Quick Facts

(As of 6/30/17)


Inception Date
  September 28, 2007

Total Fund Assets
  $226.2 Million

Expense Ratio

Benchmark Index
  Russell Global ex-US


Overall Morningstar™ rating out of 327 Foreign Large Growth funds as of 8/31/17 (derived from a weighted average of the fund’s three- and five-year risk adjusted return measure).


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 327 funds in the Foreign Large Growth category, as of 8/31/17.

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.

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


Performance (%)

As of 8/31/173 MOYTD1 YR3 YR5 YRSince Inception
Buffalo International Fund3.2424.0320.847.5210.254.28
  Russell Global ex-US Index4.5619.2018.942.857.921.53
  Lipper International Fund Index3.5319.2618.233.898.831.79
  Morningstar Foreign Large Growth4.3022.8617.924.829.061.85
As of 6/30/173 MOYTD1 YR3 YR5 YRSince Inception
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
YearBuffalo International FundRussell Global ex-US IndexMorningstar Foreign Large Growth
* Partial year. Inception to year-end.
(As of 6/30/17)

vs Russell Global ex-US Index
Upside Capture102.26
Downside Capture81.31
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. 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.


(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%
Linde AGLINGermanyMaterials1.97%
Henkel AG & Co KGaAHENGermanyConsumer Staples1.96%
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 TOTAL82.57%
United Kingdom9.52%
Hong Kong3.96%
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.

Equity markets continued their positive momentum into the second quarter of 2017, thanks to an improving economic outlook around the globe and declining concerns about a trend toward protectionist policies. Growth sectors like technology and healthcare continued their outperformance in the quarter, and all sectors advanced with the exception of energy. Strong corporate earnings and positive comments from Central Banks in Europe and Japan showed that these economies continue to improve. Despite government efforts to curb risk in the financial sector, China’s gross domestic product (GDP) growth was fueled by strong technology and transportation sector growth. Asian markets performed strongly in the quarter.

Overall, despite currency headwinds versus the U.S. Dollar, international markets continued to perform well relative to the U.S. market, with the Russell Global ex-U.S. Index advancing 5.91% versus the S&P 500 Index increased of 3.09% during the quarter.


The Buffalo International Fund produced a return of 8.52% for the quarter which outperformed the Russell Global ex-U.S. Index return of 5.91%. Outperformance in the period was mostly driven by stock selection, with a benefit also coming from sector allocation due to our limited exposure to the weak performing energy sector. The top contributors to the fund’s performance in the quarter were Kering SA, a Paris-based luxury group with a brand portfolio that includes Gucci Group, Balenciaga, Bottega Veneta, Yves Saint Laurent, among others, and Trivago N.V., an online travel search platform based in Germany with customers worldwide. At Kering, first quarter 2017 results exceeded all expectations thanks to the enormous success of the Gucci brand, which was revamped last year under a new designer, as well as overall better management and use of direct to consumer and online commerce across all the brands. Meanwhile Trivago reported better-than-expected first-quarter sales and earnings, thanks to an increase in travelers using Trivago’s platform, as well as increased subscriptions for Trivago’s Hotel Manager Pro Service.

Top detractors during the period included Liberty Global PLC and Fanuc Corporation. Liberty Global, an owner of broadband, distribution and content companies in Europe, slowed the growth of their new high speed bandwidth product in the United Kingdom, which investors took as a sign of weakening growth. We believe, however, the slow-down in capital spending related to building out fiber networks potentially increases Liberty’s available cash flow and will allow the company an opportunity to buy back stock in significant quantities. In the case of Fanuc, the world’s leading supplier of factory automation systems and robotics, investors have been concerned about rising costs and sluggish robodrill tool orders in China, but demand in China is expected to shift toward the company’s higher margin advanced automation products.


The outlook for global growth continues to be positive with more and more data appearing to support a sustained modest economic expansion for the near future, and the potential for the normalization of monetary policies. In fact momentum for economic growth is expected to pick up over the next quarter in both Europe and Japan. Elections in France went in favor of the pro-European and pro-reform candidate, Emmanuel Macron, and Germany’s Merkel has regained favor among the electorate there, so prior concerns about political instability in Europe have abated and the future looks brighter. In Asia, we will continue to monitor the delicate rebalancing of the Chinese economy and the government’s efforts to curb financial risks in the face of rising debt and slowing growth. Emerging market performance could be affected by potential rising yields in the developed world, yet some of these markets have demographics and rising consumption on their side, which bode well for long term GDP growth.

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 that 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. 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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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 327 for the three-year and 4 stars among 281 Foreign Large Growth funds for the five-year period ending 8/31/17.

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.

©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.