Ticker
  BUFIX

Inception Date
  September 28, 2007

Total Fund Assets
  $295.98 Million  (9/30/18)

Expense Ratio
  1.05%

Benchmark Index
  Morningstar Global Markets ex-US

MORNINGSTAR RATING

Overall Morningstar™ rating out of 347 Foreign Large Growth funds as of 9/30/18 (derived from a weighted average of the fund’s 3-, 5-, and 10-year risk adjusted return measure).

INVESTMENT STRATEGY

The investment objective of the Buffalo International Fund is long-term growth of capital.

The International Fund invests primarily in equity securities of established companies that are economically tied to various countries throughout the world (excluding the U.S.).

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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 347 funds in the Foreign Large Growth category, as of 9/30/18.

RECENT NEWS

The Case for Investing Internationally

In this report, we provide insights into several areas that show the potential for increasing returns of international stocks over the long term.

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When it comes to investing internationally, we believe our approach to stock selection is distinct. We are focused on finding good companies and aren’t constrained by benchmark alignment to countries or industries. Our approach is based on finding companies with sound business models, exposure to long-term secular growth trends, and attractive risk/return growth and valuation characteristics, which we can own for the long-term.

~ Bill Kornitzer, Portfolio Manager

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NEW REPORT!


The Case for Investing Internationally

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SPECIAL REPORT: Trump Tariffs & the Current State of International Markets

In a recent Q&A, BUFIX portfolio managers provided insightful answers to questions posed regarding the current state of the international markets.

  • What’s your take on the current status of the international market in relation to the U.S. cycle?
  • What is your opinion on President Trump’s recent announcement regarding tariffs?

Access Q&A Recordings >>


Are We Afraid Of Trade Wars?

Access Report >>

Performance (%)

As of 9/30/183 MOYTD1 YR3 YR5 YR10 YRSince Inception
(9/28/07)
BUFFALO INTERNATIONAL FUND2.225.107.7213.458.068.364.72
  Morningstar Global Markets ex-US Index0.70-2.952.2010.674.876.032.04
  Russell Global ex-US Index0.40-3.231.8810.264.545.791.72
  Lipper International Fund Index0.61-2.061.659.384.805.781.98
  Morningstar Foreign Large Growth Category0.21-0.204.0810.285.746.412.22
As of 9/30/183 MOYTD1 YR3 YR5 YR10 YRSince Inception
(9/28/07)
BUFFALO INTERNATIONAL FUND2.225.107.7213.458.068.364.72
  Morningstar Global Markets ex-US Index0.70-2.952.2010.674.876.032.04
  Russell Global ex-US Index0.40-3.231.8810.264.545.791.72
  Lipper International Fund Index0.61-2.061.659.384.805.781.98
  Morningstar Foreign Large Growth Category0.21-0.204.0810.285.746.412.22
vs Morningstar Global Markets ex-US Index
(As of 9/30/18)
Upside Capture94.64
Downside Capture68.96
Alpha3.76
Beta0.89
Sharpe Ratio1.21

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.

As of July 27, 2018 the Morningstar Global Markets ex-U.S. Index has replaced the Russell Global (ex-US) Index as the Fund’s primary benchmark. The Advisor believes that the new index is more appropriate given the Fund’s holdings.

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 9/30/18) 
 
# of Holdings76
Median Market Cap$27.08 B
Weighted Average Market Cap$52.26 B
3-Yr Annualized Turnover Ratio9.37%
Name of HoldingTickerCountrySector% of Net Assets
KeringKERFranceConsumer Discretionary3.36%
WirecardWDIGermanyTechnology3.03%
SAP SESAPGermanyTechnology2.41%
Fresenius SE & Co KGaAFREGermanyHealth Care2.28%
Sartorius Stedim BiotechDIMFranceHealth Care2.14%
Taiwan Semiconductor Manufacturing LtdTSMTaiwan (China)Technology2.07%
LindeLINUGermanyMaterials2.00%
Davide Campari-MilanoCPR IMItalyConsumer Staples1.99%
Dassault SystemesDSYFranceTechnology1.97%
LVMH Moet HennessyMCFranceConsumer Discretionary1.92%
TOP 10 HOLDINGS TOTAL23.17%
View Full Holdings

As of 6/30/18. 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 9/30/18. 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.

TOP 10 COUNTRIES 
TOP 10 TOTAL81.6%
Germany28.5%
France17.3%
United Kingdom9.2%
Netherlands6.3%
Switzerland6.0%
Japan5.0%
Hong Kong2.7%
Spain2.5%
Taiwan, Province of China2.1%
Italy2.0%
As of 6/30/18. 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.

Commentary

CAPITAL MARKET OVERVIEW

(As of 6/30/18) — The increased volatility experienced in the 1st quarter of 2018 continued on into the 2nd quarter for international markets, driven by a slowdown in economic growth outside the U.S. and elevated global trade tensions. Concerns of increasing trade protectionism along with the U.S. dollar’s strength, led to the relative outperformance of domestically-focused industries and smaller capitalization companies, which generally do less international business, while larger capitalization and international stocks lagged. Crude oil prices continued to rise, despite the strong dollar, driven by lower stockpiles in the U.S. and President Trump’s decision to withdraw from the Iran nuclear accord. Given the time lag in economic growth, central banks around the world still favor a more stimulative monetary policy framework relative to the U.S., but we expect the direction to become less accommodative over time.

PERFORMANCE COMMENTARY

(As of 6/30/18) — For the 2nd quarter of 2018, the Buffalo International Fund produced a return of +1.59%, outperforming the Russell Global ex-U.S. Index’s return of -2.62%. The Fund’s outperformance versus the benchmark was primarily driven by stock selection; however, our sector allocations had a slight positive impact on relative returns as well.

TOP CONTRIBUTORS

Top contributors in the period included Linde, Sartorius, and Kering. Linde, a provider of industrial gases, benefited from the increasing likely approval of their merger with Praxair, allowing the potential deal synergies to begin to be priced in the stock. Sartorius, a leading equipment supplier to the biopharmaceutical industry, continued to benefit from the long-term opportunity of providing “picks and shovels” to the burgeoning biotechnology field, as supply chains continued to normalize. Kering benefited from continued robust improvement in their Gucci division along with a cleaning up of their operations with the distribution of their ownership stake in Puma to shareholders.

TOP DETRACTORS

Detractors in the period included Taiwan Semiconductor, Omron, and Ambev. Omron, a manufacturer of electronic components, and Taiwan Semi, a chip manufacturer, were both impacted by a slowdown in demand for electronic components and concerns of building inventory levels. Meanwhile Ambev, a producer and distributor of beer, soft drinks, and other non-alcoholic beverages, which is based in Brazil, was primarily impacted on concerns that emerging markets would be severely impacted by higher U.S. interest rates and a rising U.S. dollar.

OUTLOOK

(As of 6/30/18) — While global growth has slowed recently, we expect the pick-up in growth that the U.S. experienced in the 2nd quarter will begin to be seen around the world. Equity markets have been increasingly concerned over rising protectionism and fears of escalating trade wars; however, we remain somewhat sanguine over the range of potential outcomes.

Our process naturally leads us away from commodity-oriented, heavily-cyclical industries which are typically the easy target of trade rhetoric, and toward secularly-growing companies with strong intellectual property and high barriers to entry. While not immune from a potential economic slowdown caused by an all-out trade war, we believe our approach to investing positions us to identify companies than can grow throughout the economic cycle.

Our view is that stocks outside the U.S. have become even less expensive relative to their domestic counterparts, and the heightened level of U.S. trade tension may actually increase the potential for internationally-based companies to increase market share. We hope to use any significant market dislocation caused by these trade concerns to add to positions in companies whose long-term prospects remain unchanged, in our view.

Economic conditions may ebb and flow, but our focus remains steadfast on investing in attractively-priced, financially strong, well-managed companies with innovative strategies, fueled by secular growth trends from our own internal analysis. We believe this discipline should lead to superior risk-adjusted returns over the long term.

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 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 International Fund received 4 stars among 347 for the 3-year, 4 stars among 313 for the 5-year, and 5 stars among 222 Foreign Large Growth funds for the 10-year period ending 9/30/18.

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.