Finding Small-Cap Innovators in Technology
Buffalo Funds Early Stage Growth co-portfolio manager Craig Richard, CFA, was recently interviewed by The Wall Street Transcript where he discusses IPOs and being overweight in the technology sector. In the article, Craig also cites several examples of companies within the Fund’s portfolio that highlight the team’s investment strategy at work:
- Open Lending (NASDAQ: LPRO)
- 1847 Goedeker (NYSEAMERICAN: GOED)
- Establishment Labs (NASDAQ: ESTA)
“As an early stage growth fund, we’re looking for disruptive share gainers, and historically, the technology sector in the small-cap universe has been a good source for those type of names.“ ~ Craig Richard, CFA, Co-Portfolio Manager, Buffalo Early Stage Growth Fund
To access The Wall Street Transcript article click here. (subscription required)
Diversification does not assure a profit, nor does it protect against a loss in a declining market. Past performance does not guarantee future results. Earnings growth is not representative of the fund’s future performance. Opinions expressed are those of the author or Funds as of 9/13/21 and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. References to other mutual funds should not to be considered an offer to buy or sell these securities. A complete list of the Fund’s holdings can be found here. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
EBITDA stands for earnings before interest, taxes, depreciation and amortization. EBITDA is one indicator of a company’s financial performance and is used as a proxy for a company’s current operating profitability. Net-debt-to-EBITDA ratio is a measurement of leverage, calculated as a company’s interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt-to-EBITDA ratio is a debt ratio that shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant. Short interest is the number of shares that have been sold short but have not yet been covered or closed out. A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Enterprise value is a measure of a company’s total value, often used as a more comprehensive alternative to equity market capitalization. The enterprise value to earnings before interest, taxes, depreciation, and amortization ratio (EV/EBITDA) compares the value of a company—debt included—to the company’s cash earnings less non-cash expenses. A basis point is one hundredth of a percentage point (0.01%). Active share is a measure of the percentage of stock holdings in a manager’s portfolio that differs from the benchmark index. The Russell 2000 Growth Index measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. It is not possible to invest directly in an index.
Early Stage Growth Fund
Total Assets $132.43 Million (12/31/21)
Expense Ratio 1.51% / 1.36%
Benchmark Morningstar U.S. Small Growth
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