or sell these securities. A complete list of the Fund’s holdings can be found here. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security. Earnings growth is not representative of the Fund’s future performance. All charts provided by MarketWatch.

4 star Overall Morningstar Rating™ of BUFIX based on risk-adjusted returns among 396 Foreign Large Growth funds as of 6/30/19. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Buffalo International Fund (BUFIX) received 5 stars among 396 for the 3-year, 4 stars among 336 for the 5-year, and 4 stars among 247 Foreign Large Growth funds for the 10-year period ending 6/30/19. In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average, and the top 10% High. Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated. ©2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Style Box™ reveals a fund’s investment strategy by showing its investment style and market capitalization based on the fund’s portfolio holdings.

Sign Up for Automatic Updates

Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

Focusing on Midcaps with Secular Growth Tailwinds

Focusing on Midcaps with Secular Growth Tailwinds

Media Coverage

Focusing on Midcaps with Secular Growth Tailwinds

Overview

Buffalo Funds Mid Cap co-portfolio managers Josh West, CFA, and Chris Carter, CFA, were recently interviewed by The Wall Street Transcript about their strategy of picking companies with secular growth tailwinds and the opportunities available during volatile markets. They also provided several examples of companies within the Fund’s portfolio that highlight their investment strategy at work:

  • MSCI – NYSE:MSCI
  • Laboratory Corp. of America – NYSE:LH
  • Quest Diagnostics – NYSE:DGX
  • UnitedHealth Group – NYSE:UNH
  • Live Nation Entertainment – NYSE:LYV
  • Proofpoint – NASDAQ:PFPT
  • Microsoft – NASDAQ:MSFT

I think you’ll find, in markets that get volatile like they did in Q4 and more recently, that we’re opportunistic, and the quality bias really protects capital on the downside while also providing ample upside. ~ Chris Carter, CFA, Co-Portfolio Manager, Buffalo Mid Cap Fund

To access The Wall Street Transcript article click here.

Diversification does not assure a profit, nor does it protect against a loss in a declining market.

Opinions expressed are those of the author or Funds as of 6/14/19 and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Past performance does not guarantee future results.

References to other mutual funds should not to be considered an offer to buy or sell these securities.

A complete list of the Fund’s holdings can be found here. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Earnings growth is not representative of the Fund’s future performance.

All charts provided by The Wall Street Transcript.

HIGHLIGHT

Josh West and Chris Carter, Buffalo Mid Cap co-portfolio managers, discuss a variety of issues affecting their investment strategy, including the current interest rate environment, globalization, the growth of ESG investing, and Millennials.

MEDIA CONTACT

Joel Crampton
Director of Marketing
(913) 647-9881
Email

Sign Up for Automatic Updates

Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS