Quick Facts

(As of 6/30/17)

Ticker
  BUFIX

Inception Date
  September 28, 2007

Total Fund Assets
  $226.2 M

Expense Ratio
  1.06%

Benchmark Index
  Russell Global ex-US

MORNINGSTAR RATING

Overall Morningstar™ rating out of 324 Foreign Large Growth funds as of 6/30/17 (derived from a weighted average of the fund’s three- and five-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

 

Low High

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 324 funds in the Foreign Large Growth category, as of 6/30/17.

RECENT NEWS

Overview

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.). For purposes of the International Fund’s investments, “foreign securities” means those securities issued by companies:

  • Organized under the laws of, or with a principal office in, a country other than the U.S. and issue securities for which the principal trading market is in a country other than the U.S.; or
  • That derive at least 50% of their revenues or profits from goods produced or sold, investments made, or services provided in a country other than the U.S., or have at least 50% of their assets in a country other than the U.S.
  • Under normal circumstances, the International Fund does not expect its investments in emerging markets to exceed 35% of its net assets.
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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

Read More...

Performance

(As of 6/30/17)3 MOYTD1 YR3 YR5 YRSince Inception
(9/28/07)
Buffalo International Fund8.5220.0524.325.5310.054.01
Russell Global ex-US Index5.7814.3820.491.267.821.13
Lipper International Fund Index6.6515.2920.322.078.931.47
Morningstar Foreign Large Growth7.9817.9317.802.588.651.42
Each Morningstar category average represents a universe of funds with similar objectives.
(As of 6/30/17)3 MOYTD1 YR3 YR5 YRSince Inception
(9/28/07)
Buffalo International Fund8.5220.0524.325.5310.054.01
Russell Global ex-US Index5.7814.3820.491.267.821.13
Lipper International Fund Index6.6515.2920.322.078.931.47
Morningstar Foreign Large Growth7.9817.9317.802.588.651.42
Each Morningstar category average represents a universe of funds with similar objectives.
YearBuffalo International FundRussell Global ex-US IndexMorningstar Foreign Large Growth
20163.194.39-2.14
2015-0.45-4.400.95
2014-2.04-3.58-3.92
201319.2916.2318.58
201219.0117.2017.70
2011-13.82-14.41-12.30
201013.7313.5114.78
200946.4545.0338.02
2008-40.82-46.86-46.56
2007*0.70-0.59-0.17
* Partial year. Inception to year-end.
Each Morningstar category average represents a universe of funds with similar objectives.
(As of 6/30/17)

vs Russell Global ex-US Index
Upside Capture102.26
Downside Capture81.31
Alpha3.99
Beta0.87
Standard Deviation11.81
Sharpe Ratio0.45

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.

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 6/30/17)


# of Holdings73
Median Market Cap$19.91 B
Weighted Average Market Cap$48.48 B
3-Yr Annualized Turnover Ratio9.26%
Name of HoldingTickerCountrySector% of Net Assets
Fresenius SE & Co KGaAFREGermanyHealth Care2.89%
SAP SESAPGermanyTechnology2.86%
Taiwan Semiconductor Manufacturing LtdTSMTaiwan (China)Technology2.61%
Broadcom LtdAVGOSingaporeTechnology2.35%
KeringKERFranceConsumer Discretionary2.16%
Davide Campari-MilanoCPRItalyConsumer Staples2.11%
InterXion Holding NVINXNNetherlandsTechnology2.09%
SiemensSIEGermanyIndustrials2.00%
Linde AGLINGermanyMaterials1.97%
Henkel AG & Co KGaAHENGermanyConsumer Staples1.96%
TOP 10 HOLDINGS TOTAL23.00%
View Full Holdings

As of 3/31/17. 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 6/30/17. 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 3/31/17. Market Cap percentages may not equal 100% due to rounding.

TOP 10 COUNTRIES 
TOP 10 TOTAL82.57%
Germany26.25%
France15.54%
United Kingdom9.52%
Switzerland7.38%
Japan6.26%
Netherlands5.83%
Hong Kong3.96%
Italy2.87%
Taiwan2.61%
Singapore2.35%
As of 3/31/17. 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.
CAPITAL MARKET OVERVIEW

Equity markets got off to a strong start in 2017, thanks to an improving economic outlook around the globe. The post-election reflation trade which caused massive sector rotation towards financials, industrials and materials at the expense of growth sectors like technology and healthcare unwound toward the end of the first quarter of 2017, as investors better under-stood the amount of political capital required to accomplish Trump’s legislative agenda. An uptick in inflation in China, Japan, and Europe continued to keep international market participants hopeful that some of the world’s major economies continued to improve. Within that backdrop, international markets performed well, with the Russell Global ex-U.S. Index advancing 8.12% versus the S&P 500 Index which increased 6.07% in the quarter.

PERFORMANCE COMMENTARY

The Buffalo International Fund returned 10.63% for the quarter which outperformed the Russell Global ex-U.S. return of 8.12%. Outperformance in the period was primarily driven by stock selection with a small benefit coming from our sector allocation impact. The top contributors to the fund’s performance in the quarter were Jenoptik AG and Broadcom Ltd. Jenoptik AG is an optoelectronics group that offers optical systems, lasers and material processing. The company benefited from increased purchases of defense systems as well as increasing penetration of optical solutions for metrology. Broadcom, a stock we’ve owned almost since the Fund’s inception, is a semiconductor manufacturer continued to benefit as cellular handset and base station suppliers continued their roll-out of 4G capabilities, which requires greater use of semiconductor filters to handle the band-width and spectrum density.

Top detractors during the period included the leisure equipment company Amer Sports Oyj, the specialty retailer Yoox Net-A-Porter, and healthcare holding Teva Pharmaceuticals. Amer Sports Oyj develops and manufactures sports and fitness equipment and clothing, including the brands Wilson, Precor and Salomon. The brands had a poor showing during the holiday season, amid delays in new product launches. Yoox Net-A-Porter is a global online luxury retailer and although sales continued to grow strongly in the most recent quarter, the company failed to bring as much of that revenue to the bottom line as expected, as they continued to work on integrating disparate systems.

Overall the healthcare market is facing a great deal of uncertainty due to efforts to repeal and replace the Affordable Care Act as well as from intense scrutiny on pharmaceutical pricing practices. Teva has been a recipient of this scrutiny and the stock has suffered accordingly. In addition, Teva’s acquisition of Actavis hasn’t provided the anticipated synergies.

OUTLOOK

Having shrugged off hysteria caused by Britain’s vote to exit the European Union (BREXIT) in mid-year 2016, and gotten past a Fed rate hike last December, the outlook for global growth has turned positive with reflationary forces being felt in China, Europe, and Japan. We are however concerned that some of the reflationary forces being propagated are due to another credit push from China, which may not be sustainable in the medium turn. In any event, the markets are acting with relief that the worst has passed and perhaps Central Banks may be moving toward market price discovery among and between assets classes. Elections are front and center in the European Union (EU), but for now, polls seem to indicate that the status quo will continue. We believe the political uncertainty in Europe should ameliorate as we move to the second half of the year, and attention again will focus on future Central Bank actions.

Overall, we continue to expect modestly improving economic growth around the globe. Our investment process is designed to favor a long-term secular growth perspective coupled within the context of our valuation and country specific macro analyses. While our process remains unchanged, we are taking incremental risks were it makes sense, while continuing to keep an eye towards the pursuit of hedging capital from potential downside risks. We continue to look for opportunities to buy or add to companies that are exposed to secular growth, improving balance sheets and sustainable business models that possess valuations which could provide appropriate prospective returns for our investors.

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.

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 5 stars among 324 for the three-year and 4 stars among 275 Foreign Large Growth funds for the five-year period ending 6/30/17.

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.

©2017 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.