Ticker
  BUFIX

Inception Date
  September 28, 2007

Total Fund Assets
  $277.67 Million  (3/31/18)

Expense Ratio
  1.05%

Benchmark Index
  Russell Global ex-US

MORNINGSTAR RATING

Overall Morningstar™ rating out of 339 Foreign Large Growth funds as of 3/31/18 (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 339 funds in the Foreign Large Growth category, as of 3/31/18.

RECENT NEWS

“Why Invest Internationally Now?”

Our International Fund portfolio managers provide a detailed analysis of various global factors they view as key drivers of growth in international markets and discuss why today’s investing environment could be ideal for investors looking to expand their international exposure.

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

In a recent Q&A, the Buffalo International Fund (BUFIX) portfolio managers, Bill Kornitzer, CFA, and Nicole Kornitzer, CFA, provided some 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?
  • Can you give us an example of a company in the portfolio that shows your process at work?
  • What differentiates your fund from others?

Access Q&A Recordings >>

Performance (%)

As of 3/31/183 MOYTD1 YR3 YR5 YR10 YRSince Inception
(9/28/07)
Buffalo International Fund1.211.2118.328.818.555.494.57
  Russell Global ex-US Index-1.02-1.0217.026.856.443.172.03
  Lipper International Fund Index-0.74-0.7416.346.307.123.442.20
  Morningstar Foreign Large Growth0.200.2020.067.357.623.902.38
As of 3/31/183 MOYTD1 YR3 YR5 YR10 YRSince Inception
(9/28/07)
Buffalo International Fund1.211.2118.328.818.555.494.57
  Russell Global ex-US Index-1.18-1.1816.836.796.803.282.01
  Lipper International Fund Index-0.74-0.7416.346.307.123.442.20
  Morningstar Foreign Large Growth0.200.2020.067.357.623.902.38
YearBuffalo International FundRussell Global ex-US IndexMorningstar Foreign Large Growth
201729.3328.3930.87
20163.194.92-2.14
2015-0.45-3.930.95
2014-2.04-3.08-3.92
201319.2916.8118.58
201219.0117.8417.70
2011-13.82-13.97-12.30
201013.7314.0414.78
200946.4545.8338.02
2008-40.82-46.57-46.56
(As of 3/31/18)

vs Russell Global ex-US Index
Upside Capture89.23
Downside Capture79.06
Alpha2.28
Beta0.88
Sharpe Ratio0.71

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 3/31/18)

# of Holdings73
Median Market Cap$28.32 B
Weighted Average Market Cap$53.50 B
3-Yr Annualized Turnover Ratio7.65%
Name of HoldingTickerCountrySector% of Net Assets
KeringKERFranceConsumer Discretionary3.12%
SAP SESAPGermanyTechnology2.59%
Taiwan Semiconductor Manufacturing LtdTSMTaiwan (China)Technology2.49%
WirecardWDIGermanyTechnology2.34%
Davide Campari-MilanoCPR IMItalyConsumer Staples2.22%
Fresenius SE & Co KGaAFREGermanyHealth Care2.22%
Linde AGLINGermanyMaterials2.18%
Broadcom LtdAVGOSingaporeTechnology2.17%
InterxionINXNNetherlandsTechnology2.00%
Carl Zeiss MeditecAFXGermanyHealth Care1.92%
TOP 10 HOLDINGS TOTAL23.25%
View Full Holdings

As of 12/31/17. 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 3/31/18. 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 TOTAL81.8%
Germany26.7%
France17.2%
United Kingdom8.7%
Switzerland6.6%
Japan5.9%
Netherlands5.2%
Italy3.8%
Hong Kong3.1%
Taiwan2.5%
Singapore2.2%
As of 12/31/17. 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.

Commentary

Commentary for Q1 2018   (As of 3/31/18)

CAPITAL MARKET OVERVIEW

(As of 12/31/17) — Global equity markets ended 2017 on a strong note. The 4th quarter saw a continuation of trends that have influenced the market all year. Investor optimism about improving global economic growth and strong corporate earnings led to another quarter of higher stock prices and low volatility.

In the U.S. strong holiday sales and the passage of tax reform legislation boosted equity markets. Outside the U.S., performance was also strong. Japanese equities gained on higher corporate earnings, and emerging market equities outperformed developed markets. Equities in the Eurozone, however, declined slightly on profit-taking amidst a strengthening euro.

While the U.S. markets returned 6.34% in the 4th quarter, the Russell Global ex-U.S. Index lagged a bit behind with a return of 5.28%. Energy, materials, and technology were the best performing sectors in the 4th quarter globally, while health care, utilities, and telecom were the worst performing sectors.

PERFORMANCE COMMENTARY

(As of 12/31/17) — The Buffalo International Fund produced a return of 2.49% for the quarter, underperforming the Russell Global ex-U.S. return of 5.28%. Fund performance lagged the index due to our underweight position in financials and lack of exposure to energy, as well as stock selection.

The top contributors in the quarter were Kering SA (a Paris-based luxury group with a brand portfolio that includes Gucci Group), Wirecard (a provider of internet payment and processing services), and Carl Zeiss Meditec AG (a medical technology and ophthalmology company).

Kering and Wirecard both reported 3rd quarter financial results that exceeded expectations. At Kering this was mostly due to the continued success of the Gucci brand. Meanwhile Wirecard, one of the fastest-growing online payment companies, continued to see strong organic volume growth and is benefiting from prior acquisitions. Finally, Carl Zeiss reported full-year financial results that surpassed expectations on strong sales of refractive lasers, as well as intra-ocular lenses and diagnostics.

Top detractors during the period included Adidas AG, Fabrinet, and Aon plc. Adidas, the second-largest sportswear manufacturer after Nike, reported 3rd quarter sales that were slightly below expectations and a sales growth rate that slowed from 19% in the prior quarter to 12%. Fabrinet, a contract manufacturer of optical communications, automotive, industrial, and imaging components, reported a slower and delayed increase in Chinese orders for optical networking equipment. Aon, a top global insurance and reinsurance broker, reported organic growth that was a little light of expectations, as well as the intention to invest some of their profitability to further their growth ambitions.

OUTLOOK

(As of 12/31/17) — The outlook for global growth in 2018 continues to be positive, as the synchronized expansion has spread over much of the globe. More volatility is possible this year, however, as the Fed raises rates. We will be monitoring corporate earnings, the impact of fiscal tightening by central banks around the world, and the rebalancing of the Chinese economy, where economic expansion could be losing some momentum in the wake of tighter fiscal policy.

Whatever the economic changes are to come, our investment process remains the same. It is designed to favor a
long-term secular growth perspective, within the context of our valuation and country-specific macro analyses. As usual, we are taking incremental risks were it makes sense, yet continuing to pursue our strategy of hedging capital from potential downside risks. We always 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 potential 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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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 339 for the 3-year, 4 stars among 293 for the 5-year, and 4 stars among 211 Foreign Large Growth funds for the 10-year period ending 3/31/18.

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.