UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-10303 | |||||||
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Buffalo Funds | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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5420 W. 61 Place Shawnee Mission, KS |
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(Address of principal executive offices) |
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Clay E. Brethour 5420 W. 61 Place Shawnee Mission, KS 66205 | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | (913) 384-1513 |
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Date of fiscal year end: | March 31, 2019 |
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Date of reporting period: | September 30, 2018 |
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SEMI-ANNUAL
REPORT
September 30, 2018
Buffalo Discovery (BUFTX)
Buffalo Dividend Focus (BUFDX)
Buffalo Emerging Opportunities (BUFOX)
Buffalo Flexible Income (BUFBX)
Buffalo Growth (BUFGX)
Buffalo High Yield (BUFHX)
Buffalo International (BUFIX)
Buffalo Large Cap (BUFEX)
Buffalo Mid Cap (BUFMX)
Buffalo Small Cap (BUFSX)
MESSAGE TO OUR SHAREHOLDERS
DEAR SHAREHOLDERS
For the past six-months ending September 30, 2018, equity markets continued their winning streak as the strength in the U.S. economy overcame geopolitical and trade concerns. The Russell 3000 Index, a broad U.S. market performance benchmark, produced a total return of 11.29% for the semi-annual reporting period. Growth stocks outperformed value stocks, as the Russell 3000 Growth Index advanced 15.28% compared to a gain of 7.19% for the Russell 3000 Value Index.
The Fed's confidence in the robustness of the U.S. economy stands out from the world on multiple fronts. At its September meeting, the Fed continued towards its goal of "normalizing" interest rates by increasing the short-term Federal Funds rate to a range of 2.0% to 2.25%, a move which had been widely anticipated. This action marked the first time since 2008 that its benchmark rate hit 2.0% and surpassed the Fed's measure of inflation. The accommodating policies keeping interest rates low and the quantitative easing (QE) the Fed has employed over the past decade, have been bullish for the U.S. stock market. Fed guidance is for one more rate hike in 2018 (December), three in 2019, and one in 2020. Assuming all increases will be in 0.25% increments, the Fed Funds Rate would be between 3.25% to 3.5% by 2020, which is lower than where rates were prior to 2000.
The U.S. was not alone in employing "easy money" policies over the past decade. World equity markets have been buoyed by unprecedented monetary policies adopted to kick start economies following the Global Financial Crisis of 2008. These "accommodating monetary" policies were intended to nudge economies to an inflection point where they achieved a self-sustaining upward growth trajectory. While most of the world's economies are seeing growth, albeit lower than expectations from early in the year, extraordinarily 25% of the world's economies still have negative interest rates. Moreover, major central banks, apart from the U.S. Federal Reserve (the "Fed"), are currently putting $500 billion a month into the global financial system — hardly a backdrop that establishes confidence in a self-sustaining position for most of the world's economies.
But with the U.S. farthest along in the normalizing its monetary policies, the rest of the world's central banks will start to feel the pressure to gravitate towards normalizing their own monetary policies, and thus decreasing or eliminating the monthly amount being injected into their financial systems. This will likely increase the volatility seen in the equity markets, as the era of "easy money" is replaced by a more disciplined approach to capital allocation.
Wall Street analysts have a rosy picture of corporate profits over the next 3 to 5 years, forecasting earnings to increase at an annual rate of 16.5%. We view this estimate as too optimistic, and if expensive stocks that are priced at "beyond perfection" valuations prove unable to report better-than-expected earnings, the market will likely see a dramatic increase in volatility. This is a typical characteristic of an aging bull market.
While the market environment for equities remains favorable, we expect an increase in volatility in the markets. At Buffalo Funds, our investment philosophy on focusing on companies with underappreciated growth prospects and that are beneficiaries of our proprietary long-term secular growth trends, should provide a tailwind to the companies' operations regardless of the state of the economy. Additionally, we continue to be disciplined in seeking attractively priced, financially strong, and well-managed companies.
In closing, and as always, we greatly appreciate the trust you have placed in our capabilities and look forward to continuing to serve as your investment advisor in the future.
Sincerely,
Clay E. Bethour
President
The Funds' investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-800-49-BUFFALO or visiting www.buffalofunds.com. Read it carefully before investing.
Past performance does not guarantee future results. Mutual fund investing involves risk. Principal loss is possible.
Kornitzer Capital Management is the Advisor to the Buffalo Funds which are distributed by Quasar Distributors, LLC.
Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax advisors or legal counsel for advice and information concerning their particular situation.
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.
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TABLE OF CONTENTS
Portfolio Management Review | 6 | ||||||
Investment Results | 16 | ||||||
Expense Example | 19 | ||||||
Allocation of Portfolio Holdings | 21 | ||||||
Schedules of Investments | 23 | ||||||
Buffalo Discovery (BUFTX) | 23 | ||||||
Buffalo Dividend Focus (BUFDX) | 29 | ||||||
Buffalo Emerging Opportunities (BUFOX) | 35 | ||||||
Buffalo Flexible Income (BUFBX) | 40 | ||||||
Buffalo Growth (BUFGX) | 48 | ||||||
Buffalo High Yield (BUFHX) | 53 | ||||||
Buffalo International (BUFIX) | 65 | ||||||
Buffalo Large Cap (BUFEX) | 74 | ||||||
Buffalo Mid Cap (BUFMX) | 79 | ||||||
Buffalo Small Cap (BUFSX) | 84 | ||||||
Statements of Assets and Liabilities | 90 | ||||||
Statements of Operations | 92 | ||||||
Statements of Changes in Net Assets | 94 | ||||||
Financial Highlights | 98 | ||||||
Notes to Financial Statements | 108 | ||||||
Notice to Shareholders | 119 | ||||||
Privacy Policy | 120 |
PORTFOLIO MANAGEMENT REVIEW
BUFFALO DISCOVERY FUND
The Buffalo Discovery Fund gained 9.58% for the six months ending September 2018, trailing the benchmark Morningstar U.S. Mid Growth Index return of 13.23%. Negative stock selection within Health Care, Consumer Discretionary and Information Technology sectors weighed on performance during the period. While Health Care was the best performing benchmark sector over the time-period, we experienced stock specific setbacks (Portola Pharmaceuticals, Nevro Corp, and Mylan) which negatively influenced near term results. Our investments related to the housing industry were negatively impacted by increasing interest rates and a slowing housing market, while our holdings with automotive exposure struggled due to trade tensions that weighed negatively on the automotive supply chain. Elsewhere, positive stock selection in Materials and a significant underweight in Energy were positive offsetting factors. The Fund continues to invest in high-quality growth stocks with relatively attractive valuations, which we believe should be a key driver of above-index risk-adjusted returns over the long term.
Align Technology shares increased nearly 56% during the six-month period and was the biggest contributor to the Fund's return. Competitive concerns eased during the period in addition to the company posting results better than anticipated. Align continues to be well position to grow its clear aligner business worldwide as teens continue to prefer the clear aligner treatment over metal braces.
Evolent Health was another strong performer during the period. The company is a provider of technology and services that enables hospitals to adopt and implement value-based payment models. While there haven't been any market-moving policy announcements, early adopters are transitioning away from a fee-for-service to a fee-for-value model. During the company's third quarter, it announced the addition of its ninth partner this year, a positive given Evolent had originally guided for six to nine partners signing for the entire year.
Detracting from performance was Nevro Corp. whose shares experienced price volatility and a steep decline due to heightened patent litigation with a competitor and a disappointing sales forecast caused by ongoing sales force attrition and productivity issues. The patents have since been upheld demonstrating product viability but
leaving the ongoing sales execution issue a multi-quarter fix.
Another underperformer during the period was Mohawk Industries, as rising interest rates had a negative impact on housing stocks. Additionally, rising costs from logistics and transportation created a difficult operating environment for the company. While we believe the issues hindering the company's operating results will persist over the next couple of quarters, we continue to be constructive on the stock longer term as being one of the bellwether innovators within the building products segment.
The market environment for equities remains favorable. Interest rates, inflation, and unemployment remain low, while corporate earnings grind higher buoyed by improving consumer confidence and recent U.S. corporate tax reform. Growing cash flows combined with foreign cash repatriation should drive improved business investment and more aggressive capital allocation activity including mergers and acquisitions (M&A), buybacks, and dividend increases.
As the U.S. economy continues to strengthen amid a tighter labor market, it could put upward pressure on further rate increases, as the Fed continues its interest rate normalization process after many years of easy money policies. A more restrictive monetary policy could introduce increased volatility. Additional uncertainty could be driven by other factors including: (i) the upcoming midterm elections in November and possible Democratic gains in the Congress; (ii) the ultimate outcome of the trade disputes and the impact it will have on earnings of U.S.-based companies expanding internationally; (iii) the fact that many stocks are trading at elevated valuations after the multi-year bull market.
Economic conditions may ebb and flow however, our focus for the Discovery Fund is on finding leading innovative companies with underappreciated growth prospects that are potential beneficiaries of our proprietary long-term secular growth trends, ones we believe should provide a tailwind to the companies' operations regardless of the state of the economy. We remain disciplined in seeking attractively- priced, financially-strong, and well-managed companies through our internal investment research efforts. As volatility
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picks up, a steady hand and active management with an eye toward quality and relatively attractive risk-adjusted returns could hold advantage over passive money strategies. We stand poised to capitalize where we see near term stock price volatility present an opportunity to improve risk-adjusted expected returns within the portfolio.
BUFFALO DIVIDEND FOCUS FUND
The Buffalo Dividend Focus Fund (BUFDX) posted a return of 11.10%, which was in-line with the Morningstar U.S. Large-Mid Cap Index return of 11.22%, and above the Lipper Equity Income Funds Index return of 7.50%. Sector weightings and security selection aided the fund's performance. The portfolio's mid-single percentage exposure to the energy sector (a relative benchmark underweight) contributed the most positively to returns as that was a weak performing area during the period. Other sectors with some of the highest weightings, Health Care, Information Technology, and Communication Services contributed meaningful positive returns. The fund's least weighted sector, Materials, was the only sector to produce negative returns.
Specific securities that contributed most positively to performance include Microsoft (MSFT), Apple (AAPL) and AMC Entertainment Holdings (AMC). Microsoft advanced on a favorable earnings releases led by its cloud services segment. Apple shares increased on a solid earnings results and anticipation of new product releases. AMC improved on strong earnings report, robust summer box office, and healthy enrollment in its movie subscription service program (Stubs A-List).
Specific securities that detracted from performance include BlackRock (BLK), Cedar Fair (FUN), and Intel (INTC). BlackRock fell on investor concerns regarding competitive pressure on fund fees and asset management outflows. Cedar Fair traded off on a weakened earnings outlook due to soft attendance levels.
We expect the market o experience continued volatility in the coming quarters as the Federal Reserve continues to normalize interest rates. Other concerns include inflation growth acceleration, potential strengthening of the U.S. dollar, geopolitical issues, increase protectionism efforts from the Administration, evolving geopolitical risks, and the mid-term election. Valuation metrics are also above historical market averages, leading us to believe the stock market may have a difficult time achieving further multiple expansion. On the other hand, prospective tailwinds for the economy include further job growth,
wage increases, lower tax rates, robust business and consumer confidence, all of which could lead to higher Gross Domestic Product (GDP) growth.
Despite the expectation of continued volatility, we continue to focus on wide moat, large capitalization companies trading at reasonable valuations, in our view. As always, the fund will continue to focus on competitively advantaged companies that can be purchased at a fair value, in our opinion. As the stock market has continued to climb it is getting harder to find companies that fit our investment criteria, but we continue to follow our process of finding new investment ideas and to be ready when market declines provide better opportunities.
BUFFALO EMERGING
OPPORTUNITIES FUND
The Buffalo Emerging Opportunities Fund posted a return of 15.53% for the six-month period ending September 30, 2018. This compares to the Morningstar Small Growth Index return of 16.10%. We would note that during the six-month period, the fund changed its primary benchmark to the Morningstar Small Cap Growth Index from the Russell 2000 Growth Index which gained 13.16% during this period.
In the growth universe during this period, returns were skewed modestly higher at the higher end of the market capitalization spectrum. The Russell 1000 Growth Index posted a 15.45% return for the six-month period compared to the Russell MicroCap Growth Index with a 13.19% return in the same period.
The fund had four holdings announce they were being acquired in the six-month period. Invuity, a medical device company with solutions that help illuminate body cavities for surgery, was acquired by Stryker. Nexeo Solutions, a specialty chemicals and plastics distributor, is being acquired by Univar. In both cases, these companies are being purchased by strategic acquirers. CommerceHub, a supplier of software for e-commerce fulfillment, and Financial Engines, a financial services company providing fee-based advice and asset management, were purchased by financial acquirers (private equity). We have noted previously the potential for a pick-up in mergers and acquisitions activity given the later stages of the bull market and larger companies with access to low cost capital to desire to boost revenue and earnings growth through acquisitions.
OrthoPediatrics was the largest contributor to the fund's six-month returns. The company generated strong
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revenue growth and better than expected margins in the first half of 2018 while also introducing several new products that position them well for continued strong growth in future years. OrhoPediatrics is a leading provider orthopedic implants and instruments to meet the specialized needs of pediatric surgeons and their patients.
The fund also benefitted from the performance of Kornit Digital, a provider of digital printing solutions to the textile industry. Kornit experienced better than expected sales results driven by strong orders from key customers including Amazon, who is in the process of building multiple global textile printing operations.
The largest detractor in the six-month period was Nevro, a medical device company that provides products that improve the quality of life for patients suffering from chronic pain. Nevro experienced worse than expected sales results driven by sales execution and increased competition.
The fund added twelve new positions during the six months and sold out of five, ending with 69 holdings.
Looking ahead, the domestic macroeconomic picture continues to remain positive for small cap stocks given near record levels for consumer sentiment and small business confidence. Additionally, the trade war dynamics should have less of an impact on our holdings given a higher portion of their business-related activities are domestically focused versus larger cap stocks. Sentiment and asset flows can have a forceful and immediate impact as seen in the first part of the fourth calendar quarter with small cap growth stocks pulling back more than 10% from recent highs. As always, we will be playing close attention to the valuations of our holdings and we will utilize market volatility to trim or add to our holdings as risk/reward profiles improve or degrade.
BUFFALO FLEXIBLE INCOME FUND
The Buffalo Flexible Income Fund produced a return of 9.15% for the six months ended September 30, 2018, and outperformed the Lipper Mixed-Asset Target Allocation Moderate Funds Index return of 3.60%, and outperformed the primary benchmark, a blended index comprised of 60% of the Morningstar U.S. Large Cap Index and 40% of the ICE Bank of America Merrill Lynch U.S. High Yield Master II Index, which produced a return of 8.65% for the period. For the six months ended September 30, 2018, the equity portion of the portfolio returned 10.62%. The fund's equity component is
primarily focused on large cap dividend payers which we believe possess significant competitive advantages. The top contributors to the fund for the six months ending September 30, 2018 were HollyFrontier, ConocoPhillips and Microsoft while the top detractors in the quarter were Pitney Bowes, Intel and GE.
Primary sectors that underperformed were information technology, consumer discretionary and Industrials. Specific securities that detracted from performance included Intel and IBM. Intel was negatively impacted due to a potential slowdown in the growth rate of its data center business as well as management changes, specifically the departure of the CEO. IBM generated a modest return during the time horizon but it was below the sector average. IBM continues to transform its business away from its slower growing core business to faster growing areas such as cloud services, data analytics and security technologies and as a result there are a lot of moving parts complicating investor perceptions of the company.
Consumer discretionary was another weaker area for the portfolio during the period. Specific securities that detracted from performance included Lions Gate Entertainment, Ford Motor Company and Amazon. Lions Gate Entertainment was the biggest detractor from segment performance and reflects several factors including the company lowering its medium-term growth outlook due to increased investments and subscriber losses at its Starz network, and challenging film revenues due to fewer film releases and tough comparisons in its television production unit. Meanwhile the fund did not own Amazon, as it is a non-dividend payer, and this was one of the top contributors to the index.
The fixed income portion of the Buffalo Flexible Income Fund generated a return of 2.82% for the quarter and underperformed the ICE Bank of America Merrill Lynch U.S. High Yield Master II Index which generated a return of 3.46%. The top contributors to the Funds fixed income performance included Consolidated Communications, Wildhorse Resource Corporation and Forum Energy Technologies while the three top detractors were Medicines Company, Brunswick and Lions Gate Entertainment.
As we begin the 4th quarter, significant uncertainty about the direction of the stock market exists, driven by factors including:
• the upcoming midterm elections in November and possible Democratic gains in the Congress,
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• the ultimate outcome of the trade dispute with China and the impact it will have on earnings of large U.S.-based companies,
• the potential for continued interest rate hikes, and
• the fact that many stocks are trading at elevated valuations after the multi-year bull market.
This uncertainty is offset, in part, by continued strength in the U.S. economy and job markets. Amidst this uncertainty, we continue to be diligent in our process of seeking income-producing securities trading at reasonable valuations by our analysis. Given that we believe the U.S. is in the later stages of the current economic cycle, we continue to find ourselves confronted with relatively low spread and yield levels with the non-investment grade fixed income asset class that we prefer over the long haul.
This backdrop has resulted in a bond allocation that is close to the low end of our expected range in terms of the fund's overall asset mix of stocks, bonds, and cash. Within the fixed income portion of the portfolio we continue to focus on high-quality, non-investment grade issuers with defensive business models and manageable credit metrics. As always, we appreciate your support and confidence in our investment process over the long term.
BUFFALO GROWTH FUND
The Buffalo Growth Fund gained 15.09% during the semi-annual period ending Sept 30th, trailing the benchmark Morningstar U.S. Growth Index return of 15.89%. Negative stock selection within Industrials and Consumer Discretionary weighed on performance during the period as rising input costs, higher interest rates and trade fears more generally hampered results. Elsewhere, positive stock selection in Information Technology and Health Care and a significant underweight in Energy, one of the worst performing sectors during the period, were positive offsetting factors. The fund continues to invest in high-quality growth stocks with relatively attractive valuations by our internal analysis, which we believe could be a key driver of above-index risk-adjusted returns over the long term.
Key contributors to performance for the period included Amazon and Microsoft. Amazon's shares increased over 38% during the period making the stock the biggest contributor to the Fund's return. The company continued to grow revenue more than expectations with strength across its various businesses including ecommerce and Web Services, and has a long runway to continue to gain
share at the expense of many traditional businesses. Microsoft was another strong performer during the period. The company reported strong results in Intelligent Cloud and Personal Computing, and appears poised for strong performance in these business lines in coming quarters.
Detractors for the period included Evoqua Water Technologies and Nevro Corp. Evoqua Water Technologies, a water infrastructure and services company, experienced disappointing first half 2018 performance after reporting unexpected margin headwinds. While a main component of the investment thesis is a meaningful lift in profitability over the long run, the company's shares sold off after missing analysts' margin forecasts due to unfavorable mix and project timing issues in recent quarters. Meanwhile Nevro Corp. shares experienced price volatility and a steep decline due to heightened patent litigation challenges and a disappointing sales forecast caused by ongoing sales force attrition and productivity issues. The patents have since been upheld demonstrating product viability but leaving the ongoing sales execution issue a multi-quarter fix much to the chagrin of short term oriented Wall Street analysts.
The market environment for equities remains favorable. Interest rates, inflation, and unemployment remain low, while corporate earnings grind higher buoyed by improving consumer confidence and recent U.S. corporate tax reform. Growing cash flows combined with foreign cash repatriation should drive improved business investment and more aggressive capital allocation activity including mergers and acquisitions (M&A), buybacks, and dividend increases.
As the U.S. economy continues to strengthen amid a tighter labor market, it could put upward pressure on further rate increases, as the Fed continues its interest rate normalization process after many years of easy money policies. A more restrictive monetary policy could introduce increased volatility. Additional uncertainty could be driven by other factors including: (i) the upcoming midterm elections in November and possible Democratic gains in the Congress; (ii) the ultimate outcome of the trade disputes and the impact it will have on earnings of U.S.-based companies expanding internationally; (iii) the fact that many stocks are trading at elevated valuations after the multi-year bull market.
Economic conditions may ebb and flow. However, our focus for the Growth Fund is to invest in secular trend stars — attractively-priced, financially-strong, well-managed companies across all market cap segments — which we believe are favorably positioned to harvest the lion's
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share of big secular growth trends. As volatility picks up, a steady hand and active management with an eye toward quality and relatively-attractive risk-adjusted returns could hold advantage over passive money strategies. We stand poised to capitalize where we see near term stock price volatility that presents an opportunity to improve risk-adjusted expected returns within the portfolio.
BUFFALO HIGH YIELD FUND
The Buffalo High Yield Fund gained 2.32% for the first six months ended September 30, 2018 but underperformed the Bank of America Merrill Lynch High Yield Master II Index, which rose 3.46% during the period.
After producing positive returns in the June quarter of 2018, the U.S. high yield sector continued course generating positive performance in the September quarter with positive returns in all three months although each month's returns were less than the prior month. The market's performance was driven by: (i) continued, albeit modest, economic growth of US Gross Domestic Product; (ii) a healthy labor market with additional jobs added and the unemployment rate remaining near cycle lows; (iii) the Federal Reserve maintaining a gradual pace of increasing interest rates and timing of plans to reduce their balance sheet; (iv) and a quiet new issue market which provided support for secondary pricing. Headwinds in the quarter were (i) rising treasury rates; (ii) continued concerns regarding disruptions in international trade due to the Administration's escalating trade wars with the North American Free Trade Agreement countries and with China; (iii) increasing oil prices and; (iv) evolving geopolitical landscape and risks.
Despite uncertain market conditions, equity markets and high yield markets performed well during the semi-annual period despite the level of short-term interest rates moving higher (3 Month LIBOR up 11bps to 2.42%) as investors continued to gravitate towards higher risk assets. The 10-year Treasury bond returned negative -1.39% during the six months while the JP Morgan US High Yield index generated positive 3.26% and the S&P 500 Index stock index returned 11.41%.
According to data from JP Morgan, high yield funds experienced outflows during the period of about $5.5 billion compared to outflows of $29.6 billion in the previous six months ending March 31, 2018. The high yield new issuance calendar during the six months ended September 30, 2018 was relatively light at $96 billion,
compared to the $146 billion in the previous six months ending March 31, 2018 and well below the $157 billion in the first half of our fiscal year ending 2018. This lack of new supply helped support high yield prices despite continued outflows.
During the first half, the yield on the 10-year Treasury bond increased by 32 bps from 2.74% to 3.06%. The increase in Treasury yields hampered the returns of investment grade and BBB crossover issues that are more sensitive to the movement in interest rates while strength in energy pricing positively impacted energy issues and lower credit quality CCC credits. According to data from JP Morgan, the CCC-rated segment returned 5.21%, outpacing the B-rated and BB-rated segments which returned 3.69% and 2.50% respectively for the six-month period. The fund's straight bond segment continues to be biased toward higher-quality, non-investment grade securities of relatively short duration which contributed to the fund's underperformance during the six months. The fund's underweight to the riskier portion of the telecom and healthcare sectors was also detrimental to relative results as the two industries were the strongest performers in the period with telecom and healthcare up 6.0% and 5.1% respectively.
According to data from JP Morgan, the U.S. high yield market's spread to worst at the end of the September 30th period was 365 bps, 45 bps lower than March 31, 2018 and 249 bps below its 20-year historical average of 614 bps. The yield to worst for the high yield market at period-end was 6.53%, below the 20-year average of 9.02%, and below the yield of 6.56% at the end of March 2018.
The fund's cash balance decreased during the period as new security purchases exceeded the holdings in the fund that were called away or sold outright. The fund's composition by asset class at quarter-end was as follows:
9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | |||||||||||||||||||
Straight Corporates | 60.5 | % | 62.6 | % | 63.7 | % | 64.9 | % | 67.2 | % | |||||||||||||
Convertibles | 13.3 | % | 12.8 | % | 11.5 | % | 8.9 | % | 8.3 | % | |||||||||||||
Bank Loan | 18.6 | % | 17.8 | % | 18.1 | % | 21.0 | % | 19.7 | % | |||||||||||||
Preferred Stocks | 1.5 | % | 0.5 | % | 0.5 | % | 0.0 | % | 0.0 | % | |||||||||||||
Convertible Preferred | 1.2 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||||||
Common Stocks | 0.7 | % | 0.7 | % | 1.5 | % | 1.3 | % | 1.1 | % | |||||||||||||
Cash | 4.3 | % | 5.2 | % | 4.3 | % | 3.5 | % | 3.1 | % | |||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
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The approximate rate and contribution of return from the various asset classes in the fund during the quarter is as follows:
Approximate Underweighted Returns | Approximate Contributions to Returns | ||||||||||
Straight Corporates | 3.1 | % | 2.03 | % | |||||||
Convertibles | 3.3 | % | 0.33 | % | |||||||
Bank Loan | 1.8 | % | 0.35 | % | |||||||
Preferred Stocks | -8.0 | % | -0.04 | % | |||||||
Convertible Preferred | 0.0 | % | 0.00 | % | |||||||
Common Stocks | 9.6 | % | 0.12 | % | |||||||
Cash | not measured | 0.00 | % | ||||||||
Total | 2.3 | % | 2.30 | % |
Specific securities that contributed most positively to performance included Live Nation 2.50% convertible bonds, Consolidated Communications 6.5% corporate bonds, and Greenbrier common stock. Live Nation advanced throughout the period on better than expected earnings and growing speculation that the company is becoming an acquisition target. In the beginning of 2018, Consolidated Communications bonds were a victim and then benefactor of swings in the telecom sector. The group performed poorly in the first quarter before rebounding and being the best performing sector during the six months ending September 2018. Greenbrier increased on strong earnings and expectations for railcar orders to improve.
Specific securities that detracted most from performance include Akorn bank debt, Compass Diversified preferred stock, and MDC Partners 6.5% corporate bonds. The Akorn bank loan was down after Fresenius announced in late April that it was canceling its bid for Akorn. Compass Diversified was hurt by disappointing earnings and the Fund locked in a loss when the position was liquidated during the fiscal first quarter. MDC Partners reported disappointing earnings during the period and lowered guidance for the remainder of 2018. The Fund liquidated the position in fiscal second quarter.
The market for high yield securities remains well bid as yields and spreads bounce around cycle lows. A growing economy with modest inflation has created a favorable environment for risky assets. The slowdown in new issuance activity has reduced the supply of bonds available for purchase, while slowing default rates have reduced investor's risk premium requirements. However, several risk factors could negatively influence the favorable environment. Our concerns include: the Federal Reserve taking a more aggressive tightening policy stance; fiscal stimulus policy not coming to fruition;
energy price declines; geopolitical issues escalate such as with North Korea; and increasing protectionism.
Within this environment of low spreads and yields, we are managing the fund cautiously yet actively. We ended the six-month period with 131 compared to the March 31, 2018 level of 146 holdings (excluding cash).
We are managing the fund with an emphasis on higher-quality, non-investment grade issuers with defensive business models and manageable credit metrics. We will continue to deploy the fund's cash in opportunities that we believe offer the most appealing risk/reward tradeoff with a bias toward shorter durations and less levered credits. We believe bank loans offer a compelling opportunity as they offer senior positioning in the capital structure and floating interest rates, and we remain constructive regarding convertible bonds and preferred issues.
BUFFALO INTERNATIONAL FUND
International markets continued to remain volatile during the semi-annual period, driven by a slowdown in economic growth outside the U.S. and elevated global trade tensions. Concerns of increasing populism and trade protectionism, along with the Federal Reserve continuing to push up U.S. interest rate targets, kept markets in a somewhat directionally undecided mood. Given the time lag in economic growth, central banks around the world still favor a more stimulative monetary policy framework compared to that of the U.S., but with the U.S. dollar as the primary reserve currency, global asset prices are affected by U.S. rate decisions. While European stocks saw generally positive corporate earnings and signs of higher inflation in the 19-member Eurozone, investor enthusiasm was tempered by concerns of slowing economic growth driven by their export-oriented economics where trade skirmishes are garnering much scrutiny. In Asia, China is still experiencing decelerating growth, which hasn't been helped by the ratcheting of trade tensions, leaving their stock markets near two-year lows. Japan, on the other hand, posted modest economic surprises in both growth and inflationary measures, and stock indices there posted gains toward the end of the quarter, as investors saw some bright spots in an otherwise troubled region.
For the six-month period ending September 30, 2018, the Buffalo International Fund produced a positive return of 3.84%, outperforming the Morningstar Global Markets ex-U.S. Index's negative return of 1.75%. The fund's outperformance versus the benchmark was driven
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entirely by stock selection, but our sector allocations had a negative impact on relative return versus the benchmark.
Top contributors in the period included Wirecard, Taiwan Semiconductor Manufacturing, and Carl Zeiss Meditec. Wirecard benefited from continued strong earnings growth as well as perception that it would be included in a major German stock index in the coming months. Taiwan Semiconductor, is a third-party manufacturer of advanced node semiconductors. It continued to benefit from strong growth in artificial intelligence data processing, data center build-out, and even cryptocurrency mining. Carl Zeiss Meditec, a leading provider of ophthalmic equipment and solutions, benefited from demographic trends and the roll-out of their intraocular lenses.
Detractors in the period included Fresenius SE, Bayer AG, and Broadcom. Fresenius, a global dialysis and hospital management company, became embroiled in a legal battle with a former acquisition target. Investors became concerned that the company would be forced by the courts to complete the previously terminated acquisition. Broadcom, a specialty semiconductor company, was hurt as it announced a significant acquisition in software, outside of their core competency. We agreed with the market's assessment and viewed with skepticism the fundamental underpinnings of the acquisition target and subsequently removed the stock from the portfolio.
While global growth has slowed recently, we expect the pick-up in growth that the U.S. has experienced in recent quarters will filter toward foreign economies. Equity markets have been increasingly concerned over rising protectionism and fears of escalating trade wars; however, we remain somewhat sanguine over the range of potential outcomes. Our process naturally leads us away from commodity-oriented, heavily-cyclical industries, which are typically the easy target of trade rhetoric, and toward secularly-growing companies with strong intellectual property and high barriers to entry. While not immune from a potential economic slowdown caused by an all-out trade war, 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. have become even less expensive relative to their domestic counterparts, and the heightened level of U.S. trade tension may increase the potential for internationally-based companies to increase market share. We hope to use any significant market dislocation caused by these trade concerns to add to positions in companies whose long-term prospects remain unchanged, in our view.
Economic condition may ebb and flow, but our focus remains steadfast on investing in attractively priced, financially strong, well-managed companies with innovative strategies fueled by secular growth trends. We believe this discipline should lead to superior risk-adjusted returns over the long term.
BUFFALO LARGE CAP FUND
The Buffalo Large Cap Fund returned 13.62% in the six-month period ending September 30, 2018 underperforming the Morningstar Large Growth Index which returned 14.67% during the same period. Underperformance relative to the index was driven by holdings in Health Care, Industrials, and Materials. Weakness in these sectors was offset, in part, by above index returns in Technology, Consumer Discretionary, Consumer Staples, Financials, Real Estate, and Energy.
Key contributors for the period included Amazon, Microsoft, and Apple. Amazon shares increased 38% during the six-month period, and the stock was the biggest contributor to the Fund's return. The company continued to grow revenue more than expectations with strength across its various businesses including ecommerce and Web Services, and has a long runway to continue to gain share at the expense of many traditional businesses. Microsoft was another strong performer. The company continued to report strong results in Intelligent Cloud and Personal Computing, and appears poised for strong performance in these business lines in coming quarters. Apple was the third largest contributor to performance. The company continues to generate strong growth amidst strong demand for its products including the next generation iPhone.
Meanwhile the largest detractor from performance during the six-month period was Alnylam Pharmaceuticals which declined 34%. Alnylam is a leader in RNAi therapeutics, and its share weakness has been driven by factors including outlook for drug approval of key products, intensifying competition from other drug companies with similar therapies, and elevated cash burn potentially driving need for a dilutive capital raise in coming quarters. Portola Pharmaceuticals was another laggard in the six-month period as the company's shares sold off after lowering investor expectations for sales of its drug Bevyxxa for the treatment of thrombosis. The near-term outlook for another of the company's drugs Andexxa (for treatment of uncontrolled bleeding) remains stronger.
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The fund ended the six-month period with 48 holdings (excluding cash) representing 47 companies, up from 46 holdings representing 45 companies at the start of the period. The cash position ended the period at about 4% of fund assets, unchanged from the start. During the period we exited four holdings and initiated six new positions in the Fund.
The Fund continues to focus on investing in high-quality growth stocks with relatively attractive valuations, which we believe should be a key driver of above-index risk-adjusted returns over the long term. As the December 2018 quarter begins, significant uncertainty about the direction of the stock market exists driven by factors including: (i) the upcoming midterm elections in November and possible Democratic gains in the Congress; (ii) the ultimate outcome of the trade dispute with China and the impact it will have on earnings of large U.S.-based companies; (iii) the potential for continued interest rate hikes; and (iv) the fact that many stocks are trading at elevated valuations after the multi-year bull market. This uncertainty is offset, in part, by continued strength in the U.S. economy and job markets. Amidst this uncertainty, we continue to be diligent in our process of finding large-cap growth companies that benefit from long-term trends while still trading at reasonable valuations. We are seeking to reduce holdings in names that have appreciated above our target price, and redeploy capital into those names with better risk-reward tradeoffs. As always, we appreciate your support and confidence in our process.
BUFFALO MID CAP FUND
The Buffalo Mid Cap Fund returned 8.22% for the six months ending September 30, underperforming the Morningstar Mid Growth Index return of 13.23%. The fund's relative underperformance was largely driven by stock selection in the information technology sector, where not owning Advanced Micro Devices and Square caused fund performance to trail the benchmark. Both stocks are large benchmark weights and advanced 207% and 101% in the period, respectively. A large relative underweight position in the retail industry was also a drag on performance.
Exact Sciences, a top performer in the fiscal first half, is transforming colorectal cancer screening. Colorectal cancer is a very treatable form of cancer in early stages, but a leading cause of cancer death because of low compliance of traditional screening through colonoscopy. Shares have rallied as the company continues to grow completed tests at a high rate and prospects improved
with a co-marketing deal with Pfizer. The Pfizer deal provides additional sales capacity with Pfizer agreeing to a minimum of 625k sales calls annually by its field representatives starting in October 2018 thru 2021, which should accelerate growth of its tests in coming years.
Ligand Pharmaceuticals shares were higher on strong results. Outperformance of its royalty income was driven by growing sales of two drugs at Novartis and Amgen. In addition, the company recognized a large milestone payment related to its OmniAb platform for antibody discovery during the quarter.
Bio-Techne rallied during the period on strong organic sales growth, which drove earnings to exceed consensus expectations. The company is benefitting from new diagnostics and therapeutics being developed from information derived from the Human Genome Project. Further, the company provided guidance for its upcoming fiscal year that calls for sustained organic growth.
Summit Materials, a vertically integrated construction materials company, reported weak results, missing estimates and reducing guidance for the year. The stock continued to decline throughout the quarter, driven by wet weather in key markets, hurricanes, and reports of competitive cement pricing.
Nevro was a leading detractor in the fiscal first half. Shares suffered from poor sales results as the company faced new competitive products in its core spinal cord stimulation market. In addition, hiring of sales representatives fell below plan, impacting its outlook and resulted in its Vice President of Worldwide Sales exiting the company.
According to Federal Reserve Bank of Chicago President Charles Evans, "the US economy is firing from all cylinders." Going forward, the market could experience some volatility as investors focus alternately on economic strength and the removal of monetary stimulus. While the economy remains supportive of corporate earnings growth, valuation multiples may not continue expanding in a rising interest rate environment. As always, we remain focused on investing in competitively advantaged companies with strong long-term growth opportunities when they are trading at attractive valuations.
BUFFALO SMALL CAP FUND
Small capitalization stocks continued to be viewed as beneficiaries of increased trade war concerns over the past six months, boosting the Fund's benchmark, the Morningstar Small Growth Index, up 16.10%. The Buffalo
13
Small Cap Fund performed relatively well over the semi-annual period ending September 30, 2018, gaining 22.13% and outperforming the benchmark. As you may notice, the Fund changed its benchmark to the Morningstar Small Growth Index from the Russell 2000 Growth Index which gained 13.16% over the six-month period. Small cap growth stocks outperformed value stocks during this period as the technology, healthcare and consumer discretionary sectors all outperformed.
On a relative basis, the Fund outperformed in technology and healthcare but underperformed in consumer, industrials and materials. Twilio was the best performing stock during the period. The company beat first quarter and second quarter revenue estimates by over 10% as its market leading customer engagement platform continues to see increasing usage from its customer base. The company now enters a period of easier comparisons as last year's growth decelerated due to a reduction in spend by a large customer. The company should benefit going forward from two new product cycles: the general availability of a new contact center product called Flex and an Internet of Things product called Twilio Wireless. The Trade Desk was another meaningful contributor, gaining over 200% during the period. As a provider of a third-party technology platform for ad buyers, The Trade Desk has seen increasing use of its platform as programmatic ad buying continues to become a more mainstream way to purchase media. As the operator of a leading platform outside of the "Walled Gardens" of Facebook and Google, The Trade Desk continues to separate itself from a host of ad tech competitors that have failed to gain meaningful scale. The company continues to post high revenue growth rates of greater than 50% with outstanding operating and cash flow margins. The Fund also benefitted from gains in HMS Holdings, a healthcare company that focuses on the long-term trend of reducing the costs of healthcare. After struggling a bit in 2017, HMS has seen accelerating growth this year as its customers have become more aggressive in finding errors in billings, and as HMS has done a better job selling care management and customer engagement solutions obtained from acquisitions over the past two years. The company has also been a big beneficiary of key trends in technology such as Artificial Intelligence, Machine Learning and Robotic Process Automation which should improve their operating leverage going forward.
Nevro was the largest detractor from performance as the company's stock languished during the semi-annual period. The company suffered from poor sales hiring trends impacting future growth, and from intellectual
property concerns with a key competitor. While the stock may continue to be depressed until better execution emerges, we believe the market is not adequately valuing the solid competitive position the company has in the spinal cord stimulation market.
While the outlook for smaller capitalization companies remains constructive, the asset class has clearly been a recipient of additional fund flows as some investors have allocated assets into small cap believing that these stocks are more immune to trade issues than larger cap names. These funds may be short term in nature which could lead to enhanced volatility over the coming few quarters if investors reallocate away from small caps. These inflows have pushed some parts of the small cap growth market, such as high growth software, to relatively expensive levels. We have sold many stocks in this area including Zendesk, Hubspot, MongoDB, and Okta over the past couple of quarters believing that the high multiples did not leave much room for error and have attempted to replace these positions with stocks that have more reasonable valuations. In more recent days following the September 30, 2018 semi-annual period, the small cap growth market has seen some pressure as it appears some of this capital has retreated from small caps. We continue to be diligent in our process of finding companies that benefit from long-term trends while still trading at reasonable valuations and appreciate your confidence in our process.
Sincerely,
John C. Kornitzer
President, KCM
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Investing in both actively and passively managed mutual funds involves risk and principal loss is possible.
Bond ratings are grades given to bonds that indicate their credit quality as determined by a private independent rating service such as Standard & Poor's. The firm evaluates a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion. Ratings are expressed as letters ranging from 'AAA', which is the highest grade, to 'D', which is the lowest grade. In limited situations when the rating agency has not issued a formal rating, the Advisor will classify the security as nonrated.
Earnings growth is not representative of a fund's future performance.
Market Capitalization is the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.
The London Interbank Offered Rate (LIBOR) is a benchmark rate that represents the interest rate at which banks offer to lend funds to one another in the international interbank market for short-term loans. LIBOR is an average value of the interest-rate which is calculated from estimates submitted by the leading global banks on a daily basis. It serves as the first step to calculating interest rates on various loans throughout the world. A 3-Month LIBOR Rate means the LIBOR with respect to a three-month period for deposits of United States Dollars as reported by Bloomberg at approximately 10:00 a.m.
BPS or bps = basis point and a basis point is one hundredth of a percentage point (0.01%)
Cash flow is the net amount of cash moving into and out of a business.
Yield is the income return on an investment.
Yield to worst is the lowest potential yield that can be received on a bond without the issuer defaulting.
Spread to worst is the difference between the yield-to-worst of a bond and yield-to-worst of a U.S. Treasury security with a similar duration.
A Spread is the difference between the bid and the ask price of a security.
Non-investment grade is a bond rating that signifies a low credit quality with a high risk of defaulting.
Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.
15
INVESTMENT RESULTS
Total Returns as of September 30, 2018 (UNAUDITED)
Average Annual | |||||||||||||||||||||||||||
Gross Expense Ratio*** | Six Months | One Year | Five Years | Ten Years | Since Inception | ||||||||||||||||||||||
Buffalo Discovery Fund (inception date 4/16/01) | 1.02 | % | 9.58 | % | 15.87 | % | 13.08 | % | 15.11 | % | 9.60 | % | |||||||||||||||
Morningstar US Mid Growth Index | N/A | 13.23 | % | 24.76 | % | 12.85 | % | 12.83 | % | 8.25 | % | ||||||||||||||||
Russell Mid Cap Growth Index | N/A | 10.97 | % | 21.10 | % | 13.00 | % | 13.46 | % | 9.16 | % | ||||||||||||||||
Lipper Multi-Cap Growth Funds Index | N/A | 12.14 | % | 22.56 | % | 14.04 | % | 12.99 | % | 7.28 | % | ||||||||||||||||
Buffalo Dividend Focus Fund (inception date 12/03/12) | 0.95 | % | 11.10 | % | 15.88 | % | 13.66 | % | N/A | 14.14 | % | ||||||||||||||||
Morningstar US Large-Mid Cap Index | N/A | 11.22 | % | 17.86 | % | 13.68 | % | N/A | 15.56 | % | |||||||||||||||||
S&P 500 Index | N/A | 11.41 | % | 17.91 | % | 13.95 | % | N/A | 15.66 | % | |||||||||||||||||
Lipper Equity Income Funds Index | N/A | 7.50 | % | 10.44 | % | 10.28 | % | N/A | 12.21 | % | |||||||||||||||||
Buffalo Emerging Opportunities Fund (inception date 5/21/04) | 1.50 | % | 15.53 | % | 20.13 | % | 9.18 | % | 14.67 | % | 9.34 | % | |||||||||||||||
Morningstar US Small Growth Index | N/A | 16.10 | % | 26.30 | % | 12.34 | % | 13.15 | % | 10.36 | % | ||||||||||||||||
Russell 2000 Growth Index | N/A | 13.16 | % | 21.06 | % | 12.14 | % | 12.65 | % | 10.33 | % | ||||||||||||||||
Lipper Small-Cap Growth Funds Index | N/A | 15.97 | % | 28.23 | % | 12.12 | % | 12.64 | % | 9.71 | % | ||||||||||||||||
Buffalo Flexible Income Fund (inception date 8/12/94) | 1.01 | % | 9.15 | % | 11.17 | % | 6.96 | % | 8.12 | % | 7.43 | % | |||||||||||||||
60% Morningstar US Large Cap Index/40% ICE Bank of America Merrill Lynch U.S. High Yield Master II Index | N/A | 8.65 | % | 12.41 | % | 10.74 | % | 10.89 | % | 8.77 | % | ||||||||||||||||
Bank of America Merrill Combined Index (60% S&P 500® Index/40% ICE Bank of America Merrill Lynch U.S. High Yield Master II Index) (reflects no deduction for fees, expenses or taxes) | N/A | 8.23 | % | 11.92 | % | 10.59 | % | 10.93 | % | 8.92 | % | ||||||||||||||||
Lipper Mixed-Asset Target Allocation Moderate Funds Index | N/A | 3.60 | % | 5.73 | % | 6.51 | % | 7.07 | % | 6.97 | % | ||||||||||||||||
Buffalo Growth Fund (inception date 5/19/95) | 0.91 | % | 15.09 | % | 25.10 | % | 13.07 | % | 12.45 | % | 10.47 | % | |||||||||||||||
Morningstar US Growth Index* | N/A | 15.89 | % | 28.95 | % | 16.18 | % | 14.04 | % | N/A | |||||||||||||||||
Russell 1000 Growth Index | N/A | 15.45 | % | 26.30 | % | 16.58 | % | 14.31 | % | 9.65 | % | ||||||||||||||||
Lipper Large Cap Growth Funds Index | N/A | 13.96 | % | 24.95 | % | 14.96 | % | 12.88 | % | 8.58 | % | ||||||||||||||||
Buffalo High Yield Fund (inception date 5/19/95) | 1.03 | % | 2.32 | % | 2.36 | % | 4.06 | % | 7.39 | % | 7.03 | % | |||||||||||||||
ICE Bank of America Merrill Lynch U.S. High Yield Master II Index | N/A | 3.46 | % | 2.94 | % | 5.54 | % | 9.38 | % | 7.23 | % | ||||||||||||||||
Lipper High Yield Bond Funds Index | N/A | 2.95 | % | 2.70 | % | 4.82 | % | 7.86 | % | 5.95 | % | ||||||||||||||||
Buffalo International Fund (inception date 9/28/07) | 1.05 | % | 3.84 | % | 7.72 | % | 8.06 | % | 8.36 | % | 4.72 | % | |||||||||||||||
Morningstar Global Markets ex-US Index | N/A | -1.75 | % | 2.20 | % | 4.87 | % | 6.03 | % | 2.04 | % | ||||||||||||||||
Russell Global (ex USA) Index Net | N/A | -2.23 | % | 1.88 | % | 4.54 | % | 5.79 | % | 1.72 | % | ||||||||||||||||
Lipper International Funds Index | N/A | -1.32 | % | 1.65 | % | 4.80 | % | 5.78 | % | 1.98 | % | ||||||||||||||||
Buffalo Large Cap Fund (inception date 5/19/95) | 0.94 | % | 13.62 | % | 21.26 | % | 15.07 | % | 13.37 | % | 9.93 | % | |||||||||||||||
Morningstar US Large Growth Index** | N/A | 14.67 | % | 29.11 | % | 17.23 | % | 14.29 | % | N/A | |||||||||||||||||
Russell 1000 Growth Index | N/A | 15.45 | % | 26.30 | % | 16.58 | % | 14.31 | % | 9.65 | % | ||||||||||||||||
Lipper Large-Cap Growth Funds Index | N/A | 13.96 | % | 24.95 | % | 14.96 | % | 12.88 | % | 8.58 | % | ||||||||||||||||
Buffalo Mid Cap Fund (inception date 12/17/01) | 1.02 | % | 8.22 | % | 15.56 | % | 8.62 | % | 10.84 | % | 8.27 | % | |||||||||||||||
Morningstar US Mid Growth Index | N/A | 13.23 | % | 24.76 | % | 12.85 | % | 12.83 | % | 8.96 | % | ||||||||||||||||
Russell Mid Cap Growth Index | N/A | 10.97 | % | �� | 21.10 | % | 13.00 | % | 13.46 | % | 9.43 | % | |||||||||||||||
Lipper Mid-Cap Growth Funds Index | N/A | 11.86 | % | 22.18 | % | 12.37 | % | 12.34 | % | 8.67 | % |
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(UNAUDITED)
Average Annual | |||||||||||||||||||||||||||
Gross Expense Ratio*** | Six Months | One Year | Five Years | Ten Years | Since Inception | ||||||||||||||||||||||
Buffalo Small Cap Fund (inception date 4/14/98) | 1.01 | % | 22.13 | % | 29.72 | % | 10.04 | % | 12.52 | % | 12.34 | % | |||||||||||||||
Morningstar US Small Growth Index | N/A | 16.10 | % | 26.30 | % | 12.34 | % | 13.15 | % | 6.67 | % | ||||||||||||||||
Russell 2000 Growth Index | N/A | 13.16 | % | 21.06 | % | 12.14 | % | 12.65 | % | 6.71 | % | ||||||||||||||||
Lipper Small-Cap Growth Funds Index | N/A | 15.97 | % | 28.23 | % | 12.12 | % | 12.64 | % | 7.52 | % |
* The inception date of the Morningstar US Growth Index is July 3, 2002. The annualized return since inception as of September 30, 2018 is 10.35%
** The inception date of the Morningstar US Large Growth Index is July 3, 2002. The annualized return since inception as of September 30, 2018 is 9.69%
*** As reported in the Funds' Prospectus dated July 27, 2018. Current period gross expense ratio for each Fund can be found on the Financial Highlights, beginning on page 90.
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 Funds may be lower or higher than the performance quoted. Performance data current as of the most recent month-end may be obtained by calling 1-800-49-BUFFALO or by visiting the website at www.buffalofunds.com.
The Funds' returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of shares. The benchmark returns shown, excluding the Lipper Indices, reflect the reinvestment of dividends and capital gains but do not reflect the deduction of any investment management fees, other expenses or taxes. The performance of the Lipper Indices is presented net of the Funds' fees and expenses; however, applicable sales charges are not taken into consideration. One cannot invest directly in an index.
The Morningstar US Mid Growth Index measures the performance of US mid-cap stocks that are expected to grow at a faster pace than the rest of the market as measured by forward earnings, historical earnings, book value, cash flow and sales. The Lipper Multi-Cap Growth Funds Index is an unmanaged index that reflects the net asset value weighted return of 30 of the largest multi-cap growth funds tracked by Lipper. Its returns include net reinvested dividends. The Morningstar US Large-Mid Cap Index measures the performance of the US equity market targeting the top 90% of stocks by market capitalization. Lipper Equity Income Funds Index tracks funds that seek relatively high current income and growth of income by investing at least 65% of their portfolio in dividend-paying equity securities. These funds' gross or net yield must be at least 125% of the average gross or net yield of the U.S. diversified equity fund universe. The Morningstar US Small Growth Index measures the performance of US small-cap stocks that are expected to grow at a faster pace than the rest of the market as measured by forward earnings, historical earnings, book value, cash flows and sales. The Lipper Small-Cap Growth Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Small-Cap classification. The Morningstar US Large Cap Index measures the performance of the US equity market targeting the top 70% of stocks by market capitalization. The ICE Bank of America Merrill Lynch U.S. High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. The Lipper Mixed-Asset Target Allocation Moderate Funds Index is an average of funds that, by portfolio practice, maintain a mix of between 40%-60% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The total return of the Lipper Average does not include the effect of sales charges. The Morningstar US Growth Index measures the performance of US stocks that are expected to grow at a faster pace than the rest of the market as measured by forward earnings, historical earnings, book value, cash flow and sales. The Lipper Large-Cap Growth Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Large-Cap classification. The Lipper High Yield Bond Funds Index is a widely recognized index of the 30 largest mutual funds that invest primarily in high yield bonds. The Morningstar Global Market ex-US Index is designed to provide exposure to the top 97% market capitalization in each of two market segments, developed markets, excluding the United States, and emerging markets. The Lipper International Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper International classification. The Morningstar US Large Growth Index measures the performance of US large-cap stocks that are expected to grow at a faster pace than the rest of the
17
(UNAUDITED)
market as measured by forward earnings, historical earnings, book value, cash flow and sales. The Lipper Mid-Cap Growth Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Mid-Cap classification. The Russell 3000 Index is a market-capitalization-weighted equity index maintained by the FTSE Russell that provides exposure to the entire U.S. stock market. The index tracks the performance of the 3,000 largest U.S.-traded stocks which represent about 98% of all U.S incorporated equity securities. The Russell 3000 Growth Index is a market capitalization weighted index based on the Russell 3000 index. The Russell 3000 Growth Index includes companies that display signs of above average growth. The index is used to provide a gauge of the performance of growth stocks in the United States. The Russell 3000 Value Index is based on the Russell 3000 Index, which measures the performance of the 3,000 largest publicly held companies incorporated in America, as defined by total market capitalization. It represents approximately 98 percent of the American public equity market. 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. The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell MicroCap Index is a capitalization-weighted index of almost 1,550 small cap and microcap stocks that captures the smallest 1,000 companies in the Russell 2000, plus 1,000 smaller U.S.-based listed stocks. The JP Morgan US High Yield Index is designed to mirror the investable universe of the U.S. dollar domestic high yield corporate debt market. The S&P 500 Index is a capitalization weighted index of 500 large capitalization stocks which is designed to measure broad domestic securities markets. The Russell Mid Cap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Growth Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index. The Russell 2000 is by far the most common benchmark for mutual funds that identify themselves as "small-cap", while the S&P 500 index is used primarily for large capitalization stocks. The Russell Global (ex USA) Index Net measures the performance of the global equity market based on all investable equity securities, excluding companies assigned to the United States.
Please refer to the prospectus for special risks associated with investing in the Buffalo Funds, including, but not limited to, risks involved with investments in science and technology companies, foreign securities, debt securities, lower- or unrated securities and smaller companies. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please refer to the Schedule of Investments for a complete list of Fund holdings.
18
EXPENSE EXAMPLE
(UNAUDITED)
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs (including redemption fees) and (2) ongoing costs, including management fees and other Fund specific expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2018 – September 30, 2018).
ACTUAL EXPENSES
The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid on your account during the period. Although the Funds charge no sales load or transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds' transfer agent. If you request that a redemption be made by wire transfer, currently a $15.00 fee is charged by the Funds' transfer agent. To the extent a Fund invests in shares of other investment companies as part of its investment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which the Fund invests in
addition to the expenses of the Fund. Actual expenses of the underlying funds are expected to vary among the various underlying funds. These expenses are not included in the examples below. The examples below include management fees, registration fees and other expenses. However, the examples below do not include portfolio trading commissions and related expenses and other extraordinary expenses as determined under U.S. generally accepted accounting principles.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of each table below provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds' actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in our Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different Funds. In addition, if these transactional costs were included, your costs would have been higher.
BUFFALO DISCOVERY FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,095.80 | $ | 5.31 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.00 | $ | 5.11 |
* Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO DIVIDEND FOCUS FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,111.00 | $ | 4.97 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.36 | $ | 4.76 |
* Expenses are equal to the Fund's annualized expense ratio of 0.94%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
19
BUFFALO EMERGING OPPORTUNITIES FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,155.30 | $ | 7.94 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.70 | $ | 7.44 |
* Expenses are equal to the Fund's annualized expense ratio of 1.47%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO FLEXIBLE INCOME FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,091.50 | $ | 5.30 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.00 | $ | 5.11 |
* Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO GROWTH FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,150.90 | $ | 4.91 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.51 | $ | 4.61 |
* Expenses are equal to the Fund's annualized expense ratio of 0.91%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO HIGH YIELD FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,023.20 | $ | 5.17 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.95 | $ | 5.16 |
* Expenses are equal to the Fund's annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO INTERNATIONAL FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,038.40 | $ | 5.26 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.90 | $ | 5.22 |
* Expenses are equal to the Fund's annualized expense ratio of 1.03%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO LARGE CAP FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,136.20 | $ | 4.98 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.41 | $ | 4.71 |
* Expenses are equal to the Fund's annualized expense ratio of 0.93%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO MID CAP FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,082.20 | $ | 5.32 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.95 | $ | 5.16 |
* Expenses are equal to the Fund's annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
BUFFALO SMALL CAP FUND | Beginning Account Value April 1, 2018 | Ending Account Value September 30, 2018 | Expenses Paid During Period April 1, 2018 - September 30, 2018* | ||||||||||||
Actual | $ | 1,000.00 | $ | 1,221.30 | $ | 5.62 | |||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.00 | $ | 5.11 |
* Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.
20
ALLOCATION OF PORTFOLIO HOLDINGS
Percentages represent market value as a percentage of investments as of September 30, 2018 (UNAUDITED)
BUFFALO DISCOVERY
FUND
BUFFALO DIVIDEND
FOCUS FUND
BUFFALO EMERGING
OPPORTUNITIES FUND
BUFFALO FLEXIBLE
INCOME FUND
BUFFALO GROWTH
FUND
BUFFALO HIGH YIELD
FUND
21
ALLOCATION OF PORTFOLIO HOLDINGS
Percentages represent market value as a percentage of investments as of September 30, 2018 (UNAUDITED)
BUFFALO
INTERNATIONAL FUND
BUFFALO LARGE CAP
FUND
BUFFALO MID CAP
FUND
BUFFALO SMALL CAP
FUND
22
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 92.03 | % | |||||||||
Communication Services | 3.62 | % | |||||||||
Entertainment | 2.22 | % | |||||||||
279,101 | Electronic Arts Inc.(a) | 33,628,879 | |||||||||
289,627 | Lions Gate Entertainment Corp. — Class A(b) | 7,064,003 | |||||||||
289,627 | Lions Gate Entertainment Corp. — Class B(b) | 6,748,309 | |||||||||
47,441,191 | |||||||||||
Interactive Media & Services | 1.40 | % | |||||||||
24,840 | Alphabet, Inc. — Class A(a) | 29,983,867 | |||||||||
Total Communication Services (Cost $56,877,515) | 77,425,058 | ||||||||||
Consumer Discretionary | 9.34 | % | |||||||||
Auto Components | 0.97 | % | |||||||||
248,360 | Aptiv PLC(b) | 20,837,404 | |||||||||
Distributors | 1.37 | % | |||||||||
922,565 | LKQ Corp.(a) | 29,217,634 | |||||||||
Diversified Consumer Services | 1.27 | % | |||||||||
437,062 | ServiceMaster Global Holdings Inc.(a) | 27,110,956 | |||||||||
Household Durables | 2.64 | % | |||||||||
449,975 | Garmin Ltd.(b) | 31,520,749 | |||||||||
142,884 | Mohawk Industries, Inc.(a) | 25,054,709 | |||||||||
56,575,458 | |||||||||||
Internet & Direct Marketing Retail | 2.79 | % | |||||||||
15,732 | Amazon.com, Inc.(a) | 31,511,196 | |||||||||
216,560 | Expedia Group, Inc. | 28,256,749 | |||||||||
59,767,945 | |||||||||||
Specialty Retail | 0.30 | % | |||||||||
97,070 | Williams-Sonoma, Inc. | 6,379,440 | |||||||||
Total Consumer Discretionary (Cost $164,511,222) | 199,888,837 | ||||||||||
Consumer Staples | 1.00 | % | |||||||||
Household Products | 0.54 | % | |||||||||
76,515 | The Clorox Co. | 11,508,621 | |||||||||
Personal Products | 0.46 | % | |||||||||
68,520 | The Estee Lauder Companies Inc. — Class A | 9,957,327 | |||||||||
Total Consumer Staples (Cost $14,568,947) | 21,465,948 |
The accompanying notes are an integral part of these financial statements.
23
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Energy | 0.82 | % | |||||||||
Energy Equipment & Services | 0.82 | % | |||||||||
636,621 | Oceaneering International, Inc.(a) | 17,570,740 | |||||||||
Total Energy (Cost $17,312,230) | 17,570,740 | ||||||||||
Financials | 5.56 | % | |||||||||
Capital Markets | 5.56 | % | |||||||||
357,100 | Intercontinental Exchange, Inc. | 26,743,219 | |||||||||
197,250 | MSCI, Inc. | 34,994,122 | |||||||||
387,094 | Nasdaq, Inc. | 33,212,665 | |||||||||
122,840 | S&P Global, Inc. | 24,001,708 | |||||||||
Total Financials (Cost $64,427,362) | 118,951,714 | ||||||||||
Health Care | 18.88 | % | |||||||||
Biotechnology | 0.75 | % | |||||||||
600,612 | Portola Pharmaceuticals, Inc.(a) | 15,994,298 | |||||||||
Health Care Equipment & Supplies | 8.63 | % | |||||||||
88,211 | Align Technology, Inc.(a) | 34,509,907 | |||||||||
124,516 | The Cooper Companies, Inc. | 34,509,609 | |||||||||
287,552 | Danaher Corp. | 31,245,400 | |||||||||
109,680 | IDEXX Laboratories, Inc.(a) | 27,382,709 | |||||||||
183,175 | Merit Medical Systems, Inc.(a) | 11,256,104 | |||||||||
247,415 | Nevro Corp.(a) | 14,102,655 | |||||||||
105,120 | STAAR Surgical Co.(a) | 5,045,760 | |||||||||
215,710 | West Pharmaceutical Services, Inc. | 26,633,714 | |||||||||
184,685,858 | |||||||||||
Health Care Technology | 0.95 | % | |||||||||
152,420 | athenahealth Inc.(a) | 20,363,312 | |||||||||
Life Sciences Tools & Services | 6.61 | % | |||||||||
330,306 | Agilent Technologies, Inc. | 23,299,785 | |||||||||
164,383 | Bio-Techne Corp | 33,552,214 | |||||||||
76,100 | Illumina, Inc.(a) | 27,933,266 | |||||||||
262,677 | IQVIA Holdings Inc.(a) | 34,079,714 | |||||||||
37,179 | Mettler-Toledo International Inc.(a) | 22,641,268 | |||||||||
141,506,247 |
The accompanying notes are an integral part of these financial statements.
24
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Pharmaceuticals | 1.94 | % | |||||||||
534,785 | Mylan NV(a) (b) | 19,573,131 | |||||||||
239,600 | Zoetis Inc | 21,937,776 | |||||||||
41,510,907 | |||||||||||
Total Health Care (Cost $329,723,593) | 404,060,622 | ||||||||||
Industrials | 16.76 | % | |||||||||
Aerospace & Defense | 1.66 | % | |||||||||
104,240 | Harris Corp. | 17,638,450 | |||||||||
265,517 | Hexcel Corp. | 17,802,915 | |||||||||
35,441,365 | |||||||||||
Building Products | 2.45 | % | |||||||||
94,560 | Allegion PLC(b) | 8,564,299 | |||||||||
406,156 | AO Smith Corp. | 21,676,546 | |||||||||
608,175 | Masco Corp. | 22,259,205 | |||||||||
52,500,050 | |||||||||||
Commercial Services & Supplies | 1.93 | % | |||||||||
196,666 | Copart, Inc.(a) | 10,134,199 | |||||||||
429,340 | Republic Services, Inc. | 31,195,844 | |||||||||
41,330,043 | |||||||||||
Electrical Equipment | 0.97 | % | |||||||||
110,588 | Rockwell Automation, Inc. | 20,737,462 | |||||||||
Industrial Conglomerates | 1.65 | % | |||||||||
119,256 | Roper Industries, Inc. | 35,324,820 | |||||||||
Machinery | 4.31 | % | |||||||||
1,106,194 | Evoqua Water Technologies Corp.(a) | 19,668,129 | |||||||||
29,130 | Parker-Hannifin Corp. | 5,357,881 | |||||||||
252,809 | WABCO Holdings Inc.(a) | 29,816,294 | |||||||||
468,399 | Xylem, Inc. | 37,411,028 | |||||||||
92,253,332 | |||||||||||
Professional Services | 3.79 | % | |||||||||
147,475 | Equifax Inc. | 19,255,811 | |||||||||
544,820 | IHS Markit Ltd.(a) (b) | 29,398,487 | |||||||||
269,163 | Verisk Analytics, Inc(a) | 32,447,599 | |||||||||
81,101,897 | |||||||||||
Total Industrials (Cost $280,793,485) | 358,688,969 |
The accompanying notes are an integral part of these financial statements.
25
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Information Technology | 29.07 | % | |||||||||
Communications Equipment | 2.66 | % | |||||||||
61,728 | F5 Networks, Inc.(a) | 12,309,798 | |||||||||
130,586 | Motorola Solutions, Inc. | 16,994,462 | |||||||||
122,218 | Palo Alto Networks, Inc.(a) | 27,530,827 | |||||||||
56,835,087 | |||||||||||
Electronic Equipment, Instruments & Components | 3.42 | % | |||||||||
169,657 | Amphenol Corp. — Class A | 15,951,151 | |||||||||
29,090 | National Instruments Corp. | 1,405,920 | |||||||||
237,250 | TE Connectivity Ltd.(b) | 20,861,393 | |||||||||
304,905 | Trimble Inc.(a) | 13,251,171 | |||||||||
123,234 | Zebra Technologies Corp. — Class A(a) | 21,791,468 | |||||||||
73,261,103 | |||||||||||
IT Services | 6.99 | % | |||||||||
119,260 | Broadridge Financial Solutions, Inc. | 15,736,357 | |||||||||
78,585 | EPAM Systems, Inc.(a) | 10,821,154 | |||||||||
406,440 | Fiserv, Inc.(a) | 33,482,527 | |||||||||
110,845 | FleetCor Technologies Inc.(a) | 25,254,925 | |||||||||
102,865 | Gartner, Inc.(a) | 16,304,103 | |||||||||
114,162 | Jack Henry & Associates, Inc. | 18,275,053 | |||||||||
133,905 | MasterCard, Inc. — Class A | 29,808,592 | |||||||||
149,682,711 | |||||||||||
Semiconductors & Semiconductor Equipment | 2.95 | % | |||||||||
263,159 | Microchip Technology, Inc. | 20,765,877 | |||||||||
282,305 | Semtech Corp.(a) | 15,696,158 | |||||||||
88,275 | Universal Display Corp. | 10,407,622 | |||||||||
202,970 | Xilinx, Inc. | 16,272,105 | |||||||||
63,141,762 | |||||||||||
Software | 13.05 | % | |||||||||
518,675 | 8x8, Inc.(a) | 11,021,844 | |||||||||
39,190 | ANSYS, Inc.(a) | 7,315,989 | |||||||||
161,405 | Aspen Technology, Inc.(a) | 18,385,644 | |||||||||
2,641,948 | BlackBerry Ltd(a) (b) | 30,065,368 | |||||||||
187,310 | Guidewire Software Inc.(a) | 18,920,183 | |||||||||
143,715 | Intuit Inc. | 32,680,791 | |||||||||
162,345 | PTC Inc.(a) | 17,239,416 | |||||||||
185,059 | Red Hat, Inc.(a) | 25,219,840 | |||||||||
179,615 | salesforce.com, inc.(a) | 28,564,173 | |||||||||
117,573 | ServiceNow, Inc.(a) | 23,000,806 | |||||||||
335,955 | Synopsys, Inc.(a) | 33,128,523 | |||||||||
61,990 | Tyler Technologies, Inc.(a) | 15,191,269 | |||||||||
126,795 | Workday, Inc. — Class A(a) | 18,509,534 | |||||||||
279,243,380 | |||||||||||
Total Information Technology (Cost $493,038,415) | 622,164,043 |
The accompanying notes are an integral part of these financial statements.
26
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Materials | 6.98 | % | |||||||||
Chemicals | 6.98 | % | |||||||||
205,170 | Ecolab Inc. | 32,166,552 | |||||||||
351,510 | FMC Corp. | 30,644,642 | |||||||||
305,184 | Ingevity Corp.(a) | 31,092,146 | |||||||||
173,995 | International Flavors & Fragrances Inc. | 24,206,184 | |||||||||
195,120 | Praxair, Inc. | 31,361,638 | |||||||||
Total Materials (Cost $96,056,444) | 149,471,162 | ||||||||||
Total Common Stocks (Cost $1,517,309,213) | 1,969,687,093 | ||||||||||
Real Estate Investment Trusts (REITS) | 1.73 | % | |||||||||
Real Estate | 1.73 | % | |||||||||
72,550 | American Tower Corp. | 10,541,515 | |||||||||
60,929 | Equinix Inc. | 26,375,554 | |||||||||
Total Real Estate (Cost $22,052,861) | 36,917,069 | ||||||||||
Total REITS (Cost $22,052,861) | 36,917,069 | ||||||||||
Short Term Investment | 6.25 | % | |||||||||
Investment Company | 6.25 | % | |||||||||
133,776,447 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(c) | 133,776,447 | |||||||||
Total Investment Company | 133,776,447 | ||||||||||
Total Short Term Investment (Cost $133,776,447) | 133,776,447 | ||||||||||
Total Investments (Cost $1,673,138,521) | 100.01 2,140,380,609 | % | |||||||||
Liabilities in Excess of Other Assets | (0.01 (196,532) | )% | |||||||||
Total Net Assets | 100.00 2,140,184,077 | % |
The accompanying notes are an integral part of these financial statements.
27
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $174,633,143 (8.16% of net assets) at September 30 2018.
(c) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
28
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 92.71 | % | |||||||||
Communication Services | 12.19 | % | |||||||||
Diversified Telecommunication Services | 1.92 | % | |||||||||
18,130 | AT&T Inc. | 608,805 | |||||||||
10,625 | Verizon Communications, Inc. | 567,269 | |||||||||
1,176,074 | |||||||||||
Entertainment | 6.19 | % | |||||||||
10,750 | Activision Blizzard, Inc. | 894,293 | |||||||||
64,850 | AMC Entertainment Holdings, Inc. — Class A | 1,329,425 | |||||||||
22,400 | Twenty-First Century Fox, Inc. — Class A | 1,037,792 | |||||||||
4,550 | The Walt Disney Co. | 532,077 | |||||||||
3,793,587 | |||||||||||
Interactive Media & Services | 3.20 | % | |||||||||
630 | Alphabet, Inc. — Class A(a) | 760,460 | |||||||||
650 | Alphabet, Inc. — Class C(a) | 775,756 | |||||||||
2,600 | Facebook, Inc. — Class A(a) | 427,596 | |||||||||
1,963,812 | |||||||||||
Media | 0.88 | % | |||||||||
15,200 | Comcast Corp. — Class A | 538,232 | |||||||||
Total Communication Services (Cost $5,256,663) | 7,471,705 | ||||||||||
Consumer Discretionary | 6.64 | % | |||||||||
Automobiles | 0.45 | % | |||||||||
8,200 | General Motors Co. | 276,094 | |||||||||
Hotels, Restaurants & Leisure | 2.31 | % | |||||||||
11,625 | Carnival Corp.(b) | 741,326 | |||||||||
6,775 | Cedar Fair, L.P. | 352,842 | |||||||||
5,700 | Starbucks Corp. | 323,988 | |||||||||
1,418,156 | |||||||||||
Internet & Direct Marketing Retail | 1.80 | % | |||||||||
550 | Amazon.com, Inc.(a) | 1,101,650 | |||||||||
Specialty Retail | 2.08 | % | |||||||||
4,225 | The Home Depot, Inc. | 875,209 | |||||||||
6,100 | Williams-Sonoma, Inc. | 400,892 | |||||||||
1,276,101 | |||||||||||
Total Consumer Discretionary (Cost $2,577,385) | 4,072,001 |
The accompanying notes are an integral part of these financial statements.
29
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Consumer Staples | 4.79 | % | |||||||||
Beverages | 1.01 | % | |||||||||
5,550 | PepsiCo, Inc. | 620,490 | |||||||||
Food & Staples Retailing | 1.20 | % | |||||||||
5,600 | Walgreens Boots Alliance, Inc. | 408,240 | |||||||||
3,450 | Walmart Inc. | 323,990 | |||||||||
732,230 | |||||||||||
Food Products | 1.32 | % | |||||||||
8,375 | The Kraft Heinz Co. | 461,546 | |||||||||
5,400 | Pinnacle Foods Inc. | 349,974 | |||||||||
811,520 | |||||||||||
Household Products | 1.26 | % | |||||||||
4,450 | Colgate-Palmolive Co. | 297,927 | |||||||||
5,725 | The Procter & Gamble Co. | 476,492 | |||||||||
774,419 | |||||||||||
Total Consumer Staples (Cost $2,436,425) | 2,938,659 | ||||||||||
Energy | 7.10 | % | |||||||||
Energy Equipment & Services | 0.94 | % | |||||||||
7,600 | Halliburton Co. | 308,028 | |||||||||
4,400 | Schlumberger Ltd.(b) | 268,048 | |||||||||
576,076 | |||||||||||
Oil, Gas & Consumable Fuels | 6.16 | % | |||||||||
3,950 | Andeavor | 606,325 | |||||||||
10,000 | Energy Transfer Equity, L.P. | 174,300 | |||||||||
18,000 | Energy Transfer Partners L.P. | 400,680 | |||||||||
22,350 | Enterprise Products Partners L.P. | 642,115 | |||||||||
8,450 | Exxon Mobil Corp. | 718,419 | |||||||||
11,575 | Hess Corp. | 828,539 | |||||||||
5,950 | Royal Dutch Shell PLC. — Class A — ADR(b) | 405,433 | |||||||||
3,775,811 | |||||||||||
Total Energy (Cost $3,653,481) | 4,351,887 |
The accompanying notes are an integral part of these financial statements.
30
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Financials | 15.99 | % | |||||||||
Banks | 8.58 | % | |||||||||
44,000 | Bank of America Corp. | 1,296,240 | |||||||||
23,250 | BB&T Corp. | 1,128,555 | |||||||||
8,550 | Citigroup Inc. | 613,377 | |||||||||
13,400 | JPMorgan Chase & Co. | 1,512,056 | |||||||||
6,000 | PacWest Bancorp | 285,900 | |||||||||
8,000 | Wells Fargo & Co. | 420,480 | |||||||||
5,256,608 | |||||||||||
Capital Markets | 3.60 | % | |||||||||
1,100 | BlackRock, Inc. | 518,463 | |||||||||
4,025 | CME Group Inc. | 685,095 | |||||||||
5,150 | S&P Global, Inc. | 1,006,259 | |||||||||
2,209,817 | |||||||||||
Diversified Financial Services | 2.40 | % | |||||||||
5,600 | Berkshire Hathaway Inc. — Class B(a) | 1,199,016 | |||||||||
15,000 | Compass Diversified Holdings | 272,250 | |||||||||
1,471,266 | |||||||||||
Insurance | 1.41 | % | |||||||||
11,575 | Arthur J. Gallagher & Co. | 861,643 | |||||||||
Total Financials (Cost $6,090,334) | 9,799,334 | ||||||||||
Health Care | 14.72 | % | |||||||||
Biotechnology | 2.05 | % | |||||||||
6,225 | AbbVie Inc. | 588,760 | |||||||||
1,800 | Amgen Inc. | 373,122 | |||||||||
3,850 | Gilead Sciences, Inc. | 297,259 | |||||||||
1,259,141 | |||||||||||
Health Care Equipment & Supplies | 1.75 | % | |||||||||
7,400 | Medtronic, PLC(b) | 727,938 | |||||||||
2,600 | Zimmer Biomet Holdings, Inc. | 341,822 | |||||||||
1,069,760 | |||||||||||
Health Care Providers & Services | 6.20 | % | |||||||||
4,275 | Anthem, Inc. | 1,171,564 | |||||||||
13,100 | CVS Health Corp. | 1,031,232 | |||||||||
3,600 | McKesson Corp. | 477,540 | |||||||||
4,200 | UnitedHealth Group Inc. | 1,117,368 | |||||||||
3,797,704 |
The accompanying notes are an integral part of these financial statements.
31
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Pharmaceuticals | 4.72 | % | |||||||||
1,800 | Allergan plc(b) | 342,864 | |||||||||
3,150 | Eli Lilly & Co. | 338,027 | |||||||||
6,825 | Johnson & Johnson | 943,010 | |||||||||
5,600 | Merck & Co., Inc. | 397,264 | |||||||||
19,800 | Pfizer Inc. | 872,586 | |||||||||
2,893,751 | |||||||||||
Total Health Care (Cost $6,360,743) | 9,020,356 | ||||||||||
Industrials | 9.28 | % | |||||||||
Aerospace & Defense | 2.25 | % | |||||||||
2,125 | The Boeing Co. | 790,287 | |||||||||
4,200 | United Technologies Corp. | 587,202 | |||||||||
1,377,489 | |||||||||||
Air Freight & Logistics | 0.47 | % | |||||||||
1,200 | FedEx Corp. | 288,948 | |||||||||
Airlines | 1.21 | % | |||||||||
12,800 | Delta Air Lines, Inc. | 740,224 | |||||||||
Commercial Services & Supplies | 1.71 | % | |||||||||
5,849 | Stericycle, Inc.(a) | 343,219 | |||||||||
7,800 | Waste Management, Inc. | 704,808 | |||||||||
1,048,027 | |||||||||||
Industrial Conglomerates | 1.78 | % | |||||||||
2,450 | 3M Co. | 516,240 | |||||||||
3,450 | Honeywell International, Inc. | 574,080 | |||||||||
1,090,320 | |||||||||||
Machinery | 1.18 | % | |||||||||
3,950 | Parker-Hannifin Corp. | 726,524 | |||||||||
Professional Services | 0.68 | % | |||||||||
3,200 | Equifax Inc. | 417,824 | |||||||||
Total Industrials (Cost $4,105,359) | 5,689,356 | ||||||||||
Information Technology | 16.56 | % | |||||||||
Communications Equipment | 1.41 | % | |||||||||
17,750 | Cisco Systems, Inc. | 863,537 | |||||||||
IT Services | 3.16 | % | |||||||||
12,925 | Visa Inc. — Class A | 1,939,913 |
The accompanying notes are an integral part of these financial statements.
32
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Semiconductors & Semiconductor Equipment | 3.31 | % | |||||||||
3,300 | Analog Devices, Inc. | 305,118 | |||||||||
1,200 | Broadcom Inc. | 296,076 | |||||||||
11,750 | Intel Corp. | 555,657 | |||||||||
5,375 | QUALCOMM, Inc. | 387,161 | |||||||||
4,550 | Texas Instruments Inc. | 488,170 | |||||||||
2,032,182 | |||||||||||
Software | 5.32 | % | |||||||||
21,850 | Microsoft Corp. | 2,498,985 | |||||||||
14,725 | Oracle Corp. | 759,221 | |||||||||
3,258,206 | |||||||||||
Technology Hardware, Storage & Peripherals | 3.36 | % | |||||||||
9,120 | Apple Inc. | 2,058,749 | |||||||||
Total Information Technology (Cost $4,673,063) | 10,152,587 | ||||||||||
Materials | 1.52 | % | |||||||||
Chemicals | 1.52 | % | |||||||||
8,475 | DowDuPont Inc. | 545,027 | |||||||||
14,100 | Huntsman Corp. | 383,943 | |||||||||
Total Materials (Cost $865,571) | 928,970 | ||||||||||
Utilities | 3.92 | % | |||||||||
Electric Utilities | 2.79 | % | |||||||||
15,700 | American Electric Power Co., Inc. | 1,112,816 | |||||||||
8,850 | Edison International | 598,968 | |||||||||
1,711,784 | |||||||||||
Multi-Utilities | 1.13 | % | |||||||||
6,100 | Sempra Energy | 693,875 | |||||||||
Total Utilities (Cost $2,222,186) | 2,405,659 | ||||||||||
Total Common Stocks (Cost $38,241,210) | 56,830,514 | ||||||||||
Real Estate Investment Trusts (REITS) | 2.74 | % | |||||||||
Real Estate | 2.74 | % | |||||||||
3,200 | American Tower Corp. | 464,960 | |||||||||
20,700 | CoreCivic, Inc. | 503,631 | |||||||||
1,100 | Equinix Inc. | 476,179 | |||||||||
7,400 | Weyerhaeuser Co. | 238,798 | |||||||||
Total Real Estate (Cost $1,511,328) | 1,683,568 | ||||||||||
Total REITS (Cost $1,511,328) | 1,683,568 |
The accompanying notes are an integral part of these financial statements.
33
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Short Term Investment | 4.65 | % | |||||||||
Investment Company | 4.65 | % | |||||||||
2,849,990 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(c) | 2,849,990 | |||||||||
Total Investment Company | 2,849,990 | ||||||||||
Total Short Term Investment (Cost $2,849,990) | 2,849,990 | ||||||||||
Total Investments (Cost $42,602,528) | 100.10 61,364,072 | % | |||||||||
Liabilities in Excess of Other Assets | (0.10 (64,212) | )% | |||||||||
Total Net Assets | 100.00 61,299,860 | % |
ADR American Depositary Receipt
(a) Non Income Producing.
(b) Foreign Issued Securities. The total value of these securities amounted to $2,485,609 (4.05% of net assets) at September 30, 2018.
(c) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
34
BUFFALO EMERGING OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 91.36 | % | |||||||||
Communication Services | 4.86 | % | |||||||||
Interactive Media & Services | 0.78 | % | |||||||||
50,000 | EverQuote, Inc. — Class A(a) | 743,000 | |||||||||
Media | 4.08 | % | |||||||||
97,700 | Cardlytics, Inc.(a) | 2,446,408 | |||||||||
54,000 | Liberty Media Corp-Liberty Braves(a) | 1,471,500 | |||||||||
3,917,908 | |||||||||||
Total Communication Services (Cost $3,349,852) | 4,660,908 | ||||||||||
Consumer Discretionary | 12.68 | % | |||||||||
Auto Components | 2.35 | % | |||||||||
96,100 | Motorcar Parts of America, Inc.(a) | 2,253,545 | |||||||||
Hotels, Restaurants & Leisure | 2.63 | % | |||||||||
67,100 | Del Taco Restaurants, Inc.(a) | 792,451 | |||||||||
180,200 | Playa Hotels & Resorts N.V.(a) (b) | 1,735,326 | |||||||||
2,527,777 | |||||||||||
Household Durables | 2.48 | % | |||||||||
17,800 | Installed Building Products Inc(a) | 694,200 | |||||||||
13,000 | LGI Homes, Inc.(a) | 616,720 | |||||||||
27,200 | Universal Electronics, Inc.(a) | 1,070,320 | |||||||||
2,381,240 | |||||||||||
Internet & Direct Marketing Retail | 1.96 | % | |||||||||
34,500 | Shutterstock Inc. | 1,883,010 | |||||||||
Leisure Products | 2.30 | % | |||||||||
38,300 | MCBC Holdings, Inc.(a) | 1,374,204 | |||||||||
59,500 | Nautilus, Inc.(a) | 830,025 | |||||||||
2,204,229 | |||||||||||
Specialty Retail | 0.96 | % | |||||||||
29,400 | At Home Group Inc.(a) | 926,982 | |||||||||
Total Consumer Discretionary (Cost $11,753,991) | 12,176,783 | ||||||||||
Consumer Staples | 1.83 | % | |||||||||
Beverages | 0.81 | % | |||||||||
9,900 | MGP Ingredients, Inc. | 781,902 |
The accompanying notes are an integral part of these financial statements.
35
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Personal Products | 1.02 | % | |||||||||
76,700 | e.l.f. Beauty, Inc.(a) | 976,391 | |||||||||
Total Consumer Staples (Cost $1,739,363) | 1,758,293 | ||||||||||
Financials | 5.00 | % | |||||||||
Capital Markets | 1.58 | % | |||||||||
34,285 | Hamilton Lane Inc. — Class A | 1,518,140 | |||||||||
Diversified Financial Services | 1.50 | % | |||||||||
79,300 | Compass Diversified Holdings | 1,439,295 | |||||||||
Insurance | 1.92 | % | |||||||||
28,900 | Kinsale Capital Group, Inc. | 1,845,554 | |||||||||
Total Financials (Cost $2,276,470) | 4,802,989 | ||||||||||
Health Care | 19.02 | % | |||||||||
Biotechnology | 1.37 | % | |||||||||
17,400 | Deciphera Pharmaceuticals, Inc.(a) | 673,728 | |||||||||
51,500 | Dynavax Technologies Corp.(a) | 638,600 | |||||||||
1,312,328 | |||||||||||
Health Care Equipment & Supplies | 7.00 | % | |||||||||
15,000 | Establishment Labs Holdings Inc.(a) | 361,500 | |||||||||
148,600 | Invuity, Inc.(a) | 1,099,640 | |||||||||
17,000 | Neuronetics, Inc.(a) | 545,020 | |||||||||
54,090 | OrthoPediatrics Corp.(a) | 1,981,857 | |||||||||
80,900 | Oxford Immunotec Global PLC(a) (b) | 1,313,007 | |||||||||
25,000 | RA Medical Systems, Inc.(a) | 455,000 | |||||||||
20,075 | STAAR Surgical Co.(a) | 963,600 | |||||||||
6,719,624 | |||||||||||
Health Care Providers & Services | 3.44 | % | |||||||||
85,700 | Cross Country Healthcare, Inc.(a) | 748,161 | |||||||||
24,800 | LHC Group, Inc.(a) | 2,554,152 | |||||||||
3,302,313 | |||||||||||
Health Care Technology | 4.52 | % | |||||||||
61,900 | HealthStream, Inc. | 1,919,519 | |||||||||
33,700 | Omnicell, Inc.(a) | 2,423,030 | |||||||||
4,342,549 |
The accompanying notes are an integral part of these financial statements.
36
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Pharmaceuticals | 2.69 | % | |||||||||
92,800 | Clearside Biomedical, Inc.(a) | 570,720 | |||||||||
35,000 | Optinose, Inc.(a) | 435,050 | |||||||||
75,000 | Urovant Sciences Ltd.(a) (b) | 900,000 | |||||||||
41,351 | Verrica Pharmaceuticals, Inc.(a) | 671,954 | |||||||||
2,577,724 | |||||||||||
Total Health Care (Cost $13,302,108) | 18,254,538 | ||||||||||
Industrials | 19.76 | % | |||||||||
Aerospace & Defense | 3.38 | % | |||||||||
39,600 | Astronics Corp.(a) | 1,722,600 | |||||||||
103,200 | Kratos Defense & Security Solutions, Inc.(a) | 1,525,296 | |||||||||
3,247,896 | |||||||||||
Air Freight & Logistics | 1.82 | % | |||||||||
81,400 | Air Transport Services Group, Inc.(a) | 1,747,658 | |||||||||
Building Products | 2.38 | % | |||||||||
27,500 | Apogee Enterprises, Inc. | 1,136,300 | |||||||||
19,400 | Patrick Industries, Inc.(a) | 1,148,480 | |||||||||
2,284,780 | |||||||||||
Commercial Services & Supplies | 0.57 | % | |||||||||
12,500 | Mobile Mini, Inc. | 548,125 | |||||||||
Machinery | 2.37 | % | |||||||||
103,800 | Kornit Digital Ltd.(a) (b) | 2,273,220 | |||||||||
Professional Services | 4.89 | % | |||||||||
14,500 | ICF International, Inc. | 1,094,025 | |||||||||
33,700 | WageWorks, Inc.(a) | 1,440,675 | |||||||||
63,500 | Willdan Group, Inc.(a) | 2,156,460 | |||||||||
4,691,160 | |||||||||||
Trading Companies & Distributors | 4.35 | % | |||||||||
131,000 | Foundation Building Materials, Inc.(a) | 1,633,570 | |||||||||
176,100 | Nexeo Solutions, Inc.(a) | 2,157,225 | |||||||||
5,100 | SiteOne Landscape Supply, Inc.(a) | 384,234 | |||||||||
4,175,029 | |||||||||||
Total Industrials (Cost $16,119,496) | 18,967,868 | ||||||||||
Information Technology | 24.69 | % | |||||||||
Electronic Equipment, Instruments & Components | 0.46 | % | |||||||||
20,000 | nLight, Inc.(a) | 444,200 |
The accompanying notes are an integral part of these financial statements.
37
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
IT Services | 4.21 | % | |||||||||
88,900 | i3 Verticals, Inc. — Class A(a) | 2,042,922 | |||||||||
37,200 | Virtusa Corp.(a) | 1,998,012 | |||||||||
4,040,934 | |||||||||||
Semiconductors & Semiconductor Equipment | 2.78 | % | |||||||||
67,680 | Everspin Technologies, Inc.(a) | 519,783 | |||||||||
61,300 | Ichor Holdings, Ltd.(a) (b) | 1,251,746 | |||||||||
45,000 | MaxLinear, Inc.(a) | 894,600 | |||||||||
2,666,129 | |||||||||||
Software | 17.24 | % | |||||||||
111,100 | 8x8, Inc.(a) | 2,360,875 | |||||||||
153,200 | Amber Road Inc.(a) | 1,473,784 | |||||||||
22,600 | CyberArk Software Ltd.(a) (b) | 1,804,384 | |||||||||
30,505 | Envestnet, Inc.(a) | 1,859,280 | |||||||||
22,800 | Everbridge, Inc.(a) | 1,314,192 | |||||||||
32,400 | Five9, Inc.(a) | 1,415,556 | |||||||||
36,600 | Instructure, Inc.(a) | 1,295,640 | |||||||||
116,300 | Materialise NV — ADR(a) (b) | 1,604,940 | |||||||||
46,320 | Mimecast Ltd(a) (b) | 1,939,881 | |||||||||
14,400 | Varonis Systems, Inc.(a) | 1,054,800 | |||||||||
18,000 | Yext, Inc.(a) | 426,600 | |||||||||
16,549,932 | |||||||||||
Total Information Technology (Cost $13,161,787) | 23,701,195 | ||||||||||
Materials | 2.91 | % | |||||||||
Chemicals | 2.04 | % | |||||||||
19,200 | Ingevity Corp.(a) | 1,956,096 | |||||||||
Construction Materials | 0.87 | % | |||||||||
18,200 | US Concrete Inc.(a) | 834,470 | |||||||||
Total Materials (Cost $1,839,144) | 2,790,566 | ||||||||||
Utilities | 0.61 | % | |||||||||
Water Utilities | 0.61 | % | |||||||||
32,500 | AquaVenture Holdings Ltd.(a) (b) | 587,275 | |||||||||
Total Utilities (Cost $585,000) | 587,275 | ||||||||||
Total Common Stocks (Cost $64,127,211) | 87,700,415 |
The accompanying notes are an integral part of these financial statements.
38
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Real Estate Investment Trust (REIT) | 3.00 | % | |||||||||
Real Estate | 3.00 | % | |||||||||
93,100 | Community Healthcare Trust, Inc. | 2,884,238 | |||||||||
Total Real Estate (Cost $2,160,758) | 2,884,238 | ||||||||||
Total REIT (Cost $2,160,758) | 2,884,238 | ||||||||||
Short Term Investment | 7.30 | % | |||||||||
Investment Company | 7.30 | % | |||||||||
7,006,753 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(c) | 7,006,753 | |||||||||
Total Investment Company | 7,006,753 | ||||||||||
Total Short Term Investment (Cost $7,006,753) | 7,006,753 | ||||||||||
Total Investments (Cost $73,294,722) | 101.66 97,591,406 | % | |||||||||
Liabilities in Excess of Other Assets | (1.66 (1,593,889) | )% | |||||||||
Total Net Assets | 100.00 95,997,517 | % |
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Securities. The total value of these securities amounted to $13,409,779 (13.97% of net assets) at September 30, 2018.
(c) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
39
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 88.95 | % | |||||||||
Communication Services | 9.05 | % | |||||||||
Diversified Telecommunication Services | 5.66 | % | |||||||||
587,500 | AT&T Inc.(e) | 19,728,250 | |||||||||
375,000 | Verizon Communications, Inc. | 20,021,250 | |||||||||
39,749,500 | |||||||||||
Entertainment | 3.39 | % | |||||||||
498,000 | Lions Gate Entertainment Corp. — Class A(a) | 12,146,220 | |||||||||
498,000 | Lions Gate Entertainment Corp. — Class B(a) | 11,603,400 | |||||||||
23,749,620 | |||||||||||
Total Communication Services (Cost $64,844,566) | 63,499,120 | ||||||||||
Consumer Discretionary | 0.57 | % | |||||||||
Automobiles | 0.57 | % | |||||||||
435,000 | Ford Motor Co. | 4,023,750 | |||||||||
Total Consumer Discretionary (Cost $6,488,657) | 4,023,750 | ||||||||||
Consumer Staples | 15.09 | % | |||||||||
Beverages | 4.39 | % | |||||||||
400,000 | The Coca Cola Co. | 18,476,000 | |||||||||
50,000 | Keurig Dr Pepper Inc. | 1,158,500 | |||||||||
100,000 | PepsiCo, Inc. | 11,180,000 | |||||||||
30,814,500 | |||||||||||
Food & Staples Retailing | 2.72 | % | |||||||||
50,000 | Costco Wholesale Corp. | 11,744,000 | |||||||||
100,000 | Sysco Corp. | 7,325,000 | |||||||||
19,069,000 | |||||||||||
Food Products | 2.11 | % | |||||||||
100,000 | B&G Foods Inc. | 2,745,000 | |||||||||
200,000 | General Mills, Inc. | 8,584,000 | |||||||||
50,000 | Kellogg Co. | 3,501,000 | |||||||||
14,830,000 |
The accompanying notes are an integral part of these financial statements.
40
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Household Products | 5.87 | % | |||||||||
100,000 | The Clorox Co. | 15,041,000 | |||||||||
25,000 | Colgate-Palmolive Co. | 1,673,750 | |||||||||
69,000 | Kimberly-Clark Corp. | 7,841,160 | |||||||||
200,000 | The Procter & Gamble Co. | 16,646,000 | |||||||||
41,201,910 | |||||||||||
Total Consumer Staples (Cost $65,592,710) | 105,915,410 | ||||||||||
Energy | 24.52 | % | |||||||||
Energy Equipment & Services | 2.44 | % | |||||||||
76,000 | Helmerich & Payne, Inc. | 5,226,520 | |||||||||
195,000 | Schlumberger Ltd.(a) | 11,879,400 | |||||||||
17,105,920 | |||||||||||
Oil, Gas & Consumable Fuels | 22.08 | % | |||||||||
146,500 | Apache Corp. | 6,983,655 | |||||||||
398,000 | BP PLC — ADR(a) | 18,347,800 | |||||||||
150,000 | Chevron Corp.(e) | 18,342,000 | |||||||||
250,000 | ConocoPhillips(e) | 19,350,000 | |||||||||
140,000 | Delek Logistics Partners LP | 4,760,000 | |||||||||
250,000 | Exxon Mobil Corp.(e) | 21,255,000 | |||||||||
140,000 | Hess Corp.(e) | 10,021,200 | |||||||||
298,000 | HollyFrontier Corp.(e) | 20,830,200 | |||||||||
300,000 | Kinder Morgan, Inc. | 5,319,000 | |||||||||
95,000 | Marathon Petroleum Corp. | 7,597,150 | |||||||||
22,500 | Phillips 66 | 2,536,200 | |||||||||
288,000 | Royal Dutch Shell PLC. — Class A — ADR(a) | 19,624,320 | |||||||||
154,966,525 | |||||||||||
Total Energy (Cost $129,028,874) | 172,072,445 | ||||||||||
Financials | 5.30 | % | |||||||||
Banks | 2.27 | % | |||||||||
328,000 | BB&T Corp. | 15,921,120 | |||||||||
Insurance | 3.03 | % | |||||||||
140,000 | The Allstate Corp. | 13,818,000 | |||||||||
100,000 | Arthur J. Gallagher & Co. | 7,444,000 | |||||||||
21,262,000 | |||||||||||
Total Financials (Cost $21,142,628) | 37,183,120 |
The accompanying notes are an integral part of these financial statements.
41
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Health Care | 10.97 | % | |||||||||
Health Care Equipment & Supplies | 1.93 | % | |||||||||
80,000 | Abbott Laboratories | 5,868,800 | |||||||||
100,000 | Baxter International, Inc. | 7,709,000 | |||||||||
13,577,800 | |||||||||||
Pharmaceuticals | 9.04 | % | |||||||||
75,000 | Eli Lilly & Co. | 8,048,250 | |||||||||
460,000 | GlaxoSmithKline PLC — ADR(a) | 18,478,200 | |||||||||
140,000 | Johnson & Johnson | 19,343,800 | |||||||||
80,000 | Merck & Co., Inc. | 5,675,200 | |||||||||
270,000 | Pfizer Inc. | 11,898,900 | |||||||||
63,444,350 | |||||||||||
Total Health Care (Cost $45,723,341) | 77,022,150 | ||||||||||
Industrials | 9.59 | % | |||||||||
Aerospace & Defense | 4.77 | % | |||||||||
90,000 | The Boeing Co.(e) | 33,471,000 | |||||||||
Commercial Services & Supplies | 3.51 | % | |||||||||
927,911 | Pitney Bowes Inc. | 6,569,610 | |||||||||
200,000 | Waste Management, Inc. | 18,072,000 | |||||||||
24,641,610 | |||||||||||
Industrial Conglomerates | 1.31 | % | |||||||||
817,400 | General Electric Co. | 9,228,446 | |||||||||
Total Industrials (Cost $40,487,492) | 67,341,056 | ||||||||||
Information Technology | 11.66 | % | |||||||||
Communications Equipment | 1.39 | % | |||||||||
200,000 | Cisco Systems, Inc. | 9,730,000 | |||||||||
IT Services | 2.37 | % | |||||||||
110,000 | International Business Machines Corp. (IBM) | 16,633,100 | |||||||||
Semiconductors & Semiconductor Equipment | 3.83 | % | |||||||||
490,000 | Intel Corp. | 23,172,100 | |||||||||
51,400 | QUALCOMM, Inc. | 3,702,342 | |||||||||
26,874,442 |
The accompanying notes are an integral part of these financial statements.
42
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Software | 4.07 | % | |||||||||
250,000 | Microsoft Corp.(e) | 28,592,500 | |||||||||
Total Information Technology (Cost $44,010,054) | 81,830,042 | ||||||||||
Materials | 2.20 | % | |||||||||
Chemicals | 1.83 | % | |||||||||
200,000 | DowDuPont Inc.(e) | 12,862,000 | |||||||||
Metals & Mining | 0.37 | % | |||||||||
50,000 | Rio Tinto PLC — ADR(a) | 2,551,000 | |||||||||
Total Materials (Cost $7,853,743) | 15,413,000 | ||||||||||
Total Common Stocks (Cost $425,172,065) | 624,300,093 | ||||||||||
Real Estate Investment Trusts (REITS) | 2.36 | % | |||||||||
Real Estate | 2.36 | % | |||||||||
85,300 | Digital Realty Trust, Inc. | 9,594,544 | |||||||||
215,000 | Weyerhaeuser Co. | 6,938,050 | |||||||||
Total Real Estate (Cost $11,167,775) | 16,532,594 | ||||||||||
Total REITS (Cost $11,167,775) | 16,532,594 | ||||||||||
Convertible Bonds | 1.82 | % | |||||||||
Health Care | 0.31 | % | |||||||||
Pharmaceuticals | 0.31 | % | |||||||||
The Medicines Co. | |||||||||||
$ | 2,000,000 | 2.500%, 01/15/2022 | 2,154,186 | ||||||||
Total Health Care (Cost $2,042,168) | 2,154,186 | ||||||||||
Industrials | 0.39 | % | |||||||||
Air Freight & Logistics | 0.39 | % | |||||||||
UTi Worldwide, Inc. | |||||||||||
2,600,000 | 4.500%, 03/01/2019(a) (b) | 2,720,380 | |||||||||
Total Industrials (Cost $2,600,000) | 2,720,380 |
The accompanying notes are an integral part of these financial statements.
43
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Information Technology | 1.12 | % | |||||||||
Software | 1.12 | % | |||||||||
Nuance Communications, Inc. | |||||||||||
7,725,000 | 1.500%, 11/01/2035 | 7,865,757 | |||||||||
Total Information Technology (Cost $7,517,671) | 7,865,757 | ||||||||||
Total Convertible Bonds (Cost $12,159,839) | 12,740,323 | ||||||||||
Corporate Bonds | 4.33 | % | |||||||||
Consumer Discretionary | 0.35 | % | |||||||||
Leisure Products | 0.35% | ||||||||||
Brunswick Corp. | |||||||||||
2,200,000 | 7.375%, 09/01/2023 | 2,465,485 | |||||||||
Total Consumer Discretionary (Cost $2,115,530) | 2,465,485 | ||||||||||
Energy | 1.72 | % | |||||||||
Energy Equipment & Services | 0.72 | % | |||||||||
Forum Energy Technologies Inc. | |||||||||||
5,000,000 | 6.250%, 10/01/2021 | 5,012,500 | |||||||||
Oil, Gas & Consumable Fuels | 1.00 | % | |||||||||
Approach Resources, Inc. | |||||||||||
3,000,000 | 7.000%, 06/15/2021 | 2,895,000 | |||||||||
WildHorse Resource Development Corp. | |||||||||||
4,000,000 | 6.875%, 02/01/2025 | 4,150,000 | |||||||||
7,045,000 | |||||||||||
Total Energy (Cost $11,853,007) | 12,057,500 | ||||||||||
Financials | 0.36 | % | |||||||||
Diversified Financial Services | 0.36 | % | |||||||||
Everi Payments Inc. | |||||||||||
2,500,000 | 7.500%, 12/15/2025 (Acquired 11/20/2017, Cost $2,500,000)(c) (d) | 2,531,250 | |||||||||
Total Financials (Cost $2,500,000) | 2,531,250 |
The accompanying notes are an integral part of these financial statements.
44
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Industrials | 0.43 | % | |||||||||
Aerospace & Defense | 0.43 | % | |||||||||
TransDigm, Inc. | |||||||||||
3,000,000 | 5.500%, 10/15/2020 | 3,007,500 | |||||||||
Total Industrials (Cost $2,982,500) | 3,007,500 | ||||||||||
Information Technology | 0.79 | % | |||||||||
Diversified Telecommunication Services | 0.53 | % | |||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. | |||||||||||
3,706,000 | 5.250%, 03/15/2021 | 3,731,479 | |||||||||
Software | 0.26 | % | |||||||||
Nuance Communications, Inc. | |||||||||||
1,815,000 | 5.375%, 08/15/2020 (Acquired 05/22/2014, Cost $1,815,000)(c) (d) | 1,821,579 | |||||||||
Total Information Technology (Cost $5,502,225) | 5,553,058 | ||||||||||
Telecommunication Services | 0.68% | ||||||||||
Diversified Telecommunication Services | 0.68 | % | |||||||||
Consolidated Communications Inc | |||||||||||
5,000,000 | 6.500%, 10/01/2022 | 4,750,000 | |||||||||
Total Telecommunication Services (Cost $4,956,500) | 4,750,000 | ||||||||||
Total Corporate Bonds (Cost $29,909,762) | 30,364,793 |
The accompanying notes are an integral part of these financial statements.
45
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Short Term Investment | 2.51 | % | |||||||||
Investment Company | 2.51 | % | |||||||||
17,643,488 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(f) | 17,643,488 | |||||||||
Total Investment Company | 17,643,488 | ||||||||||
Total Short Term Investment (Cost $17,643,488) | 17,643,488 | ||||||||||
Total Investments (Cost $496,052,929) | 99.97 701,581,291 | % | |||||||||
Other Assets in Excess of Liabilities | 0.03 234,921 | % | |||||||||
Total Net Assets | 100.00 701,816,212 | % |
ADR American Depositary Receipt
PLC Public Limited Company
(a) Foreign Issued Securities. The total value of these securities amounted to $97,350,720 (13.87% of net assets) at September 30, 2018.
(b) These securities are deemed illiquid. The total value of these securities amounted to $2,720,380 (0.39% of net assets) at September 30, 2018.
(c) Restricted security deemed liquid. The total value of restricted securities is $4,352,829 (0.62% of net assets) at September 30, 2018.
(d) 144A Securities. The total value of restricted securities is $4,352,829 (0.62% of net assets) at September 30, 2018.
(e) A portion of these investments are segregated as collateral for open written option contracts.
(f) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
46
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF OPTIONS WRITTEN
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Contracts | $ Notional Amount | $ Value | |||||||||||||
Call Options | |||||||||||||||
| AT&T Inc. | ||||||||||||||
875 | Expiration: November 2018, Exercise Price: $35.00 | 2,938,250 | 21,875 | ||||||||||||
| The Boeing Co. | ||||||||||||||
400 | Expiration: October 2018, Exercise Price: $420.00 | 14,876,000 | 28,800 | ||||||||||||
| Chevron Corp. | ||||||||||||||
300 | Expiration: October 2018, Exercise Price: $140.00 | 3,668,400 | 450 | ||||||||||||
| ConocoPhillips | ||||||||||||||
300 | Expiration: October 2018, Exercise Price: $77.50 | 2,322,000 | 42,000 | ||||||||||||
300 | Expiration: November 2018, Exercise Price: $80.00 | 2,322,000 | 42,900 | ||||||||||||
| DowDuPont Inc. | ||||||||||||||
100 | Expiration: December 2018, Exercise Price: $80.00 | 643,100 | 600 | ||||||||||||
| Exxon Mobil Corp. | ||||||||||||||
500 | Expiration: October 2018, Exercise Price: $90.00 | 4,251,000 | 4,000 | ||||||||||||
| Hess Corp. | ||||||||||||||
500 | Expiration: November 2018, Exercise Price: $85.00 | 3,579,000 | 25,500 | ||||||||||||
| HollyFrontier Corp. | ||||||||||||||
100 | Expiration: December 2018, Exercise Price: $80.00 | 699,000 | 12,600 | ||||||||||||
200 | Expiration: December 2018, Exercise Price: $85.00 | 1,398,000 | 10,000 | ||||||||||||
| Microsoft Corp. | ||||||||||||||
500 | Expiration: December 2018, Exercise Price: $130.00 | 5,718,500 | 23,500 | ||||||||||||
Total Written Option (Premium received $211,314) | 212,225 |
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
47
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 95.53 | % | |||||||||
Communication Services | 11.86 | % | |||||||||
Diversified Telecommunication Services | 1.14 | % | |||||||||
44,540 | Verizon Communications, Inc. | 2,377,990 | |||||||||
Entertainment | 3.04 | % | |||||||||
19,485 | Electronic Arts Inc.(a) | 2,347,748 | |||||||||
34,345 | The Walt Disney Co. | 4,016,304 | |||||||||
6,364,052 | |||||||||||
Interactive Media & Services | 7.68 | % | |||||||||
4,332 | Alphabet, Inc. — Class A(a) | 5,229,071 | |||||||||
5,105 | Alphabet, Inc. — Class C(a) | 6,092,664 | |||||||||
28,952 | Facebook, Inc. — Class A(a) | 4,761,446 | |||||||||
16,083,181 | |||||||||||
Total Communication Services (Cost $12,345,840) | 24,825,223 | ||||||||||
Consumer Discretionary | 16.06 | % | |||||||||
Auto Components | 0.96 | % | |||||||||
24,025 | Aptiv PLC(b) | 2,015,698 | |||||||||
Hotels, Restaurants & Leisure | 1.26 | % | |||||||||
46,415 | Starbucks Corp. | 2,638,229 | |||||||||
Internet & Direct Marketing Retail | 9.52 | % | |||||||||
10,190 | Alibaba Group Holding Ltd. — ADR(a) (b) | 1,678,904 | |||||||||
7,485 | Amazon.com, Inc.(a) | 14,992,455 | |||||||||
1,641 | Booking Holdings, Inc.(a) | 3,255,744 | |||||||||
19,927,103 | |||||||||||
Specialty Retail | 2.25 | % | |||||||||
22,718 | The Home Depot, Inc. | 4,706,034 | |||||||||
Textiles, Apparel & Luxury Goods | 2.07 | % | |||||||||
51,034 | NIKE, Inc. — Class B | 4,323,600 | |||||||||
Total Consumer Discretionary (Cost $14,476,106) | 33,610,664 | ||||||||||
Consumer Staples | 1.13 | % | |||||||||
Beverages | 1.13 | % | |||||||||
40,555 | Monster Beverage Corp.(a) | 2,363,545 | |||||||||
Total Consumer Staples (Cost $2,068,341) | 2,363,545 |
The accompanying notes are an integral part of these financial statements.
48
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Financials | 5.23 | % | |||||||||
Capital Markets | 5.23 | % | |||||||||
42,695 | The Charles Schwab Corp. | 2,098,459 | |||||||||
19,190 | CME Group Inc. | 3,266,330 | |||||||||
43,025 | Intercontinental Exchange, Inc. | 3,222,142 | |||||||||
12,027 | S&P Global, Inc. | 2,349,956 | |||||||||
Total Financials (Cost $5,661,950) | 10,936,887 | ||||||||||
Health Care | 20.19 | % | |||||||||
Biotechnology | 0.62 | % | |||||||||
48,980 | Portola Pharmaceuticals, Inc.(a) | 1,304,338 | |||||||||
Health Care Equipment & Supplies | 13.91 | % | |||||||||
61,858 | Abbott Laboratories | 4,537,903 | |||||||||
5,420 | ABIOMED, Inc.(a) | 2,437,645 | |||||||||
12,356 | Align Technology, Inc.(a) | 4,833,914 | |||||||||
55,857 | Baxter International, Inc. | 4,306,016 | |||||||||
33,090 | Danaher Corp. | 3,595,559 | |||||||||
14,878 | IDEXX Laboratories, Inc.(a) | 3,714,442 | |||||||||
4,715 | Intuitive Surgical, Inc.(a) | 2,706,410 | |||||||||
30,275 | Medtronic, PLC(b) | 2,978,152 | |||||||||
29,110,041 | |||||||||||
Health Care Providers & Services | 1.93 | % | |||||||||
15,215 | UnitedHealth Group Inc. | 4,047,799 | |||||||||
Life Sciences Tools & Services | 1.65 | % | |||||||||
9,406 | Illumina, Inc.(a) | 3,452,566 | |||||||||
Pharmaceuticals | 2.08 | % | |||||||||
93,264 | Bayer AG — ADR(b) | 2,064,865 | |||||||||
13,587 | Jazz Pharmaceuticals PLC(a) (b) | 2,284,382 | |||||||||
4,349,247 | |||||||||||
Total Health Care (Cost $26,600,409) | 42,263,991 | ||||||||||
Industrials | 7.83 | % | |||||||||
Building Products | 0.93 | % | |||||||||
36,405 | AO Smith Corp. | 1,942,935 | |||||||||
Industrial Conglomerates | 1.50 | % | |||||||||
18,916 | Honeywell International, Inc. | 3,147,622 |
The accompanying notes are an integral part of these financial statements.
49
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Machinery | 2.24 | % | |||||||||
129,364 | Evoqua Water Technologies Corp.(a) | 2,300,092 | |||||||||
20,285 | WABCO Holdings Inc.(a) | 2,392,413 | |||||||||
4,692,505 | |||||||||||
Professional Services | 1.85 | % | |||||||||
52,565 | TransUnion | 3,867,733 | |||||||||
Road & Rail | 1.31 | % | |||||||||
16,800 | Union Pacific Corp. | 2,735,544 | |||||||||
Total Industrials (Cost $14,135,097) | 16,386,339 | ||||||||||
Information Technology | 29.50 | % | |||||||||
Electronic Equipment, Instruments & Components | 1.07 | % | |||||||||
11,360 | Littelfuse, Inc. | 2,248,030 | |||||||||
IT Services | 8.90% | ||||||||||
23,905 | Broadridge Financial Solutions, Inc. | 3,154,265 | |||||||||
45,160 | Fiserv, Inc.(a) | 3,720,281 | |||||||||
19,230 | MasterCard, Inc. — Class A | 4,280,790 | |||||||||
17,535 | Shopify, Inc. — Class A(a) (b) | 2,883,806 | |||||||||
30,533 | Visa Inc. — Class A | 4,582,698 | |||||||||
18,621,840 | |||||||||||
Semiconductors & Semiconductor Equipment | 2.00 | % | |||||||||
36,741 | QUALCOMM, Inc. | 2,646,454 | |||||||||
27,490 | Semtech Corp.(a) | 1,528,444 | |||||||||
4,174,898 | |||||||||||
Software | 15.08 | % | |||||||||
8,580 | Adobe Systems, Inc.(a) | 2,316,171 | |||||||||
26,825 | Guidewire Software Inc.(a) | 2,709,593 | |||||||||
18,549 | Intuit Inc. | 4,218,042 | |||||||||
104,180 | Microsoft Corp. | 11,915,067 | |||||||||
13,400 | Red Hat, Inc.(a) | 1,826,152 | |||||||||
22,360 | salesforce.com, inc.(a) | 3,555,911 | |||||||||
15,045 | ServiceNow, Inc.(a) | 2,943,253 | |||||||||
13,360 | VMware, Inc. — Class A(a) | 2,084,962 | |||||||||
31,569,151 | |||||||||||
Technology Hardware, Storage & Peripherals | 2.45 | % | |||||||||
22,717 | Apple Inc. | 5,128,136 | |||||||||
Total Information Technology (Cost $34,177,880) | 61,742,055 |
The accompanying notes are an integral part of these financial statements.
50
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Materials | 3.73 | % | |||||||||
Chemicals | 3.73 | % | |||||||||
24,985 | Ecolab Inc. | 3,917,148 | |||||||||
24,235 | Praxair, Inc. | 3,895,292 | |||||||||
Total Materials (Cost $3,818,758) | 7,812,440 | ||||||||||
Total Common Stocks (Cost $113,284,381) | 199,941,144 | ||||||||||
Real Estate Investment Trusts (REITS) | 2.13 | % | |||||||||
Real Estate | 2.13 | % | |||||||||
7,395 | American Tower Corp. | 1,074,494 | |||||||||
7,834 | Equinix Inc. | 3,391,260 | |||||||||
Total Real Estate (Cost $2,391,514) | 4,465,754 | ||||||||||
Total REITS (Cost $2,391,514) | 4,465,754 | ||||||||||
Short Term Investment | 1.99 | % | |||||||||
Investment Company | 1.99 | % | |||||||||
4,164,701 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(c) | 4,164,701 | |||||||||
Total Investment Company | 4,164,701 | ||||||||||
Total Short Term Investment (Cost $4,164,701) | 4,164,701 | ||||||||||
Total Investments (Cost $119,840,596) | 99.65 208,571,599 | % | |||||||||
Other Assets in Excess of Liabilities | 0.35 735,838 | % | |||||||||
Total Net Assets | 100.00 209,307,437 | % |
The accompanying notes are an integral part of these financial statements.
51
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Securities. The total value of these securities amounted to $13,905,807 (6.64% of net assets) at September 30, 2018.
(c) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
52
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 1.12 | % | |||||||||
Communication Services | 0.57 | % | |||||||||
Entertainment | 0.57 | % | |||||||||
24,485 | Lions Gate Entertainment Corp. — Class A(a) | 597,189 | |||||||||
24,485 | Lions Gate Entertainment Corp. — Class B(a) | 570,500 | |||||||||
Total Communication Services (Cost $499,984) | 1,167,689 | ||||||||||
Industrials | 0.55 | % | |||||||||
Machinery | 0.55 | % | |||||||||
19,000 | The Greenbrier Companies, Inc. | 1,141,900 | |||||||||
Total Industrials (Cost $673,855) | 1,141,900 | ||||||||||
Total Common Stocks (Cost $1,173,839) | 2,309,589 | ||||||||||
Real Estate Investment Trust (REIT) | 0.52 | % | |||||||||
Real Estate | 0.52 | % | |||||||||
1,000 | Crown Castle International Corp. | 1,086,000 | |||||||||
Total Real Estate (Cost $1,035,000) | 1,086,000 | ||||||||||
Total REIT (Cost $1,035,000) | 1,086,000 | ||||||||||
Convertible Bonds | 8.30 | % | |||||||||
Communication Services | 1.94 | % | |||||||||
Entertainment | 1.27 | % | |||||||||
Live Nation Entertainment Inc. | |||||||||||
$ | 1,500,000 | 2.500%, 05/15/2019 | 2,346,528 | ||||||||
250,000 | 2.500%, 03/15/2023(d) | 270,747 | |||||||||
2,617,275 | |||||||||||
Interactive Media & Services | 0.67 | % | |||||||||
Twitter, Inc. | |||||||||||
1,500,000 | 1.000%, 09/15/2021 | 1,384,706 | |||||||||
Total Communication Services (Cost $3,152,075) | 4,001,981 |
The accompanying notes are an integral part of these financial statements.
53
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Energy | 0.47 | % | |||||||||
Oil, Gas & Consumable Fuels | 0.47% | ||||||||||
Whiting Petroleum Corp. | |||||||||||
1,000,000 | 1.250%, 04/01/2020 | 961,551 | |||||||||
Total Energy (Cost $897,262) | 961,551 | ||||||||||
Financials | 0.74 | % | |||||||||
Consumer Finance | 0.74 | % | |||||||||
PRA Group, Inc. | |||||||||||
1,500,000 | 3.500%, 06/01/2023 | 1,539,375 | |||||||||
Total Financials (Cost $1,530,262) | 1,539,375 | ||||||||||
Health Care | 0.88 | % | |||||||||
Pharmaceuticals | 0.88 | % | |||||||||
The Medicines Co. | |||||||||||
2,000,000 | 2.750%, 07/15/2023 | 1,823,820 | |||||||||
Total Health Care (Cost $2,000,000) | 1,823,820 | ||||||||||
Industrials | 0.46 | % | |||||||||
Air Freight & Logistics | 0.46 | % | |||||||||
Air Transport Services Group, Inc. | |||||||||||
1,000,000 | 0.000%, 10/15/2024(d) | 958,600 | |||||||||
Total Industrials (Cost $1,057,376) | 958,600 | ||||||||||
Information Technology | 3.81 | % | |||||||||
IT Services | 0.48 | % | |||||||||
Akamai Technologies, Inc. | |||||||||||
1,000,000 | 0.125%, 05/01/2025(d) | 985,923 | |||||||||
Software | 3.33 | % | |||||||||
Envestnet, Inc. | |||||||||||
1,500,000 | 1.750%, 12/15/2019 | 1,650,492 | |||||||||
FireEye, Inc. | |||||||||||
1,000,000 | 0.875%, 06/01/2024(d) | 997,388 | |||||||||
Guidewire Software, Inc. | |||||||||||
2,000,000 | 1.250%, 03/15/2025 | 2,147,196 |
The accompanying notes are an integral part of these financial statements.
54
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Nuance Communications, Inc. | |||||||||||
2,060,000 | 1.500%, 11/01/2035 | 2,097,535 | |||||||||
6,892,611 | |||||||||||
Total Information Technology (Cost $7,467,901) | 7,878,534 | ||||||||||
Total Convertible Bonds (Cost $16,104,876) | 17,163,861 | ||||||||||
Corporate Bonds | 66.05 | % | |||||||||
Communication Services | 5.99 | % | |||||||||
Entertainment | 2.74 | % | |||||||||
Live Nation Entertainment Inc. | |||||||||||
3,100,000 | 5.375%, 06/15/2022 (Acquired Various Dates, Cost $3,110,000)(c) (d) | 3,146,500 | |||||||||
1,000,000 | 4.875%, 11/01/2024 (Acquired 10/26/2016, Cost $1,000,000)(c) (d) | 982,500 | |||||||||
250,000 | 5.625%, 03/15/2026 (Acquired 03/15/2018, Cost $250,000)(c) (d) | 253,125 | |||||||||
Netflix, Inc. | |||||||||||
250,000 | 5.500%, 02/15/2022 | 259,063 | |||||||||
1,000,000 | 5.750%, 03/01/2024 | 1,027,500 | |||||||||
5,668,688 | |||||||||||
Interactive Media & Services | 0.48 | % | |||||||||
Match Group, Inc. | |||||||||||
1,000,000 | 5.000%, 12/15/2027 (Acquired 11/17/2017, Cost $990,270)(c) (d) | 1,000,100 | |||||||||
Media | 2.77 | % | |||||||||
AMC Networks Inc. | |||||||||||
1,500,000 | 5.000%, 04/01/2024 | 1,481,250 | |||||||||
The E.W. Scripps Co. | |||||||||||
250,000 | 5.125%, 05/15/2025 (Acquired 04/20/2017, Cost $250,000)(c) (d) | 240,937 | |||||||||
Gray Television, Inc. | |||||||||||
2,060,000 | 5.875%, 07/15/2026 (Acquired Various Dates, Cost $2,061,091)(c) (d) | 2,047,125 | |||||||||
Townsquare Media, Inc. | |||||||||||
2,100,000 | 6.500%, 04/01/2023 (Acquired Various Dates, Cost $2,056,186)(c) (d) | 1,950,375 | |||||||||
5,719,687 | |||||||||||
Total Communication Services (Cost $12,465,672) | 12,388,475 | ||||||||||
Consumer Discretionary | 12.63 | % | |||||||||
Auto Components | 0.48 | % | |||||||||
Allison Transmission Holdings, Inc. | |||||||||||
1,000,000 | 5.000%, 10/01/2024 (Acquired 03/20/2017, Cost $1,000,000)(c) (d) | 997,500 |
The accompanying notes are an integral part of these financial statements.
55
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Commercial Services | 1.49 | % | |||||||||
Cimpress NV | |||||||||||
2,000,000 | 7.000%, 06/15/2026 (Acquired 06/01/2018, Cost $2,000,000)(a) (c) (d) | 2,042,260 | |||||||||
Compass Group Diversified Holdings LLC | |||||||||||
1,000,000 | 8.000%, 05/01/2026 (Acquired 04/05/2018, Cost $1,000,000)(c) (d) | 1,035,000 | |||||||||
3,077,260 | |||||||||||
Distributors | 0.97 | % | |||||||||
LKQ Corp. | |||||||||||
2,000,000 | 4.750%, 05/15/2023 | 2,006,500 | |||||||||
Diversified Consumer Services | 0.48 | % | |||||||||
Service Corporation International | |||||||||||
1,000,000 | 4.500%, 11/15/2020 | 1,003,750 | |||||||||
Hotels, Restaurants & Leisure | 2.13 | % | |||||||||
Nathan's Famous, Inc. | |||||||||||
1,000,000 | 6.625%, 11/01/2025 (Acquired Various Dates, Cost $1,001,875)(c) (d) | 1,003,750 | |||||||||
Royal Caribbean Cruises Ltd. | |||||||||||
1,615,000 | 7.500%, 10/15/2027(a) | 1,915,444 | |||||||||
Six Flags Entertainment Corp. | |||||||||||
1,500,000 | 5.500%, 04/15/2027 (Acquired 03/30/2017, Cost $1,500,000)(c) (d) | 1,488,750 | |||||||||
4,407,944 | |||||||||||
Leisure Products | 2.10 | % | |||||||||
Brunswick Corp. | |||||||||||
3,000,000 | 7.375%, 09/01/2023 | 3,362,025 | |||||||||
Mattel, Inc. | |||||||||||
1,000,000 | 6.750%, 12/31/2025 (Acquired 12/15/2017, Cost $1,000,000)(c) (d) | 982,500 | |||||||||
4,344,525 | |||||||||||
Media | 1.33 | % | |||||||||
Cinemark USA, Inc. | |||||||||||
1,000,000 | 5.125%, 12/15/2022 | 1,010,000 | |||||||||
Lions Gate Capital Holdings LLC | |||||||||||
250,000 | 5.875%, 11/01/2024 (Acquired 10/13/2016, Cost $249,402)(c) (d) | 257,500 | |||||||||
Sirius XM Radio, Inc. | |||||||||||
1,500,000 | 4.625%, 05/15/2023 (Acquired Various Dates, Cost $1,530,198)(c) (d) | 1,490,550 | |||||||||
2,758,050 | |||||||||||
Specialty Retail | 1.92 | % | |||||||||
Penske Automotive Group, Inc. | |||||||||||
2,500,000 | 5.750%, 10/01/2022 | 2,548,437 | |||||||||
Sonic Automotive, Inc. | |||||||||||
1,500,000 | 5.000%, 05/15/2023 | 1,421,250 | |||||||||
3,969,687 |
The accompanying notes are an integral part of these financial statements.
56
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Textiles, Apparel & Luxury Goods | 1.73 | % | |||||||||
PVH Corp. | |||||||||||
3,120,000 | 7.750%, 11/15/2023 | 3,572,400 | |||||||||
Total Consumer Discretionary (Cost $24,480,943) | 26,137,616 | ||||||||||
Consumer Staples | 4.19 | % | |||||||||
Food Products | 4.19 | % | |||||||||
Darling Ingredients, Inc. | |||||||||||
1,100,000 | 5.375%, 01/15/2022 | 1,112,375 | |||||||||
Lamb Weston Holdings, Inc. | |||||||||||
1,500,000 | 4.875%, 11/01/2026 (Acquired Various Dates, Cost $1,490,625)(c) (d) | 1,475,625 | |||||||||
Pilgrim's Pride Corp. | |||||||||||
1,000,000 | 5.750%, 03/15/2025 (Acquired 05/23/2018, Cost $970,820)(c) (d) | 967,500 | |||||||||
TreeHouse Foods, Inc. | |||||||||||
2,000,000 | 4.875%, 03/15/2022 | 2,010,000 | |||||||||
3,000,000 | 6.000%, 02/15/2024 (Acquired 01/21/2016, Cost $3,000,000)(c) (d) | 3,108,750 | |||||||||
Total Consumer Staples (Cost $8,561,445) | 8,674,250 | ||||||||||
Energy | 10.28 | % | |||||||||
Energy Equipment & Services | 0.68 | % | |||||||||
Forum Energy Technologies Inc. | |||||||||||
1,405,000 | 6.250%, 10/01/2021 | 1,408,513 | |||||||||
Oil, Gas & Consumable Fuels | 9.60 | % | |||||||||
Andeavor Logistics LP | |||||||||||
3,500,000 | 6.875% (3 Month LIBOR USD + 4.652%), 08/15/2023 | 3,522,312 | |||||||||
Andeavor Logistics LP / Tesoro Logistics Finance Corp. | |||||||||||
1,000,000 | 5.500%, 10/15/2019 | 1,020,020 | |||||||||
Delek Logistics Partners LP / Delek Logistics Finance Corp. | |||||||||||
2,000,000 | 6.750%, 05/15/2025 | 2,025,000 | |||||||||
Holly Energy Partners, L.P. | |||||||||||
2,500,000 | 6.000%, 08/01/2024 (Acquired Various Dates, Cost $2,565,000)(c) (d) | 2,568,750 | |||||||||
Jagged Peak Energy Inc. | |||||||||||
1,250,000 | 5.875%, 05/01/2026 (Acquired Various Dates, Cost $1,256,250)(c) (d) | 1,246,875 | |||||||||
Parsley Energy LLC / Parsley Finance Corp. | |||||||||||
250,000 | 6.250%, 06/01/2024 (Acquired 05/24/2016, Cost $250,000)(c) (d) | 261,250 | |||||||||
1,000,000 | 5.375%, 01/15/2025 (Acquired Various Dates, Cost $996,250)(c) (d) | 1,007,500 | |||||||||
SemGroup Corp / Rose Rock Finance Corp. | |||||||||||
1,000,000 | 5.625%, 11/15/2023 | 977,500 |
The accompanying notes are an integral part of these financial statements.
57
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Seven Generations Energy Ltd. | |||||||||||
1,275,000 | 6.750%, 05/01/2023 (Acquired Various Dates, Cost $1,255,482)(a) (c) (d) | 1,318,031 | |||||||||
1,000,000 | 5.375%, 09/30/2025 (Acquired Various Dates, Cost $1,006,563)(a) (c) (d) | 976,250 | |||||||||
Whiting Petroleum Corp. | |||||||||||
250,000 | 6.625%, 01/15/2026 | 260,938 | |||||||||
WildHorse Resource Development Corp. | |||||||||||
4,500,000 | 6.875%, 02/01/2025 | 4,668,750 | |||||||||
19,853,176 | |||||||||||
Total Energy (Cost $20,917,078) | 21,261,689 | ||||||||||
Financials | 3.53 | % | |||||||||
Capital Markets | 0.74 | % | |||||||||
MSCI Inc. | |||||||||||
1,500,000 | 5.250%, 11/15/2024 (Acquired 11/05/2014, Cost $1,500,000)(c) (d) | 1,543,500 | |||||||||
Diversified Financial Services | 2.79 | % | |||||||||
Cogent Communications Finance Inc. | |||||||||||
3,000,000 | 5.625%, 04/15/2021 (Acquired Various Dates, Cost $2,973,750)(c) (d) | 3,022,500 | |||||||||
Cott Holdings, Inc. | |||||||||||
1,250,000 | 5.500%, 04/01/2025 (Acquired Various Dates, Cost $1,249,500)(c) (d) | 1,223,437 | |||||||||
Everi Payments Inc. | |||||||||||
1,500,000 | 7.500%, 12/15/2025 (Acquired 11/20/2017, Cost $1,500,000)(c) (d) | 1,518,750 | |||||||||
5,764,687 | |||||||||||
Total Financials (Cost $7,223,250) | 7,308,187 | ||||||||||
Health Care | 4.92 | % | |||||||||
Health Care Equipment & Supplies | 0.47 | % | |||||||||
Catalent Pharma Solutions, Inc. | |||||||||||
1,000,000 | 4.875%, 01/15/2026 (Acquired 10/13/2017, Cost $1,000,000)(c) (d) | 967,500 | |||||||||
Health Care Providers & Services | 0.99 | % | |||||||||
Centene Corp. | |||||||||||
1,500,000 | 5.625%, 02/15/2021 | 1,530,000 | |||||||||
500,000 | 6.125%, 02/15/2024 | 526,250 | |||||||||
2,056,250 | |||||||||||
Pharmaceuticals | 3.46 | % | |||||||||
Bausch Health Companies Inc. | |||||||||||
1,500,000 | 5.500%, 11/01/2025 (Acquired Various Dates, Cost $1,507,500)(a) (c) (d) | 1,505,625 | |||||||||
500,000 | 9.000%, 12/15/2025 (Acquired 12/04/2017, Cost $493,055)(a) (c) (d) | 540,000 | |||||||||
1,000,000 | 9.250%, 04/01/2026 (Acquired 03/12/2018, Cost $1,000,000)(c) (d) | 1,081,250 |
The accompanying notes are an integral part of these financial statements.
58
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Endo Finance LLC / Endo Finco Inc. | |||||||||||
1,500,000 | 7.250%, 01/15/2022 (Acquired Various Dates, Cost $1,383,183)(c) (d) | 1,470,000 | |||||||||
Horizon Pharma, Inc. | |||||||||||
2,500,000 | 6.625%, 05/01/2023 | 2,562,500 | |||||||||
7,159,375 | |||||||||||
Total Health Care (Cost $9,817,427) | 10,183,125 | ||||||||||
Industrials | 15.27 | % | |||||||||
Aerospace & Defense | 4.22 | % | |||||||||
KLX Inc. | |||||||||||
2,000,000 | 5.875%, 12/01/2022 (Acquired 11/21/2014, Cost $2,000,000)(c) (d) | 2,071,000 | |||||||||
TransDigm, Inc. | |||||||||||
2,000,000 | 5.500%, 10/15/2020 | 2,005,000 | |||||||||
250,000 | 6.000%, 07/15/2022 | 254,688 | |||||||||
500,000 | 6.375%, 06/15/2026 | 506,250 | |||||||||
Triumph Group Inc. | |||||||||||
4,000,000 | 4.875%, 04/01/2021 | 3,880,000 | |||||||||
8,716,938 | |||||||||||
Commercial Services & Supplies | 4.88 | % | |||||||||
Covanta Holding Corp. | |||||||||||
250,000 | 5.875%, 03/01/2024 | 255,862 | |||||||||
1,500,000 | 5.875%, 07/01/2025 | 1,518,750 | |||||||||
LSC Communications, Inc. | |||||||||||
2,000,000 | 8.750%, 10/15/2023 (Acquired Various Dates, Cost $2,068,125)(c) (d) | 2,027,500 | |||||||||
Matthews International Corp. | |||||||||||
1,250,000 | 5.250%, 12/01/2025 (Acquired Various Dates, Cost $1,263,750)(c) (d) | 1,212,500 | |||||||||
Mobile Mini, Inc. | |||||||||||
1,000,000 | 5.875%, 07/01/2024 | 1,017,500 | |||||||||
Quad Graphics, Inc. | |||||||||||
4,000,000 | 7.000%, 05/01/2022 | 4,070,000 | |||||||||
10,102,112 | |||||||||||
Construction & Engineering | 1.74 | % | |||||||||
Great Lakes Dredge & Dock Corp. | |||||||||||
1,500,000 | 8.000%, 05/15/2022 | 1,545,000 | |||||||||
Tutor Perini Corp. | |||||||||||
2,000,000 | 6.875%, 05/01/2025 (Acquired Various Dates, Cost $2,038,750)(c) (d) | 2,060,000 | |||||||||
3,605,000 | |||||||||||
Electrical Equipment | 0.70 | % | |||||||||
Itron, Inc. | |||||||||||
1,500,000 | 5.000%, 01/15/2026 (Acquired Various Dates, Cost $1,500,000)(c) (d) | 1,443,750 |
The accompanying notes are an integral part of these financial statements.
59
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Professional Services | 1.80 | % | |||||||||
FTI Consulting, Inc. | |||||||||||
3,625,000 | 6.000%, 11/15/2022 | 3,717,800 | |||||||||
Trading Companies & Distributors | 1.93 | % | |||||||||
Fly Leasing Ltd. | |||||||||||
2,000,000 | 6.375%, 10/15/2021(a) | 2,065,000 | |||||||||
2,000,000 | 5.250%, 10/15/2024(a) | 1,932,500 | |||||||||
3,997,500 | |||||||||||
Total Industrials (Cost $31,461,033) | 31,583,100 | ||||||||||
Information Technology | 4.36 | % | |||||||||
Diversified Telecommunication Services | 1.07 | % | |||||||||
CCO Holdings LLC / CCO Holdings Capital Corp. | |||||||||||
2,200,000 | 5.250%, 03/15/2021 | 2,215,125 | |||||||||
Electronic Equipment, Instruments & Components | 0.49 | % | |||||||||
Anixter Inc. | |||||||||||
500,000 | 5.625%, 05/01/2019 | 507,500 | |||||||||
500,000 | 5.125%, 10/01/2021 | 511,250 | |||||||||
1,018,750 | |||||||||||
Internet Software & Services | 0.60 | % | |||||||||
j2 Cloud Services LLC / j2 Global Co-Obligor, Inc. | |||||||||||
1,200,000 | 6.000%, 07/15/2025 (Acquired Various Dates, Cost $1,212,000)(c) (d) | 1,237,500 | |||||||||
Software | 1.50 | % | |||||||||
Nuance Communications, Inc. | |||||||||||
3,000,000 | 6.000%, 07/01/2024 | 3,101,250 | |||||||||
Software & Services | 0.70 | % | |||||||||
Cardtronics plc | |||||||||||
1,500,000 | 5.500%, 05/01/2025 (Acquired Various Dates, Cost $1,474,372)(c) (d) | 1,440,000 | |||||||||
Total Information Technology (Cost $8,875,350) | 9,012,625 | ||||||||||
Materials | 1.59 | % | |||||||||
Chemicals | 1.00 | % | |||||||||
Kraton Polymers LLC / Kraton Polymers Capital Corp. | |||||||||||
1,000,000 | 7.000%, 04/15/2025 (Acquired 03/17/2017, Cost $1,000,000)(c) (d) | 1,032,500 | |||||||||
OCI NV | |||||||||||
1,000,000 | 6.625%, 04/15/2023 (Acquired Various Dates, Cost $1,011,250)(a) (c) (d) | 1,038,750 | |||||||||
2,071,250 |
The accompanying notes are an integral part of these financial statements.
60
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Metals & Mining | 0.59 | % | |||||||||
Commercial Metals Co. | |||||||||||
1,000,000 | 5.750%, 04/15/2026 (Acquired 04/19/2018, Cost $1,000,000)(c) (d) | 972,500 | |||||||||
250,000 | 5.375%, 07/15/2027 | 235,625 | |||||||||
1,208,125 | |||||||||||
Total Materials (Cost $3,261,250) | 3,279,375 | ||||||||||
Telecommunication Services | 3.29 | % | |||||||||
Broadcast Media | 1.22 | % | |||||||||
Nexstar Broadcasting, Inc. | |||||||||||
2,000,000 | 6.125%, 02/15/2022 (Acquired Various Dates, Cost $1,995,000)(c) (d) | 2,042,500 | |||||||||
500,000 | 5.625%, 08/01/2024 (Acquired 07/13/2016, Cost $500,000)(c) (d) | 490,625 | |||||||||
2,533,125 | |||||||||||
Diversified Telecommunication Services | 2.07 | % | |||||||||
Consolidated Communications Inc | |||||||||||
4,500,000 | 6.500%, 10/01/2022 | 4,275,000 | |||||||||
Total Telecommunication Services (Cost $6,799,579) | 6,808,125 | ||||||||||
Total Corporate Bonds (Cost $133,863,027) | 136,636,567 | ||||||||||
Bank Loans | 19.51 | % | |||||||||
Aerospace & Defense | 0.96 | % | |||||||||
1,975,075 | TransDigm, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.500%) (Acquired 08/16/2017, Cost $1,975,100)(c) | 1,983,272 | |||||||||
Building Products | 1.43 | % | |||||||||
2,952,173 | Builders FirstSource, Inc., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 3.000%) (Acquired Various Dates, Cost $2,957,491)(c) | 2,961,089 | |||||||||
Capital Goods | 3.31 | % | |||||||||
4,950,000 | Maxar Technologies Ltd., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 2.750%) (Acquired 07/07/2017, Cost $4,950,125)(c) | 4,879,858 | |||||||||
1,950,485 | SiteOne Landscape Supply Holding, Llc, Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.750%)(Acquired 05/10/2016, Cost $1,963,994)(c) | 1,959,633 | |||||||||
Chemicals | 1.07 | % | |||||||||
245,125 | Kraton Polymers LLC, Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.500%) (Acquired 04/21/2016, Cost $242,773)(c) | 246,273 | |||||||||
Nexeo Solutions LLC, Senior Secured First Lien Term Loan (3 Month LIBOR USD + 3.250%) | |||||||||||
Nexeo Solutions LLC, Senior Secured First Lien Term Loan (3 Month LIBOR USD + 3.250%) | |||||||||||
1,955,324 | Nexeo Solutions LLC, Senior Secured First Lien Term Loan (3 Month LIBOR USD + 3.250%) (Acquired Various Dates, Cost $1,963,760)(c) | 1,969,500 |
The accompanying notes are an integral part of these financial statements.
61
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Commercial Services & Supplies | 0.22 | % | |||||||||
440,000 | LSC Communications, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 5.500%) (Acquired 03/28/2018, Cost $464,116)(c) | 443,300 | |||||||||
Consumer Services | 0.49 | % | |||||||||
1,000,000 | Laureate Education, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.500%) (Acquired 03/22/2018, Cost $1,005,654)(c) | 1,005,895 | |||||||||
Diversified Consumer Services | 1.19 | % | |||||||||
2,437,500 | Weight Watchers International, Inc., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 4.750%) (Acquired Various Dates, Cost $2,444,531)(c) | 2,470,004 | |||||||||
Food Products | 0.48 | % | |||||||||
990,000 | Atkins Nutritionals, Inc., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 3.500%) (Acquired 07/12/2017, Cost $998,639)(c) | 1,001,137 | |||||||||
Health Care Equipment & Supplies | 0.52 | % | |||||||||
1,074,510 | Catalent Pharma Solutions Inc, Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.250%)(b) | 1,082,821 | |||||||||
Machinery | 0.49 | % | |||||||||
1,000,000 | Welbilt, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.750%) (Acquired 08/18/2017, Cost $1,000,000)(c) | 1,006,565 | |||||||||
Media | 1.00 | % | |||||||||
1,091,750 | CBS Radio Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.750%) (Acquired Various Dates, Cost $1,089,250)(c) | 1,084,632 | |||||||||
990,000 | The E.W. Scripps Co., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.000%) (Acquired 08/18/2017, Cost $991,259)(c) | 992,787 | |||||||||
Metals & Mining | 1.42 | % | |||||||||
2,992,500 | US Silica Co., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 4.000%) (Acquired 04/27/2018, Cost $2,977,538)(c) | 2,935,448 | |||||||||
Oil, Gas & Consumable Fuels | 0.48 | % | |||||||||
997,500 | Keane Group Holdings, LLC, Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.750%) (Acquired 05/18/2018, Cost $995,000)(c) | 991,266 | |||||||||
Pharmaceuticals | 3.29 | % | |||||||||
1,415,783 | Akorn, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 4.750%) (Acquired Various Dates, Cost $1,388,852)(c) | 1,375,079 | |||||||||
2,438,973 | Bausch Health Companies Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.000%) (Acquired Various Dates, Cost $2,418,788)(c) | 2,454,107 | |||||||||
2,890,775 | Horizon Pharma, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.250%) (Acquired Various Dates, Cost $2,897,238)(c) | 2,919,075 | |||||||||
55,000 | Innoviva, Inc., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 4.500%) (Acquired 08/15/2017, Cost $55,417)(c) | 55,275 |
The accompanying notes are an integral part of these financial statements.
62
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Software | 0.68 | % | |||||||||
653,820 | SS&C Technologies Holdings, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.250%) (Acquired 02/28/2018, Cost $656,481)(c) | 655,252 | |||||||||
253,791 | SS&C Technologies Holdings, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.250%) (Acquired 02/28/2018, Cost $255,371)(c) | 254,346 | |||||||||
500,000 | SS&C Technologies Holdings, Inc., Senior Secured First Lien Term Loan (Acquired 08/16/2018, Cost $498,750)(c) | 500,975 | |||||||||
Software & Services | 0.34 | % | |||||||||
706,667 | Blucora, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.000%) (Acquired 11/29/2017, Cost $712,070)(c) | 711,529 | |||||||||
Technology Hardware & Equipment | 0.23 | % | |||||||||
468,750 | KEMET Corp., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 6.000%) (Acquired 06/30/2017, Cost $477,672)(c) | 478,125 | |||||||||
Telecommuincations | 0.48 | % | |||||||||
992,462 | Internap Corp., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 5.750%)(b) | 1,000,318 | |||||||||
Telecommunications | 0.94 | % | |||||||||
994,987 | Avaya, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 4.250%) (Acquired Various Dates, Cost $999,220)(c) | 1,005,017 | |||||||||
975,000 | Fusion Connect, Inc., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 7.500%) (Acquired 05/03/2018, Cost $937,884)(c) | 928,687 | |||||||||
Trading Companies & Distributors | 0.49 | % | |||||||||
1,000,000 | Foundation Building Materials Holding Company LLC, Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.250%)(Acquired 05/11/2018, Cost $997,500)(c) | 1,006,250 | |||||||||
Total Bank Loans (Cost $40,291,180) | 40,357,515 |
The accompanying notes are an integral part of these financial statements.
63
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Short Term Investment | 3.30 | % | |||||||||
Investment Company | 3.30 | % | |||||||||
6,833,702 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(e) | 6,833,702 | |||||||||
Total Investment Company | 6,833,702 | ||||||||||
Total Short Term Investment (Cost $6,833,702) | 6,833,702 | ||||||||||
Total Investments (Cost $199,301,624) | 98.80 204,387,234 | % | |||||||||
Other Assets in Excess of Liabilities | 1.20 2,483,751 | % | |||||||||
Total Net Assets | 100.00 206,870,985 | % |
(a) Foreign Issued Securities. The total value of these securities amounted to $14,501,549 (7.01% of net assets at September 30, 2018.
(b) These securities are deemed illiquid. The total value of these securities amounted to $2,083,139 (1.01% of net assets) at September 30, 2018.
(c) Restricted security deemed liquid. The total value of restricted securities is $100,065,066 (48.37% of net assets) at September 30, 2018.
(d) 144A Securities. The total value of these securities amounted to $65,003,348 (31.42% of net assets) at September 30, 2018.
(e) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
64
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 91.87 | % | |||||||||
Belgium | 1.08 | % | |||||||||
Beverages | 1.08 | % | |||||||||
36,500 | Anheuser-Busch InBev SA/NV | 3,195,046 | |||||||||
Total Belgium (Cost $3,579,641) | 3,195,046 | ||||||||||
Brazil | 0.43 | % | |||||||||
Beverages | 0.43 | % | |||||||||
278,400 | Ambev SA — ADR | 1,272,288 | |||||||||
Total Brazil (Cost $1,455,013) | 1,272,288 | ||||||||||
Canada | 1.46 | % | |||||||||
Road & Rail | 1.46 | % | |||||||||
48,000 | Canadian National Railway Co. | 4,310,400 | |||||||||
Total Canada (Cost $3,262,226) | 4,310,400 | ||||||||||
Cayman Islands | 0.34 | % | |||||||||
Interactive Media & Services | 0.34 | % | |||||||||
25,000 | Tencent Holdings Ltd. — ADR | 1,021,000 | |||||||||
Total Cayman Islands (Cost $1,025,075) | 1,021,000 | ||||||||||
Finland | 0.79 | % | |||||||||
Leisure Products | 0.79 | % | |||||||||
57,000 | Amer Sports Oyj | 2,329,232 | |||||||||
Total Finland (Cost $1,577,187) | 2,329,232 | ||||||||||
France | 18.05 | % | |||||||||
Beverages | 1.13 | % | |||||||||
20,500 | Pernod Ricard SA | 3,362,155 | |||||||||
Chemicals | 1.14 | % | |||||||||
25,702 | Air Liquide SA | 3,375,242 | |||||||||
Electrical Equipment | 1.68 | % | |||||||||
62,000 | Schneider Electric SE | 4,978,409 |
The accompanying notes are an integral part of these financial statements.
65
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Food Products | 0.34 | % | |||||||||
14,280 | Vilmorin & Cie S.A. | 996,625 | |||||||||
Hotels, Restaurants & Leisure | 1.34 | % | |||||||||
77,000 | Accor SA | 3,955,631 | |||||||||
Life Sciences Tools & Services | 4.27 | % | |||||||||
8,100 | Eurofins Scientific SE | 4,608,340 | |||||||||
58,341 | Sartorius Stedim Biotech | 8,033,177 | |||||||||
12,641,517 | |||||||||||
Media | 0.86 | % | |||||||||
15,000 | Publicis Groupe SA | 895,803 | |||||||||
45,000 | JCDecaux SA | 1,646,695 | |||||||||
2,542,498 | |||||||||||
Professional Services | 0.22 | % | |||||||||
25,000 | Bureau Veritas SA | 645,556 | |||||||||
Software | 2.02 | % | |||||||||
40,000 | Dassault Systemes SE | 5,985,490 | |||||||||
Textiles, Apparel & Luxury Goods | 5.05 | % | |||||||||
17,000 | Kering | 9,118,027 | |||||||||
16,500 | LVMH Moet Hennessy Louis Vuitton SE | 5,830,617 | |||||||||
14,948,644 | |||||||||||
Total France (Cost $33,916,369) | 53,431,767 | ||||||||||
Germany | 28.72 | % | |||||||||
Chemicals | 3.64 | % | |||||||||
24,000 | Linde AG | 5,667,766 | |||||||||
56,000 | Symrise AG | 5,106,009 | |||||||||
10,773,775 | |||||||||||
Construction Materials | 1.09 | % | |||||||||
41,500 | HeidelbergCement AG | 3,241,468 | |||||||||
Electronic Equipment, Instruments & Components | 1.42 | % | |||||||||
113,711 | Jenoptik AG | 4,189,750 | |||||||||
Entertainment | 0.88 | % | |||||||||
58,000 | CTS Eventim AG & Co. KGaA | 2,600,315 | |||||||||
Health Care Equipment & Supplies | 2.26 | % | |||||||||
79,525 | Carl Zeiss Meditec AG | 6,684,675 | |||||||||
Health Care Providers & Services | 2.08 | % | |||||||||
84,000 | Fresenius SE & Co. KGaA | 6,159,738 |
The accompanying notes are an integral part of these financial statements.
66
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Household Products | 1.72 | % | |||||||||
47,900 | Henkel AG & Co. KGaA | 5,081,605 | |||||||||
Industrial Conglomerates | 1.59 | % | |||||||||
36,700 | Siemens A.G. — ADR | 4,692,592 | |||||||||
Insurance | 1.43 | % | |||||||||
19,200 | Muenchener Rueckversicherungs-Gesellschaft AG. | 4,241,016 | |||||||||
IT Services | 3.84 | % | |||||||||
52,500 | Wirecard AG | 11,358,321 | |||||||||
Pharmaceuticals | 2.18 | % | |||||||||
19,400 | Bayer AG | 1,720,792 | |||||||||
41,000 | Bayer AG — ADR | 907,740 | |||||||||
37,000 | Merck KGaA | 3,822,862 | |||||||||
6,451,394 | |||||||||||
Semiconductors & Semiconductor Equipment | 0.73 | % | |||||||||
95,000 | Infineon Technologies AG | 2,161,806 | |||||||||
Software | 2.46 | % | |||||||||
59,300 | SAP SE — ADR | 7,293,900 | |||||||||
Textiles, Apparel & Luxury Goods | 1.82 | % | |||||||||
19,200 | adidas AG | 4,695,541 | |||||||||
1,416 | Puma SE | 698,661 | |||||||||
5,394,202 | |||||||||||
Trading Companies & Distributors | 1.58 | % | |||||||||
76,000 | Brenntag AG | 4,687,029 | |||||||||
Total Germany (Cost $53,512,279) | 85,011,586 | ||||||||||
Hong Kong | 2.73 | % | |||||||||
Gas Utilities | 0.57 | % | |||||||||
300,000 | Beijing Enterprise Holdings Ltd. | 1,681,363 | |||||||||
Industrial Conglomerates | 1.63 | % | |||||||||
44,184 | Jardine Matheson Holding Ltd. | 2,771,979 | |||||||||
56,695 | Jardine Strategic Holdings Ltd. | 2,057,696 | |||||||||
4,829,675 | |||||||||||
Specialty Retail | 0.53 | % | |||||||||
880,750 | L'Occitane International SA | 1,579,928 | |||||||||
Total Hong Kong (Cost $7,398,246) | 8,090,966 |
The accompanying notes are an integral part of these financial statements.
67
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
India | 1.20 | % | |||||||||
Banks | 1.20 | % | |||||||||
419,180 | ICICI Bank Ltd — ADR | 3,558,838 | |||||||||
Total India (Cost $4,033,683) | 3,558,838 | ||||||||||
Ireland | 1.11 | % | |||||||||
Construction Materials | 1.11 | % | |||||||||
30,300 | CRH PLC — ADR | 991,416 | |||||||||
70,000 | CRH PLC | 2,290,825 | |||||||||
3,282,241 | |||||||||||
Total Ireland (Cost $3,707,942) | 3,282,241 | ||||||||||
Italy | 1.99 | % | |||||||||
Beverages | 1.99 | % | |||||||||
690,000 | Davide Campari — Milano S.p.A. | 5,875,825 | |||||||||
Total Italy (Cost $2,639,510) | 5,875,825 | ||||||||||
Japan | 4.35 | % | |||||||||
Beverages | 0.47 | % | |||||||||
32,000 | Asahi Group Holdings Ltd. | 1,388,392 | |||||||||
Electronic Equipment, Instruments & Components | 2.37 | % | |||||||||
25,000 | Murata Manufacturing Co., Ltd. | 3,841,403 | |||||||||
75,000 | Omron Corp. | 3,169,330 | |||||||||
7,010,733 | |||||||||||
Internet & Direct Marketing Retail | 0.62 | % | |||||||||
61,000 | START TODAY Co., LTD. | 1,845,229 | |||||||||
Machinery | 0.89 | % | |||||||||
14,000 | FANUC Corp. | 2,633,859 | |||||||||
Total Japan (Cost $9,401,320) | 12,878,213 | ||||||||||
Netherlands | 6.59 | % | |||||||||
IT Services | 1.99 | % | |||||||||
87,499 | InterXion Holding NV(a) | 5,888,683 |
The accompanying notes are an integral part of these financial statements.
68
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Oil, Gas & Consumable Fuels | 0.91 | % | |||||||||
39,400 | Royal Dutch Shell PLC. — Class A — ADR | 2,684,716 | |||||||||
Personal Products | 1.40 | % | |||||||||
74,700 | Unilever N.V. — NY Shares — ADR | 4,149,585 | |||||||||
Semiconductors & Semiconductor Equipment | 1.69 | % | |||||||||
22,741 | ASML Holding NV — NY Shares — ADR | 4,275,763 | |||||||||
40,000 | STMicroelectronics N.V. | 732,103 | |||||||||
5,007,866 | |||||||||||
Trading Companies & Distributors | 0.60 | % | |||||||||
23,000 | IMCD N.V. | 1,790,040 | |||||||||
Total Netherlands (Cost $11,246,372) | 19,520,890 | ||||||||||
Norway | 1.99 | % | |||||||||
Commercial Services & Supplies | 1.62 | % | |||||||||
192,000 | Tomra Systems ASA | 4,788,942 | |||||||||
Diversified Telecommunication Services | 0.37 | % | |||||||||
56,000 | Telenor ASA | 1,095,115 | |||||||||
Total Norway (Cost $2,699,747) | 5,884,057 | ||||||||||
Republic of Korea | 0.57 | % | |||||||||
Semiconductors & Semiconductor Equipment | 0.57 | % | |||||||||
40,000 | Samsung Electronic Co., Ltd. | 1,674,035 | |||||||||
Total Republic of Korea (Cost $894,090) | 1,674,035 | ||||||||||
Spain | 2.36 | % | |||||||||
Biotechnology | 1.41 | % | |||||||||
195,300 | Grifols SA — ADR | 4,173,561 | |||||||||
Specialty Retail | 0.95 | % | |||||||||
93,500 | Industria de Diseno Textil, S.A. | 2,824,779 | |||||||||
Total Spain (Cost $6,504,925) | 6,998,340 |
The accompanying notes are an integral part of these financial statements.
69
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Sweden | 0.91 | % | |||||||||
Electronic Equipment, Instruments & Components | 0.91 | % | |||||||||
46,000 | Hexagon AB — B Shares | 2,693,150 | |||||||||
Total Sweden (Cost $2,663,300) | 2,693,150 | ||||||||||
Switzerland | 5.29 | % | |||||||||
Capital Markets | 0.90 | % | |||||||||
53,337 | Julius Baer Group Ltd. | 2,665,577 | |||||||||
Construction Materials | 0.64 | % | |||||||||
38,500 | LafargeHolcim Ltd. | 1,906,015 | |||||||||
Insurance | 1.50 | % | |||||||||
48,000 | Swiss Re AG | 4,422,545 | |||||||||
Pharmaceuticals | 1.08 | % | |||||||||
8,200 | Roche Holding AG | 1,982,886 | |||||||||
40,400 | Roche Holding AG — ADR | 1,218,464 | |||||||||
3,201,350 | |||||||||||
Specialty Retail | 1.17 | % | |||||||||
30,700 | Dufry AG | 3,468,598 | |||||||||
Total Switzerland (Cost $16,138,429) | 15,664,085 | ||||||||||
Taiwan, Province of China | 2.41 | % | |||||||||
Semiconductors & Semiconductor Equipment | 2.41 | % | |||||||||
161,281 | Taiwan Semiconductor Manufacturing Co. Ltd. — ADR | 7,122,169 | |||||||||
Total Taiwan, Province of China (Cost $2,178,768) | 7,122,169 | ||||||||||
United Kingdom | 9.50 | % | |||||||||
Beverages | 1.16 | % | |||||||||
24,300 | Diageo PLC — ADR | 3,442,581 | |||||||||
Health Care Equipment & Supplies | 1.38 | % | |||||||||
110,100 | Smith & Nephew plc — ADR | 4,083,609 | |||||||||
Hotels, Restaurants & Leisure | 2.53 | % | |||||||||
63,264 | InterContinental Hotels Group PLC | 3,938,026 | |||||||||
57,800 | Whitbread PLC | 3,552,515 | |||||||||
7,490,541 |
The accompanying notes are an integral part of these financial statements.
70
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Insurance | 1.77 | % | |||||||||
34,000 | Aon PLC | 5,228,520 | |||||||||
Internet & Direct Marketing Retail | 0.86 | % | |||||||||
34,000 | ASOS Plc(a) | 2,549,550 | |||||||||
Media | 1.05 | % | |||||||||
110,600 | Liberty Global PLC — Series C(a) | 3,114,496 | |||||||||
Trading Companies & Distributors | 0.75 | % | |||||||||
70,000 | Ashtead Group Plc | 2,220,992 | |||||||||
Total United Kingdom (Cost $23,121,401) | 28,130,289 | ||||||||||
Total Common Stocks (Cost $190,955,523) | 271,944,417 | ||||||||||
Short Term Investment | 9.28 | % | |||||||||
Investment Company | 9.28 | % | |||||||||
27,480,704 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(b) | 27,480,704 | |||||||||
Total Investment Company | 27,480,704 | ||||||||||
Total Short Term Investment (Cost $27,480,704) | 27,480,704 | ||||||||||
Total Investments (Cost $218,436,227) | 101.15 299,425,121 | % | |||||||||
Liabilities in Excess of Other Assets | (1.15 (3,411,283) | )% | |||||||||
Total Net Assets | 100.00 296,013,838 | % |
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The accompanying notes are an integral part of these financial statements.
71
As of September 30, 2018, the industry diversification was as follows:
$ Fair Value | Percentage | ||||||||||
Common Stocks | |||||||||||
Banks | 3,558,838 | 1.20 | % | ||||||||
Beverages | 18,536,287 | 6.26 | % | ||||||||
Biotechnology | 4,173,561 | 1.41 | % | ||||||||
Capital Markets | 2,665,577 | 0.90 | % | ||||||||
Chemicals | 14,149,017 | 4.78 | % | ||||||||
Commercial Services & Supplies | 4,788,942 | 1.62 | % | ||||||||
Construction Materials | 8,429,723 | 2.85 | % | ||||||||
Diversified Telecommunication Services | 1,095,115 | 0.37 | % | ||||||||
Electrical Equipment | 4,978,409 | 1.68 | % | ||||||||
Electronic Equipment, Instruments & Components | 13,893,634 | 4.69 | % | ||||||||
Entertainment | 2,600,315 | 0.88 | % | ||||||||
Food Products | 996,626 | 0.34 | % | ||||||||
Gas Utilities | 1,681,363 | 0.57 | % | ||||||||
Health Care Equipment & Supplies | 10,768,284 | 3.64 | % | ||||||||
Health Care Providers & Services | 6,159,738 | 2.08 | % | ||||||||
Hotels, Restaurants & Leisure | 11,446,173 | 3.87 | % | ||||||||
Household Products | 5,081,604 | 1.72 | % | ||||||||
Industrial Conglomerates | 9,522,267 | 3.22 | % | ||||||||
Insurance | 13,892,081 | 4.69 | % | ||||||||
Interactive Media & Services | 1,021,000 | 0.34 | % | ||||||||
Internet & Direct Marketing Retail | 4,394,779 | 1.48 | % | ||||||||
IT Services | 17,247,003 | 5.83 | % | ||||||||
Leisure Products | 2,329,231 | 0.79 | % | ||||||||
Life Sciences Tools & Services | 12,641,517 | 4.27 | % | ||||||||
Machinery | 2,633,858 | 0.89 | % | ||||||||
Media | 5,656,994 | 1.91 | % | ||||||||
Oil, Gas & Consumable Fuels | 2,684,716 | 0.91 | % | ||||||||
Personal Products | 4,149,585 | 1.40 | % | ||||||||
Pharmaceuticals | 9,652,745 | 3.26 | % | ||||||||
Professional Services | 645,556 | 0.22 | % | ||||||||
Road & Rail | 4,310,400 | 1.46 | % | ||||||||
Semiconductors & Semiconductor Equipment | 15,965,876 | 5.39 | % | ||||||||
Software | 13,279,391 | 4.48 | % | ||||||||
Specialty Retail | 7,873,305 | 2.66 | % | ||||||||
Textiles, Apparel & Luxury Goods | 20,342,846 | 6.87 | % | ||||||||
Trading Companies & Distributors | 8,698,061 | 2.94 | % | ||||||||
Total Common Stocks | 271,944,417 | 91.87 | % |
The accompanying notes are an integral part of these financial statements.
72
$ Fair Value | Percentage | ||||||||||
Short Term Investment | |||||||||||
Investment Company | 27,480,704 | 9.28 | % | ||||||||
Total Short Term Investment | 27,480,704 | 9.28 | % | ||||||||
Total Investments | 299,425,121 | 101.15 | % | ||||||||
Liabilities in Excess of Other Assets | (3,411,283 | ) | (1.15 | )% | |||||||
TOTAL NET ASSETS | 296,013,838 | 100.00 | % |
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
73
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 93.53 | % | |||||||||
Communication Services | 10.54 | % | |||||||||
Entertainment | 2.77 | % | |||||||||
7,100 | Electronic Arts Inc.(a) | 855,479 | |||||||||
20,600 | Live Nation Entertainment, Inc.(a) | 1,122,082 | |||||||||
1,977,561 | |||||||||||
Interactive Media & Services | 7.77 | % | |||||||||
2,845 | Alphabet, Inc. — Class A(a) | 3,434,143 | |||||||||
1,148 | Alphabet, Inc. — Class C(a) | 1,370,103 | |||||||||
4,450 | Facebook, Inc. — Class A(a) | 731,847 | |||||||||
5,536,093 | |||||||||||
Total Communication Services (Cost $3,851,163) | 7,513,654 | ||||||||||
Consumer Discretionary | 20.32 | % | |||||||||
Hotels, Restaurants & Leisure | 1.18 | % | |||||||||
6,355 | Marriott International, Inc. — Class A | 839,051 | |||||||||
Internet & Direct Marketing Retail | 8.72 | % | |||||||||
2,485 | Amazon.com, Inc.(a) | 4,977,455 | |||||||||
625 | Booking Holdings, Inc.(a) | 1,240,000 | |||||||||
6,217,455 | |||||||||||
Specialty Retail | 6.75 | % | |||||||||
17,500 | Lowe's Companies, Inc. | 2,009,350 | |||||||||
3,700 | O'Reilly Automotive, Inc.(a) | 1,285,084 | |||||||||
13,500 | The TJX Companies, Inc. | 1,512,270 | |||||||||
4,806,704 | |||||||||||
Textiles, Apparel & Luxury Goods | 3.67 | % | |||||||||
15,500 | Luxottica Group S.p.A. — ADR(b) | 1,055,395 | |||||||||
6,320 | NIKE, Inc. — Class B | 535,430 | |||||||||
52,800 | Under Armour, Inc. — Class C(a) | 1,027,488 | |||||||||
2,618,313 | |||||||||||
Total Consumer Discretionary (Cost $6,483,570) | 14,481,523 | ||||||||||
Consumer Staples | 1.07 | % | |||||||||
Personal Products | 1.07 | % | |||||||||
5,250 | The Estee Lauder Companies Inc. — Class A | 762,930 | |||||||||
Total Consumer Staples (Cost $492,128) | 762,930 |
The accompanying notes are an integral part of these financial statements.
74
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Energy | 1.85 | % | |||||||||
Energy Equipment & Services | 1.85 | % | |||||||||
21,579 | Schlumberger Ltd.(b) | 1,314,592 | |||||||||
Total Energy (Cost $1,286,750) | 1,314,592 | ||||||||||
Financials | 7.88 | % | |||||||||
Capital Markets | 7.88 | % | |||||||||
12,600 | CME Group Inc. | 2,144,646 | |||||||||
19,375 | Intercontinental Exchange, Inc. | 1,450,994 | |||||||||
7,100 | S&P Global, Inc. | 1,387,269 | |||||||||
5,800 | T. Rowe Price Group Inc. | 633,244 | |||||||||
Total Financials (Cost $2,690,499) | 5,616,153 | ||||||||||
Health Care | 14.66 | % | |||||||||
Biotechnology | 2.50 | % | |||||||||
6,720 | Alnylam Pharmaceuticals, Inc.(a) | 588,135 | |||||||||
2,000 | Biogen Idec Inc.(a) | 706,620 | |||||||||
18,305 | Portola Pharmaceuticals, Inc.(a) | 487,462 | |||||||||
1,782,217 | |||||||||||
Health Care Equipment & Supplies | 5.39 | % | |||||||||
14,100 | Abbott Laboratories | 1,034,376 | |||||||||
13,900 | Danaher Corp. | 1,510,374 | |||||||||
13,200 | Medtronic, PLC(b) | 1,298,484 | |||||||||
3,843,234 | |||||||||||
Health Care Providers & Services | 0.99 | % | |||||||||
2,635 | UnitedHealth Group Inc. | 701,015 | |||||||||
Health Care Technology | 1.49 | % | |||||||||
7,950 | athenahealth Inc.(a) | 1,062,120 | |||||||||
Life Sciences Tools & Services | 1.19 | % | |||||||||
2,300 | Illumina, Inc.(a) | 844,238 | |||||||||
Pharmaceuticals | 3.10 | % | |||||||||
25,000 | Mylan NV(a) (b) | 915,000 | |||||||||
43,000 | Roche Holding AG — ADR(b) | 1,296,880 | |||||||||
2,211,880 | |||||||||||
Total Health Care (Cost $9,251,701) | 10,444,704 |
The accompanying notes are an integral part of these financial statements.
75
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Industrials | 10.43 | % | |||||||||
Air Freight & Logistics | 2.10 | % | |||||||||
6,200 | FedEx Corp. | 1,492,898 | |||||||||
Airlines | 1.44 | % | |||||||||
17,800 | Delta Air Lines, Inc. | 1,029,374 | |||||||||
Building Products | 1.64 | % | |||||||||
32,000 | Masco Corp. | 1,171,200 | |||||||||
Commercial Services & Supplies | 1.75 | % | |||||||||
13,800 | Waste Management, Inc. | 1,246,968 | |||||||||
Industrial Conglomerates | 1.66 | % | |||||||||
7,100 | Honeywell International, Inc. | 1,181,440 | |||||||||
Road & Rail | 1.84 | % | |||||||||
11,600 | Kansas City Southern | 1,314,048 | |||||||||
Total Industrials (Cost $6,284,747) | 7,435,928 | ||||||||||
Information Technology | 24.88 | % | |||||||||
Electronic Equipment, Instruments & Components | 1.32 | % | |||||||||
21,600 | Trimble Inc.(a) | 938,736 | |||||||||
IT Services | 4.85 | % | |||||||||
14,100 | PayPal Holdings, Inc.(a) | 1,238,544 | |||||||||
14,800 | Visa Inc. — Class A | 2,221,332 | |||||||||
3,459,876 | |||||||||||
Semiconductors & Semiconductor Equipment | 4.08 | % | |||||||||
22,015 | QUALCOMM, Inc. | 1,585,741 | |||||||||
16,500 | Xilinx, Inc. | 1,322,805 | |||||||||
2,908,546 | |||||||||||
Software | 10.51 | % | |||||||||
3,300 | Intuit Inc. | 750,420 | |||||||||
43,800 | Microsoft Corp. | 5,009,406 | |||||||||
10,900 | salesforce.com, inc.(a) | 1,733,427 | |||||||||
7,493,253 | |||||||||||
Technology Hardware, Storage & Peripherals | 4.12 | % | |||||||||
12,995 | Apple Inc. | 2,933,491 | |||||||||
Total Information Technology (Cost $10,041,471) | 17,733,902 |
The accompanying notes are an integral part of these financial statements.
76
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Materials | 1.90 | % | |||||||||
Chemicals | 1.90 | % | |||||||||
8,400 | Praxair, Inc. | 1,350,132 | |||||||||
Total Materials (Cost $944,747) | 1,350,132 | ||||||||||
Total Common Stocks (Cost $41,326,776) | 66,653,518 | ||||||||||
Real Estate Investment Trust (REIT) | 2.31 | % | |||||||||
Real Estate | 2.31 | % | |||||||||
3,811 | Equinix Inc. | 1,649,744 | |||||||||
Total Real Estate (Cost $885,242) | 1,649,744 | ||||||||||
Total REIT (Cost $885,242) | 1,649,744 | ||||||||||
Short Term Investment | 4.04 | % | |||||||||
Investment Company | 4.04 | % | |||||||||
2,876,227 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(c) | 2,876,227 | |||||||||
Total Investment Company | 2,876,227 | ||||||||||
Total Short Term Investment (Cost $2,876,227) | 2,876,227 | ||||||||||
Total Investments (Cost $45,088,245) | 99.88 71,179,489 | % | |||||||||
Other Assets in Excess of Liabilities | 0.12 88,351 | % | |||||||||
Total Net Assets | 100.00 71,267,840 | % |
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $5,880,351 (8.25% of net assets) at September 30, 2018.
The accompanying notes are an integral part of these financial statements.
77
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
(c) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
78
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 96.73 | % | |||||||||
Communication Services | 4.38 | % | |||||||||
Entertainment | 3.32 | % | |||||||||
17,840 | Electronic Arts Inc.(a) | 2,149,542 | |||||||||
14,897 | Live Nation Entertainment, Inc.(a) | 811,439 | |||||||||
509,100 | Zynga Inc. — Class A(a) | 2,041,491 | |||||||||
5,002,472 | |||||||||||
Media | 1.06 | % | |||||||||
22,329 | Liberty Media Corp-Liberty Formula One — Class A(a) | 794,466 | |||||||||
21,723 | Liberty Media Corp-Liberty Formula One — Class B(a) | 807,878 | |||||||||
1,602,344 | |||||||||||
Total Communication Services (Cost $5,862,890) | 6,604,816 | ||||||||||
Consumer Discretionary | 11.68 | % | |||||||||
Distributors | 1.89 | % | |||||||||
89,757 | LKQ Corp.(a) | 2,842,604 | |||||||||
Hotels, Restaurants & Leisure | 2.32 | % | |||||||||
61,045 | Norwegian Cruise Line Holdings Ltd.(a) (b) | 3,505,815 | |||||||||
Household Durables | 3.12 | % | |||||||||
8,178 | Mohawk Industries, Inc.(a) | 1,434,012 | |||||||||
54,020 | Sony Corp. — ADR(b) | 3,276,313 | |||||||||
4,710,325 | |||||||||||
Internet & Direct Marketing Retail | 2.27 | % | |||||||||
26,187 | Expedia Group, Inc. | 3,416,880 | |||||||||
Specialty Retail | 1.39 | % | |||||||||
28,127 | CarMax, Inc.(a) | 2,100,243 | |||||||||
Textiles, Apparel & Luxury Goods | 0.69 | % | |||||||||
53,380 | Under Armour, Inc. — Class C(a) | 1,038,775 | |||||||||
Total Consumer Discretionary (Cost $13,218,842) | 17,614,642 | ||||||||||
Consumer Staples | 0.66 | % | |||||||||
Beverages | 0.66 | % | |||||||||
4,584 | Constellation Brands, Inc. — Class A | 988,402 | |||||||||
Total Consumer Staples (Cost $637,851) | 988,402 |
The accompanying notes are an integral part of these financial statements.
79
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Financials | 10.14 | % | |||||||||
Capital Markets | 10.14 | % | |||||||||
17,000 | CME Group Inc. | 2,893,570 | |||||||||
8,685 | MarketAxess Holdings, Inc. | 1,550,186 | |||||||||
19,110 | Moody's Corp. | 3,195,192 | |||||||||
22,801 | MSCI, Inc. | 4,045,125 | |||||||||
19,220 | Northern Trust Corp. | 1,962,939 | |||||||||
39,811 | Oaktree Capital Group LLC | 1,648,175 | |||||||||
Total Financials (Cost $4,716,980) | 15,295,187 | ||||||||||
Health Care | 15.45 | % | |||||||||
Biotechnology | 6.14 | % | |||||||||
11,995 | Alnylam Pharmaceuticals, Inc.(a) | 1,049,802 | |||||||||
44,435 | Exact Sciences Corp.(a) | 3,506,810 | |||||||||
12,940 | Ligand Pharmaceuticals Inc.(a) | 3,551,901 | |||||||||
43,300 | Portola Pharmaceuticals, Inc.(a) | 1,153,079 | |||||||||
9,261,592 | |||||||||||
Health Care Technology | 1.50 | % | |||||||||
35,105 | Cerner Corp.(a) | 2,261,113 | |||||||||
Life Sciences Tools & Services | 5.85 | % | |||||||||
20,960 | Bio-Techne Corp | 4,278,146 | |||||||||
4,605 | Illumina, Inc.(a) | 1,690,311 | |||||||||
55,235 | Syneos Health, Inc.(a) | 2,847,364 | |||||||||
8,815,821 | |||||||||||
Pharmaceuticals | 1.96 | % | |||||||||
32,362 | Zoetis Inc | 2,963,065 | |||||||||
Total Health Care (Cost $14,023,231) | 23,301,591 | ||||||||||
Industrials | 20.75 | % | |||||||||
Building Products | 2.43 | % | |||||||||
49,303 | Masco Corp. | 1,804,490 | |||||||||
24,234 | Trex Co., Inc.(a) | 1,865,533 | |||||||||
3,670,023 | |||||||||||
Electrical Equipment | 2.08 | % | |||||||||
39,700 | AMETEK, Inc. | 3,141,064 |
The accompanying notes are an integral part of these financial statements.
80
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Machinery | 2.96 | % | |||||||||
110,437 | Evoqua Water Technologies Corp.(a) | 1,963,570 | |||||||||
6,871 | Nordson Corp. | 954,382 | |||||||||
13,062 | WABCO Holdings Inc.(a) | 1,540,532 | |||||||||
4,458,484 | |||||||||||
Professional Services | 8.68 | % | |||||||||
7,723 | CoStar Group, Inc.(a) | 3,250,147 | |||||||||
19,085 | Equifax Inc. | 2,491,928 | |||||||||
59,559 | IHS Markit Ltd.(a) (b) | 3,213,804 | |||||||||
34,205 | Verisk Analytics, Inc(a) | 4,123,413 | |||||||||
13,079,292 | |||||||||||
Road & Rail | 2.04 | % | |||||||||
27,205 | Kansas City Southern | 3,081,783 | |||||||||
Trading Companies & Distributors | 2.56 | % | |||||||||
46,415 | HD Supply Holdings, Inc.(a) | 1,986,098 | |||||||||
61,185 | Univar Inc.(a) | 1,875,932 | |||||||||
3,862,030 | |||||||||||
Total Industrials (Cost $21,531,504) | 31,292,676 | ||||||||||
Information Technology | 28.14 | % | |||||||||
Communications Equipment | 4.60 | % | |||||||||
17,236 | F5 Networks, Inc.(a) | 3,437,203 | |||||||||
15,510 | Palo Alto Networks, Inc.(a) | 3,493,783 | |||||||||
6,930,986 | |||||||||||
IT Services | 1.00 | % | |||||||||
18,160 | GoDaddy, Inc. — Class A(a) | 1,514,362 | |||||||||
Semiconductors & Semiconductor Equipment | 2.65 | % | |||||||||
96,690 | Marvell Technology Group Ltd.(b) | 1,866,117 | |||||||||
24,990 | NXP Semiconductors NV(b) | 2,136,645 | |||||||||
4,002,762 |
The accompanying notes are an integral part of these financial statements.
81
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* |
Software | 19.89 | % | |||||||||
24,994 | Aspen Technology, Inc.(a) | 2,847,067 | |||||||||
43,550 | Dropbox, Inc. — Class A(a) | 1,168,446 | |||||||||
31,329 | Guidewire Software Inc.(a) | 3,164,542 | |||||||||
38,995 | LogMeIn, Inc. | 3,474,454 | |||||||||
28,070 | Proofpoint, Inc.(a) | 2,984,683 | |||||||||
53,855 | RealPage, Inc.(a) | 3,549,045 | |||||||||
23,410 | Red Hat, Inc.(a) | 3,190,315 | |||||||||
21,330 | ServiceNow, Inc.(a) | 4,172,788 | |||||||||
18,403 | VMware, Inc. — Class A(a) | 2,871,972 | |||||||||
36,095 | Zendesk, Inc.(a) | 2,562,745 | |||||||||
29,986,057 | |||||||||||
Total Information Technology (Cost $27,976,673) | 42,434,167 | ||||||||||
Materials | 4.11 | % | |||||||||
Chemicals | 3.12 | % | |||||||||
12,301 | Air Products & Chemicals, Inc. | 2,054,882 | |||||||||
30,405 | FMC Corp. | 2,650,708 | |||||||||
4,705,590 | |||||||||||
Construction Materials | 0.99 | % | |||||||||
81,640 | Summit Materials, Inc. — Class A(a) | 1,484,215 | |||||||||
Total Materials (Cost $4,466,248) | 6,189,805 | ||||||||||
Real Estate | 1.42 | % | |||||||||
Real Estate Management & Development | 1.42 | % | |||||||||
48,439 | CBRE Group, Inc. — Class A(a) | 2,136,160 | |||||||||
Total Real Estate (Cost $2,128,859) | 2,136,160 | ||||||||||
Total Common Stocks (Cost $94,563,078) | 145,857,446 | ||||||||||
Real Estate Investment Trust (REIT) | 1.65 | % | |||||||||
Real Estate | 1.65 | % | |||||||||
5,749 | Equinix Inc. | 2,488,685 | |||||||||
Total Real Estate (Cost $959,502) | 2,488,685 | ||||||||||
Total REIT (Cost $959,502) | 2,488,685 |
The accompanying notes are an integral part of these financial statements.
82
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Short Term Investment | 1.05 | % | |||||||||
Investment Company | 1.05 | % | |||||||||
1,586,079 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(c) | 1,586,079 | |||||||||
Total Investment Company | 1,586,079 | ||||||||||
Total Short Term Investment (Cost $1,586,079) | 1,586,079 | ||||||||||
Total Investments (Cost $97,108,659) | 99.43 149,932,210 | % | |||||||||
Other Assets in Excess of Liabilities | 0.57 855,065 | % | |||||||||
Total Net Assets | 100.00 150,787,275 | % |
ADR American Depositary Receipt
(a) Non Income Producing.
(b) Foreign Issued Securities. The total value of these securities amounted to $13,998,694 (9.28% of net assets) at September 30, 2018.
(c) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
83
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
Shares or Face Amount | $ Fair Value* | ||||||||||
Common Stocks | 95.17 | % | |||||||||
Communication Services | 0.63 | % | |||||||||
Diversified Telecommunication Services | 0.63 | % | |||||||||
70,575 | Bandwidth Inc. — Class A(a) | 3,780,703 | |||||||||
Total Communication Services (Cost $3,474,797) | 3,780,703 | ||||||||||
Consumer Discretionary | 11.69 | % | |||||||||
Auto Components | 1.43 | % | |||||||||
364,015 | Motorcar Parts of America, Inc.(a) | 8,536,152 | |||||||||
Hotels, Restaurants & Leisure | 4.49 | % | |||||||||
178,840 | Dave & Buster's Entertainment, Inc. | 11,842,785 | |||||||||
279,560 | Penn National Gaming, Inc.(a) | 9,203,115 | |||||||||
218,195 | Red Rock Resorts, Inc. — Class A | 5,814,896 | |||||||||
26,860,796 | |||||||||||
Household Durables | 0.72 | % | |||||||||
110,115 | Installed Building Products Inc(a) | 4,294,485 | |||||||||
Specialty Retail | 3.61 | % | |||||||||
237,730 | At Home Group Inc.(a) | 7,495,627 | |||||||||
165,450 | Floor & Decor Holdings, Inc. — Class A(a) | 4,991,626 | |||||||||
138,955 | Williams-Sonoma, Inc. | 9,132,123 | |||||||||
21,619,376 | |||||||||||
Textiles, Apparel & Luxury Goods | 1.44 | % | |||||||||
67,965 | Steven Madden, Ltd. | 3,595,349 | |||||||||
258,055 | Under Armour, Inc. — Class C(a) | 5,021,750 | |||||||||
8,617,099 | |||||||||||
Total Consumer Discretionary (Cost $61,730,733) | 69,927,908 | ||||||||||
Consumer Staples | 1.26 | % | |||||||||
Beverages | 1.26 | % | |||||||||
95,735 | MGP Ingredients, Inc. | 7,561,150 | |||||||||
Total Consumer Staples (Cost $4,843,976) | 7,561,150 | ||||||||||
Energy | 0.69 | % | |||||||||
Energy Equipment & Services | 0.69 | % | |||||||||
401,285 | Forum Energy Technologies Inc.(a) | 4,153,300 | |||||||||
Total Energy (Cost $4,840,073) | 4,153,300 |
The accompanying notes are an integral part of these financial statements.
84
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Financials | 2.49 | % | |||||||||
Banks | 0.91 | % | |||||||||
231,915 | Customers Bancorp, Inc.(a) | 5,456,960 | |||||||||
Capital Markets | 1.30 | % | |||||||||
175,460 | Hamilton Lane Inc. — Class A | 7,769,369 | |||||||||
Insurance | 0.28 | % | |||||||||
26,600 | Health Insurance Innovations Inc — Class A(a) | 1,639,890 | |||||||||
Total Financials (Cost $11,455,552) | 14,866,219 | ||||||||||
Health Care | 29.44 | % | |||||||||
Biotechnology | 10.82 | % | |||||||||
314,595 | Adamas Pharmaceuticals, Inc.(a) | 6,298,192 | |||||||||
150,565 | Deciphera Pharmaceuticals, Inc.(a) | 5,829,877 | |||||||||
144,475 | Exact Sciences Corp.(a) | 11,401,967 | |||||||||
41,510 | Ligand Pharmaceuticals Inc.(a) | 11,394,080 | |||||||||
379,050 | Natera, Inc.(a) | 9,074,457 | |||||||||
208,105 | Portola Pharmaceuticals, Inc.(a) | 5,541,836 | |||||||||
203,705 | Repligen Corp.(a) | 11,297,479 | |||||||||
50,795 | Ultragenyx Pharmaceutical, Inc.(a) | 3,877,690 | |||||||||
64,715,578 | |||||||||||
Health Care Equipment & Supplies | 3.29 | % | |||||||||
60,643 | Nevro Corp.(a) | 3,456,651 | |||||||||
197,100 | Novocure Ltd.(a) (b) | 10,328,040 | |||||||||
122,645 | STAAR Surgical Co.(a) | 5,886,960 | |||||||||
19,671,651 | |||||||||||
Health Care Providers & Services | 1.91 | % | |||||||||
121,358 | HealthEquity, Inc.(a) | 11,457,409 | |||||||||
Health Care Technology | 4.10 | % | |||||||||
416,160 | HMS Holdings Corp.(a) | 13,654,210 | |||||||||
49,180 | Medidata Solutions, Inc.(a) | 3,605,386 | |||||||||
101,540 | Omnicell, Inc.(a) | 7,300,726 | |||||||||
24,560,322 | |||||||||||
Life Sciences Tools & Services | 4.74 | % | |||||||||
61,825 | Bio-Techne Corp | 12,619,101 | |||||||||
85,090 | Cambrex Corp.(a) | 5,820,156 | |||||||||
191,955 | Syneos Health, Inc.(a) | 9,895,280 | |||||||||
28,334,537 |
The accompanying notes are an integral part of these financial statements.
85
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Pharmaceuticals | 4.58 | % | |||||||||
143,665 | Aerie Pharmaceuticals, Inc.(a) | 8,842,580 | |||||||||
209,060 | Catalent, Inc.(a) | 9,522,683 | |||||||||
130,345 | Supernus Pharmaceuticals Inc.(a) | 6,562,871 | |||||||||
151,815 | Verrica Pharmaceuticals, Inc.(a) | 2,466,994 | |||||||||
27,395,128 | |||||||||||
Total Health Care (Cost $102,476,694) | 176,134,625 | ||||||||||
Industrials | 17.33 | % | |||||||||
Air Freight & Logistics | 2.66 | % | |||||||||
369,210 | Air Transport Services Group, Inc.(a) | 7,926,938 | |||||||||
258,485 | Echo Global Logistics, Inc.(a) | 8,000,111 | |||||||||
15,927,049 | |||||||||||
Building Products | 0.92 | % | |||||||||
86,285 | Masonite International Corp.(a) (b) | 5,530,869 | |||||||||
Construction & Engineering | 2.92 | % | |||||||||
88,250 | Dycom Industries, Inc.(a) | 7,465,950 | |||||||||
223,800 | MasTec, Inc.(a) | 9,992,670 | |||||||||
17,458,620 | |||||||||||
Electrical Equipment | 1.60 | % | |||||||||
93,885 | Bloom Energy Corp. — Class A(a) | 3,199,601 | |||||||||
112,955 | Generac Holdings, Inc.(a) | 6,371,791 | |||||||||
9,571,392 | |||||||||||
Machinery | 4.49 | % | |||||||||
337,085 | Evoqua Water Technologies Corp.(a) | 5,993,371 | |||||||||
61,615 | John Bean Technologies Corp. | 7,350,669 | |||||||||
496,210 | Kornit Digital Ltd.(a) (b) | 10,866,999 | |||||||||
47,925 | Sun Hydraulics Corp. | 2,625,332 | |||||||||
26,836,371 | |||||||||||
Professional Services | 2.73 | % | |||||||||
121,238 | ICF International, Inc. | 9,147,407 | |||||||||
146,245 | Korn/Ferry International | 7,201,104 | |||||||||
16,348,511 | |||||||||||
Trading Companies & Distributors | 2.01 | % | |||||||||
54,705 | SiteOne Landscape Supply, Inc.(a) | 4,121,475 | |||||||||
256,975 | Univar Inc.(a) | 7,878,853 | |||||||||
12,000,328 | |||||||||||
Total Industrials (Cost $88,937,169) | 103,673,140 |
The accompanying notes are an integral part of these financial statements.
86
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Information Technology | 30.57 | % | |||||||||
Communications Equipment | 2.62 | % | |||||||||
122,885 | Acacia Communications, Inc.(a) | 5,083,752 | |||||||||
176,815 | Lumentum Holdings, Inc.(a) | 10,600,059 | |||||||||
15,683,811 | |||||||||||
Electronic Equipment, Instruments & Components | 1.28 | % | |||||||||
162,230 | II-VI, Inc.(a) | 7,673,479 | |||||||||
IT Services | 5.28 | % | |||||||||
335,000 | GreenSky, Inc. — Class A(a) | 6,030,000 | |||||||||
121,021 | InterXion Holding NV(a) (b) | 8,144,713 | |||||||||
201,630 | Twilio Inc. — Class A(a) | 17,396,637 | |||||||||
31,571,350 | |||||||||||
Semiconductors & Semiconductor Equipment | 5.62 | % | |||||||||
106,050 | Inphi Corp.(a) | 4,027,779 | |||||||||
77,445 | Monolithic Power Systems Inc | 9,721,671 | |||||||||
155,540 | Semtech Corp.(a) | 8,648,024 | |||||||||
95,210 | Universal Display Corp. | 11,225,259 | |||||||||
33,622,733 | |||||||||||
Software | 15.77 | % | |||||||||
451,970 | 8x8, Inc.(a) | 9,604,363 | |||||||||
115,225 | CyberArk Software Ltd.(a) (b) | 9,199,564 | |||||||||
134,785 | Five9, Inc.(a) | 5,888,757 | |||||||||
168,095 | ForeScout Technologies, Inc.(a) | 6,347,267 | |||||||||
36,760 | LogMeIn, Inc. | 3,275,316 | |||||||||
223,821 | Mimecast Ltd(a) (b) | 9,373,623 | |||||||||
�� | 154,590 | Paylocity Holding Corp.(a) | 12,416,669 | ||||||||
323,300 | PROS Holdings, Inc.(a) | 11,321,966 | |||||||||
136,725 | SendGrid, Inc.(a) | 5,030,113 | |||||||||
90,585 | The Trade Desk, Inc. — Class A(a) | 13,670,182 | |||||||||
112,060 | Varonis Systems, Inc.(a) | 8,208,395 | |||||||||
94,336,215 | |||||||||||
Total Information Technology (Cost $107,130,803) | 182,887,588 | ||||||||||
Materials | 1.07 | % | |||||||||
Construction Materials | 1.07 | % | |||||||||
352,443 | Summit Materials, Inc. — Class A(a) | 6,407,414 | |||||||||
Total Materials (Cost $8,268,063) | 6,407,414 | ||||||||||
Total Common Stocks (Cost $393,157,860) | 569,392,047 |
The accompanying notes are an integral part of these financial statements.
87
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2018 (UNAUDITED) Continued
Shares or Face Amount | $ Fair Value* | ||||||||||
Real Estate Investment Trusts (REITS) — 3.87% | |||||||||||
Real Estate | 3.87 | % | |||||||||
471,555 | CoreCivic, Inc. | 11,472,934 | |||||||||
184,130 | CyrusOne Inc | 11,673,842 | |||||||||
Total Real Estate (Cost $18,975,832) | 23,146,776 | ||||||||||
Total REITS (Cost $18,975,832) | 23,146,776 | ||||||||||
Short Term Investment | 0.92 | % | |||||||||
Investment Company | 0.92 | % | |||||||||
5,516,228 | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 1.96%(c) | 5,516,228 | |||||||||
Total Investment Company | 5,516,228 | ||||||||||
Total Short Term Investment (Cost $5,516,228) | 5,516,228 | ||||||||||
Total Investments (Cost $417,649,920) | 99.96 598,055,051 | % | |||||||||
Other Assets in Excess of Liabilities | 0.04 261,379 | % | |||||||||
Total Net Assets | 100.00 598,316,430 | % |
(a) Non Income Producing.
(b) Foreign Issued Securities. The total value of these securities amounted to $53,443,808 (8.93% of net assets) at September 30, 2018.
(c) The rate quoted is the annualized seven-day effective yield as of September 30, 2018.
* See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.
The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.
The accompanying notes are an integral part of these financial statements.
88
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89
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2018 (UNAUDITED)
Buffalo Discovery Fund | Buffalo Dividend Focus Fund | Buffalo Emerging Opportunities Fund | Buffalo Flexible Income Fund | Buffalo Growth Fund | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Investments in securities, at cost: | $ | 1,673,138,521 | $ | 42,602,528 | $ | 73,294,722 | $ | 496,052,929 | $ | 119,840,596 | |||||||||||||
Investments in securities, at value: | 2,140,380,609 | 61,364,072 | 97,591,406 | 701,581,291 | 208,571,599 | ||||||||||||||||||
Cash: | — | — | — | — | — | ||||||||||||||||||
Cash denominated in foreign currency, at value:(1) | — | — | — | — | — | ||||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investments sold | 6,383,910 | — | — | — | 827,177 | ||||||||||||||||||
Fund shares sold | 2,014,447 | 39,634 | 16,235 | 75,410 | 36,154 | ||||||||||||||||||
Dividends | 765,198 | 40,005 | 12,999 | 888,594 | 91,538 | ||||||||||||||||||
Interest | 258,364 | 4,050 | 11,656 | 686,948 | 6,396 | ||||||||||||||||||
Other receivables | — | — | — | — | — | ||||||||||||||||||
Other assets | 61,613 | 9,137 | 10,649 | 21,647 | 11,855 | ||||||||||||||||||
Total assets | 2,149,864,141 | 61,456,898 | 97,642,945 | 703,253,890 | 209,544,719 | ||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | 5,743,734 | 49,290 | 1,475,000 | 110,888 | — | ||||||||||||||||||
Written options, at value(2) (Note 8) | — | — | — | 212,225 | — | ||||||||||||||||||
Fund shares purchased | 2,161,476 | 59,662 | 46,184 | 472,850 | 64,879 | ||||||||||||||||||
Management fees (Note 3) | 1,765,536 | 45,191 | 115,548 | 575,314 | 154,373 | ||||||||||||||||||
Custodian fees (Note 3) | — | — | — | — | — | ||||||||||||||||||
Other payables | — | — | — | — | — | ||||||||||||||||||
Accrued expenses | 9,318 | 2,895 | 8,696 | 66,401 | 18,030 | ||||||||||||||||||
Total liabilities | 9,680,064 | 157,038 | 1,645,428 | 1,437,678 | 237,282 | ||||||||||||||||||
NET ASSETS | $ | 2,140,184,077 | $ | 61,299,860 | $ | 95,997,517 | $ | 701,816,212 | $ | 209,307,437 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Capital (capital stock and paid-in capital) | $ | 1,537,478,498 | $ | 40,938,541 | $ | 65,629,394 | $ | 480,283,949 | $ | 75,061,448 | |||||||||||||
Total distributable earnings | 602,705,579 | 20,361,319 | 30,368,123 | 221,532,263 | 134,245,989 | ||||||||||||||||||
NET ASSETS APPLICABLE TO OUTSTANDING SHARES | $ | 2,140,184,077 | $ | 61,299,860 | $ | 95,997,517 | $ | 701,816,212 | $ | 209,307,437 | |||||||||||||
Capital shares, $1.00 par value: | |||||||||||||||||||||||
Authorized | Unlimited | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||||||||
Outstanding | 79,658,821 | 3,410,393 | 5,182,371 | 43,677,484 | 6,096,766 | ||||||||||||||||||
NET ASSET VALUE PER SHARE | $ | 26.87 | $ | 17.97 | $ | 18.52 | $ | 16.07 | $ | 34.33 | |||||||||||||
(1) Cash denominated in foreign currencies, at cost | — | — | — | — | — | ||||||||||||||||||
(2) Written options, premiums received | — | — | — | 211,314 | — |
The accompanying notes are an integral part of these financial statements.
90
Buffalo High Yield Fund | Buffalo International Fund | Buffalo Large Cap Fund | Buffalo Mid Cap Fund | Buffalo Small Cap Fund | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Investments in securities, at cost: | $ | 199,301,624 | $ | 218,436,227 | $ | 45,088,245 | $ | 97,108,659 | $ | 417,649,920 | |||||||||||||
Investments in securities, at value: | 204,387,234 | 299,425,121 | 71,179,489 | 149,932,210 | 598,055,051 | ||||||||||||||||||
Cash: | 26,875 | (14,341 | ) | — | — | — | |||||||||||||||||
Cash denominated in foreign currency, at value:(1) | — | 19,007 | — | — | — | ||||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investments sold | 103,188 | 901,061 | — | 3,486,818 | 3,236,656 | ||||||||||||||||||
Fund shares sold | 33,236 | 160,508 | 107,138 | 9,865 | 97,589 | ||||||||||||||||||
Dividends | 4,519 | 1,111,920 | 29,084 | 46,275 | 425,946 | ||||||||||||||||||
Interest | 3,044,258 | 38,369 | 4,456 | 2,773 | 7,102 | ||||||||||||||||||
Other receivables | — | 5,224,091 | — | — | — | ||||||||||||||||||
Other assets | 13,003 | 27,111 | 11,283 | 6,755 | 17,901 | ||||||||||||||||||
Total assets | 207,612,313 | 306,892,847 | 71,331,450 | 153,484,696 | 601,840,245 | ||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | 498,750 | 5,352,413 | — | 1,523,780 | 2,762,425 | ||||||||||||||||||
Written options, at value(2) (Note 8) | — | — | — | — | — | ||||||||||||||||||
Fund shares purchased | 67,850 | 25,130 | 9,956 | 1,033,443 | 257,314 | ||||||||||||||||||
Management fees (Note 3) | 171,382 | 239,970 | 52,677 | 125,947 | 497,399 | ||||||||||||||||||
Custodian fees (Note 3) | — | 4,316 | — | — | — | ||||||||||||||||||
Other payables | — | 5,238,473 | — | — | — | ||||||||||||||||||
Accrued expenses | 3,346 | 18,707 | 977 | 14,251 | 6,677 | ||||||||||||||||||
Total liabilities | 741,328 | 10,879,009 | 63,610 | 2,697,421 | 3,523,815 | ||||||||||||||||||
NET ASSETS | $ | 206,870,985 | $ | 296,013,838 | $ | 71,267,840 | $ | 150,787,275 | $ | 598,316,430 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Capital (capital stock and paid-in capital) | $ | 200,758,729 | $ | 208,026,658 | $ | 41,344,665 | $ | 90,486,314 | $ | 289,614,594 | |||||||||||||
Total distributable earnings | 6,112,256 | 87,987,180 | 29,923,175 | 60,300,961 | 308,701,836 | ||||||||||||||||||
NET ASSETS APPLICABLE TO OUTSTANDING SHARES | $ | 206,870,985 | $ | 296,013,838 | $ | 71,267,840 | $ | 150,787,275 | $ | 598,316,430 | |||||||||||||
Capital shares, $1.00 par value: | |||||||||||||||||||||||
Authorized | Unlimited | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||||||||
Outstanding | 18,734,173 | 18,889,708 | 2,157,073 | 9,963,098 | 32,663,173 | ||||||||||||||||||
NET ASSET VALUE PER SHARE | $ | 11.04 | $ | 15.67 | $ | 33.04 | $ | 15.13 | $ | 18.32 | |||||||||||||
(1) Cash denominated in foreign currencies, at cost | — | 18,926 | — | — | — | ||||||||||||||||||
(2) Written options, premiums received | — | — | — | — | — |
91
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (UNAUDITED)
Buffalo Discovery Fund | Buffalo Dividend Focus Fund | Buffalo Emerging Opportunities Fund | Buffalo Flexible Income Fund | Buffalo Growth Fund | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Interest | $ | 1,219,933 | $ | 34,345 | $ | 69,772 | $ | 1,531,778 | $ | 53,115 | |||||||||||||
Dividends from securities | 7,277,454 | 724,568 | 219,569 | 11,444,354 | 934,536 | ||||||||||||||||||
Foreign tax withheld | (78,687 | ) | (1,030 | ) | — | (108,733 | ) | — | |||||||||||||||
Total investment income | 8,418,700 | 757,883 | 289,341 | 12,867,399 | 987,651 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Management fees (Note 3) | 10,250,783 | 271,332 | 673,364 | 3,527,961 | 939,540 | ||||||||||||||||||
Registration fees | 41,227 | 11,077 | 10,520 | 11,716 | 11,734 | ||||||||||||||||||
Custody fees | — | — | — | — | — | ||||||||||||||||||
Other expenses | 17,384 | 630 | 870 | 6,338 | 1,887 | ||||||||||||||||||
Total expenses | 10,309,394 | 283,039 | 684,754 | 3,546,015 | 953,161 | ||||||||||||||||||
Net investment income (loss) | (1,890,694 | ) | 474,844 | (395,413 | ) | 9,321,384 | 34,490 | ||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||
Net realized gain from: | |||||||||||||||||||||||
Investment transactions | 96,717,398 | 1,219,110 | 6,746,012 | 8,099,839 | 15,093,780 | ||||||||||||||||||
Options written (Note 8) | — | — | — | 553,809 | — | ||||||||||||||||||
Net unrealized appreciation/depreciation during the year on: | |||||||||||||||||||||||
Investments | 91,218,596 | 4,640,068 | 6,935,033 | 43,723,338 | 14,023,160 | ||||||||||||||||||
Options written (Note 8) | — | — | — | 591 | — | ||||||||||||||||||
Net realized and unrealized gain | 187,935,994 | 5,859,178 | 13,681,045 | 52,377,577 | 29,116,940 | ||||||||||||||||||
Net increase in net assets resulting from operations | $ | 186,045,300 | $ | 6,334,022 | $ | 13,285,632 | $ | 61,698,961 | $ | 29,151,430 |
The accompanying notes are an integral part of these financial statements.
92
Buffalo High Yield Fund | Buffalo International Fund | Buffalo Large Cap Fund | Buffalo Mid Cap Fund | Buffalo Small Cap Fund | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Interest | $ | 6,105,296 | $ | 210,442 | $ | 22,735 | $ | 18,699 | $ | 75,600 | |||||||||||||
Dividends from securities | 84,490 | 3,489,245 | 367,812 | 441,611 | 1,156,125 | ||||||||||||||||||
Foreign tax withheld | (1,322 | ) | (629,125 | ) | (2,737 | ) | (2,039 | ) | — | ||||||||||||||
Total investment income | 6,188,464 | 3,070,562 | 387,810 | 458,271 | 1,231,725 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Management fees (Note 3) | 1,108,821 | 1,444,478 | 314,405 | 774,353 | 2,908,149 | ||||||||||||||||||
Registration fees | 13,108 | 15,663 | 10,353 | 14,646 | 11,613 | ||||||||||||||||||
Custody fees | — | 31,820 | — | — | — | ||||||||||||||||||
Other expenses | 4,743 | 2,653 | 802 | 1,369 | 4,887 | ||||||||||||||||||
Total expenses | 1,126,672 | 1,494,614 | 325,560 | 790,368 | 2,924,649 | ||||||||||||||||||
Net investment income (loss) | 5,061,792 | 1,575,948 | 62,250 | (332,097 | ) | (1,692,924 | ) | ||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||
Net realized gain from: | |||||||||||||||||||||||
Investment transactions | 946,560 | 5,187,911 | 1,297,886 | 8,692,680 | 66,440,458 | ||||||||||||||||||
Options written (Note 8) | — | — | — | — | — | ||||||||||||||||||
Net unrealized appreciation/depreciation during the year on: | |||||||||||||||||||||||
Investments | (880,365 | ) | 3,677,724 | 7,557,453 | 3,840,069 | 50,524,980 | |||||||||||||||||
Options written (Note 8) | — | — | — | — | — | ||||||||||||||||||
Net realized and unrealized gain | 66,195 | 8,865,635 | 8,855,339 | 12,532,749 | 116,965,438 | ||||||||||||||||||
Net increase in net assets resulting from operations | $ | 5,127,987 | $ | 10,441,583 | $ | 8,917,589 | $ | 12,200,652 | $ | 115,272,514 |
93
STATEMENTS OF CHANGES IN
NET ASSETS
Buffalo Discovery Fund | Buffalo Dividend Focus Fund | Buffalo Emerging Opportunities Fund | |||||||||||||||||||||||||
Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (1,890,694 | ) | $ | (3,092,840 | ) | $ | 474,844 | $ | 728,715 | $ | (395,413 | ) | $ | (991,080 | ) | |||||||||||
Net realized gain on investment transactions | 96,717,398 | 82,717,910 | 1,219,110 | 791,680 | 6,746,012 | 16,176,709 | |||||||||||||||||||||
Net unrealized appreciation/depreciation during the year on investments and translation of assets and liabilities in foreign currencies | 91,218,596 | 150,955,830 | 4,640,068 | 3,708,149 | 6,935,033 | 2,477,927 | |||||||||||||||||||||
Net increase in net assets resulting from operations | 186,045,300 | 230,580,900 | 6,334,022 | 5,228,544 | 13,285,632 | 17,663,556 | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||||||||||
From net investment income and net realized gain from investment transactions(a) | — | (74,201,821 | ) | (390,885 | ) | (1,316,597 | ) | — | (15,190,026 | ) | |||||||||||||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||||||||||||
Shares sold | 276,098,788 | 716,276,288 | 3,351,357 | 16,020,835 | 3,172,404 | 7,737,359 | |||||||||||||||||||||
Reinvested dividends and distributions | — | 71,881,517 | 381,305 | 1,290,308 | — | 14,672,957 | |||||||||||||||||||||
Shares issued | 276,098,788 | 788,157,805 | 3,732,662 | 17,311,143 | 3,172,404 | 22,410,316 | |||||||||||||||||||||
Redemptions | (218,910,001 | ) | (301,825,167 | ) | (7,739,703 | ) | (21,654,044 | ) | (8,429,107 | ) | (22,251,679 | ) | |||||||||||||||
Net increase (decrease) from capital share transactions | 57,188,787 | 486,332,638 | (4,007,041 | ) | (4,342,901 | ) | (5,256,703 | ) | 158,637 | ||||||||||||||||||
Total increase (decrease) in net assets | 243,234,087 | 642,711,717 | 1,936,096 | (430,954 | ) | 8,028,929 | 2,632,167 | ||||||||||||||||||||
NET ASSETS:(b) | |||||||||||||||||||||||||||
Beginning of period | 1,896,949,990 | 1,254,238,273 | 59,363,764 | 59,794,718 | 87,968,588 | 85,336,421 | |||||||||||||||||||||
End of period | $ | 2,140,184,077 | $ | 1,896,949,990 | $ | 61,299,860 | $ | 59,363,764 | $ | 95,997,517 | $ | 87,968,588 | |||||||||||||||
Fund share transactions: | |||||||||||||||||||||||||||
Shares sold | 10,766,657 | 29,561,548 | 194,979 | 1,009,434 | 183,344 | 463,225 | |||||||||||||||||||||
Reinvested dividends and distributions | — | 2,953,226 | 21,863 | 78,647 | — | 935,776 | |||||||||||||||||||||
10,766,657 | 32,514,774 | 216,842 | 1,088,081 | 183,344 | 1,399,001 | ||||||||||||||||||||||
Shares repurchased | (8,474,046 | ) | (12,524,337 | ) | (452,550 | ) | (1,346,183 | ) | (489,550 | ) | (1,318,382 | ) | |||||||||||||||
Net increase (decrease) in fund shares | 2,292,611 | 19,990,437 | (235,708 | ) | (258,102 | ) | (306,206 | ) | 80,619 |
The following information was previously reported in the March 31, 2018 financial statements. The distribution information for the period ended September 30, 2018 presented on the Statement of Changes is presented for comparative purposes to the March 31, 2018 financial statements, which conform to the SEC Final Rule on Disclosure Update and Simplification which was effective November 5, 2018.
(a) For the year ended March 31, 2018, dividends and distributions to shareholders totaled the following for each Funds, respectively:
From Net Investment Income | From Net Realized Gain from Investment Transactions | ||||||||||
Buffalo Discovery Fund | $ | — | $ | (74,201,821 | ) | ||||||
Buffalo Dividend Focus Fund | $ | (741,876 | ) | $ | (574,721 | ) | |||||
Buffalo Emerging Opportunities Fund | $ | — | $ | (15,190,026 | ) | ||||||
Buffalo Flexible Income Fund | $ | (17,897,643 | ) | $ | (23,400,423 | ) | |||||
Buffalo Growth Fund | $ | (2,896,083 | ) | $ | (35,204,302 | ) |
(b) As of March 31, 2018, undistributed (distribution in excess of) net investment income(loss) totaled the following for each Funds, respectively:
Undistributed (distribution in excess of) net investment income (loss) | |||||||
Buffalo Discovery Fund | $ | — | |||||
Buffalo Dividend Focus Fund | $ | 33,501 | |||||
Buffalo Emerging Opportunities Fund | $ | — | |||||
Buffalo Flexible Income Fund | $ | (287,003 | ) | ||||
Buffalo Growth Fund | $ | (35,199 | ) |
The accompanying notes are an integral part of these financial statements.
94
Buffalo Flexible Income Fund | Buffalo Growth Fund | ||||||||||||||||||
Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | 9,321,384 | $ | 17,052,376 | $ | 34,490 | $ | 2,353,997 | |||||||||||
Net realized gain on investment transactions | 8,653,648 | 32,647,949 | 15,093,780 | 77,526,161 | |||||||||||||||
Net unrealized appreciation/depreciation during the year on investments and translation of assets and liabilities in foreign currencies | 43,723,929 | 4,949,457 | 14,023,160 | (39,540,427 | ) | ||||||||||||||
Net increase in net assets resulting from operations | 61,698,961 | 54,649,782 | 29,151,430 | 40,339,731 | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||
From net investment income and net realized gain from investment transactions(a) | (13,068,160 | ) | (41,298,066 | ) | — | (38,100,385 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||||
Shares sold | 15,563,346 | 45,642,534 | 5,021,238 | 15,871,765 | |||||||||||||||
Reinvested dividends and distributions | 12,560,129 | 40,017,720 | — | 37,275,472 | |||||||||||||||
Shares issued | 28,123,475 | 85,660,254 | 5,021,238 | 53,147,237 | |||||||||||||||
Redemptions | (73,022,449 | ) | (198,380,348 | ) | (29,116,332 | ) | (178,079,701 | ) | |||||||||||
Net increase (decrease) from capital share transactions | (44,898,974 | ) | (112,720,094 | ) | (24,095,094 | ) | (124,932,464 | ) | |||||||||||
Total increase (decrease) in net assets | 3,731,827 | (99,368,378 | ) | 5,056,336 | (122,693,118 | ) | |||||||||||||
NET ASSETS:(b) | |||||||||||||||||||
Beginning of period | 698,084,385 | 797,452,763 | 204,251,101 | 326,944,219 | |||||||||||||||
End of period | $ | 701,816,212 | $ | 698,084,385 | $ | 209,307,437 | $ | 204,251,101 | |||||||||||
Fund share transactions: | |||||||||||||||||||
Shares sold | 995,041 | 2,996,751 | 154,448 | 500,709 | |||||||||||||||
Reinvested dividends and distributions | 799,764 | 2,628,131 | — | 1,269,168 | |||||||||||||||
1,794,805 | 5,624,882 | 154,448 | 1,769,877 | ||||||||||||||||
Shares repurchased | (4,669,936 | ) | (13,159,169 | ) | (904,917 | ) | (5,525,810 | ) | |||||||||||
Net increase (decrease) in fund shares | (2,875,131 | ) | (7,534,287 | ) | (750,469 | ) | (3,755,933 | ) |
95
STATEMENTS OF CHANGES IN
NET ASSETS
Buffalo High Yield Fund | Buffalo International Fund | Buffalo Large Cap Fund | |||||||||||||||||||||||||
Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 5,061,792 | $ | 9,735,597 | $ | 1,575,948 | $ | 1,038,974 | $ | 62,250 | $ | 221,630 | |||||||||||||||
Net realized gain on investment transactions | 946,560 | 842,299 | 5,187,911 | 641,932 | 1,297,886 | 4,099,923 | |||||||||||||||||||||
Net unrealized appreciation/depreciation during the year on investments and translation of assets and liabilities in foreign currencies | (880,365 | ) | (3,025,094 | ) | 3,677,724 | 36,292,927 | 7,557,453 | 5,425,497 | |||||||||||||||||||
Net increase in net assets resulting from operations | 5,127,987 | 7,552,802 | 10,441,583 | 37,973,833 | 8,917,589 | 9,747,050 | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||||||||||
From net investment income and net realized gain from investment transactions(a) | (5,070,039 | ) | (11,215,031 | ) | — | (914,680 | ) | — | (3,671,701 | ) | |||||||||||||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||||||||||||
Shares sold | 13,148,160 | 48,065,535 | 26,310,094 | 78,887,134 | 2,777,846 | 17,122,313 | |||||||||||||||||||||
Reinvested dividends and distributions | 4,770,092 | 10,628,551 | — | 850,120 | — | 3,622,675 | |||||||||||||||||||||
Shares issued | 17,918,252 | 58,694,086 | 26,310,094 | 79,737,254 | 2,777,846 | 20,744,988 | |||||||||||||||||||||
Redemptions | (42,400,209 | ) | (59,743,044 | ) | (18,602,913 | ) | (42,207,639 | ) | (9,451,625 | ) | (15,676,911 | ) | |||||||||||||||
Net increase (decrease) from capital share transactions | (24,481,957 | ) | (1,048,958 | ) | 7,707,181 | 37,529,615 | (6,673,779 | ) | 5,068,077 | ||||||||||||||||||
Total increase (decrease) in net assets | (24,424,009 | ) | (4,711,187 | ) | 18,148,764 | 74,588,768 | 2,243,810 | 11,143,426 | |||||||||||||||||||
NET ASSETS:(b) | |||||||||||||||||||||||||||
Beginning of period | 231,294,994 | 236,006,181 | 277,865,074 | 203,276,306 | 69,024,030 | 57,880,604 | |||||||||||||||||||||
End of period | $ | 206,870,985 | $ | 231,294,994 | $ | 296,013,838 | $ | 277,865,074 | $ | 71,267,840 | $ | 69,024,030 | |||||||||||||||
Fund share transactions: | |||||||||||||||||||||||||||
Shares sold | 1,194,623 | 4,276,421 | 1,694,631 | 5,407,820 | 88,414 | 605,095 | |||||||||||||||||||||
Reinvested dividends and distributions | 433,738 | 948,602 | — | 57,324 | — | 124,022 | |||||||||||||||||||||
1,628,361 | 5,225,023 | 1,694,631 | 5,465,144 | 88,414 | 729,117 | ||||||||||||||||||||||
Shares repurchased | (3,851,991 | ) | (5,322,142 | ) | (1,202,715 | ) | (2,953,023 | ) | (305,273 | ) | (537,136 | ) | |||||||||||||||
Net increase (decrease) in fund shares | (2,223,630 | ) | (97,119 | ) | 491,916 | 2,512,121 | (216,859 | ) | 191,981 |
The following information was previously reported in the March 31, 2018 financial statements. The distribution information for the period ended September 30, 2018 presented on the Statement of Changes is presented for comparative purposes to the March 31, 2018 financial statements, which conform to the SEC Final Rule on Disclosure Update and Simplification which was effective November 5, 2018.
(a) For the year ended March 31, 2018, dividends and distributions to shareholders totaled the following for each Funds, respectively:
From Net Investment Income | From Net Realized Gain from Investment Transactions | ||||||||||
Buffalo High Yield Fund | $ | (10,035,998 | ) | $ | (1,179,033 | ) | |||||
Buffalo International Fund | $ | (746,241 | ) | $ | (168,439 | ) | |||||
Buffalo Large Cap Fund | $ | (96,713 | ) | $ | (3,574,988 | ) | |||||
Buffalo Mid Cap Fund | $ | — | $ | (37,044,289 | ) | ||||||
Buffalo Small Cap Fund | $ | — | $ | (134,493,446 | ) |
(b) As of March 31, 2018, undistributed (distribution in excess of) net investment income(loss) totaled the following for each Funds, respectively:
Undistributed (distribution in excess of) net investment income (loss) | |||||||
Buffalo High Yield Fund | $ | 264,893 | |||||
Buffalo International Fund | $ | 285,779 | |||||
Buffalo Large Cap Fund | $ | 221,630 | |||||
Buffalo Mid Cap Fund | $ | (148,720 | ) | ||||
Buffalo Small Cap Fund | $ | — |
The accompanying notes are an integral part of these financial statements.
96
Buffalo Mid Cap Fund | Buffalo Small Cap Fund | ||||||||||||||||||
Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | Six Months Ended September 30, 2018 (UNAUDITED) | Year Ended March 31, 2018 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | (332,097 | ) | $ | (364,899 | ) | $ | (1,692,924 | ) | $ | (3,559,621 | ) | |||||||
Net realized gain on investment transactions | 8,692,680 | 48,583,841 | 66,440,458 | 138,305,873 | |||||||||||||||
Net unrealized appreciation/depreciation during the year on investments and translation of assets and liabilities in foreign currencies | 3,840,069 | (20,149,333 | ) | 50,524,980 | (43,337,579 | ) | |||||||||||||
Net increase in net assets resulting from operations | 12,200,652 | 28,069,609 | 115,272,514 | 91,408,673 | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||
From net investment income and net realized gain from investment transactions(a) | — | (37,044,289 | ) | — | (134,493,446 | ) | |||||||||||||
CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||||
Shares sold | 2,626,626 | 28,026,993 | 33,500,173 | 64,116,331 | |||||||||||||||
Reinvested dividends and distributions | — | 36,688,053 | — | 132,040,755 | |||||||||||||||
Shares issued | 2,626,626 | 64,715,046 | 33,500,173 | 196,157,086 | |||||||||||||||
Redemptions | (19,626,795 | ) | (295,566,267 | ) | (86,275,897 | ) | (180,254,520 | ) | |||||||||||
Net increase (decrease) from capital share transactions | (17,000,169 | ) | (230,851,221 | ) | (52,775,724 | ) | 15,902,566 | ||||||||||||
Total increase (decrease) in net assets | (4,799,517 | ) | (239,825,901 | ) | 62,496,790 | (27,182,207 | ) | ||||||||||||
NET ASSETS:(b) | |||||||||||||||||||
Beginning of period | 155,586,792 | 395,412,693 | 535,819,640 | 563,001,847 | |||||||||||||||
End of period | $ | 150,787,275 | $ | 155,586,792 | $ | 598,316,430 | $ | 535,819,640 | |||||||||||
Fund share transactions: | |||||||||||||||||||
Shares sold | 179,099 | 1,771,900 | 1,964,416 | 3,673,470 | |||||||||||||||
Reinvested dividends and distributions | — | 2,691,714 | — | 9,000,733 | |||||||||||||||
179,099 | 4,463,614 | 1,964,416 | 12,674,203 | ||||||||||||||||
Shares repurchased | (1,334,145 | ) | (18,565,346 | ) | (5,034,323 | ) | (10,826,595 | ) | |||||||||||
Net increase (decrease) in fund shares | (1,155,046 | ) | (14,101,732 | ) | (3,069,907 | ) | 1,847,608 |
97
FINANCIAL HIGHLIGHTS
BUFFALO DISCOVERY FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 24.52 | $ | 21.86 | $ | 19.30 | $ | 21.50 | $ | 20.53 | $ | 17.08 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.02 | ) | (0.04 | ) | (0.02 | ) | (0.03 | ) | (0.05 | ) | (0.08 | ) | |||||||||||||||
Net realized and unrealized gains (losses) | 2.37 | 3.82 | 3.10 | (0.69 | ) | 3.08 | 5.04 | ||||||||||||||||||||
Total from investment operations | 2.35 | 3.78 | 3.08 | (0.72 | ) | 3.03 | 4.96 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net realized gain from investment transactions | — | (1.12 | ) | (0.52 | ) | (1.48 | ) | (2.06 | ) | (1.51 | ) | ||||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 26.87 | $ | 24.52 | $ | 21.86 | $ | 19.30 | $ | 21.50 | $ | 20.53 | |||||||||||||||
Total return* | 9.58 | % | 17.35 | % | 16.13 | % | (3.33 | %) | 15.56 | % | 29.54 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,140,184 | $ | 1,896,950 | $ | 1,254,238 | $ | 1,010,583 | $ | 774,187 | $ | 649,536 | |||||||||||||||
Ratio of expenses to average net assets** | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | |||||||||||||||
Ratio of net investment loss to average net assets** | (0.18 | %) | (0.20 | %) | (0.11 | %) | (0.18 | %) | (0.28 | %) | (0.47 | %) | |||||||||||||||
Portfolio turnover rate* | 34 | % | 42 | % | 51 | % | 59 | % | 52 | % | 48 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
98
FINANCIAL HIGHLIGHTS
BUFFALO DIVIDEND FOCUS FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 16.28 | $ | 15.32 | $ | 13.20 | $ | 13.76 | $ | 12.25 | $ | 10.55 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income | 0.14 | 0.19 | 0.18 | 0.16 | 0.13 | 0.16 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | 1.66 | 1.11 | 2.22 | (0.30 | ) | 2.16 | 2.08 | ||||||||||||||||||||
Total from investment operations | 1.80 | 1.30 | 2.40 | (0.14 | ) | 2.29 | 2.24 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.19 | ) | (0.18 | ) | (0.17 | ) | (0.13 | ) | (0.16 | ) | |||||||||||||||
Net realized gain from investment transactions | — | (0.15 | ) | (0.10 | ) | (0.26 | ) | (0.65 | ) | (0.38 | ) | ||||||||||||||||
Total distributions | (0.11 | ) | (0.34 | ) | (0.28 | ) | (0.43 | ) | (0.78 | ) | (0.54 | ) | |||||||||||||||
Paid-in capital from redemption fees (Note 5) | — | — | — | (1) | 0.01 | — | (1) | — | (1) | ||||||||||||||||||
Net asset value, end of period | $ | 17.97 | $ | 16.28 | $ | 15.32 | $ | 13.20 | $ | 13.76 | $ | 12.25 | |||||||||||||||
Total return* | 11.10 | % | 8.51 | % | 18.35 | % | (0.88 | %) | 18.86 | % | 21.65 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 61,300 | $ | 59,364 | $ | 59,795 | $ | 38,222 | $ | 41,116 | $ | 18,701 | |||||||||||||||
Ratio of expenses to average net assets** | 0.94 | % | 0.94 | % | 0.95 | % | 0.97 | % | 0.94 | % | 0.93 | % | |||||||||||||||
Ratio of net investment income to average net assets** | 1.58 | % | 1.16 | % | 1.34 | % | 1.21 | % | 1.04 | % | 1.47 | % | |||||||||||||||
Portfolio turnover rate* | 7 | % | 21 | % | 26 | % | 65 | % | 62 | % | 77 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
99
FINANCIAL HIGHLIGHTS
BUFFALO EMERGING OPPORTUNITIES FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014(2) | |||||||||||||||||||||
Net asset value, beginning of period | $ | 16.03 | $ | 15.78 | $ | 13.89 | $ | 17.85 | $ | 19.31 | $ | 13.86 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.08 | ) | (0.18 | ) | (0.13 | ) | (0.28 | ) | (0.31 | ) | (0.14 | ) | |||||||||||||||
Net realized and unrealized gains (losses) | 2.57 | 3.55 | 3.25 | (2.45 | ) | 0.06 | 5.59 | ||||||||||||||||||||
Total from investment operations | 2.49 | 3.37 | 3.12 | (2.73 | ) | (0.25 | ) | 5.45 | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net realized gain from investment transactions | — | (3.12 | ) | (1.23 | ) | (1.23 | ) | (1.25 | ) | (0.05 | ) | ||||||||||||||||
Paid-in capital from redemption fees (Note 5) | — | — | — | (1) | — | (1) | 0.04 | 0.05 | |||||||||||||||||||
Net asset value, end of period | $ | 18.52 | $ | 16.03 | $ | 15.78 | $ | 13.89 | $ | 17.85 | $ | 19.31 | |||||||||||||||
Total return* | 15.53 | % | 21.84 | % | 22.99 | % | (15.47 | %) | (0.71 | %) | 39.66 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 95,998 | $ | 87,969 | $ | 85,336 | $ | 114,270 | $ | 238,828 | $ | 525,856 | |||||||||||||||
Ratio of expenses to average net assets** | 1.47 | % | 1.48 | % | 1.48 | % | 1.47 | % | 1.47 | % | 1.48 | % | |||||||||||||||
Ratio of net investment loss to average net assets** | (0.85 | %) | (1.10 | %) | (0.62 | %) | (1.19 | %) | (1.29 | %) | (1.36 | %) | |||||||||||||||
Portfolio turnover rate* | 21 | % | 48 | % | 95 | % | 70 | % | 19 | % | 23 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
(2) Effective June 3, 2013, the Fund name was changed to Buffalo Emerging Opportunities Fund. Prior to June 3, 2013 the Fund was known as the Buffalo Micro Cap Fund.
The accompanying notes are an integral part of these financial statements.
100
FINANCIAL HIGHLIGHTS
BUFFALO FLEXIBLE INCOME FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 15.00 | $ | 14.74 | $ | 13.70 | $ | 14.53 | $ | 14.41 | $ | 13.54 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income | 0.21 | 0.34 | 0.35 | 0.38 | 0.30 | 0.29 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | 1.15 | 0.77 | 1.14 | (0.70 | ) | 0.18 | 0.99 | ||||||||||||||||||||
Total from investment operations | 1.36 | 1.11 | 1.49 | (0.32 | ) | 0.48 | 1.28 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.36 | ) | (0.38 | ) | (0.41 | ) | (0.30 | ) | (0.28 | ) | |||||||||||||||
Net realized gain from investment transactions | — | (0.49 | ) | (0.07 | ) | (0.10 | ) | (0.06 | ) | (0.13 | ) | ||||||||||||||||
Total distributions | (0.29 | ) | (0.85 | ) | (0.45 | ) | (0.51 | ) | (0.36 | ) | (0.41 | ) | |||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 16.07 | $ | 15.00 | $ | 14.74 | $ | 13.70 | $ | 14.53 | $ | 14.41 | |||||||||||||||
Total return* | 9.15 | % | 7.57 | % | 11.02 | % | (2.24 | %) | 3.33 | % | 9.56 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 701,816 | $ | 698,084 | $ | 797,453 | $ | 899,246 | $ | 1,350,945 | $ | 1,397,857 | |||||||||||||||
Ratio of expenses to average net assets** | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | |||||||||||||||
Ratio of net investment income to average net assets** | 2.64 | % | 2.27 | % | 2.45 | % | 2.72 | % | 2.05 | % | 2.06 | % | |||||||||||||||
Portfolio turnover rate* | 3 | % | 2 | % | 1 | % | 5 | % | 42 | % | 13 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
101
FINANCIAL HIGHLIGHTS
BUFFALO GROWTH FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 29.83 | $ | 30.83 | $ | 28.86 | $ | 34.60 | $ | 35.45 | $ | 29.53 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income | 0.01 | 0.39 | 0.23 | 0.18 | 0.19 | 0.15 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | 4.49 | 4.58 | 3.36 | (0.61 | ) | 3.63 | 8.02 | ||||||||||||||||||||
Total from investment operations | 4.50 | 4.97 | 3.59 | (0.43 | ) | 3.82 | 8.17 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.45 | ) | (0.22 | ) | (0.19 | ) | (0.18 | ) | (0.22 | ) | ||||||||||||||||
Net realized gain from investment transactions | — | (5.52 | ) | (1.40 | ) | (5.12 | ) | (4.49 | ) | (2.03 | ) | ||||||||||||||||
Total distributions | — | (5.97 | ) | (1.62 | ) | (5.31 | ) | (4.67 | ) | (2.25 | ) | ||||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 34.33 | $ | 29.83 | $ | 30.83 | $ | 28.86 | $ | 34.60 | $ | 35.45 | |||||||||||||||
Total return* | 15.09 | % | 16.42 | % | 12.88 | % | (0.96 | %) | 11.32 | % | 27.98 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 209,307 | $ | 204,251 | $ | 326,944 | $ | 395,511 | $ | 463,167 | $ | 616,043 | |||||||||||||||
Ratio of expenses to average net assets** | 0.91 | % | 0.91 | % | 0.91 | % | 0.91 | % | 0.91 | % | 0.91 | % | |||||||||||||||
Ratio of net investment income to average net assets** | 0.03 | % | 0.90 | % | 0.70 | % | 0.52 | % | 0.48 | % | 0.44 | % | |||||||||||||||
Portfolio turnover rate* | 12 | % | 32 | % | 18 | % | 42 | % | 30 | % | 37 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
102
FINANCIAL HIGHLIGHTS
BUFFALO HIGH YIELD FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 11.04 | $ | 11.21 | $ | 11.04 | $ | 11.71 | $ | 11.84 | $ | 11.67 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income | 0.25 | 0.50 | 0.48 | 0.44 | 0.44 | 0.44 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | — | (0.15 | ) | 0.42 | (0.48 | ) | (0.03 | ) | 0.37 | ||||||||||||||||||
Total from investment operations | 0.25 | 0.35 | 0.90 | (0.04 | ) | 0.41 | 0.81 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.25 | ) | (0.47 | ) | (0.47 | ) | (0.46 | ) | (0.42 | ) | (0.46 | ) | |||||||||||||||
Net realized gain from investment transactions | — | (0.05 | ) | (0.26 | ) | (0.17 | ) | (0.12 | ) | (0.18 | ) | ||||||||||||||||
Total distributions | (0.25 | ) | (0.52 | ) | (0.73 | ) | (0.63 | ) | (0.54 | ) | (0.64 | ) | |||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 11.04 | $ | 11.04 | $ | 11.21 | $ | 11.04 | $ | 11.71 | $ | 11.84 | |||||||||||||||
Total return* | 2.32 | % | 3.20 | % | 8.37 | % | (0.41 | %) | 3.58 | % | 7.12 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 206,871 | $ | 231,295 | $ | 236,006 | $ | 282,385 | $ | 255,987 | $ | 290,538 | |||||||||||||||
Ratio of expenses to average net assets** | 1.02 | % | 1.02 | % | 1.02 | % | 1.01 | % | 1.02 | % | 1.01 | % | |||||||||||||||
Ratio of net investment income to average net assets** | 4.57 | % | 4.06 | % | 4.27 | % | 3.79 | % | 3.71 | % | 3.72 | % | |||||||||||||||
Portfolio turnover rate* | 14 | % | 41 | % | 40 | % | 44 | % | 25 | % | 39 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
103
FINANCIAL HIGHLIGHTS
BUFFALO INTERNATIONAL FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 15.10 | $ | 12.80 | $ | 11.40 | $ | 11.93 | $ | 11.73 | $ | 10.28 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income | 0.08 | 0.06 | 0.13 | 0.06 | 0.09 | 0.04 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | 0.49 | 2.29 | 1.39 | (0.54 | ) | 0.18 | 1.43 | ||||||||||||||||||||
Total from investment operations | 0.57 | 2.35 | 1.52 | (0.48 | ) | 0.27 | 1.47 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | (0.12 | ) | (0.05 | ) | (0.07 | ) | (0.02 | ) | ||||||||||||||||
Net realized gain from investment transactions | — | (0.01 | ) | — | — | — | — | ||||||||||||||||||||
Total distributions | — | (0.05 | ) | (0.12 | ) | (0.05 | ) | (0.07 | ) | (0.02 | ) | ||||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 15.67 | $ | 15.10 | $ | 12.80 | $ | 11.40 | $ | 11.93 | $ | 11.73 | |||||||||||||||
Total return* | 3.84 | % | 18.40 | % | 13.46 | % | (4.02 | %) | 2.32 | % | 14.31 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 296,014 | $ | 277,865 | $ | 203,276 | $ | 234,446 | $ | 256,608 | $ | 225,299 | |||||||||||||||
Ratio of expenses to average net assets** | 1.03 | % | 1.03 | % | 1.04 | % | 1.04 | % | 1.05 | % | 1.07 | % | |||||||||||||||
Ratio of net investment income to average net assets** | 1.09 | % | 0.42 | % | 1.02 | % | 0.52 | % | 0.77 | % | 0.38 | % | |||||||||||||||
Portfolio turnover rate* | 9 | % | 13 | % | 4 | % | 7 | % | 21 | % | 15 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
104
FINANCIAL HIGHLIGHTS
BUFFALO LARGE CAP FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 29.08 | $ | 26.53 | $ | 23.09 | $ | 25.09 | $ | 23.34 | $ | 21.89 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment income | 0.04 | 0.09 | 0.08 | 0.09 | 0.05 | 0.06 | |||||||||||||||||||||
Net realized and unrealized gains (losses) | 3.92 | 4.01 | 4.18 | (0.47 | ) | 4.51 | 4.94 | ||||||||||||||||||||
Total from investment operations | 3.96 | 4.10 | 4.26 | (0.38 | ) | 4.56 | 5.00 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | (0.13 | ) | (0.04 | ) | (0.05 | ) | (0.08 | ) | ||||||||||||||||
Net realized gain from investment transactions | — | (1.51 | ) | (0.69 | ) | (1.58 | ) | (2.76 | ) | (3.47 | ) | ||||||||||||||||
Total distributions | — | (1.55 | ) | (0.82 | ) | (1.62 | ) | (2.81 | ) | (3.55 | ) | ||||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 33.04 | $ | 29.08 | $ | 26.53 | $ | 23.09 | $ | 25.09 | $ | 23.34 | |||||||||||||||
Total return* | 13.62 | % | 15.41 | % | 18.67 | % | (1.56 | %) | 20.29 | % | 23.13 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 71,268 | $ | 69,024 | $ | 57,881 | $ | 47,794 | $ | 44,013 | $ | 32,111 | |||||||||||||||
Ratio of expenses to average net assets** | 0.93 | % | 0.93 | % | 0.95 | % | 0.94 | % | 0.96 | % | 0.97 | % | |||||||||||||||
Ratio of net investment income to average net assets** | 0.18 | % | 0.33 | % | 0.34 | % | 0.41 | % | 0.23 | % | 0.21 | % | |||||||||||||||
Portfolio turnover rate* | 7 | % | 40 | % | 41 | % | 62 | % | 30 | % | 45 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
105
FINANCIAL HIGHLIGHTS
BUFFALO MID CAP FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 13.99 | $ | 15.68 | $ | 15.04 | $ | 18.68 | $ | 19.27 | $ | 17.94 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.03 | ) | (0.03 | ) | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.04 | ) | |||||||||||||||
Net realized and unrealized gains (losses) | 1.17 | 1.77 | 1.85 | (1.62 | ) | 1.87 | 4.45 | ||||||||||||||||||||
Total from investment operations | 1.14 | 1.74 | 1.84 | (1.64 | ) | 1.83 | 4.41 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | — | — | — | (1) | — | (1) | — | (1) | ||||||||||||||||||
Net realized gain from investment transactions | — | (3.43 | ) | (1.20 | ) | (2.00 | ) | (2.42 | ) | (3.08 | ) | ||||||||||||||||
Total distributions | — | (3.43 | ) | (1.20 | ) | (2.00 | ) | (2.42 | ) | (3.08 | ) | ||||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 15.13 | $ | 13.99 | $ | 15.68 | $ | 15.04 | $ | 18.68 | $ | 19.27 | |||||||||||||||
Total return* | 8.22 | % | 11.69 | % | 12.94 | % | (8.83 | %) | 10.43 | % | 25.46 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 150,787 | $ | 155,587 | $ | 395,413 | $ | 458,635 | $ | 566,302 | $ | 620,255 | |||||||||||||||
Ratio of expenses to average net assets** | 1.02 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | |||||||||||||||
Ratio of net investment loss to average net assets** | (0.43 | %) | (0.13 | %) | (0.09 | %) | (0.10 | %) | (0.18 | %) | (0.20 | %) | |||||||||||||||
Portfolio turnover rate* | 15 | % | 51 | % | 51 | % | 46 | % | 12 | % | 45 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
106
FINANCIAL HIGHLIGHTS
BUFFALO SMALL CAP FUND
The following tables are intended to help you understand the Fund's financial performance. The information reflects financial results for the Fund held for the periods shown. Total returns assume reinvestment of all dividends and distributions. Total returns do not reflect payment of sales charges, if any, and are not annualized for periods of less than one year.
For the Six Months Ended September 30, 2018 | Years Ended March 31, | ||||||||||||||||||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | (UNAUDITED) | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 15.00 | $ | 16.61 | $ | 16.64 | $ | 32.83 | $ | 36.02 | $ | 30.93 | |||||||||||||||
Income from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.09 | ) | (0.13 | ) | (0.20 | ) | (0.24 | ) | (0.16 | ) | |||||||||||||||
Net realized and unrealized gains (losses) | 3.37 | 2.92 | 3.19 | (3.60 | ) | 0.31 | 8.44 | ||||||||||||||||||||
Total from investment operations | 3.32 | 2.83 | 3.06 | (3.80 | ) | 0.07 | 8.28 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net realized gain from investment transactions | — | (4.44 | ) | (3.09 | ) | (12.39 | ) | (3.26 | ) | (3.19 | ) | ||||||||||||||||
Paid-in capital from redemption fees(1) (Note 5) | — | — | — | — | — | — | |||||||||||||||||||||
Net asset value, end of period | $ | 18.32 | $ | 15.00 | $ | 16.61 | $ | 16.64 | $ | 32.83 | $ | 36.02 | |||||||||||||||
Total return* | 22.13 | % | 17.65 | % | 24.51 | % | (13.28 | %) | 0.56 | % | 26.71 | % | |||||||||||||||
Ratios/Supplemental Data | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 598,316 | $ | 535,820 | $ | 563,002 | $ | 961,411 | $ | 3,005,980 | $ | 3,803,381 | |||||||||||||||
Ratio of expenses to average net assets** | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.00 | % | 1.00 | % | |||||||||||||||
Ratio of net investment loss to average net assets** | (0.58 | %) | (0.64 | %) | (0.52 | %) | (0.61 | %) | (0.63 | %) | (0.45 | %) | |||||||||||||||
Portfolio turnover rate* | 29 | % | 49 | % | 45 | % | 41 | % | 17 | % | 22 | % |
* Not annualized for periods less than one full year.
** Annualized for periods less than one full year.
(1) Less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.
107
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2018 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES:
The Buffalo Funds (comprised of the Buffalo Discovery Fund, Buffalo Dividend Focus Fund, Buffalo Emerging Opportunities Fund, Buffalo Flexible Income Fund, Buffalo Growth Fund, Buffalo High Yield Fund, Buffalo International Fund, Buffalo Large Cap Fund, Buffalo Mid Cap Fund, and Buffalo Small Cap Fund) (the "Funds") are registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company. The shares of the Buffalo Funds are issued in multiple series, with each series, in effect, representing a separate fund.
The investment objective of the Buffalo Discovery Fund, Buffalo Emerging Opportunities Fund, Buffalo Growth Fund, Buffalo International Fund, Buffalo Large Cap Fund, Buffalo Mid Cap Fund and Buffalo Small Cap Fund is long-term growth of capital. The investment objectives of the Buffalo Flexible Income Fund, the Buffalo Dividend Focus Fund and the Buffalo High Yield Fund are current income, with long-term growth of capital as a secondary objective.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") Topic 946 "Financial Services — Investment Companies."
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.
A. INVESTMENT VALUATION — Equity securities and debt securities traded on a national securities exchange or national market, except those traded using the National Association of Securities Dealers' Automated Quotation System ("NASDAQ"), are valued at the latest sales price thereof, or if no sale was reported on that date, the mean between the most recent quoted bid and ask price is used. All equity securities that are traded using NASDAQ are valued using the NASDAQ Official Closing Price ("NOCP"), which may not necessarily represent the last sales price. If there has been no sale on such exchange or on NASDAQ on such day, the security is valued at the mean between the most recent quoted bid and ask price.
When market quotations are not readily available, any security or other asset is valued at its fair value as determined in good faith under procedures approved by the Board of Trustees (the "Board"). If events occur that will affect the value of a Fund's portfolio securities before the net asset value ("NAV") has been calculated (a "significant event"), the security will generally be priced using a fair value procedure. The Board has adopted specific procedures for valuing portfolio securities and delegated the responsibility of fair value determinations to the Valuation Committee. Some of the factors that may be considered by the Valuation Committee in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restriction on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased or sold. As of September 30, 2018, none of the Funds held fair valued securities. In addition, with respect to the valuation of securities principally traded on foreign markets, the Buffalo International Fund uses a fair value pricing service approved by the Funds' Board which employs quantitative models to adjust for "stale" prices caused by the movement of other markets and other factors occurring after the close of the foreign markets, but before the close of the New York Stock Exchange ("NYSE"). As of September 30, 2018, the Buffalo International Fund held 58 fair valued securities, with a market value of $202,417,746 or 68.38% of total net assets.
Debt securities with remaining maturities of 60 days or less are normally valued at the last reported sale price. If there is no trade on the particular day, then the security will be priced at the mean between the most recent bid and ask prices.
Restricted securities include securities that have not been registered under the Securities Act of 1933, as amended, and securities that are subject to restrictions on resale. The Funds may invest in restricted securities that are consistent with the Funds' investment objectives and investment strategies. In some cases, the issuer of restricted
108
securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Funds or in connection with another registered offering of the securities. Investments in restricted securities are valued utilizing the Funds' corporate bond valuation policies.
In accordance with FASB ASC 820, Fair Value Measurements ("ASC 820"), fair value is defined as the price that a Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds' investments. The inputs are summarized in the three broad levels listed below:
Level 1 — Valuations based on quoted prices for investments in active markets that a Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments.
Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
Level 3 — Valuations based on significant unobservable inputs (including a Fund's own assumptions and judgment in determining the fair value of investments).
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the market place. The inputs will be considered by Kornitzer Capital Management ("Advisor"), along with any other relevant factors in the calculation of an investment's fair value. The Funds use prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Non-U.S. equity securities actively traded in foreign markets may be reflected in Level 2 despite the availability of closing prices, because the Funds evaluate and determine whether those closing prices reflect fair value at the close of the NYSE or require adjustment, as described above and in Note 9 — Foreign Investment Risk.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions made by the Valuation Committee. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following table provides the fair value measurement of applicable Fund assets and liabilities by level within the fair value hierarchy as of September 30, 2018. These assets are measured on a recurring basis.
BUFFALO DISCOVERY FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 1,969,687,093 | $ | — | $ | — | $ | 1,969,687,093 | |||||||||||
REITS | 36,917,069 | — | — | 36,917,069 | |||||||||||||||
Short Term Investment | 133,776,447 | — | — | 133,776,447 | |||||||||||||||
Total* | $ | 2,140,380,609 | $ | — | $ | — | $ | 2,140,380,609 |
109
BUFFALO DIVIDEND FOCUS FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 56,830,514 | $ | — | $ | — | $ | 56,830,514 | |||||||||||
REITS | 1,683,568 | — | — | 1,683,568 | |||||||||||||||
Short Term Investment | 2,849,990 | — | — | 2,849,990 | |||||||||||||||
Total* | $ | 61,364,072 | $ | — | $ | — | $ | 61,364,072 |
BUFFALO EMERGING OPPORTUNIES FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 87,700,415 | $ | — | $ | — | $ | 87,700,415 | |||||||||||
REIT | 2,884,238 | — | — | 2,884,238 | |||||||||||||||
Short Term Investment | 7,006,753 | — | — | 7,006,753 | |||||||||||||||
Total* | $ | 97,591,406 | $ | — | $ | — | $ | 97,591,406 |
BUFFALO FLEXIBLE INCOME FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 624,300,093 | $ | — | $ | — | $ | 624,300,093 | |||||||||||
REITS | 16,532,594 | — | — | 16,532,594 | |||||||||||||||
Convertible Bonds | — | 12,740,323 | — | 12,740,323 | |||||||||||||||
Corporate Bonds | — | 30,364,793 | — | 30,364,793 | |||||||||||||||
Short Term Investment | 17,643,488 | — | — | 17,643,488 | |||||||||||||||
Total* | $ | 658,476,175 | $ | 43,105,116 | $ | — | $ | 701,581,291 | |||||||||||
Written Options | $ | 172,975 | 39,250 | — | $ | 212,225 |
BUFFALO GROWTH FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 199,941,144 | $ | — | $ | — | $ | 199,941,144 | |||||||||||
REITS | 4,465,754 | — | — | 4,465,754 | |||||||||||||||
Short Term Investment | 4,164,701 | — | — | 4,164,701 | |||||||||||||||
Total* | $ | 208,571,599 | $ | — | $ | — | $ | 208,571,599 |
BUFFALO HIGH YIELD FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 2,309,589 | $ | — | $ | — | $ | 2,309,589 | |||||||||||
REIT | 1,086,000 | — | — | 1,086,000 | |||||||||||||||
Convertible Bonds | — | 17,163,861 | — | 17,163,861 | |||||||||||||||
Corporate Bonds | — | 136,636,567 | — | 136,636,567 | |||||||||||||||
Bank Loans | — | 40,357,515 | — | 40,357,515 | |||||||||||||||
Short Term Investment | 6,833,702 | — | — | 6,833,702 | |||||||||||||||
Total* | $ | 10,229,291 | $ | 194,157,943 | $ | — | $ | 204,387,234 |
BUFFALO INTERNATIONAL FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 69,526,671 | $ | 202,417,746 | $ | — | $ | 271,944,417 | |||||||||||
Short Term Investments | 27,480,704 | — | — | 27,480,704 | |||||||||||||||
Total* | $ | 97,007,375 | $ | 202,417,746 | $ | — | $ | 299,425,121 |
BUFFALO LARGE CAP FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 66,653,518 | $ | — | $ | — | $ | 66,653,518 | |||||||||||
REIT | 1,649,744 | — | — | 1,649,744 | |||||||||||||||
Short Term Investment | 2,876,227 | — | — | 2,876,227 | |||||||||||||||
Total* | $ | 71,179,489 | $ | — | $ | — | $ | 71,179,489 |
110
BUFFALO MID CAP FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 145,857,446 | $ | — | $ | — | $ | 145,857,446 | |||||||||||
REIT | 2,488,685 | — | — | 2,488,685 | |||||||||||||||
Short Term Investment | 1,586,079 | — | — | 1,586,079 | |||||||||||||||
Total* | $ | 149,932,210 | $ | — | $ | — | $ | 149,932,210 |
BUFFALO SMALL CAP FUND
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Common Stocks | $ | 569,392,047 | $ | — | $ | — | $ | 569,392,047 | |||||||||||
REITS | 23,146,776 | — | 23,146,776 | ||||||||||||||||
Short Term Investment | 5,516,228 | — | — | 5,516,228 | |||||||||||||||
Total* | $ | 598,055,051 | $ | — | $ | — | $ | 598,055,051 |
* Additional information regarding the industry and/or geographical classification of these investments is disclosed in the schedule of investments.
The following is a reconciliation of the Buffalo High Yield Fund Level 3 assets for which significant unobservable inputs were used to determine fair value for the period ended September 30, 2018:
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | Investments in Securities Period Ended September 30, 2018 | ||||||
Fair Value as of 3/31/2018 | $ | 260,625 | |||||
Total unrealized losses included in earnings | (3,125 | ) | |||||
Transfer out of Level 3 | (257,500 | ) | |||||
Fair Value as of 9/30/2018 | $ | — | |||||
The amount of total gains or losses for the period included in net increase (decrease) in net asset applicable to outstanding shares attributed to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | (3,125 | ) |
The Level 3 amount from March 31, 2018 consisted of one corporate bond security that was fair valued in good faith, using significant unobservable inputs, by the Valuation Committee. The transfer out of Level 3 of this security was due to the security being priced by the pricing vendor when it resumed trading.
B. FEDERAL INCOME TAXES — Each Fund complies with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and makes the requisite distributions of income and capital gains to its shareholders sufficient to relieve it from all or substantially all federal income and excise taxes. Therefore, no federal income tax provision has been provided.
At March 31, 2018, the Funds did not have any tax positions that did not meet the "more likely-than-not" threshold of being sustained by the applicable tax authority. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as other expense in the Statement of Operations. During the year, the Funds did not incur any interest or penalties.
The Funds have analyzed all open tax years, as defined by the Statute of Limitations, for all major jurisdictions. Open tax years are those that are open for exam by taxing authorities. Open tax years include the tax years ended March 31, 2015 through March 31, 2018. The Funds have no examinations in progress.
C. INVESTMENT TRANSACTIONS AND INVESTMENT INCOME — Investment transactions are accounted for on the date the securities are purchased or sold (trade date). Dividend income is recorded on the ex-dividend date except that certain dividends for foreign securities where the ex-dividend date may have passed are recorded as soon as the Fund is informed of the dividend in the exercise of reasonable diligence. Interest income is recognized on the accrual basis. Realized gains and losses from investment transactions are reported on the identified cost basis. All discounts/premiums are accreted/amortized for financial reporting purposes and are included in interest income.
D. DISTRIBUTIONS TO SHAREHOLDERS — Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined in accordance with income tax regulations, which may differ from U.S. generally
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accepted accounting principles ("GAAP"). These differences are primarily due to differing treatments for premium amortization on debt securities, deferral of late year and wash sale losses, and partnership investment income.
E. USE OF ESTIMATES — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from such estimates.
F. FOREIGN CURRENCY TRANSLATION — Values of investments denominated in foreign currencies are converted into U.S. dollars using a spot market rate of exchange on the day of valuation. Purchases and sales of investments and dividend and interest income are translated to U.S. dollars using a spot market rate of exchange prevailing on the respective dates of such transactions. The portion of security gains or losses resulting from changes in foreign exchange rates is included with net realized and unrealized gain or loss from investments, as appropriate, for both financial reporting and tax purposes.
G. PURCHASED AND WRITTEN OPTION CONTRACTS — Certain of the Funds may purchase and write call or put options on securities and indices and enter into related closing transactions. As a holder of a call option, a Fund has the right, but not the obligation, to purchase a security at the exercise price during the exercise period. As the writer of a call option, a Fund has the obligation to sell the security at the exercise price during the exercise period. The Fund's maximum payout in the case of written call option contracts cannot be determined. As a holder of a put option, a Fund has the right, but not the obligation, to sell a security at the exercise price during the exercise period. As the writer of a put option, a Fund has the obligation to buy the underlying security at the exercise price during the exercise period. The Funds did not hold any written put options as of September 30, 2018.
The premium that a Fund pays when purchasing an option or receives when writing an option will reflect, among other things, the market price of the security, the relationship of the exercise price to the market price of the security, the relationship of the exercise price to the volatility of the security, the length of the option period and supply and demand factors. The premium is the market value of an option at the time of purchase.
A purchaser (holder) of a put option pays a non-refundable premium to the seller (writer) of a put option to obtain the right to sell a specified amount of a security at a fixed price (the exercise price) during a specified period (exercise period). Conversely, the seller (writer) of a put option, upon payment by the holder of the premium, has the obligation to buy the security from the holder of the put option at the exercise price during the exercise period.
Exchange traded options are valued at the composite price, using the National Best Bid and Offer quotes ("NBBO"). NBBO consists of the highest bid prices and lowest ask prices across any of the exchanges on which an option is quoted, thus providing a view across the entire U.S. options marketplace. Specifically, composite pricing looks at the last trades on the exchanges where the options are traded. If there are no trades for the option on a given business day, composite option pricing calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is traded. Non exchange traded options also will be valued at the mean between the last bid and ask quotations. For options where market quotations are not readily available, a fair value shall be determined as set forth in the Funds' fair valuation guidelines.
The Funds may use options with the objective to generate income as a non-principal investment strategy. Currently, the Buffalo Flexible Income Fund makes use of the options strategy to a greater extent than the other Funds because income generation is a primary investment objective of the Buffalo Flexible Income Fund. The primary strategy used by Buffalo Flexible Income Fund to achieve income generation through the use of options is to write covered calls with the strike price above the cost basis and the value the portfolio managers believe will be achieved before the expiration of the option and also at a value that the portfolio managers are willing to sell if the option is exercised. The collected premiums generate income for the Fund, and if the option is exercised, a gain will also be achieved. A risk of using derivatives is that the counterparty to a derivative may fail to comply with their obligation to the Funds. See Note 8 for written option activity.
H. INDEMNIFICATIONS — Under the Funds' organizational documents, officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnification to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred, and may not occur. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
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I. RECENT ACCOUNTING PRONOUNCEMENTS — In August 2018, the U.S. Securities and Exchange Commission approved amendments to eliminate, update or modify certain disclosure requirements required of registered investment companies. In part, these amendments amend Regulation S-X and require presentation of distributable earnings on the Statement of Assets and Liabilities in total rather than disclosing the three components of distributable earnings (undistributed net investment income, undistributed realized gain and net unrealized appreciation (depreciation) on investments). An additional amendment to Regulation S-X amends the requirement to state separately on the Statement of Changes in Net Assets distributions to shareholders from net investment income, net realized gain and other sources and rather disclose distributions to shareholders in total, except for return of capital, which should be disclosed separately. These updates have been incorporated in the Funds' financial statements and have no impact on each of the Fund's net assets or results of operations.
In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). The primary focus of ASU 2018-13 is to improve the effectiveness of the disclosure requirements for fair value measurements. The changes affect all companies that are required to include fair value measurement disclosures. In general, the amendments in ASU 2018-13 are effective for all entities for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt the removed or modified disclosures upon the issuance of ASU 2018-13 and may delay adoption of the additional disclosures, which are required for public companies only, until their effective date. These updates have been incorporated in the Funds' financial statements and have no impact on each of the Fund's net assets or results of operations. The Funds adopted the removed and modified disclosures in the Funds' financial statements and have elected to delay the adoption of additional disclosures until their effective date.
2. FEDERAL TAX MATTERS:
The tax character of distributions paid during the six months ended September 30, 2018 and the year ended March 31, 2018 were as follows:
Six Months Ended September 30, 2018 | Year Ended March 31, 2018 | ||||||||||||||||||
Ordinary Income | Long-Term Capital Gains* | Ordinary Income | Long-Term Capital Gains* | ||||||||||||||||
Buffalo Discovery Fund | $ | — | $ | — | $ | — | $ | 74,201,821 | |||||||||||
Buffalo Dividend Focus Fund | 390,885 | — | 741,876 | 574,721 | |||||||||||||||
Buffalo Emerging Opportunities Fund | — | — | — | 15,190,026 | |||||||||||||||
Buffalo Flexible Income Fund | 13,068,160 | — | 17,897,643 | 23,400,423 | |||||||||||||||
Buffalo Growth Fund | — | — | 2,896,083 | 35,204,302 | |||||||||||||||
Buffalo High Yield Fund | 5,070,039 | — | 10,035,998 | 1,179,033 | |||||||||||||||
Buffalo International Fund | — | — | 746,241 | 168,439 | |||||||||||||||
Buffalo Large Cap Fund | — | — | 96,713 | 3,574,988 | |||||||||||||||
Buffalo Mid Cap Fund | — | — | — | 37,044,289 | |||||||||||||||
Buffalo Small Cap Fund | — | — | — | 134,493,446 |
* The Funds designate as long-term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3)(C), the amounts necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax period ended March 31, 2018.
Distributions paid differ from the Statements of Changes in Net Assets due primarily to the recharacterization of short-term capital gain distributions to ordinary distributions for tax purposes.
Additionally, GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. For the year ended March 31, 2018, the following table shows the reclassifications made:
Undistributed Net Investment Income/(Loss) | Accumulated Net Realized Gain/(Loss) | Paid In Capital | |||||||||||||
Buffalo Discovery Fund | $ | 3,092,840 | $ | (13,088,650 | ) | $ | 9,995,810 | ||||||||
Buffalo Dividend Focus Fund | 13,695 | (166,095 | ) | 152,400 | |||||||||||
Buffalo Emerging Opportunities Fund | 991,080 | (2,122,832 | ) | 1,131,752 | |||||||||||
Buffalo Flexible Income Fund | 674,187 | (3,731,656 | ) | 3,057,469 | |||||||||||
Buffalo Growth Fund | 176,242 | (20,781,540 | ) | 20,605,298 |
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Undistributed Net Investment Income/(Loss) | Accumulated Net Realized Gain/(Loss) | Paid In Capital | |||||||||||||
Buffalo High Yield Fund | $ | 98,077 | $ | (240,928 | ) | $ | 142,851 | ||||||||
Buffalo International Fund | (36,899 | ) | 256,668 | (219,769 | ) | ||||||||||
Buffalo Large Cap Fund | (6 | ) | (470,192 | ) | 470,198 | ||||||||||
Buffalo Mid Cap Fund | 216,179 | (44,337,048 | ) | 44,120,869 | |||||||||||
Buffalo Small Cap Fund | 3,559,621 | (31,489,562 | ) | 27,929,941 |
The permanent differences primarily relate to foreign currency adjustments, sale of discount bonds, partnership adjustments, net operating losses, expiration of capital loss carryover and utilization of earnings and profit distributions to shareholders on redemption of shares.
As of March 31, 2018, the components of accumulated earnings (losses) for income tax purposes were as follows:
Buffalo Discovery Fund | Buffalo Dividend Focus Fund | Buffalo Emerging Opportunities Fund | Buffalo Flexible Income Fund | Buffalo Growth Fund | |||||||||||||||||||
Tax cost of Investments(a) | $ | 1,518,666,440 | $ | 45,277,259 | $ | 71,336,222 | $ | 535,526,341 | $ | 129,811,735 | |||||||||||||
Unrealized Appreciation | 429,819,734 | 15,161,977 | 20,605,866 | 193,345,731 | 77,198,991 | ||||||||||||||||||
Unrealized Depreciation | (54,789,031 | ) | (1,248,411 | ) | (3,640,495 | ) | (32,027,023 | ) | (2,599,486 | ) | |||||||||||||
Net unrealized appreciation | 375,030,703 | 13,913,566 | 16,965,371 | 161,318,708 | 74,599,505 | ||||||||||||||||||
Undistributed Ordinary Income | 12,334,576 | 77,766 | 117,120 | — | — | ||||||||||||||||||
Undistributed Long Term Capital Gain | 29,295,000 | 426,850 | — | 11,597,386 | 30,509,310 | ||||||||||||||||||
Distributable earnings | 41,629,576 | 504,616 | 117,120 | 11,597,386 | 30,509,310 | ||||||||||||||||||
Other accumulated gain/(loss) | — | — | — | (14,632 | ) | (14,256 | ) | ||||||||||||||||
Total accumulated gain/(loss) | 416,660,279 | 14,418,182 | 17,082,491 | 172,901,462 | 105,094,559 | ||||||||||||||||||
Buffalo High Yield Fund | Buffalo International Fund | Buffalo Large Cap Fund | Buffalo Mid Cap Fund | Buffalo Small Cap Fund | |||||||||||||||||||
Tax cost of Investments(a) | $ | 221,308,046 | $ | 199,846,985 | $ | 49,986,746 | $ | 107,870,252 | $ | 403,992,957 | |||||||||||||
Unrealized Appreciation | 7,541,039 | 82,808,140 | 20,113,822 | 50,807,279 | 150,229,603 | ||||||||||||||||||
Unrealized Depreciation | (1,660,834 | ) | (5,569,081 | ) | (1,621,366 | ) | (2,558,250 | ) | (20,646,120 | ) | |||||||||||||
Net unrealized appreciation | 5,880,205 | 77,239,059 | 18,492,456 | 48,249,029 | 129,583,483 | ||||||||||||||||||
Undistributed Ordinary Income | 350,610 | 285,779 | 722,691 | — | 2,487,264 | ||||||||||||||||||
Undistributed Long Term Capital Gain | — | — | 1,790,439 | — | 61,358,575 | ||||||||||||||||||
Distributable earnings | 350,610 | 285,779 | 2,513,130 | — | 63,845,839 | ||||||||||||||||||
Other accumulated gain/(loss) | (176,507 | ) | 20,759 | — | (148,720 | ) | — | ||||||||||||||||
Total accumulated gain/(loss) | 6,054,308 | 77,545,597 | 21,005,586 | 48,100,309 | 193,429,322 |
The differences between book-basis and tax-basis unrealized appreciation are attributable primarily to the tax deferral of losses on wash sales, premium amortization, and publicly traded partnership investments.
Other accumulated gain/(loss) is generally comprised of capital loss carryforwards, qualified late year losses, and/or unrealized gain/(loss) on derivative positions.
(a) Represents cost for federal income tax purposes and may differ from the cost for financial reporting purposes.
The following Funds utilized the amounts below of prior year capital loss carryover in the year ended March 31, 2018.
Buffalo International Fund | $ | 623,746 |
As of March 31, 2018, the Buffalo Funds had no accumulated net realized loss on sales of investments and losses to deferred for federal income tax purposes which are available to offset future taxable gains.
In order to meet certain excise tax distribution requirements, the Funds are required to measure and distribute annually net capital gains realized during a twelve month period ending October 31 and net investment income earned during a twelve month period ending December 31. In connection with this, the Funds are permitted for tax purposes to defer into their next fiscal year qualified late year losses. Qualified late year capital losses are any net
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capital losses incurred between November 1 and the end of their fiscal year, March 31, 2018. Qualified late year ordinary losses are generally losses incurred between January 1 and the end of their fiscal year, March 31, 2018.
At March 31, 2018, the following Funds deferred, on a tax basis, qualified late year losses, consisting of ordinary and capital losses, as follows:
Qualified Late Year Ordinary Losses | Qualified Late Year Capital Losses | ||||||||||
Buffalo Growth Fund | $ | 14,256 | $ | — | |||||||
Buffalo High Yield Fund | $ | — | $ | 176,507 | |||||||
Buffalo Mid Cap Fund | $ | 148,720 | $ | — |
For the year ended March 31, 2018, the Buffalo International Fund earned foreign source income and paid foreign taxes which it intends to pass through to its shareholders pursuant to Section 853 of the Internal Revenue Code as follows:
BUFFALO INTERNATIONAL FUND
Country | Gross Dividend | Taxes Withheld | |||||||||
Belgium | $ | 76,991 | $ | 12,044 | |||||||
Bermuda | 88,837 | — | |||||||||
Brazil | 41,768 | 3,339 | |||||||||
Canada | 58,840 | 10,231 | |||||||||
Chile | 7,556 | — | |||||||||
Finland | 41,089 | 6,163 | |||||||||
France | 519,055 | 92,143 | |||||||||
Germany | 911,071 | 140,586 | |||||||||
Hong Kong | 59,994 | 3,522 | |||||||||
India | 26,486 | 1,031 | |||||||||
Ireland | 78,808 | — | |||||||||
Italy | 37,309 | 5,596 | |||||||||
Japan | 232,872 | 23,287 | |||||||||
Netherlands | 167,429 | 25,114 | |||||||||
Norway | 98,939 | 14,841 | |||||||||
Singapore | 120,606 | — | |||||||||
South Korea | 46,867 | 9,641 | |||||||||
Spain | 67,594 | 10,277 | |||||||||
Switzerland | 436,108 | 38,973 | |||||||||
Taiwan | 185,673 | 37,135 | |||||||||
United Kingdom | 468,990 | — | |||||||||
$ | 3,772,882 | $ | 433,923 |
3. RELATED PARTY TRANSACTIONS:
Management fees are paid to Kornitzer Capital Management, Inc. ("KCM") at the rate of 1.00% per annum of the average daily net asset values of the Funds, except for the Buffalo Emerging Opportunities Fund, Buffalo Dividend Focus Fund, Buffalo Growth Fund and Buffalo Large Cap Fund which have a management fee rate of 1.45%, 0.90%, 0.90% and 0.90%, respectively. The management fees are for services which include the costs of all management, supervisory and administrative services required in the normal operation of the Funds. This includes investment management and supervision; fees of the custodian (except for the additional cost of maintaining custody of assets in foreign jurisdictions, when compared to domestic custody costs), independent registered public accounting firm and legal counsel; fees and expenses of officers, trustees and other personnel; rent; shareholder services; and other items incidental to corporate administration. Pursuant to a Master Services Agreement with U.S. Bancorp Fund Services, LLC ("USBFS"), KCM pays USBFS a fee of 30/100 of 1% (0.30%) of each Funds' average daily net assets out of the fees KCM receives from the Funds, except for the Buffalo Dividend Focus Fund, Buffalo Growth Fund and the Buffalo Large Cap Fund, where USBFS receives 25/100 of 1% (0.25%). USBFS provides or obtains various operational services required by the Funds, pays various Fund expenses and acts as paying agent to compensate other Fund service providers. Some of the other Fund service providers are affiliates of USBFS.
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With respect to the Buffalo Small Cap Fund only, the annual management fee rate of one percent (1.00%) of the Buffalo Small Cap Fund's average daily net assets is a base fee paid to KCM that is subject to reduced fees paid on assets in excess of certain levels (breakpoints). The fee paid by KCM to USBFS is also subject to breakpoints on assets in excess of certain levels. The breakpoint schedules for the management fees paid by the Buffalo Small Cap Fund to KCM and the fees paid by KCM to USBFS are set forth in the following table:
BUFFALO SMALL CAP FUND FEE BREAKPOINTS
(As a % Of Average Daily Net Assets) | |||||||||||
Asset Level | Management Fee | USBFS Fee | |||||||||
Assets up to $6 billion | 1.00 | % | 0.300 | % | |||||||
Assets over $6 billion up to $7 billion | 0.95 | % | 0.275 | % | |||||||
Assets over $7 billion up to $8 billion | 0.90 | % | 0.250 | % | |||||||
Assets over $8 billion up to $9 billion | 0.85 | % | 0.225 | % | |||||||
Assets over $9 billion | 0.80 | % | 0.200 | % |
The management fees do not include the cost of acquiring and disposing of portfolio securities, taxes, if any, imposed directly on the Funds and their shares, insurance, certain trustee expenses and the cost of qualifying the Funds' shares for sale in any jurisdiction. Certain officers of the Funds are also officers and/or directors of KCM.
The Buffalo International Fund incurred $31,820 in custody fees during the period ended September 30, 2018, and owed $4,316 for custody fees as of September 30, 2018.
4. AGGREGATE COMPENSATION TO TRUSTEES:
The Funds do not directly compensate any of their trustees. USBFS pays trustee fees to non-interested Board members from its share of the management fee that it receives from KCM. The aggregate compensation paid to the Funds' non-interested trustees for their service on the Funds' Board for the period ended September 30, 2018 was $156,500. Interested trustees who are affiliated with KCM do not receive any compensation from the Funds, but are compensated directly by KCM.
5. INVESTMENT TRANSACTIONS:
The aggregate purchases and sales of securities, excluding short-term investments and U.S. government securities, for the Funds for the six months ended September 30, 2018, were as follows:
Buffalo Discovery Fund | Buffalo Dividend Focus Fund | Buffalo Emerging Opportunities Fund | Buffalo Flexible Income Fund | Buffalo Growth Fund | |||||||||||||||||||
Purchases | $ | 667,487,355 | $ | 4,020,360 | $ | 17,847,455 | $ | 17,912,658 | $ | 24,124,018 | |||||||||||||
Proceeds from Sales | $ | 644,951,548 | $ | 5,420,204 | $ | 19,721,958 | $ | 71,266,919 | $ | 50,522,320 | |||||||||||||
Buffalo High Yield Fund | Buffalo International Fund | Buffalo Large Cap Fund | Buffalo Mid Cap Fund | Buffalo Small Cap Fund | |||||||||||||||||||
Purchases | $ | 28,693,664 | $ | 31,828,662 | $ | 4,512,859 | $ | 22,487,761 | $ | 161,229,864 | |||||||||||||
Proceeds from Sales | $ | 49,794,352 | $ | 22,068,271 | $ | 11,174,030 | $ | 39,588,536 | $ | 212,741,182 |
There were no purchases or sales of long-term U.S. government securities for any Funds during the period ended September 30, 2018.
6. TRANSACTIONS WITH AFFILIATES:
Investments representing 5% or more of the outstanding voting securities of a portfolio company result in that company being considered an affiliated company, as defined in the 1940 Act. There were no affiliated companies held in any of the Buffalo Funds during the six months ended September 30, 2018.
7. OPTIONS WRITTEN:
FASB ASC 815, Derivatives and Hedging (ASC 815) is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Funds use
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derivative instruments, how these derivative instruments are accounted for and their effects on the Funds' financial position and results of operations. The Buffalo Flexible Income Fund is the only Fund that has maintained any positions in derivative instruments or engaged in hedging activities during the six months ended September 30, 2018. For the six months ended September 30, 2018, the quarterly average gross notional amount of derivatives held by the Fund was $17,943,380, representing holdings in written options. The Fund utilizes these written options as a substitute for a comparable market position in the respective underlying security of the written options.
As of September 30, 2018, the Buffalo Flexible Income Fund was invested in written option contracts.
The following is a summary of the location of derivative investments on the Fund's Statement of Assets and Liabilities as of September 30, 2018:
Derivative Investment Type | Value | ||||||
Liability Derivatives | |||||||
Buffalo Flexible Income Fund | |||||||
Written Options — equity contracts | $ | 212,225 |
The following is a summary of the effect of derivative investments on Realized Gain (loss) and Change in Unrealized Appreciation/Depreciation on Options in the Funds as of September 30, 2018:
Derivative Investment Type | Realized Gain (Loss) on Options | ||||||
Liability Derivatives | |||||||
Buffalo Flexible Income Fund | |||||||
Written Options — equity contracts | $ | 553,809 | |||||
Derivative Investment Type | Change in Unrealized Appreciation/Depreciation on Options | ||||||
Liability Derivatives | |||||||
Buffalo Flexible Income Fund | |||||||
Written Options — equity contracts | $ | 591 |
The following tables present derivative assets and liabilities net of amounts available for offset under Master Netting Agreements (MNA) and net of related collateral received or pledged, if any, as of September 30, 2018:
GROSS AMOUNTS NOT OFFSET IN THE STATEMENT OF ASSETS AND LIABILITIES AND SUBJECT TO MNAs
Gross | Gross Amounts Offset In The | Net Amounts Presented In | Gross Amounts Not Offset In The Statement Of Financial Position | ||||||||||||||||||||||||
Liabilities: | Amounts Of Recognized Liabilities | Statement Of Financial Position | The Statement Of Financial Position | Financial Instruments | Collateral Pledged/ Received | Net Amount | |||||||||||||||||||||
Description | |||||||||||||||||||||||||||
Written Options | $ | 212,225 | $ | — | $ | 212,225 | $ | 212,225 | $ | — | $ | — | |||||||||||||||
$ | 212,225 | $ | — | $ | 212,225 | $ | 212,225 | $ | — | $ | — |
8. FOREIGN INVESTMENT RISK:
When the Buffalo International Fund buys or sells securities on a foreign stock exchange, the transaction is undertaken in the local currency rather than in U.S. dollars. In purchasing or selling local currency to execute transactions on foreign exchanges, the Buffalo International Fund will be exposed to the risk that the value of the foreign currency will increase or decrease, which may impact the value of the portfolio holdings. China has, and may continue to adopt, internal economic policies that affect its currency valuations in a manner that may be disadvantageous for U.S. investors or U.S. companies seeking to do business in China. In addition, a country may impose formal or informal currency exchange controls (or "capital controls"). These types of controls may restrict or prohibit the Buffalo International Fund's ability to repatriate both investment capital and income, which could undermine the value of the portfolio holdings and potentially place the Buffalo International Fund's assets at risk of total loss.
Investing in securities of foreign corporations and governments involves additional risks relating to: political, social, religious and economic developments abroad; market instability; fluctuations in foreign exchange rates; different regulatory requirements, market practices, accounting standards and practices; and less publicly available information about foreign issuers. Additionally, these investments may be less liquid, carry higher brokerage commissions and
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other fees, and procedures and regulations governing transactions and custody in foreign markets also may involve delays in payment, delivery or recovery of money or investments. Investments in common stocks of U.S. companies with international operations, and the purchase of sponsored or unsponsored ADRs (American Depositary Receipt) carry similar risks. In addition to risks associated with investing in foreign securities, there are special risks associated with investments in China and Hong Kong, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations, differing legal standards and rapid fluctuations in inflation and interest rates. The Chinese government could, at any time, alter or discontinue economic reform programs implemented since 1978.
9. LINE OF CREDIT:
U.S. Bank, N.A. has made available to the Funds an unsecured line of credit pursuant to a Loan Agreement for the Funds which matures, unless renewed, on July 30, 2019. The line of credit is intended to provide short-term financing, if necessary, subject to certain restrictions, in connection with shareholder redemptions. The Funds may borrow up to the lesser of $50,000,000 or certain percentage amounts based on the net assets of the Funds.
The interest rate paid by the Funds on outstanding borrowings is equal to the Prime Rate. During the six-months ended September 30, 2018, the Funds did not borrow from the line of credit.
10. SUBSEQUENT EVENTS:
Management has evaluated the events and transactions that have occurred after September 30, 2018 and through the date the financial statements were issued and determined that there were no significant subsequent events that would require adjustment of the financial statements or additional disclosures.
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NOTICE TO SHAREHOLDERS
SEPTEMBER 30, 2018 (UNAUDITED)
A NOTE ON FORWARD-LOOKING STATEMENTS
Except for historical information contained in this annual report for the Funds, the matters discussed in this report may constitute forward-looking statements made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These include any advisor and/or portfolio manager predictions, assessments, analyses or outlooks for individual securities, industries, market sectors and/or markets. These statements involve risks and uncertainties. In addition to the general risks described for the Funds in the current Prospectus, other factors bearing on these reports include the accuracy of the advisor's or portfolio managers' forecasts and predictions, and the appropriateness of the investment programs designed by the advisor or portfolio manager to implement their strategies efficiently and effectively. Any one or more of these factors, as well as other risks affecting the securities markets and investment instruments generally, could cause the actual results of the Funds to differ materially as compared to benchmarks associated with the Funds.
ADDITIONAL INFORMATION
The Buffalo Funds have adopted proxy voting policies and procedures that delegate to Kornitzer Capital Management, Inc., the Funds' investment advisor, the authority to vote proxies. A description of the Buffalo Funds' proxy voting policies and procedures is available without charge, upon request, by calling the Funds toll free at 1-800-49-BUFFALO. A description of these policies and procedures is also included in the Funds' Statement of Additional Information, which is available on the SEC's website at http://www.sec.gov.
The actual voting records relating to portfolio securities during the most recent twelve month period ended June 30 (as filed with the SEC on Form N-PX) are available without charge, upon request, by calling the Funds toll free at 1-800-49-BUFFALO or by accessing the SEC's website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC four times each fiscal year at quarter-ends. The Funds file the Schedule of Portfolio Holdings with the SEC on Form N-CSR (second and fourth quarters) and on Form N-Q (first and third quarters). Shareholders may view the Funds' Forms N-CSR and N-Q on the SEC's website at http://www.sec.gov. Forms N-CSR and N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the SEC's Public Reference Room may be obtained by calling 1-202-551-8090 (direct) or 1-800-SEC-0330 (general SEC number).
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PRIVACY POLICY
This Privacy Policy has been adopted by the Buffalo Funds. The Funds are each an open-end diversified management investment company registered under the Investment Company Act of 1940 (the "1940 Act").
This Privacy Policy has also been adopted by KCM, an investment advisor registered with the Securities and Exchange Commission that serves as the investment advisor and manager of the Funds.
The Funds and the Adviser are collectively referred to as the "Companies," "we," "our" or "us."
As a part of providing you services and products we collect non-public personally identifiable information ("Personal Information") about you. Some of this is information you provide and some is obtained from other sources. In some circumstances, a necessary part of providing products and services to you requires that we disclose Personal Information about you to third parties.
We want you to understand how we handle your Personal Information. Please read the Privacy Policy carefully. It has information about our policies for the collection, use, disclosure, and protection of your Personal Information. If you have any questions, you can obtain additional information from the following:
Buffalo Funds
c/o U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, Wisconsin 53201-0701
www.buffalofunds.com
1-800-492-8332
Please be aware that we periodically update or revise the Privacy Policy. As methods of doing business change, we reflect any applicable changes in our Privacy Policy. If you are our customer, we will send you an update as and when it occurs.
SALE/DISCLOSURE OF YOUR PERSONAL INFORMATION
We promise that we will not sell your Personal Information to any person.
Also, we will not disclose your Personal Information to any third person aside from the disclosures described below. These disclosures generally relate to marketing or maintaining products or services provided to you.
WHAT INFORMATION DO WE COLLECT?
Personal, Financial and Product Information
To be able to offer, provide and maintain these products and services, the Companies collect a variety of Personal Information about you. The Personal Information we collect will vary depending upon the product or service you select.
The following is a general list of the Personal Information. Not all of the Personal Information will be collected every time you do business with us.
Personal Information
• Name
• Address
• Birthdate
• Phone number
• Social Security Number
• E-mail address
• Product-Related Personal Information
• Product Activity History (things you have done with your mutual funds such as deposits, transfers, redemptions, etc.)
GENERAL PRIVACY PROCESSES
How do we collect Personal Information?
We use a variety of methods to collect Personal Information. We collect Personal Information directly from you with paper forms (for example, new account and other administrative forms), over the phone or through facsimile transmissions. We also collect Personal Information from our web site and through other electronic means. We collect some Personal Information through joint marketing programs where we offer a product or service through another financial institution. In some of these instances, you may be considered a customer of both entities.
Who has access to this Personal Information?
Generally, only the Companies' staff and certain companies working on the Companies' behalf have access to this Personal Information.
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Those Working on Our Behalf
Depending on the product or service you select, there may be a number of third parties that will have access to your Personal Information since they are working on our behalf. This access is necessary because these third parties perform a task or provide administrative services for the product you seek or have purchased from us. If we do not share the Personal Information, we cannot provide you the product or service you requested. In certain cases, affiliates are the entities performing such services on our behalf.
When we share Personal Information with non-affiliated companies working on our behalf, we protect your Personal Information by requiring such companies to adopt our privacy policy or have a policy providing protection similar to ours.
Required Disclosures
Certain Personal Information may also be disclosed to third parties without your consent if disclosure is necessary to comply with: 1) legal processes; 2) to protect the rights, property, or personal safety of the Funds, their shareholders or the public; 3) as part of inspections or examinations conducted by our regulatory agencies; and 4) in other situations required by law.
Joint Marketing
In certain circumstances, the Companies may jointly market a product or service with another financial institution. In these circumstances, we have arranged to offer our products through these entities and their representatives or through electronic systems (for example, the Internet).
The Companies may make other disclosures authorized by law.
Requested Disclosures
We will disclose your Personal Information if you request it to those persons that you designate. Examples of this are to: members of your family; registered investment advisors, attorneys and CPAs who you have retained to advise you in a transaction; and persons whom you have designated to represent you in dealings with us.
What do we do with the Personal Information?
The Companies make use of the Personal Information to provide you with the financial products and services that we offer.
At the point that you cease being a customer, we will maintain your Personal Information and handle it just the same as our current customers.
The Companies restrict access to the Personal Information to those who need to know it for ordinary business purposes. We also maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your Personal Information.
What are your options regarding corrections of Personal Information?
Generally, upon your written request, we will make available Personal Information for your review. Please note, Personal Information collected that relates to a disputed claim or legal proceeding will not be made available. If you notify us that the Personal Information is incorrect, we will review it and if we agree, correct our records. If we do not agree, you may submit a short comment, which we will include in future third party disclosures, if any occur, of Personal Information.
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1-800-49-BUFFALO
(1-800-492-8332)
Buffalo Funds
c/o U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
www.buffalofunds.com
Buffalofundsemi
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) The registrant’s Principal Executive Officer and Principal Financial Officer has reviewed and evaluated the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) as of a date within 90 days of the filing of this report as required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on his review, the Principal Executive Officer and Principal Financial Officer has concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to him by others within the registrant and by the registrant’s service providers.
(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable to open-end investment companies.
Item 13. Exhibits.
(a) (1) Code of Ethics. Incorporated by reference to the Registrant’s Form N-CSR filed on June 30, 2017.
(2) Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith.
(3) Not applicable to open-end investment companies.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: Buffalo Funds |
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By | /S/Clay E. Brethour |
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| Clay E. Brethour, President and Treasurer |
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Date | December 4, 2018 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | /S/Clay E. Brethour |
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| Clay E. Brethour, President and Treasurer |
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Date | December 4, 2018 |
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