Quick Facts
Inception Date:9/28/20077/1/2019
Expense Ratio:1.06%0.91%
Total Net Assets:$432.04 Million  (12/31/19)
Category:Foreign Large Cap Growth
Benchmark:Morningstar Global Markets ex-US
Related Material:
   Fund Fact Sheet Q4 2019
   PM Commentary Q3 2019
   Summary Prospectus
Fundamental Growth Investors

Portfolio Managers Bill Kornitzer and Nicole Kornitzer discuss how they attempt to find the most appropriate stocks to invest in from the thousands of companies worldwide.

“Unlike many of our peers, we aren’t trying to pick stocks that are going to be the best performers in the next week or the next quarter, but trying to strive for the best long term performance on a risk adjusted basis over time.”
  ~ Bill Kornitzer, CFA

Morningstar Rating


Overall Morningstar Rating™ of BUFIX based on risk-adjusted returns among 405 Foreign Large Growth funds as of 2/29/20.

Investment Style
PM Insights

International Equities
— The New Market Leaders?

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The Case for Investing Internationally

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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 >>

Fund Objective & 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.

Nicole Kornitzer, Portfolio Manager

Performance (%)

As of 2/29/203 MOYTD1 YR3 YR5 YR10 YRSince Inception
BUFFALO INTERNATIONAL FUND - Investor-4.55-7.527.979.536.297.384.39
BUFFALO INTERNATIONAL FUND - Institutional-4.48-7.468.189.706.467.544.55
  Morningstar Global Markets ex-US Index-6.79-10.63-0.834.102.794.901.48
  Lipper International Fund Index-6.30-9.671.494.702.575.211.49
  Morningstar Foreign Large Growth Category-4.14-7.566.917.914.426.502.12
As of 12/31/193 MOYTD1 YR3 YR5 YR10 YRSince Inception
BUFFALO INTERNATIONAL FUND - Investor9.6728.0228.0214.709.177.775.12
BUFFALO INTERNATIONAL FUND - Institutional9.6828.2028.2014.879.337.935.28
  Morningstar Global Markets ex-US Index9.1921.5721.579.946.195.592.44
  Lipper International Fund Index9.1423.4123.419.975.945.822.35
  Morningstar Foreign Large Growth Category9.3627.9427.9412.965.936.602.81
For performance prior to 7/1/19 (Inception Date of Institutional Class), performance of the Investor Class shares is used and includes expenses not applicable and lower than those of Investor Class shares.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.
3 Year Risk Metrics
BUFIX vs Morningstar Global Markets ex-US Index (As of 12/31/19)
Upside Capture104.27
Downside Capture73.00
Sharpe Ratio1.17
Hypothetical Growth of $10,000
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 Characteristics
(As of 12/31/19) 
# of Holdings90
Median Market Cap$31.72 B
Weighted Average Market Cap$63.88 B
3-Yr Annualized Turnover Ratio9.63%
Active Share92.99%
Market Capitalization
As of 12/31/19. Market Cap percentages may not equal 100% due to rounding.
Top 10 Holdings
Name of HoldingTickerCountrySector% of Net
Taiwan SemiconductorTSMTaiwan, Province of ChinaTechnology2.28%
KeringKERFranceConsumer Discretionary2.26%
Sartorius Stedim BiotechDIMFranceHealth Care2.24%
AonAONEnglandFinancial Services2.12%
ICICI BankIBNIndiaFinancial Services2.02%
SAP SESAPGermanyTechnology2.01%
Schneider ElectricSUFranceIndustrials2.00%
Carl Zeiss MeditecAFXGermanyHealth Care1.93%
LVMH Moet HennessyMCPFranceConsumer Discretionary1.90%
As of 12/31/19. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Fund holdings are subject to change and are not recommendations to buy or sell any securities.
Sector Weighting
As of 12/31/19. 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
COUNTRY% of Portfolio
Net Assets
United Kingdom9.52%
Taiwan, Province of China2.09%
Hong Kong2.03%
TOP 10 TOTAL79.46%


Bill Kornitzer, CFA
Portfolio Manager

27 Years of Experience

 View full bio

Nicole Kornitzer, CFA
Portfolio Manager

19 Years of Experience

 View full bio


(As of 12/31/19) — There was an abundance of investor exuberance during the quarter, and global equity markets rallied strongly, the opposite of what transpired a year ago (the 4th quarter 2018). Corporate earnings were not terribly stellar, and the imposition of significant tariffs and the resulting increase in trade tensions surely didn’t help company fundamentals over the course of the past year. So perhaps this dichotomy market tone that occurred year-over-year (2018 to 2019) was more a reflection of the reversal from the Central Bank, as their monetary policies shifted from a higher interest rate bias in 2018 to a lower, more accommodative stance throughout 2019.

(As of 12/31/19) — The Buffalo International Fund produced a return of 9.67% for the quarter, beating the Morningstar Global Markets ex-U.S. Index’s return of 9.19%. The Fund’s outperformance versus the benchmark was primarily led by stock selection although our sector allocation weights also had a small positive impact on relative performance, despite a slight drag from uninvested cash. For the full year, the Fund produced a return of 28.02%, compared to the benchmark return of 21.57%. Outperformance for the year was also due to strong stock selection and industry positioning within the portfolio.


Among the Fund’s top contributors for the quarter and the year were stocks such as Taiwan Semiconductor, ICICI Bank, and Kering. ICICI Bank Limited, India’s #2 bank and its largest private bank, continued to benefit from improving retail loan growth and normalization in their ratio of loan charge-offs. Taiwan Semiconductor, the largest independent and most efficient semiconductor foundry, continued to benefit from Moore’s law (the perception that the number of transistors on a microchip doubles every two years, though the cost of computers is halved) and the proliferation of increasingly sophisticated electronic devices. Kering, a luxury goods conglomerate based in France, continued to benefit from strong demand from its stable of brands – most notably Gucci.


Major detractors for the quarter and year included Wirecard, Publicis, and AB InBev.

Regular readers of our commentaries will be familiar with Wirecard, as its recent history has been rife with volatility. The company has been included in both the top contributors and top detractors sections of our portfolio updates with some regularity. Unfortunately, this quarter was no different as short-sellers focused again on the stock. To be fair, there are different interpretations available for some of the questions raised, and, as a result, we have reduced our position size accordingly as we await the scope and outcome of an independent outside audit.

Publicis is a global advertising company that has been shifting their focus from traditional media outlets to the digital realm. This transformation has lessened our clarity on its long-term business model and we have therefore reduced our position size in this stock as well.

The share price of AB InBev, the global brewing company with well-known brands such as Budweiser, Stella, and Corona, has been held back after the successful offering of shares in their Asia Pacific business. The explosion in demand for ready-to-drink alcohol infused beverages as well as continued pressure from craft brewers has weighed on the stock.


(As of 12/31/19) — The shift in Central Bank direction for monetary policy and the lessening in trade tariff rhetoric satisfied market participants to close out the year. While global growth has not picked up materially, we expect the reduction in trade tension, the finalization of Brexit (Britain’s exit from the European Union), and a bottoming in the auto manufacturing cycle (as companies shift production to electric platforms) all to contribute to improved visibility and a more favorable environment for future corporate earnings. The Chinese economy also seems to have stabilized (using official data), though the shift to a more consumption driven economy will take time. While Europe’s economy hasn’t boomed, increasing stability and visibility should allow companies to once again focus on driving their operations toward the future.

Uncertainties still exist, including a contentious and unpredictable U.S. presidential election later this year, simmering trade tensions with China, and of course the seemingly always-volatile Middle East region. We also think it is worth monitoring the ongoing trade discussions between the European Union and the U.S., though we do not believe either party wishes dramatic change. We will continue to watch the potential ramifications on the industries and companies in which we invest to mitigate downside risks, while taking advantage of short-term volatility to invest in those companies that we believe have solid long-term prospects.

While not immune to a global economic slowdown, 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. are less expensive relative to their domestic counterparts, providing a potential platform for relative outperformance.

Economic conditions may ebb and flow, but our focus remains steadfast on investing in attractively-priced, financially-strong, well-managed, non-U.S. companies with innovative strategies fueled by secular growth trends. We believe this approach to international investing has the potential to 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. Earnings growth is not representative of the fund’s future performance.
International Fund News

Top 20 Female Portfolio Managers in America 2019

List of the “Top 20 Female Portfolio Managers in the U.S.” according to Citywire includes Buffalo Fund manager Nicole Kornitzer, one of only 7 women to be included in consecutive years.

Kiplinger: Top-Performing Mutual Funds

Kiplinger recognized the Buffalo Small Cap and the Buffalo International funds as “Top-Performing Mutual Funds” in their recent fund analysis.

Recent Recognition
  • Citywire “Top 20 Female Portfolio Managers in the U.S.” – December 20, 2019
  • Kiplinger Top-Performing Mutual Fund (5 Years) – November 15, 2019
  • US News & World Reports – Best Mutual Funds – August 15, 2019
  • Zacks “4 Non-U.S. Mutual Funds to Buy Now” – July 3, 2019
  • Zacks “3 Non-U.S. Mutual Funds Worth Taking a Look” – May 3, 2019
  • Morningstar 5-star Overall Rating – March 31, 2019out of 373 Foreign Large Growth funds*
  • Morningstar 5-star Overall Rating – December 31, 2018out of 364 Foreign Large Growth funds*
  • Zacks “Consider These Non-U.S. Mutual Funds for Excellent Returns” – October 25, 2018
  • Morningstar 5-star Overall Rating – September 30, 2018out of 347 Foreign Large Growth funds*
  • Citywire “Winning Women – Top 20 Female Portfolio Managers in the U.S.” – August 31, 2018
  • Citywire “International Stars to Watch” – August 10, 2018
  • Morningstar 5-star Overall Rating – September 30, 2017out of 325 Foreign Large Growth funds*
  • Zacks “Four #1 Non-U.S. Mutual Funds” – September 22, 2017
  • Citywire “Alpha Female 2017 – The Top Female Fund Managers in 7 Major Markets” – August 8, 2017
  • Zacks “3 Strong Buy Non-U.S. Mutual Funds” – June 7, 2017
  • Citywire Top 20 Female Portfolio Managers in the U.S. – December 7, 2016

*Overall Morningstar Rating derived from a weighted average of the fund’s 3-, 5-, and 10-year risk adjusted return.


General Account
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Coverdell Education Savings Accounts (ESA) Forms
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Retirement Information
  Retirement Savings Options for Individuals

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.

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 (BUFIX) received 4 stars among 405 for the 3-year, 4 stars among 337 for the 5-year, and 4 stars among 244 Foreign Large Growth funds for the 10-year period ending 2/29/20.

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. ©2020 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. 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.