Focusing on Midcaps with Secular Growth Tailwinds

Focusing on Midcaps with Secular Growth Tailwinds

Media Coverage

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

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How a Small-Cap Fund Manager is Handling a Ruthless Period in the Stock Market

How a Small-Cap Fund Manager is Handling a Ruthless Period in the Stock Market

Media Coverage

Overview

Buffalo Small Cap Fund co-portfolio manager Jamie Cuellar, CFA, was recently interviewed by Barron’s about the recent market downturn for small-company stocks. In the article, he describes the team’s approach to picking premier growth stocks based on in-depth analysis of company fundamentals and highlights the BUFSX team’s long-term investment philosophy that focuses less on short-term market movements.

If anything, you’ve just got some better valuations for ideas you may have missed out on in the first place or something you’re really excited about. ~ Jamie Cuellar, CFA, Co-Portfolio Manager, Buffalo Small Cap Fund

In the interview, Jamie reviewed his career path to the Buffalo Funds and the changes he and his co-managers put in place for the portfolio to help improve the Fund’s investment strategy and valuation discipline.

The article also identifies several small-cap stocks in the BUFSX portfolio which illustrate the Fund’s investment process in action:

  • Twilio – TWLO
  • HealthEquity – HQY
  • PROS Holdings – PRO

CLICK HERE to access the Barron’s article.

Diversification does not assure a profit, nor does it protect against a loss in a declining market. Past performance does not guarantee future results. Earnings growth is not representative of the fund’s future performance.

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. 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.

Annualized Performance (%)

(as of 11/16/18)1 YR3 YR5 YR10 YR
Buffalo Small Cap Fund9.6012.755.5014.78
Russell 2000 Price Return Index2.739.736.4812.84
Russell 2000 Total Return Index4.0611.267.9314.41

The Buffalo Small Cap Fund expense ratio is 1.01%. The Barron’s article references Russell 2000 Price Return Index performance as of 11/16/18, instead of the commonly-used Russell 2000 Total Return Index. The price return is the rate of return on an investment portfolio, where the return measure takes into account only the capital appreciation of the portfolio, while the income generated by the assets in the portfolio, in the form of interest and dividends, is ignored. This contrasts with the total return, which does take into account the income generated in the portfolio.

Where the article references the “Buffalo Small Cap has out run the Russell 2000 by an average of two percentage points a year over the past decade,” the percentage difference between the Russell 2000 Price Return Index as of 11/16/18 (the date the article uses as a reference point for returns) was actually 1.68%. However, the 10-year outperformance of the Fund vs the Russell 2000 Price Return Index, averaged out across every day in 2018 up to 11/16/18, is 2.19%.

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 cost. Current performance of the fund may be lower of higher than the performance quoted and can be found here; quarter-end performance can be found here. Performance is annualized for periods greater than 1 year.

BUFSX Portfolio Managers – Jamie Cuellar, Alex Hancock, Bob Male

HIGHLIGHT

Jamie Cuellar, BUFSX co-portfolio manager, discusses his team’s trend-spotting and portfolio-building strategies that have helped the Buffalo Small Cap Fund weather the recent market volatility.

MEDIA CONTACT

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

Featured Articles


Focusing on Midcaps with Secular Growth Tailwinds

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.

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

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.

International Markets Offering Low Valuations and Faster Pace of Growth

International Markets Offering Low Valuations and Faster Pace of Growth

Media Coverage

Overview

Buffalo Funds International co-portfolio manager Bill Kornitzer, CFA, was recently interviewed by The Wall Street Transcript about the ongoing trade war rhetoric and how they might impact the International Fund. He also provides insights into the importance of investing internationally and cites several examples of companies within his portfolio that highlight his team’s investment strategy at work:

  • Dassault Systemes (France) – OTCMKTS:DASTY
  • Sartorius Stedim Biotech (France) – EPA:DIM
  • HDFC Bank (India) – NYSE:HDB
  • ICICI Bank (India) – NYSE:IBN

While they’re not immune from the turbulence caused by these changing tariff regimes, our process naturally pushes us away from heavily cyclical and commodity-oriented type companies, which are frequently the direct point of trade actions and where the real issue could be on a company-specific basis. ~ Bill Kornitzer, CFA, Co-Portfolio Manager, Buffalo International 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 7/30/18 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.

WTO stands for World Trade Organization. FDA stands for Food & Drug Administration. Cash flow is a measure of the cash produced by the firm in a given period on behalf of equity holders. The true measure of the value of a firm’s equity is considered to be the present value of all free cash flows. Tier-1 capital ratio is the ratio of a bank’s core equity capital to its total risk-weighted assets (RWA). Risk-weighted assets are the total of all assets held by the bank weighted by credit risk according to a formula determined by the regulator (usually the country’s central bank). ROE stands for return on equity and is the amount of net income returned as a percentage of shareholders’ equity. The book value of a company is the total value of the company’s assets, minus the company’s outstanding liabilities. GDP stands for gross domestic product.

All charts provided by The Wall Street Transcript.

HIGHLIGHT

Bill Kornitzer, BUFIX co-portfolio manager, discusses the accelerated pace of the growth of global economies outside the U.S. and why, given where valuations are today, there are many opportunities to invest internationally at this time.

MEDIA CONTACT

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

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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.

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Morningstar Upgrades Buffalo Discovery Fund (BUFTX) Analyst Rating to Bronze

Morningstar Upgrades Buffalo Discovery Fund (BUFTX) Analyst Rating to Bronze

Media Coverage

Overview

The Buffalo Discovery Fund recently received an upgraded Morningstar Analyst RatingTM from Neutral to Bronze. For more information, read the analyst’s report, which includes analysis of the Fund’s Process, Performance, People, Parent, and Pricing.

Morningstar Analyst Report: Buffalo Discovery Fund (BUFTX)
“Solid team with a good record earns an upgrade.”

The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s conviction in a fund’s prospects for outperformance. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.

For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause Analyst expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

HIGHLIGHT

BUFTX earns Bronze Morningstar Analyst RatingTM due to the management team’s ability to adapt to the changing focus of the Fund over the past 14 years.

MEDIA CONTACT

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

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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.

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Actively Managing a Diversified Portfolio of Small-Cap Companies

Actively Managing a Diversified Portfolio of Small-Cap Companies

Media Coverage

Overview

Buffalo Funds Small Cap co-portfolio manager Jamie Cuellar, CFA, was recently interviewed by The Wall Street Transcript, where he discussed how his team analyzes small-cap company valuations and why they view the asset class as very inefficient. He also provides several examples of companies within his portfolio that highlight his team’s investment strategy at work:

  • Twilio (NYSE:TWLO)
  • Mimecast (NASDAQ:MIME)
  • CoreCivic (NYSE:CXW)
  • MasTec (NYSE:MTZ)

Jamie also gave his outlook on small-cap companies in the United States in the coming year, including the impact of the current economy, the recent tax cuts, and the repatriation of corporate cash holdings back to the United States.

We believe that by investing in an actively managed and diversified portfolio of companies that benefit from long-term industrial, technological or general market trends, and trading at attractive valuations, are going to lead to superior growth of capital over time. ~ Jamie Cuellar, CFA, Co-Portfolio Manager, Buffalo Small Cap Fund

To access The Wall Street Transcript 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.

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

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.

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.

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.

AUM stands for Assets Under Management. API stands for Application Programming Interface. ARPU stands for Average Revenue Per User. SMB stands for Small/Medium-size Business. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, Amortization. Cash flow is the total amount of money being transferred into and out of a business. REIT stands for Real Estate Investment Trust. Dividend yield is a dividend expressed as a percentage of a current share price. GDP stands for Gross Domestic Product. M&A stands for Mergers & Acquisitions. P&L stands for Profit & Loss. The Russell 2000 is an unmanaged index that consists of the smallest 2,000 securities in the Russell 3000 Index, representing approximately 10% of the Russell 3000 total market capitalization. It is not possible to invest directly in an index.

HIGHLIGHT

Jamie Cuellar, co-portfolio manager, discusses how his team analyzes small-cap company valuations and why they view the asset class as very inefficient, while providing several examples of companies within his portfolio that highlight his team’s investment strategy at work.

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.

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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 Discovery Fund named to IBD Best Mutual Funds 2018 List

Buffalo Discovery Fund named to IBD Best Mutual Funds 2018 List

Media Coverage

Overview

The Buffalo Discovery Fund (BUFTX) is an Investor’s Business Daily 2018 Best Mutual Funds Award Winner, in the 3rd annual ranking by the investment publication, announced this week. BUFTX was included in 3 categories:

  • Midcap funds
  • U.S. Diversified Equity funds
  • Growth funds

Funds named to IBD’s list were chosen because they have outperformed the broader market over the past 1, 3, 5, and 10-year periods, as of 12/31/17. In order to make the list, funds must have outperformed in all four time periods. IBD made its selections from 2,806 mutual funds that met the criteria of having at least $100 million in assets and 10 years of operation.

We’re honored that our Discovery Fund has been recognized in this way by IBD. This fund exemplifies our firm’s goal of consistently delivering strong risk-adjusted performance to our shareholders, said Clay Brethour, president of the Buffalo Funds and co-manager of the Buffalo Discovery Fund.

The Buffalo Discovery Fund is managed by Clay Brethour and Dave Carlsen, a team that has been in place since 2004.

Originally launched in 2001 as the Science & Technology Fund, the Discovery Fund has consistently delivered benchmark-beating performance since inception, with a focus on innovation as a key driver in their outperformance. IBD recently profiled the Fund in their March 2018 edition: Innovators Fuel Buffalo Discovery Fund Outperformance

To view IBD’s complete list and analysis of the Best Mutual Funds 2018, please visit: www.investors.com/best-mutual-funds-awards

As of 12/31/171 YR3 YR5 YR10 YR
Buffalo Discovery Fund25.4411.8416.1611.46
Russell Midcap Growth Index25.2710.3015.309.10
S&P 500 Index21.8311.4115.798.50

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. Performance is annualized for periods greater than 1 year.

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.

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

HIGHLIGHT

BUFTX named to Investor’s Business Daily Best Mutual Funds 2018 list in the Midcap, U.S. Diversified, and Growth fund categories.

MEDIA CONTACT

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

Discovery Fund

Total Assets $1.80 Billion  (7/1/19)
Expense Ratio 1.02% / 0.87%
Benchmark Morningstar U.S. Mid Growth

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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