Ticker
  BUFTX

Inception Date
  April 16, 2001

Total Fund Assets
  $1.68 Billion  (12/31/17)

Expense Ratio
  1.03%

Benchmark Index
  Russell Midcap Growth

MORNINGSTAR RATING

Overall Morningstar Rating™ out of 562 Midcap Growth funds as of 12/31/17 (derived from a weighted average of the fund’s 3-, 5-, and 10-year risk adjusted return measure).

INVESTMENT STYLE

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.

RISK VS CATEGORY

 

LowHigh

The Morningstar Risk vs Category™ rating is an assessment of the variations in a fund’s monthly returns, with an emphasis on downside variations, in comparison to the 562 funds in the Mid-Cap Growth category, as of 12/31/17.

DISCOVERY FUND NEWS

Discovery Fund Webcast – September 2017

During this webcast, we covered:
• How innovative companies can lead to above average growth
• Key objectives of the Fund and their impact on current performance
• Our proprietary portfolio management process
• Fund performance YTD

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To us, innovation means to discover and transform new ideas into meaningful commercial value. The greater the economic impact and the longer the staying power, the better.

We seek underappreciated stock opportunities in companies where thoughtful management teams are in a favorable position to use innovation for market advantage and sustained shareholder value creation.

~ Dave Carlsen, Portfolio Manager

INVEST NOW

It's easy to open an account or add to your existing account.

Select the platform of your choice by clicking one of the links below:

  BUFFALO FUNDS (direct)


  CHARLES SCHWAB & CO.


  FIDELITY INVESTMENTS


  TD AMERITRADE


Buffalo Funds are also available on hundreds of other platforms.

INVESTMENT STRATEGY

The investment objective of the Buffalo Discovery Fund is long-term growth of capital. The Fund primarily invests in equity securities, consisting of domestic common stock, preferred stock, convertible securities, which may increase in value due to the development, advancement or commercial application of innovative strategies. Companies engaged in innovative strategies are those who, in the Fund managers’ opinion, are engaged in the pursuit and practical application of knowledge to discover, develop and commercialize products, services or intellectual property.

The Fund managers seek to identify companies expected to benefit from innovation and experience growth based on the identification of long-term, measurable secular trends, and which, as a result, the managers believe may have potential revenue growth in excess of the gross domestic product growth rate. Companies are screened using in-depth, in-house research to identify those which the Fund managers believe have favorable attributes, including attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages.

Having trouble viewing the video? Click here to open the video directly in your browser.

Performance (%)

As of 12/31/173 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
(4/16/01)
Buffalo Discovery Fund4.4425.4425.4411.8416.1611.4614.089.37
  Russell Midcap Growth Index6.8125.2725.2710.3015.309.1011.968.77
  Morningstar Mid-Cap Growth6.0223.9123.919.4013.737.6710.686.74
As of 12/31/173 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
(4/16/01)
Buffalo Discovery Fund4.4425.4425.4411.8416.1611.4614.089.37
  Russell Midcap Growth Index6.8125.2725.2710.3015.309.1011.968.77
  Morningstar Mid-Cap Growth6.0223.9123.919.4013.737.6710.686.74
YearBuffalo DiscoveryRussell Midcap Growth IndexMorningstar Mid-Cap Growth Category
201725.4425.2723.91
20165.567.336.03
20155.64-0.20-0.95
201410.6811.907.00
201336.6135.7434.93
201219.7315.8114.07
2011-0.69-1.65-3.96
201022.9626.3824.61
200951.6246.2939.11
2008-36.87-44.32-43.77
(As of 12/31/17)

vs Russell Midcap Growth Index
Upside Capture96.66
Downside Capture81.80
Alpha2.68
Beta0.87
Sharpe Ratio1.11

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 obtained here. Performance is annualized for periods greater than 1 year. Each Morningstar category average represents a universe of funds with similar objectives.

Growth of $10k

This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the Inception Date. Assumes reinvestment of dividends and capital gains. This chart does not imply future performance.

Portfolio

(As of 12/31/17)

# of Holdings86
Median Market Cap$12.51 B
Weighted Average Market Cap$50.78 B
3-Yr Annualized Turnover Ratio53.47%
% of Holdings with Free Cash Flow87.21%
% of Holdings with No Net Debt30.23%
Active Share85.23%
HoldingTickerSector% of Net Assets
Align TechnologyALGNHealth Care2.52%
NevroNVROHealth Care1.90%
XlyemXYLIndustrials1.90%
FMCFMCMaterials1.86%
WABCOWBCConsumer Discretionary1.83%
MSCIMSCIFinancial Services1.82%
BlackberryBBRYTechnology1.76%
PraxairPXMaterials1.68%
MasterCardMAFinancial Services1.66%
Intercontinental ExchangeICEFinancial Services1.66%
TOP 10 HOLDINGS TOTAL18.60%
View Full Holdings

As of 9/30/17. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Those listed are for the previous quarter. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

Buffalo publishes this listing of securities held as of the most recent calendar-quarter end, with a 30 or 60 day lag depending on the portfolio. Buffalo may exclude any portion of holdings from publication when deemed in the best interest of the portfolio.

The portfolio data and its presentation here may differ from the complete schedules of investments in regulatory filings due to differing accounting and reporting requirements.

As of 9/30/17. Security weightings are subject to change and are not recommendations to buy or sell any securities.
Sector Allocation may not equal 100% due to rounding.

As of 9/30/17. Market Cap percentages may not equal 100% due to rounding.

The opinions expressed are those of the Portfolio Manager(s) and are subject to change, are not guaranteed and should not be considered recommendations to buy or sell any security. Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security. Earnings growth is not representative of the fund’s future performance.

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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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

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 Discovery Fund received 5 stars among 562 for the three-year, 5 stars among 490 for the five-year, and 5 stars among 362 Mid-Cap Growth funds for the ten-year period ending 12/31/17.

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.

©2018 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.