Media Coverage

Buffalo Funds Prepares for when Bear Market Shreds Passively Managed Funds

March 2, 2018


The biggest trend in the mutual fund business over the past several years has been the move to passively-managed index funds. However, we believe, when volatility and the eventual end to the bear market returns, the value of active investing will shine. With index funds tied to downward market action, experienced portfolio managers at active funds will be attempting to minimize the damage, while setting the stage to potentially maximize returns on the rebound.

Despite the trends, the Buffalo Funds family has been making moves to capitalize on future growth opportunities:

  • Restructuring the Board of Directors and bringing on new board members
  • Hiring new marketing and sales professionals
  • Investing in new operations, sales, and marketing technologies

Positioning the company to capitalize on stock market swings and economic volatility has allowed the Buffalo Funds to survive the bear markets of the 90s, the dot-com boom and bust, and the Great Recession.

Ever since Buffalo Funds was launched 24 years ago, we’ve regularly come up with long-term sector growth trends to build the foundation of our funds. We pick industry sectors we expect to grow regardless of what’s happening in the economy. ~ Clay Brethour, CFA, President, Buffalo Funds

To access the Kansas City Business Journal article click here.

Performance data quoted represents past performance; past performance 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 value. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained here. Performance data current to the most recent quarter-end may be obtained here.

Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Both actively and passively managed mutual funds generally have daily liquidity. There are no guarantees regarding the performance of actively and passively managed mutual funds. Actively managed mutual funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.

As of 12/31/17, none of the Buffalo Funds held positions in Aflac, CB Richard Ellis, Larson Financial Services, Cartwright Cos., Ascend Learning, or Datacore Marketing. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

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


With index funds tied to downward market action, experienced portfolio mangers at active funds attempt to minimize the damage and set the stage to potentially maximize returns on the rebound.


Joel Crampton
Director of Marketing
(913) 647-9881

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