M.D. Turned Manager Embraces Change
(Photo credit: Robin Crislip)
In the June 2018 edition of Financial Advisor magazine, Dr. Elizabeth Jones, CFA discussed her past experience as a practicing physician and how her background has helped form the basis of her investment strategy. Along with co-managers Clay Brethour, CFA and Dave Carlen, CFA, the trio manage the $2.0 billion Buffalo Discovery Fund (BUFTX), earning a 5-Star Overall Morningstar Rating, out of 539 Midcap growth funds as of 5/31/18, based on the weighted average of the Fund’s 3, 5, and 10-year risk adjusted return measure.
The Fund was created in 2001, but the current investment team came together in 2004. Originally called the Buffalo Science and Technology Fund, the Fund’s mandate has broadened, while still maintaining true to the search for innovative companies to invest in. Each manager takes the lead in certain aspects of the Fund’s portfolio:
- Elizabeth focuses on health care and biotechnology companies
- Dave focuses on industrials and information technology
- Clay focuses on oil, material, and industrial sectors
Access the Financial Advisor article here: M.D. Turned Manager Embraces Change
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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 Discovery Fund received 4 stars among 539 for the three-year, 5 stars among 480 for the five-year, and 5 stars among 343 Mid-Cap Growth funds for the ten-year period ending 5/31/18.
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Dr. Elizabeth Jones, CFA and fellow portfolio managers Clay Brethour, CFA and Dave Carlsen, CFA take a team approach to embracing change with the Buffalo Discovery Fund portfolio.
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