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 number811-10303
Buffalo Funds
(Exact name of registrant as specified in charter)
5420 W. 61st Place,
Shawnee Mission, KS 66025
(Address of principal executive offices) (Zip code)
Kent Gasaway
5420 W. 61st Place,
Shawnee Mission, KS 66025
(Name and address of agent for service)
913-677-7778
Registrant's telephone number, including area code
Date of fiscal year end:March 31
Date of reporting period:March 31, 2020
Item 1. Reports to Stockholders.
ANNUAL REPORT
March 31, 2020
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds' annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary, such as a broker-dealer or bank if you hold your shares through such an institution. Instead, the reports will be made available on the Funds' website (buffalofunds.com/our-funds/performance/#literature), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary or, if you hold your shares directly with the Funds, by calling (800) 492-8332.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Funds, you can call (800) 492-8332 to let the Funds know you wish to continue receiving paper copies of your shareholder reports. Your election to receive shareholder reports in paper will apply to all funds that you hold through the financial intermediary or directly with the Funds.
MESSAGE TO OUR SHAREHOLDERS
DEAR SHAREHOLDERS,
My new role as President of the Buffalo Funds comes at a challenging time. However, having previously served in this position from 1990 to 2013 and in the industry since 1980, there is not much I haven't seen. There have been wars, oil price spikes and crashes, mild recessions, deep recessions, computer driven bear markets, tech bubbles and real estate bubbles. Yet, never have we seen a pandemic with such a wide reach globally. The amount of deaths, the breathtaking declines in economic activity and the steepness of the climb in unemployment has been tragic. Conversely, the avalanche of grants, loans and government stimulus money provided to businesses and individuals, as well as massive purchases by the Federal Reserve, has been unprecedented.
No one knows what lies on the other side of this health and economic crisis. In the U.S. alone, over 38 million workers have lost their jobs as a result of the forced lockdown of businesses and stay at home edicts by cities and states. The unemployment rate has spiked from under 4% to near 15% in a matter of months. As mentioned above, even with significant help from the government it is highly uncertain how many small businesses will reopen and how many workers will be rehired.
The tug of war between investors that foresee a v-shaped recovery and those that expect a slow and drawn out recovery continues. This explains the extreme volatility exhibited in the stock market. With cities and states reopening and the volume of COVID-19 cases falling sharply the v-shaped crowd is currently in charge. The market is rallying and has a good feel. However, this could change quickly if one or more of a myriad of potential negatives came to the forefront. These could include serious discussion of higher federal and state taxes needed to pay for a mountain of spending and debt accumulation, a fading of optimism for a coronavirus vaccine, uncertainty surrounding the Presidential election or "new normal" of conservative spending by consumers.
Regardless of what's on the other side, you can expect a steady hand at the Buffalo Funds. The majority of our funds are growth oriented and you can have confidence we will maintain our long-term investment strategy of investing in companies benefitting from identifiable secular trends. We rely only on internal research, we stress teamwork and pay close attention to risk management both within and between our ten funds. Current versus historical valuation analysis, balance
sheet strength and free cashflow generation are important factors.
A majority of the Buffalo funds have generated favorable results to shareholders over the long-term. This report serves as an example as a number of our funds have held up quite well relative to the indexes during the downturn. Our goal is for this performance to continue. I am proud to serve another term as President and I'm proud of our talented fund managers, analysts, customer service and relationship reps and our back-office staff.
Sincerely,
Kent W. Gasaway
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, Inc. 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 (unaudited) | | | 6 | | |
Investment Results (unaudited) | | | 18 | | |
Expense Example (unaudited) | | | 24 | | |
Allocation of Portfolio Holdings (unaudited) | | | 28 | | |
Schedules of Investments or Options Written | | | 30 | | |
Buffalo Discovery Fund (BUFTX) | | | 30 | | |
Buffalo Dividend Focus Fund (BUFDX) | | | 36 | | |
Buffalo Emerging Opportunities Fund (BUFOX) | | | 44 | | |
Buffalo Flexible Income Fund (BUFBX) | | | 49 | | |
Buffalo Growth Fund (BUFGX) | | | 55 | | |
Buffalo High Yield Fund (BUFHX) | | | 60 | | |
Buffalo International Fund (BUFIX) | | | 73 | | |
Buffalo Large Cap Fund (BUFEX) | | | 83 | | |
Buffalo Mid Cap Fund (BUFMX) | | | 88 | | |
Buffalo Small Cap Fund (BUFSX) | | | 93 | | |
Statements of Assets and Liabilities | | | 98 | | |
Statements of Operations | | | 100 | | |
Statements of Changes in Net Assets | | | 102 | | |
Financial Highlights | | | 106 | | |
Notes to Financial Statements | | | 126 | | |
Report of Independent Registered Public Accounting Firm | | | 138 | | |
Notice to Shareholders (unaudited) | | | 139 | | |
Privacy Policy (unaudited) | | | 151 | | |
PORTFOLIO MANAGEMENT REVIEW (UNAUDITED)
BUFFALO DISCOVERY FUND
For the annual reporting period ending March 31, 2020, the Buffalo Discovery Fund (the "Fund") fell 9.64% versus the Morningstar U.S. Mid Cap Growth Index's (the "Index") decline of 6.73% and the Morningstar Mid Growth Peer Group decline of 11.17%. The Fund outperformed the benchmark in the Energy, Industrials, Financials, Real Estate, Telecom Services and Materials sectors while the Consumer Discretionary, Health Care and Technology sectors weighed on relative returns. Cyclically dependent and financially leveraged stocks performed worst in the Fund and Index with Energy, Materials, Travel, Entertainment and Consumer Retail stocks particularly hard hit. The energy sector, where the Fund is underweight, was the worst performing sector suffering from a nasty combination of excess supply and diminished global energy demand. The Fund continues to invest in innovative growth companies with relatively attractive valuations; a strategy we believe should be a key driver of above-Index risk-adjusted returns over the long term.
Dexcom Inc. is a leading manufacturer of continuous glucose monitoring devices for the management of diabetes. The company's differentiated products excel at accuracy, comfort and ease of use resulting in share gains and a favorable long-term outlook within the diabetes care industry. Its stock price was up 78% during the fiscal year as investors flocked to Dexcom's durable growth, low elective procedure risk and relatively recession resistant business model.
MSCI Inc. is a leading index and exchange-traded fund (ETF) provider. The company continued to benefit from the shift to low-cost passive investing while in the near term, investors cheered the resiliency of the subscription business, high switching costs inherent in the benchmark index business segment and the exciting potential of the newer analytics and environmental, social and governance (ESG) focused business initiatives.
Equinix, Inc. was also a standout performer for the Fund during the fiscal year, with the stock rising over 40%. The company is the biggest provider of co-located data centers in the world, and enables customer access to networks, partners, and cloud service providers. The growth in remote-work driven by social distancing has
increased demand for Equinix's internet communication services, and we expect the company to benefit from this increased demand in coming quarters.
Align Technology is a leading supplier of clear aligners for dental malocclusion. Its stock price fell on expectations COVID-19 fears will lead to lower case volume growth in the near term, which could make it more challenging for the company to fend off new entrants in its market. We believe prosperous growth is sustainable over the intermediate to long term as the company has expanded its products to address nearly 70% of the orthodontic market, which continues to convert from metal braces to clear aligners.
Arista Networks, Inc. a datacenter software and equipment provider fell after it guided to lower than expected revenue growth as its tier 1 cloud customers temporarily slowed spending to digest heavy capacity additions in recent years.
IAC/Interactive is a diversified internet services company offering dating websites, a digital home services marketplace and other emerging internet businesses. Social distancing and shelter at home initiatives have negatively impacted demand for home services and advertising on their branded internet sites.
The fiscal and monetary response to the pandemic has been relatively swift and expansive, with indications that if conditions do not improve world leaders and global central banks will do whatever is necessary to revive growth. Their efforts so far are encouraging, and markets have begun to stabilize and become more hopeful. In the near term, investors appear myopically focused on the state of new case volumes resulting in high stock correlations and volatility. Upcoming earnings results seem far less important than an assessment of 2021/2022 earnings power. Over the intermediate term, the revival of global growth will depend on how soon the pandemic can be contained through a combination of social distancing, better testing, improved therapies, vaccine development, and perhaps seasonal curtailment. Time will tell.
In the meantime, global economic uncertainty and low business and consumer confidence is weighing on the
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market and near term corporate fundamentals. This is opening up attractive buying opportunities for some of our favorite secular growth beneficiaries on the wish list.
We are not blindly buying lower stock prices. Instead we are mindful of the macroeconomic backdrop, the sensitivity of our companies to discretionary spending and the negative effect excessive leverage can have on corporate profit cycles in bad-time scenarios. We keep a keen eye on the degree of contraction that current prices discount and the degree to which management teams can protect profits and shed risk while retaining the competitive advantages that position them to excel on the upturn. Our work is beginning to tell us growing reward and upside opportunity trumps downside risk in many instances. We are patiently waiting for these good-odds situations and strike when we get them.
Economic conditions may ebb and flow, but our focus is steady; to invest in attractively priced, financially strong, well-managed companies benefitting from innovative strategies and disruptive megatrends.
BUFFALO DIVIDEND FOCUS FUND
The Buffalo Dividend Focus Fund posted a return of -8.32% for the annual period ending March 31, 2020, underperforming the Morningstar U.S. Large-Mid Cap Index return of -7.35% and the S&P 500 Index return of -6.98%. Only two out of the eleven economic sectors in the benchmark posted positive returns during the period, which were Information Technology and Telecommunication Services. The Fund had four sectors with positive returns, including Information Technology, Healthcare, Real Estate, and Consumer Staples. Financials and Health Care posted favorable relative performance compared to the benchmark's sectors. The Fund's results in Information Technology posted a higher total return than the benchmark, but experienced a lagging relative total effect in the sector due to the Fund's underweight to the strong performing benchmark sector.
Specific securities that contributed most positively to fund performance over the past 12 months included Medicines Company (MDCO), Microsoft Corporation (MSFT), and Apple Inc. (AAPL). Medicines Company, a pharmaceutical drug development company, jumped on favorable study results for Inclisiran (cholesterol therapy) which led to the company's acquisition by Norvartis. Microsoft Corporation improved on growing momentum from its cloud services and enterprise products boosting
results above analysts' estimates, winning the pentagon's JEDI cloud contract, and expansion in the company's valuation metrics. Apple Inc. advanced on solid operating results, guidance on iPhone sales, strength in services and wearables, better trends in China, and reduced trade tensions.
Specific securities that detracted from performance include Boeing Company (BA), Energy Transfer, L.P. (ET), and Viper Energy Partners LP (VNOM). Boeing Company, the aerospace and defense manufacturer, fell after two tragic aircraft crashes of its 737 MAX commercial airplane which has resulted in production and delivery delays as the company seeks to get the aircraft recertified for commercial operation. Energy Transfer, L.P., an energy transportation services partnership and Viper Energy Partners dropped as energy prices plunged in response to the failure of an agreement between the Organization of the Petroleum Exporting Countries (OPEC) members on production cutbacks and the drop in demand caused by the Coronavirus pandemic.
The stock market's bull-run ended in March, as the market experienced a sharp decline due to the pandemic and the efforts to contain it and limit the economic damage. Governments and healthcare experts have responded to the crisis by issuing stay at home orders to try to curtail the spread of the disease and reduce fatalities. The economic impact from the orders has been a sharp decline in spending and an explosion in unemployment as consumers stay home. To limit the economic damage governments are passing various financial aid programs and health care measures to combat the pandemic. Central Banks have also cut benchmark lending rates and expanded their balance sheets as they buy various assets of eligible securities. The fiscal and monetary response to the pandemic expansion has been relatively swift and expansive, with indications that if conditions do not improve, they will do whatever it takes. Their efforts so far are encouraging, and markets have begun to rebound. Over the intermediate term, the pandemic will need to be contained through a combination of better testing, improved therapies, vaccine development, and seasonal curtailment for the economy to recover and generate sustainable growth.
Despite the uncertainty created by the pandemic, we remain focused on wide moat, large capitalization companies trading at reasonable valuations, in our view. As always, the Fund will continue to emphasize on
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competitively advantaged companies that can be purchased at a fair value, in our opinion. As stock market volatility spikes, we will look for opportunities to find companies that fit our investment criteria, as we continue to follow our process of finding new investment ideas and to be ready when market declines provide better entry points.
BUFFALO EMERGING OPPORTUNITIES FUND
The Buffalo Emerging Opportunities Fund posted a return of negative 14.38% in the 12-month period ending March 31, 2020. The Fund's primary benchmark, the Morningstar U.S. Small Growth Index, produced a return of negative 16.07% during the period while the Russell 2000 Growth Index and the Russell MicroCap Growth Index returned negative 18.58% and negative 21.96%, respectively.
The spread of COVID-19 and the resulting pandemic created a new chapter in history books in the first quarter of 2020. The major issues just a few quarters ago that included U.S./China trade war and flare ups in geopolitical issues between U.S./Iran have become nearly irrelevant as COVID-19 has taken center stage and created an environment few of us could have ever foreseen. The market sell-off as the virus spread throughout the European Union and the U.S. was the swiftest in history, with the S&P 500 Index falling 35% from peak-to-trough in just over one month. Even worse was the performance of smaller growth stocks, as measured by the Russell 2000 Growth Index, which declined 43% from peak-to-trough. The final annual period returns were however less ugly than the peak-to-trough declines given a strong start to the year and a sharp rebound in the final week of March 2020.
During the year, investors preferred the perceived relative safety of larger companies. This is best illustrated by the fact that the large cap Russell 1000 Index dramatically outperformed both the small cap Russell 2000 Growth Index and the Russell MicroCap Growth Index. Domestically, growth stocks outperformed value stocks by a wide margin. As an example, the Russell 2000 Value Index declined 29.64% in the year ended March 31, 2020, more than ten percentage points worse than its growth counterpart.
With shelter-in-place orders across the U.S. and the world affecting close to half the global population, numerous industries saw sales and profits decrease dramatically. At
the time of this writing in late April, states in the U.S. and countries in Europe are beginning to ease restrictions on households and businesses. However, it remains unknown as to how consumers and businesses will rebound. Additionally, there is significant risk that COVID-19 cases could spike again as a result of the loosening of these restrictions and the potential government response the second time around. In this environment, almost universally, companies are withdrawing previous financial guidance and declining to give updated financial guidance for upcoming quarters and the remainder of the year.
Regarding portfolio positioning, fund management exited investments where the outlook was more challenged than most, particularly those companies linked to travel/leisure and the aerospace industries. Additionally, we examined the Fund's investments for balance sheet/cash flow related problems given the drastic nature of the downturn and the financial issues it could create. The Fund ended the annual reporting period with 58 holdings.
The Fund remains overweight the technology sector and we continue to have high confidence that, small cap technology companies with solid fundamentals (solid growth potential, recurring revenue, high margins or the potential for high margins) that are disrupting previous ways of conducting business could be the place to allocate capital as long as valuations remain reasonable.
Looking ahead there remains a lot of uncertainty regarding the return to a new normal. Additional market risk exists around the coming U.S. elections in November. However, we believe the federal government has shown and appears willing to continue to do whatever is necessary to support the economy, and especially the financial markets.
While we acknowledge the challenging macro-economic backdrop, our job continues to be to find attractive small cap companies where the stock price has not been fully appreciated by the market or has been mispriced due to near-term results or events. The Fund's investments are focused on the smaller end of the small cap growth spectrum where management seeks to identify innovation among U.S. companies with North American revenue bases. We continue to believe that the lack of investor interest in the smaller, early-stage segment of the market creates opportunity to uncover value. Given recent volatility, this is perhaps even truer today. Finally, with an active share of greater than 95%, the Fund will continue to offer a distinct offering from the passive indexes and category peers.
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BUFFALO FLEXIBLE INCOME FUND
For the twelve months ended 3/31/20, the Buffalo Flexible Income Fund declined 19.63% compared to a loss of 9.63% for the Morningstar Moderately Aggressive Target Risk Index. The primary sectors that led to the underperformance were Energy and Industrials. The underperformance in Energy was primarily due to sector allocation and to a lesser degree security selection. Energy has been negatively impacted by shocks to both the supply and demand for the commodity. On the supply side, Saudi Arabia decided to increase production which put downward pressure on prices and then shortly thereafter the COVID-19 global pandemic reduced demand due as nations restricted travel for their populations. The industrial sector was also a detractor primarily due to security selection. The primary detractor in the Industrial sector was Boeing. Boeing was negatively impacted by both lingering manufacturing issues associated with the 737 Max commercial airplane but even more significant was the impact of the global COVID-19 pandemic and various government initiatives to minimize or halt travel. The top contributors during the annual reporting period were Microsoft, Medicines Company and Digital Realty while the top detractors were Boeing, Apache and Schlumberger.
The global spread of the pandemic has carved out significant uncertainty about the direction of the global economy and large cap stocks. Large portions of the U.S. and European economies are closed in an attempt to contain the spread of the virus, and the timing at which they will begin to completely reopen is unclear. The fiscal stimulus passed by Congress in March to help individuals and businesses impacted by virus shutdowns, and aggressive moves by the Federal Reserve to support liquidity in the financial system are expected to soften the depth of the economic downturn the U.S. economy is facing. At the same time, the exact timing and process to reopen the economy remains uncertain. Because of this, we expect the market to stay on a path of elevated volatility influenced by the spread and recovery rates of COVID-19 and potential treatments or vaccines for the virus. Other factors such as data showing how consumers are impacted and behaving, and corporate earnings, which will show the extent of the damage they are seeing in their operations and balance sheets will also be monitored closely.
BUFFALO GROWTH FUND
For the annual reporting period ending March 31, 2020, the Buffalo Growth Fund (the "Fund") fell 3.90% compared to the Morningstar U.S. Growth Index's (the "Index") advance of 1.45%. The Fund's performance was in-line with the Morningstar Large Cap Growth Peer Group decline of 3.72%. The Fund outperformed the benchmark in Real Estate, Materials, and Consumer Staples while the remaining sectors weighed on relative returns. Cyclically dependent and financially leveraged stocks performed worst with energy, materials, travel, entertainment and consumer retail stocks particularly hard hit. The Fund continues to invest in high quality growth companies with relatively attractive valuations; a strategy we believe should be a key driver of above-index risk-adjusted returns over the long term.
Amazon.com Inc., one of the world's largest online retail shopping services company, saw significant revenue acceleration during the year as consumers shifted to eCommerce and online grocery shopping with the nation-wide lockdown resulting from the COVID-19 pandemic. While Amazon's disruption of the retail industry is well documented, the recent shelter-at-home mandate has accelerated the shift from brick and mortar to online commerce. We believe that Amazon has significant runway for growth as it continues to find ways to evolve its business model.
Microsoft was also a top contributor for the Fund. The company has generated strong growth across all product lines including server, enterprise and cloud products. The company appears well positioned to continue this steady growth in upcoming quarters.
Schlumberger, an oil services company, was the worst-performing investment position during the year. Its business was hurt by the large decline in energy prices, as well as, COVID-19 driven demand destruction throughout the global economy.
Wells Fargo, one of the largest banks in the United States, declined largely due to the impact of the COVID-19 pandemic on the global economy and lower interest rates as the Federal Reserve cut its benchmark lending rate to zero. Despite the difficult near term environment the company remains profitable and should maintain adequate capital levels even after modeling for the Federal Reserve's severely adverse stress test in a worst case scenario. We are monitoring developments closely but we believe current valuation of the company's stock makes a relatively compelling risk-reward tradeoff longer term.
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The fiscal and monetary response to the pandemic has been relatively swift and expansive, with indications that if conditions do not improve world leaders and global central banks will do whatever is necessary to revive growth. Their efforts so far are encouraging and markets have begun to stabilize and become more hopeful. In the near term, investors appear myopically focused on the state of new case volumes resulting in high stock correlations and volatility. Upcoming earnings results seem far less important than an assessment of 2021/2022 earnings power. Over the intermediate term, the revival of global growth will depend on how soon the pandemic can be contained through a combination of social distancing, better testing, improved therapies, vaccine development, and perhaps seasonal curtailment. Time will tell.
In the meantime, global economic uncertainty and low business and consumer confidence is weighing on the market and near term corporate fundamentals. This is opening up attractive buying opportunities for some of our favorite secular growth beneficiaries on the wish list.
We are not blindly buying lower stock prices. Instead, we are mindful of the macroeconomic backdrop, the sensitivity of our companies to discretionary spending and the negative effect excessive leverage can have on corporate profit cycles in bad-time scenarios. We keep a keen eye on the degree of contraction that current prices discount and the degree to which management teams can protect profits and shed risk while retaining the competitive advantages that position them to excel on the upturn. Our work is beginning to tell us growing reward and upside opportunity trumps downside risk in many instances. We are patiently waiting for these good-odds situations and strike when we get them.
Economic conditions may ebb and flow, but our focus is steady; to invest in attractively priced, financially strong, well-managed companies benefitting from innovative strategies and disruptive megatrends.
BUFFALO HIGH YIELD FUND
The Buffalo High Yield Fund generated a return of -6.67% for the fiscal year ending March 31, 2020, outperforming the ICE BofA Merrill Lynch US High Yield Master II Index (the "Index") return of -7.45% and the Lipper High Yield Bond Funds Index return of -8.47%.
After producing positive returns in the first three quarters of the fiscal year, the performance for the high yield sector suffered a significant correction in the first quarter
of 2020 driven by the COVID-19 outbreak and plunging crude oil prices which pushed returns well into negative territory. The market's positive performance during the first three quarters was driven by: (i) continued, albeit modest, economic growth of U.S. gross domestic product (GDP); (ii) a healthy labor market with additional jobs added and the unemployment rate near cycle lows; (iii) and an accommodative Federal Reserve policy. The Saudi-Russian power struggle over oil output and the virus pandemic overshadowed everything in the month of March. The Fed enacted extraordinary measures including slashing rates, removing the caps on the size of asset purchases, and restarting the Term Asset-Backed Securities Loan Facility (TALF) program. In concert with the Fed moves, Congress passed its +$2 trillion economic relief package but the damage was done and the flight to quality ensued quickly and painfully. The 10-year Treasury bond returned a positive 18.74% during the fiscal year while the S&P 500 Index returned negative -6.98%.
The flight to quality along with increased market volatility resulted in high yield mutual funds experiencing cash outflows of about $16.7 billion during the quarter. In fact, the $13 billion outflow in the month of March was the second largest monthly outflow for high yield trailing only the $13.6 billion outflow in June 2013. This follows a $3.0 billion inflow in the previous quarter and a $3.2 billion inflow in the 3rd quarter of 2019. Despite the large March quarter outflow, the annual $7.4 billion outflow was still less than the $12.5 billion of outflows in the previous fiscal year according to data from JP Morgan. The high yield new issuance calendar in the fiscal year 2020 increased $113 billion from the previous year to $294 billion despite the non-existent primary market in the final month of March due to the COVID-19 pandemic.
During the fiscal year, the 10-year Treasury bond yield declined by 174 bps from 2.41% to 0.67% while the 2-year Treasury bond shed 209 bps ending the year at 24 bps. The drop in the yield curve was driven by the flight to quality from risky assets into U.S. government securities. As would be expected, the higher quality end of the high yield risk spectrum outperformed the lower credit quality issues. According to data from JP Morgan, the CCC-rated segment lost -13.76%, underperforming the B-rated and BB-rated segments, which lost -7.96% and -4.42% respectively. The Fund has historically taken a more defensive position relative to the indices which lead to relative outperformance during the period.
According to data from JP Morgan, the U.S. high yield market's spread to worst for the period end was 949 bps,
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497 bps wider than the preceding March 2019 quarter and 339 bps wider than its 20-year historical average of 610 bps. The yield to worst for the high yield market at fiscal year-end was 10.00%, above the 8.70% 20-year average, and above the 6.83% yield at the end of calendar year 2019.
The Fund's cash balance at the end of the year decreased from the previous year's levels by over 4% as new security purchases eclipsed the holdings in the Fund that were called by the issuers or sold outright. The Fund's composition by asset class at fiscal year-end was as follows:
| | 3/31/2019 | | 6/30/2019 | | 9/30/2019 | | 12/31/2019 | | 3/31/2020 | |
Straight
Corporates | | | 65.4 | % | | | 64.7 | % | | | 65.0 | % | | | 55.6 | % | | | 60.1 | % | |
Convertibles | | | 10.1 | % | | | 12.1 | % | | | 13.4 | % | | | 17.7 | % | | | 16.7 | % | |
Bank Loans | | | 17.2 | % | | | 15.2 | % | | | 16.0 | % | | | 16.2 | % | | | 19.1 | % | |
Preferred
Stocks | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 1.1 | % | | | 1.3 | % | |
Convertible
Preferreds | | | 0.6 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | | | 0.0 | % | |
Common
Stocks | | | 0.7 | % | | | 1.4 | % | | | 1.2 | % | | | 1.7 | % | | | 1.0 | % | |
Cash | | | 6.0 | % | | | 6.5 | % | | | 4.4 | % | | | 7.6 | % | | | 1.8 | % | |
Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | |
The approximate rate and contribution of return from the various asset classes in the Fund during the fiscal year is as follows:
| | Approximate
Contribution
to Return | |
Straight Corporates | | | -3.11 | % | |
Convertibles | | | -0.33 | % | |
Bank Loans | | | -0.90 | % | |
Preferred Stocks | | | -0.56 | % | |
Convertible Preferreds | | | -0.01 | % | |
Common Stocks | | | -1.04 | % | |
Total | | | -6.67 | % | |
Specific securities that contributed most positively to performance include Medicines Co. 2.750% convertible bonds, Maxar Technology bank debt, and Brunswick 7.375% straight corporate bonds. Medicines Co. was acquired by Novartis late in the year for a 48% premium and the convertible bond price responded in kind before being redeemed. Maxar Technology was one of the Fund's worst performers in the prior year and resolved its issues and made asset sales which improved the outlook for the bank debt. Brunswick is an investment grade credit with a high coupon with a relatively short maturity in 2023 which protected it somewhat from the downturn.
Specific securities that detracted the most from performance include MPLX 6.875% corporate bonds, US Silica bank debt, and Energy Transfer L.P. All three companies are directly exposed to the U.S. exploration and production (E&P) sector which was significantly hurt by plummeting crude prices in March.
Until March, the United States had been enjoying a growing economy with modest inflation that had created a favorable environment for risky assets. However, near the end of February, early March, the COVID-19 pandemic and plummeting crude oil prices wreaked havoc on the markets. The U.S. high yield default rate increased to a three year high of 3.54% in March which was up 91 bps from the 2.63% level in December 2019, 0.95% level last March and above the 3.44% long-term average. We are concerned first and foremost about the ongoing COVID-19 pandemic and the fallout on global economies while previous issues such as China trade talks and the upcoming presidential election become a secondary focus. We are managing the Fund cautiously yet actively, focusing on high-quality 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. Additionally, we believe bank loans offer a more defensive position as they provide senior positioning in the capital structure. Finally, we continue to look for opportunities in convertible bonds and preferred securities. We ended the fiscal year with 136 positions in the portfolio, up from the previous year-end level (excluding cash) of 122 positions.
BUFFALO INTERNATIONAL FUND
Global equity markets fell sharply to close out the final quarter of the annual reporting period in reaction to the global spread of COVID-19. As the case count increased exponentially, the only effective response was for countries to go into lockdown. The economic impact of these actions became clear near the end of the fiscal year and virtually all asset classes suffered as a result. The Buffalo International Fund declined by 7.67% during the fiscal year but outperformed the Morningstar Global Markets ex-US Index's drop of 16.12%. Within developed international markets, the United Kingdom and Australia were among the biggest decliners while Switzerland held up relatively well. Counterintuitively, China was a relatively strong country performer posting a relatively
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modest 5% decline, based on the MSCI country indexes, while Brazil was among the worst losing over 40%.
From a sector perspective, Energy and Consumer-related areas suffered the most as the Saudis and Russians engaged in an oil price war and consumers globally went into quarantine. The Health Care and Information Technology sectors were relative outperformers as Health Care even managed to post a positive return during the period.
One of the contributors to our relative outperformance for the period was Sartorius Stedim, which supplies equipment and disposables for the biological pharmaceutical industry. As you can imagine, with the rush to find prophylactics and treatments for COVID-19 supplies to this supply chain have been relative beneficiaries. So too with our investment in Lonza Group which produces media, active ingredients and helps pharmaceutical companies produce their biologic drugs and drug candidates. Interxion Holdings was also among the group of contributors as the company provides cloud and internet gateway access and was acquired in the first quarter of 2020.
Some of the top detractors from portfolio performance included ICICI Bank, CTS Eventim, and Ashtead Group. ICICI Bank provides financial services throughout India and as the COVID-19 virus brought many businesses to a standstill, investors worried about deteriorating health in their loan book, as was the case with all financial institutions. CTS Eventim provides tickets for large gatherings like concerts, and sporting events. With social distancing and stay-at-home orders, these large gatherings have been completely canceled until further notice. We exited the position during the period as we try to assess how and when these gatherings might return. Ashtead Group provides rental equipment primarily for construction related activities. The company's stock was hit unduly due to fears of a complete economic shutdown. We feel Ashtead will come out of a recession better positioned than ever and companies may increasingly be likely to rent equipment rather than purchase their own as they try to maintain larger cash balances.
In Europe in an eventual post-crisis economic recovery, fiscal deficits and populism may continue to weigh on sentiment, spending, and investment. Emerging signs of stabilizing growth in the continent earlier this year now seem like a distant memory. In Japan, structural reforms have had limited success, and the consumer tax hike in
October 2019 contributed to a sharp economic contraction in the fourth quarter. This market period has obviously been extremely volatile and difficult to navigate. As we saw signs of the virus spreading rapidly, we began taking action by trimming positions where valuation was getting full and/or where an eventual recovery may take longer. We initiated new positions in a few stocks we have been watching and waiting for a more attractive entry point provided the nature of their businesses would still thrive in such an odd economic period.
The markets will have to endure some very terrible economic data for at least several quarters and most companies have very little visibility into forward business .While we do not want to underestimate the impact of the coronavirus outbreak, history shows that events like this tend to offer opportunities for investors that are long-term oriented. Despite the uptick in market volatility, we will continue to invest in businesses with durable competitive advantages and superior growth profiles trading at attractive valuations. We believe that a portfolio of these companies will continue to offer attractive risk adjusted returns over the long haul.
BUFFALO LARGE CAP FUND
The Buffalo Large Cap Fund declined by 3.40% during the 12-month period ending March 31, 2020, underperforming the Morningstar U.S. Large Growth Index, which gained 2.29%. Stock selection in the Consumer Discretionary sector was the biggest driver of the Fund's relative underperformance during the period. This source of underperformance relative to the index was offset, in part, by stock selection in the Real Estate and Financial sectors. Both the Fund and the Index generated strong positive returns in the 9-month period ending December 31, 2019, but these gains were largely offset by the market declines in the final three months of the annual reporting period ending driven by the global spread of the global COVID-19 pandemic.
The Fund ended the fiscal year with 52 holdings (excluding cash) representing 51 companies, up from 48 holdings representing 47 companies at the end of the previous fiscal year ending March 31, 2019. The cash position ended the fiscal year at about 6% of Fund assets.
Microsoft was the top-contributing investment for the Fund during the fiscal year with the stock returning nearly 36%. The company generated strong growth across all product lines including server and cloud products and office commercial products. The company
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appeared positioned to perform relatively well in an environment of heightened concern about the COVID-19 virus given the recurring nature of its revenue and fast-growing cloud products.
Apple was the next top-contributing investment for the Fund during the fiscal year, also returning nearly 36%. Although consumer demand for its products could be pressured due to the COVID-19 outbreak, the company appeared to be relatively well positioned for the coming quarters. The company has a very strong balance sheet, could benefit from the launch of 5G phones later in 2021, and stands to potentially benefit from rapid growth in its high margin digital services products as well.
Equinix was also among the top contributors for the Fund during the fiscal year, with the stock returning just over 40%. The company is the biggest provider of co-located data centers in the world, and enables customers' access to networks, partners, and cloud service providers with a largely recurring revenue base. Growth in remote-work driven by COVID-19 containment measures has increased demand for Equinix's internet communication services, and we expect the company to benefit from this increased demand in coming quarters.
Schlumberger was the Fund's worst performing investment during the fiscal year. This is an exploration and production (E&P) services company whose business was hurt by the large decline in energy prices as well as COVID-19 driven operational slowdowns in its customer base. The company's ability to maintain its dividend and the trajectory of its operating performance in coming quarters are uncertain given the difficult macro environment.
Xilinx, a high-quality semiconductor manufacturing company, was another weak-performing position for the Fund during the period. The stock was under pressure for much of 2019 due to fears of a trade war with China. The economic slowdown caused by the COVID-19 outbreak has hurt the company's prospects for 2020, and dampened demand in its end markets including auto, consumer, and data centers. While we believe the company's long-term prospects in a recovery would be positive there is minimal clarity about its operating performance in the near term.
As we enter the new fiscal year, the global spread of COVID-19 has created significant uncertainty about the direction of the global economy and large cap growth stocks. Large portions of the U.S. and European
economies are closed to contain the spread of the virus, and the timing at which they will fully reopen is unclear. The fiscal stimuluses passed by the Congress in March and April to help individuals and businesses impacted by virus shutdowns, and aggressive moves by the Federal Reserve to support liquidity in the financial system have likely worked, at least in part, to soften the depth of the economic downturn the U.S. economy is facing. At the same time, the exact timing and process to reopen the economy remains a big uncertainty. Because of this, we expect large cap stocks to stay on their path of elevated volatility in the early part of the new fiscal year. Factors including, evolving data about the spread and recovery rates of COVID-19, potential treatments or vaccines for the virus, data showing how consumers are impacted and behaving are expected to contribute to the volatility. The next several earnings cycles will show the extent of the damage companies are seeing in their operations and balance sheets.
Within this environment, we are managing the Fund cautiously yet opportunistically. Large cap growth stocks have declined less than some other asset classes through April, but we have seen the opportunity to trim holdings whose operations are highly exposed to the economic shutdown and add to investments that are relatively more insulated. We have also taken the opportunity to initiate new positions in several appealing ideas that have pulled back to attractive levels, even after accounting for near-term declines in revenue and earnings. We continue to focus on companies with strong business models and margin structures, that generate solid cash flow and have solid balance sheets.
BUFFALO MID CAP FUND
The Buffalo Mid Cap Fund returned -2.89% for the 12-month period ending March 31, 2020, outperforming the Morningstar U.S. Mid Growth Index's return of -6.73%. Fund performance was driven by stock selection in the Financial and Industrial sectors, and almost no exposure to the weak performing Energy sector, and a slightly elevated cash position. This was partially offset by poor stock selection in the Information Technology and Consumer Discretionary sectors.
MSCI Inc. was a strong performer for the Fund throughout the year. Results benefited from the continued growth in assets under management tied to their indices. Rapid growth in analytics and environmental, social and governance (ESG) offerings
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contributed to the upside. Amongst the market turmoil later in the quarter, investors flocked to MSCI as they sought safety in the relative stability of their business model. We continue to hold a favorable view of MSCI's long-term growth prospects.
CoStar Group was another top contributor during the period. Their multifamily segment drove growth, where the Apartments.com acquisition continued to surprise to the upside. Their core commercial real estate data business is the kind of sticky, recurring business that investors have continued to reward with a high valuation multiple. Management at CoStar has earned a reputation as strong allocators of capital, and it would not be a surprise if they used any economic weakness as an opportunity to acquire adjacent businesses at attractive terms.
Equinix shares were also among the top performers for the Fund driven by the continued adoption of cloud computing by enterprises. In addition, shares outperformed during the recent market decline, as increased working from home is serving to accelerate cloud adoption. Equinix also has a strong base of recurring revenue that is less exposed to adjustment from weaker economic activity.
Shares of Palo Alto Networks were weaker as sales growth slowed in its more mature firewall market. Despite rapid growth in its cloud security business and results that exceeded expectations, investors fear that the subscription nature of cloud security could be a continued headwind for growth in the core business of selling next generation firewalls, which is a hardware plus subscription business model.
Norwegian Cruise Line Holdings declined and detracted from Fund performance as the company was at the center of COVID-19 concerns. With the virus spreading on several cruise ships, the fallout could lead to lower cruise demand for several years. We were uncomfortable with the company's financial and operating leverage and decided to exit the position.
VMware shares sold off significantly in the recent market decline. The company's infrastructure software is sensitive to overall IT spending because their product is often priced on a usage basis, related to servers and CPUs. Despite being one of the largest vendors of virtual desktop software that enables remote work from home, a bigger portion of its business is tied to computing in data centers where a drop in capital spending would be negative for future growth.
The near-term outlook is extremely uncertain. We expect to see heightened volatility as investors assess the length and severity of the coronavirus pandemic and the economic fallout from social distancing policies. Consumer confidence is shaken, and we expect the economy to struggle until a vaccine or drug treatment are widely available. The good news is that, given the number of businesses and governments working on this, a breakthrough could occur at any time.
In these turbulent times, we have not changed our investment philosophy or process. We are using the heightened volatility to look for new opportunities. Portfolio turnover has ticked up over the last couple of months, but we continue to take a long-term view when making new investments. We are also increasing our efforts to stress test the balance sheets and business models of portfolio holdings and prospective investments to make sure they can survive the current economic downturn. We will continue to invest in businesses with durable competitive advantages and superior growth outlooks, when they are selling at attractive valuations. We believe that a portfolio of these companies will continue to offer attractive risk adjusted returns. Thank you for your continued support.
BUFFALO SMALL CAP FUND
As is common in rapid, macro-driven declines such as the one experienced in March 2020, smaller company stocks declined more than mid and large caps, as market liquidity declined and investors sought the greater liquidity and relative safety of larger cap stocks. Small cap growth outperformed small cap value meaningfully during the fiscal year. Energy and Materials suffered the most in the Morningstar US Small Growth Index, as the Saudis and Russians engaged in a price war late in the fiscal year pressuring stocks tied to oil, and the economy slowed dramatically hurting cyclical stocks. The Health Care sector, which is not as economically sensitive but still witnessed pockets of weakness tied to reduced elective procedures during COVID 19, outperformed the broad market.
The Buffalo Small Cap Fund (BUFSX) declined by 7.33% during the fiscal year, but outperformed the Morningstar U.S. Small Growth Index, which declined by 16.07%. The outperformance was driven by stock selection in Health Care, Financials, and Technology which more than offset relative weakness in Consumer Discretionary and Consumer Staples. The Health Care performance is
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notable as the Fund's investments were up 5.2% on average versus a decline of 7.6% for the index sector. The portfolio benefitted from an emphasis on companies that are commercial stage and not overly reliant on the capital markets for additional funding, as well as owning some stocks in companies that could benefit from the fight against COVID 19 like Teledoc, a leading telemedicine company, and Quidel, a diagnostic company that will produce assays for COVID 19. Outperformance in Financials was driven by our focus on high recurring revenue companies like Hamilton Lane, an asset management company focusing on private equity, and Palomar, a specialty insurance company. Technology outperformance was driven by broad positive contribution across software, semiconductors, and communications equipment.
Overall, eHealth was the best performing stock during the fiscal year. The company posted outstanding results in its seasonally-strong December and March quarters and had an excellent outlook for the rest of 2020. With Joe Biden getting the nod from the Democratic Party over Bernie Sanders, the risk to the stock of a single payer healthcare system has been greatly reduced. Medicare continues to have broad bipartisan support and may even enjoy greater access and coverage going forward. As a market leader in helping seniors select the best Medicare Advantage, Supplemental Medicare, and/or Part D plan, we believe eHealth has a favorable runway for additional growth.
Teladoc was also a meaningful contributor to the Fund's results this year. The market leader in telemedicine could not have had a more favorable setup than a pandemic and mandated global quarantine that has massively accelerated the use of telemedicine by both doctors and patients. The company is quickly ramping to fulfill demand and announced in mid-April that consultations have doubled since the first week of March 2020. This is clearly the tipping point the industry needed to go mainstream, and, as the leader in telehealth, Teladoc should continue to benefit disproportionately.
The biggest disappointment during the year was our investment in Everi Holdings, a producer of gaming equipment and financial technology products for casinos. During the March, 2020 quarter, Everi went from making new highs in its share price due to market share gains, record performances in its slot machine business, and a new product cycle coming in its financial technology business, to having its customers close their doors for an indefinite period due to the pandemic. While it had a
majority of revenue from recurring sources like slot play and ATM transactions, it needs its customers to be operating in order to get that recurring revenue. Because the company is dependent on casino traffic and capital spending from an ailing casino industry, we exited the position late in the fiscal year.
This market period has obviously been extremely volatile and difficult to navigate, and we would like to offer some comments on how we have been managing the Fund during this time and how we have positioned the portfolio going forward. As we saw signs of the virus spreading rapidly outside of Wuhan, we began taking action by selling some investments that had been outperformers where valuation was getting full, and selling in some areas of Consumer and Energy. We also sold some positions in Health Care that were reliant on elective procedures or doctor visits that would likely get canceled and reduced exposure to advertising, as this usually gets cut quickly in weak economic periods. We then circled back to a few stocks we have been watching and waiting for a more attractive entry point, provided that the nature of their businesses would still thrive in such an odd economic period. For example, e-commerce, bankruptcy consulting, and telecom equipment companies should benefit while travel, live events, and oil service companies likely do not.
As always, during downturns, we also seek to take advantage of quality, mid cap companies whose share prices have fallen into our market cap range. This is especially true in the Consumer Discretionary sector where we know the companies have solid balance sheets and will be survivors in industries that are likely to see a lot of capacity leave the market, such as restaurants and retail. Furthermore, knowing that there will be very few companies that will not see negative estimate revisions, we have looked to take advantage of lower share prices by buying more of those companies we already own that should continue to benefit from the same long-term trends they experienced before the pandemic. While their relative importance in the world may have decreased in the short term, as everyone focuses on their basic needs and adjusts to a weaker economy, the underlying trends remain, and we as a nation will eventually adjust to our new realities.
As during most periods of high volatility and a rapid change in economic growth, portfolio turnover increased in the latter part of the fiscal year. While the average cash balance was a little higher at times in the final quarter of the fiscal year, the Fund ended the annual period
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practically fully-invested with less than a 2% weighting in cash. Overall, the portfolio's cyclical weighting is below average, as it has been for some time, and this is something we will be watching closely in the quarters ahead, as the economy eventually improves. While the market has been enjoying a nice bounce since the lows in mid-March, it is tough to say whether we will revisit the lows, as is typical, or retain the gains off the bottom. Clearly, the markets will have to endure some very terrible economic numbers for at least the next two quarters, and most companies have very little visibility into forward business trends. There is also significant uncertainty related to the spread and recovery rates for COVID-19 and potential treatments or vaccines for the virus. We expect evolving data on this will drive significant volatility in our small cap investments in coming months. So far, in mid-April, the market is digesting withdrawn guidance fairly well and some hard-hit areas like consumer are seeing dramatic moves off the bottom, if companies can at least show that they are not in danger of going bankrupt. At some point, the market will want more than that for share prices to move higher, but it is hard to see when that period is and where share prices will be at that time.
So far, the Fed and the Treasury Department have done a good job of providing liquidity to markets and cash strapped consumers and businesses, but there are still a few areas like mortgage issuance and rent payment by restaurants and retailers where issues remain. The one fact we take solace in is that small cap usually outperforms as we head out of bear markets and recessions. In fact, small cap has outperformed large cap coming out of nine out of the last ten recessions, and we do not feel this time will be any different. We continue to manage the portfolio the same as we always have — bottom up, investing one name at a time based on the fundamental merits and valuation parameters of each company. Our time-tested process of investing in premier companies, which could benefit from long-term trends and trade at attractive valuations, remains the cornerstone of our work, and we appreciate your continued confidence in our efforts.
Sincerely,
John C. Kornitzer
President, KCM
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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.
A basis point is one hundredth of a percentage point (0.01%) 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 actually defaulting. A Spread is the difference between the bid and the ask price of a security.
Spread to worst is the difference between the yield to worst of a bond and the yield to worst of a U.S. Treasury security with similar duration.
The London Interbank offered Rate (LIBOR) is a benchmark interest rate at which major global banks lead to one another in the international interbank market for short-term loans.
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.
Active share is a measure of the percentage of stock holdings in a manager's portfolio that differs from the benchmark index.
Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.
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INVESTMENT RESULTS (UNAUDITED)
Total Returns as of March 31, 2020
| | | | | | Average Annual | |
| | Gross Expense
Ratio*** | | Six
Months | | One Year | | Five Years | | Ten Years | | Investor
Class
Since
Inception | | Institutional
Class
Since
Inception2 | |
Buffalo Discovery Fund — Investor Class
(inception date 4/16/01) | | | 1.01 | % | | | -14.38 | % | | | -9.64 | % | | | 5.60 | % | | | 11.13 | % | | | 8.27 | % | | | N/A | | |
Buffalo Discovery Fund — Institutional Class
(inception date 7/1/19)1 | | | 0.86 | % | | | -14.29 | % | | | -9.48 | % | | | 5.77 | % | | | 11.30 | % | | | N/A | | | | -15.55 | % | |
Morningstar US Mid Growth Index | | | N/A | | | | -10.11 | % | | | -6.73 | % | | | 6.22 | % | | | 11.10 | % | | | 7.19 | % | | | -13.62 | % | |
Lipper Multi-Cap Growth Funds Index | | | N/A | | | | -7.94 | % | | | -4.45 | % | | | 7.16 | % | | | 10.98 | % | | | 6.31 | % | | | -9.85 | % | |
Buffalo Dividend Focus Fund — Investor Class
(inception date 12/03/12) | | | 0.94 | % | | | -14.07 | % | | | -8.32 | % | | | 4.64 | % | | | N/A | | | | 9.29 | % | | | N/A | | |
Buffalo Dividend Focus Fund —
Institutional Class (inception date 7/1/19)1 | | | 0.79 | % | | | -14.04 | % | | | -8.17 | % | | | 4.79 | % | | | N/A | | | | N/A | | | | -12.34 | % | |
Morningstar US Large-Mid Cap Index | | | N/A | | | | -12.52 | % | | | -7.35 | % | | | 6.35 | % | | | N/A | | | | 10.78 | % | | | -11.88 | % | |
S&P 500 Index | | | N/A | | | | -12.31 | % | | | -6.98 | % | | | 6.73 | % | | | N/A | | | | 10.90 | % | | | -11.50 | % | |
Lipper Equity Income Funds Index | | | N/A | | | | -18.11 | % | | | -12.85 | % | | | 3.23 | % | | | N/A | | | | 7.48 | % | | | -16.48 | % | |
Buffalo Emerging Opportunities Fund —
Investor Class (inception date 5/21/04) | | | 1.49 | % | | | -15.92 | % | | | -14.38 | % | | | 3.48 | % | | | 10.80 | % | | | 7.00 | % | | | N/A | | |
Buffalo Emerging Opportunities Fund —
Institutional Class (inception date 7/1/19)1 | | | 1.34 | % | | | -15.91 | % | | | -14.28 | % | | | 3.63 | % | | | 10.96 | % | | | N/A | | | | -20.25 | % | |
Morningstar US Small Growth Index | | | N/A | | | | -14.29 | % | | | -16.07 | % | | | 3.71 | % | | | 9.79 | % | | | 7.70 | % | | | -18.48 | % | |
Lipper Small-Cap Growth Funds Index | | | N/A | | | | -17.61 | % | | | -16.72 | % | | | 3.73 | % | | | 9.10 | % | | | 7.13 | % | | | -21.21 | % | |
Buffalo Flexible Income Fund —
Investor Class (inception date 8/12/94) | | | 1.00 | % | | | -20.81 | % | | | -19.63 | % | | | 0.22 | % | | | 4.89 | % | | | 6.02 | % | | | N/A | | |
Buffalo Flexible Income Fund —
Institutional Class (inception date 7/1/19)1 | | | 0.85 | % | | | -20.74 | % | | | -19.51 | % | | | 0.37 | % | | | 5.05 | % | | | N/A | | | | -20.20 | % | |
60% Morningstar US Large Cap Index/
40% ICE BofAML US High Yield Master II Index | | | N/A | | | | -10.26 | % | | | -5.48 | % | | | 5.69 | % | | | 8.79 | % | | | 8.25 | % | | | -9.35 | % | |
Bank of America Merrill Combined Index
(60% S&P 500® Index/40% Bank of America
Merrill Lynch U.S. High Yield Master II Index)
(reflects no deduction for fees, expenses
or taxes) | | | N/A | | | | -11.66 | % | | | -7.03 | % | | | 5.19 | % | | | 8.60 | % | | | 8.33 | % | | | -10.80 | % | |
Lipper Mixed-Asset Target Allocation
Moderate Funds Index | | | N/A | | | | -9.20 | % | | | -5.43 | % | | | 2.74 | % | | | 5.55 | % | | | 6.33 | % | | | -8.62 | % | |
Buffalo Growth Fund — Investor Class
(inception date 5/19/95) | | | 0.91 | % | | | -9.83 | % | | | -3.90 | % | | | 7.20 | % | | | 10.82 | % | | | 9.72 | % | | | N/A | | |
Buffalo Growth Fund — Institutional Class
(inception date 7/1/19)1 | | | 0.76 | % | | | -9.79 | % | | | -3.79 | % | | | 7.35 | % | | | 10.98 | % | | | N/A | | | | -10.92 | % | |
Morningstar US Growth Index* | | | N/A | | | | -2.54 | % | | | 1.45 | % | | | 9.97 | % | | | 12.96 | % | | | N/A | | | | -4.40 | % | |
Lipper Large Cap Growth Funds Index | | | N/A | | | | -4.62 | % | | | -0.55 | % | | | 9.26 | % | | | 11.57 | % | | | 7.95 | % | | | -5.87 | % | |
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| | | | | | Average Annual | |
| | Gross Expense
Ratio*** | | Six
Months | | One Year | | Five Years | | Ten Years | | Investor
Class
Since
Inception | | Institutional
Class
Since
Inception2 | |
Buffalo High Yield Fund — Investor Class
(inception date 5/19/95) | | | 1.00 | % | | | -9.98 | % | | | -6.67 | % | | | 1.47 | % | | | 4.29 | % | | | 6.35 | % | | | N/A | | |
Buffalo High Yield Fund — Institutional Class
(inception date 7/1/19)1 | | | 0.85 | % | | | -10.00 | % | | | -6.62 | % | | | 1.60 | % | | | 4.44 | % | | | N/A | | | | -8.94 | % | |
ICE BofAML US High Yield Master II Index | | | N/A | | | | -10.86 | % | | | -7.45 | % | | | 2.67 | % | | | 5.50 | % | | | 6.84 | % | | | -9.93 | % | |
Lipper High Yield Bond Funds Index | | | N/A | | | | -11.91 | % | | | -8.47 | % | | | 1.68 | % | | | 4.80 | % | | | 6.55 | % | | | -11.17 | % | |
Buffalo International Fund — Investor Class
(inception date 9/28/07) | | | 1.04 | % | | | -12.02 | % | | | -7.67 | % | | | 3.57 | % | | | 5.27 | % | | | 3.18 | % | | | N/A | | |
Buffalo International Fund —
Institutional Class (inception date 7/1/19)1 | | | 0.89 | % | | | -12.01 | % | | | -7.57 | % | | | 3.72 | % | | | 5.43 | % | | | N/A | | | | -13.95 | % | |
Morningstar Global Markets ex-US Index | | | N/A | | | | -17.03 | % | | | -16.12 | % | | | -0.19 | % | | | 2.52 | % | | | 0.16 | % | | | -18.80 | % | |
Lipper International Funds Index | | | N/A | | | | -16.35 | % | | | -14.49 | % | | | -0.54 | % | | | 2.85 | % | | | 0.15 | % | | | -17.84 | % | |
Buffalo Large Cap Fund — Investor Class
(inception date 5/19/95) | | | 0.93 | % | | | -8.70 | % | | | -3.40 | % | | | 8.03 | % | | | 10.81 | % | | | 9.13 | % | | | N/A | | |
Buffalo Large Cap Fund — Institutional Class
(inception date 7/1/19)1 | | | 0.78 | % | | | -8.66 | % | | | -3.27 | % | | | 8.19 | % | | | 10.98 | % | | | N/A | | | | -8.55 | % | |
Morningstar US Large Growth Index** | | | N/A | | | | -2.54 | % | | | 2.29 | % | | | 10.81 | % | | | 13.32 | % | | | N/A | | | | -3.53 | % | |
Lipper Large-Cap Growth Funds Index | | | N/A | | | | -4.62 | % | | | -0.55 | % | | | 9.26 | % | | | 11.57 | % | | | 7.95 | % | | | -5.87 | % | |
Buffalo Mid Cap Fund — Investor Class
(inception date 12/17/01) | | | 1.00 | % | | | -10.41 | % | | | -2.89 | % | | | 3.90 | % | | | 8.01 | % | | | 7.40 | % | | | N/A | | |
Buffalo Mid Cap Fund — Institutional Class
(inception date 7/1/19)1 | | | 0.85 | % | | | -10.41 | % | | | -2.78 | % | | | 4.04 | % | | | 8.16 | % | | | N/A | | | | -9.72 | % | |
Morningstar US Mid Growth Index | | | N/A | | | | -10.11 | % | | | -6.73 | % | | | 6.22 | % | | | 11.10 | % | | | 7.79 | % | | | -13.62 | % | |
Lipper Mid-Cap Growth Funds Index | | | N/A | | | | -13.73 | % | | | -9.59 | % | | | 5.48 | % | | | 9.79 | % | | | 7.29 | % | | | -15.70 | % | |
Buffalo Small Cap Fund — Investor Class
(inception date 4/14/98) | | | 1.00 | % | | | -9.51 | % | | | -7.33 | % | | | 5.72 | % | | | 8.32 | % | | | 10.64 | % | | | N/A | | |
Buffalo Small Cap Fund — Institutional Class
(inception date 7/1/19)1 | | | 0.85 | % | | | -9.50 | % | | | -7.22 | % | | | 5.87 | % | | | 8.48 | % | | | N/A | | | | -13.24 | % | |
Morningstar US Small Growth Index | | | N/A | | | | -14.29 | % | | | -16.07 | % | | | 3.71 | % | | | 9.79 | % | | | 5.05 | % | | | -18.48 | % | |
Lipper Small-Cap Growth Funds Index | | | N/A | | | | -17.61 | % | | | -16.72 | % | | | 3.73 | % | | | 9.10 | % | | | 5.85 | % | | | -21.21 | % | |
1 The Institutional Class commenced operations on 7/1/2019. Performance for periods prior to 7/1/2019 is based on the performance of the Investor Class adjusted for the Shareholder Services fee of the Investor Class.
2 Not annualized.
* The inception date of the Morningstar US Growth Index is July 3, 2002. The annualized return since inception as of March 31, 2020 is 6.35%
** The inception date of the Morningstar US Large Growth Index is July 3, 2002. The annualized return since inception as of March 31, 2020 is 5.82%
*** As reported in the Funds' Prospectus dated July 1, 2019. Current period gross expense ratio for each Fund can be found on the Financial Highlights, beginning on page 100.
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.
19
The Morningstar US Mid Growth Index has replaced the Russell Midcap® Growth Index as the Buffalo Discovery Fund's primary benchmark. The Morningstar US Large-Mid Cap Index has replaced the S&P 500® Index as the Buffalo Dividend Focus Fund's primary benchmark. The Morningstar US Small Growth Index has replaced the Russell 2000® Growth Index as the Buffalo Emerging Opportunities Fund's primary benchmark. The Morningstar Moderately Aggressive Target Risk Index has replaced the 60% Morningstar US Large Cap Index/40% ICE BofAML US High Yield Index as the Buffalo Flexible Income Fund's primary benchmark. The Morningstar US Growth Index has replaced the Russell 1000® Growth Index as the Buffalo Growth Fund's primary benchmark. The Morningstar Global Markets ex-US Index has replaced the Russell Global (ex-US)® Index as the Buffalo International Fund's primary benchmark. The Morningstar US Large Growth Index has replaced the Russell 1000® Growth Index as the Buffalo Large Cap Fund's primary benchmark.
The Morningstar US Mid Growth Index has replaced the Russell Midcap® Growth Index as the Buffalo Mid Cap Fund's primary benchmark. The Morningstar US Small Growth Index has replaced the Russell 2000® Growth Index as the Buffalo Small Cap Fund's primary benchmark. The Advisor believes that each of the new indices is more appropriate given each Fund's holdings.
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 BofAML US 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 market as measured by forward earnings, historical earnings, book value, cash flow and sales. The Lipper Mid-Cap Growth Funds Index is an
20
unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Mid-Cap classification. 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 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 Value Index measures the performance of small-cap value segment of the US equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. 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 Microcap Growth Index measures the performance of the microcap growth segment of the U.S. equity market. It includes Russell Microcap companies that are considered more growth oriented relative to the overall market as defined by Russell's leading style methodology. The Russell Microcap Growth Index is constructed to provide a comprehensive and unbiased barometer for the microcap growth segment of the market. 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. The Morningstar Moderately Aggressive Target Risk Index is designed to meet the needs of investors who would like to maintain a target level of equity exposure through a portfolio diversified across equities, bonds and inflation-hedged instruments.
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.
21
INVESTMENT RESULTS (UNAUDITED) Continued
Growth of $10,000 Investment — Investor Class
BUFFALO DISCOVERY FUND
BUFFALO DIVIDEND FOCUS FUND
BUFFALO EMERGING
OPPORTUNITIES FUND
BUFFALO GROWTH FUND
BUFFALO HIGH YIELD FUND
BUFFALO INTERNATIONAL FUND
22
Growth of $10,000 Investment
BUFFALO FLEXIBLE INCOME FUND
BUFFALO MID CAP FUND
BUFFALO LARGE CAP FUND
BUFFALO SMALL CAP FUND
23
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, shareholder servicing fees (Investor Class only) 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 (October 1, 2019 – March 31, 2020).
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
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 856.20 | | | $ | 4.69 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.95 | | | $ | 5.10 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 857.10 | | | $ | 3.99 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.70 | | | $ | 4.34 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.86%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
24
BUFFALO DIVIDEND FOCUS FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 859.30 | | | $ | 4.42 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.25 | | | $ | 4.80 | | |
Institutional Class | | | | | | | |
Actual | | $ | 1,000.00 | | | $ | 859.60 | | | $ | 3.72 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.00 | | | $ | 4.04 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 0.95%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
BUFFALO EMERGING OPPORTUNITIES FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 840.80 | | | $ | 6.86 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.55 | | | $ | 7.52 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 840.90 | | | $ | 6.21 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.25 | | | $ | 6.81 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 1.49%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 1.35%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
BUFFALO FLEXIBLE INCOME FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 791.90 | | | $ | 4.52 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.95 | | | $ | 5.10 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 792.60 | | | $ | 3.85 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.70 | | | $ | 4.34 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.86%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
BUFFALO GROWTH FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 901.70 | | | $ | 4.38 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.40 | | | $ | 4.65 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 902.10 | | | $ | 3.71 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.10 | | | $ | 3.94 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 0.92%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.78%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
25
BUFFALO HIGH YIELD FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 900.20 | | | $ | 4.85 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.90 | | | $ | 5.15 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 900.00 | | | $ | 4.18 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.60 | | | $ | 4.45 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.88%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
BUFFALO INTERNATIONAL FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 879.80 | | | $ | 4.84 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.85 | | | $ | 5.20 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 879.90 | | | $ | 4.14 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.60 | | | $ | 4.45 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 1.03%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.88%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
BUFFALO LARGE CAP FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 913.00 | | | $ | 4.50 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.30 | | | $ | 4.75 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 913.40 | | | $ | 3.83 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.00 | | | $ | 4.04 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 0.94%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.80%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
BUFFALO MID CAP FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 895.90 | | | $ | 4.83 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.90 | | | $ | 5.15 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 895.90 | | | $ | 4.22 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.55 | | | $ | 4.50 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.89%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
26
BUFFALO SMALL CAP FUND | | Beginning
Account Value
October 1, 2019 | | Ending
Account Value
March 31, 2020 | | Expenses Paid During
Period October 1, 2019 -
March 31, 2020* | |
Investor Class | |
Actual | | $ | 1,000.00 | | | $ | 904.90 | | | $ | 4.81 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.95 | | | $ | 5.10 | | |
Institutional Class | |
Actual | | $ | 1,000.00 | | | $ | 905.00 | | | $ | 4.10 | | |
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.70 | | | $ | 4.34 | | |
* Expenses for the Investor Class are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 183/366 to reflect the one-half year period. Expenses for the Institutional Class are equal to the Fund's annualized expense ratio of 0.86%, multiplied by the average account value over the period, multiplied by 183/366 to project a one-half year period.
27
ALLOCATION OF PORTFOLIO HOLDINGS
(UNAUDITED)
Percentages represent market value as a percentage of investments as of March 31, 2020.
BUFFALO DISCOVERY
FUND
BUFFALO DIVIDEND
FOCUS FUND
BUFFALO EMERGING
OPPORTUNITIES FUND
BUFFALO FLEXIBLE
INCOME FUND
BUFFALO GROWTH
FUND
BUFFALO HIGH YIELD
FUND
28
Percentages represent market value as a percentage of investments as of March 31, 2020.
BUFFALO
INTERNATIONAL FUND
BUFFALO LARGE CAP
FUND
BUFFALO MID CAP
FUND
BUFFALO SMALL CAP
FUND
29
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 89.79 | % | |
Communication Services | | | 2.81 | % | |
| | | | | Entertainment | | | 2.81 | % | |
| | 248,221 | | | Activision Blizzard, Inc. | | | 14,764,185 | | |
| | 192,501 | | | Take-Two Interactive Software, Inc.(a) | | | 22,832,544 | | |
| Total Communication Services (Cost $35,972,393) | | | 37,596,729 | | |
Consumer Discretionary | | | 6.80 | % | |
| | | | | Diversified Consumer Services | | | 0.94 | % | |
| | 465,120 | | | ServiceMaster Global Holdings, Inc.(a) | | | 12,558,240 | | |
| | | | | Hotels, Restaurants & Leisure | | | 2.47 | % | |
| | 16,065 | | | Chipotle Mexican Grill, Inc.(a) | | | 10,512,936 | | |
| | 31,365 | | | Domino's Pizza, Inc. | | | 10,164,456 | | |
| | 72,915 | | | Marriott International, Inc. — Class A | | | 5,454,771 | | |
| | 216,726 | | | Royal Caribbean Cruises Ltd(b) | | | 6,972,075 | | |
| | | | 33,104,238 | | |
| | | | | Household Durables | | | 1.03 | % | |
| | 184,355 | | | Garmin Ltd.(b) | | | 13,819,251 | | |
| | | | | Internet & Direct Marketing Retail | | | 1.41 | % | |
| | 220,450 | | | Chewy, Inc.(a) | | | 8,264,671 | | |
| | 275,521 | | | Etsy, Inc.(a) | | | 10,591,027 | | |
| | | | 18,855,698 | | |
| | | | | Specialty Retail | | | 0.95 | % | |
| | 235,759 | | | CarMax, Inc.(a) | | | 12,690,907 | | |
| Total Consumer Discretionary (Cost $98,392,467) | | | 91,028,334 | | |
Consumer Staples | | | 3.11 | % | |
| | | | | Food Products | | | 1.17 | % | |
| | 118,203 | | | The Hershey Company | | | 15,661,898 | | |
| | | | | Household Products | | | 1.23 | % | |
| | 256,333 | | | Church & Dwight Co, Inc. | | | 16,451,452 | | |
| | | | | Personal Products | | | 0.71 | % | |
| | 59,922 | | | The Estee Lauder Companies Inc. — Class A | | | 9,547,971 | | |
| Total Consumer Staples (Cost $45,530,315) | | | 41,661,321 | | |
The accompanying notes are an integral part of these financial statements.
30
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Financials | | | 10.43 | % | |
| | | | | Capital Markets | | | 7.97 | % | |
| | 182,996 | | | Cboe Global Markets, Inc. | | | 16,332,393 | | |
| | 238,807 | | | Intercontinental Exchange, Inc. | | | 19,283,665 | | |
| | 83,526 | | | Moody's Corp. | | | 17,665,749 | | |
| | 72,575 | | | MSCI, Inc. | | | 20,971,272 | | |
| | 170,254 | | | Nasdaq, Inc. | | | 16,165,618 | | |
| | 387,652 | | | Tradeweb Markets, Inc. | | | 16,296,890 | | |
| | | | 106,715,587 | | |
| | | | | Diversified Financial Services | | | 1.68 | % | |
| | 155,608 | | | Global Payments Inc. | | | 22,443,342 | | |
| | | | | Insurance | | | 0.78 | % | |
| | 73,910 | | | eHealth, Inc.(a) | | | 10,408,006 | | |
| Total Financials (Cost $121,133,324) | | | 139,566,935 | | |
Health Care | | | 18.82 | % | |
| | | | | Aerospace & Defense | | | 1.18 | % | |
| | 53,591 | | | Teleflex, Inc. | | | 15,694,660 | | |
| | | | | Biotechnology | | | 1.10 | % | |
| | 201,193 | | | Incyte Corp.(a) | | | 14,733,364 | | |
| | | | | Health Care Equipment & Supplies | | | 8.00 | % | |
| | 101,226 | | | Align Technology, Inc.(a) | | | 17,608,263 | | |
| | 88,114 | | | The Cooper Companies, Inc. | | | 24,290,386 | | |
| | 63,076 | | | DexCom, Inc.(a) | | | 16,984,475 | | |
| | 79,820 | | | Edwards Lifesciences Corp.(a) | | | 15,055,648 | | |
| | 24,237 | | | IDEXX Laboratories, Inc.(a) | | | 5,871,171 | | |
| | 56,260 | | | Insulet Corporation(a) | | | 9,321,157 | | |
| | 127,890 | | | STERIS PLC(b) | | | 17,900,763 | | |
| | | | 107,031,863 | | |
| | | | | Health Care Providers & Services | | | 0.83 | % | |
| | 88,067 | | | Laboratory Corporation of America Holdings(a) | | | 11,130,788 | | |
| | | | | Health Care Technology | | | 1.10 | % | |
| | 94,036 | | | Veeva Systems, Inc.(a) | | | 14,704,409 | | |
The accompanying notes are an integral part of these financial statements.
31
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Life Sciences Tools & Services | | | 6.61 | % | |
| | 239,458 | | | Agilent Technologies, Inc. | | | 17,149,982 | | |
| | 49,430 | | | Bio-Rad Laboratories, Inc.(a) | | | 17,328,181 | | |
| | 110,607 | | | Bio-Techne Corp. | | | 20,973,299 | | |
| | 70,227 | | | Illumina, Inc.(a) | | | 19,180,398 | | |
| | 165,650 | | | PRA Health Sciences, Inc.(a) | | | 13,755,576 | | |
| | | | 88,387,436 | | |
| Total Health Care (Cost $246,595,621) | | | 251,682,520 | | |
Industrials | | | 19.25 | % | |
| | | | | Aerospace & Defense | | | 1.82 | % | |
| | 86,690 | | | Hexcel Corp. | | | 3,224,001 | | |
| | 77,285 | | | L3Harris Technologies, Inc. | | | 13,920,574 | | |
| | 24,154 | | | Teledyne Technologies, Inc.(a) | | | 7,180,260 | | |
| | | | 24,324,835 | | |
| | | | | Building Products | | | 0.31 | % | |
| | 50,661 | | | Trex Co., Inc.(a) | | | 4,059,972 | | |
| | | | | Commercial Services & Supplies | | | 3.21 | % | |
| | 207,144 | | | Copart, Inc.(a) | | | 14,193,507 | | |
| | 449,356 | | | IAA Inc.(a) | | | 13,462,706 | | |
| | 203,501 | | | Republic Services, Inc. | | | 15,274,785 | | |
| | | | 42,930,998 | | |
| | | | | Electrical Equipment | | | 3.29 | % | |
| | 203,440 | | | AMETEK, Inc. | | | 14,651,749 | | |
| | 171,117 | | | Generac Holdings, Inc.(a) | | | 15,942,971 | | |
| | 88,862 | | | Rockwell Automation, Inc. | | | 13,410,164 | | |
| | | | 44,004,884 | | |
| | | | | Machinery | | | 1.34 | % | |
| | 275,841 | | | Xylem, Inc. | | | 17,965,524 | | |
| | | | | Professional Services | | | 6.59 | % | |
| | 37,957 | | | CoStar Group, Inc.(a) | | | 22,288,730 | | |
| | 80,338 | | | Equifax, Inc. | | | 9,596,374 | | |
| | 356,495 | | | IHS Markit Ltd.(b) | | | 21,389,700 | | |
| | 230,664 | | | TransUnion | | | 15,265,344 | | |
| | 140,724 | | | Verisk Analytics, Inc. | | | 19,614,111 | | |
| | | | 88,154,259 | | |
The accompanying notes are an integral part of these financial statements.
32
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Road & Rail | | | 1.49 | % | |
| | 156,890 | | | Kansas City Southern | | | 19,953,270 | | |
| | | | | Trading Companies & Distributors | | | 1.20 | % | |
| | 514,055 | | | Fastenal Co. | | | 16,064,219 | | |
| Total Industrials (Cost $234,143,999) | | | 257,457,961 | | |
Information Technology | | | 26.96 | % | |
| | | | | Communications Equipment | | | 1.00 | % | |
| | 334,672 | | | Ciena Corp.(a) | | | 13,323,292 | | |
| | | | | Electronic Equipment, Instruments & Components | | | 3.34 | % | |
| | 213,930 | | | Keysight Technologies, Inc.(a) | | | 17,901,662 | | |
| | 73,085 | | | Littelfuse, Inc. | | | 9,751,001 | | |
| | 409,653 | | | National Instruments Corp. | | | 13,551,321 | | |
| | 111,156 | | | Trimble, Inc.(a) | | | 3,538,096 | | |
| | | | 44,742,080 | | |
| | | | | IT Services | | | 6.88 | % | |
| | 203,017 | | | Akamai Technologies, Inc.(a) | | | 18,574,025 | | |
| | 53,104 | | | Broadridge Financial Solutions, Inc. | | | 5,035,852 | | |
| | 87,431 | | | EPAM Systems, Inc.(a) | | | 16,232,440 | | |
| | 147,337 | | | Fiserv, Inc.(a) | | | 13,995,542 | | |
| | 24,130 | | | FleetCor Technologies, Inc.(a) | | | 4,501,210 | | |
| | 98,661 | | | Square, Inc.(a) | | | 5,167,863 | | |
| | 129,655 | | | Twilio Inc. — Class A(a) | | | 11,602,826 | | |
| | 94,008 | | | VeriSign, Inc.(a) | | | 16,929,901 | | |
| | | | 92,039,659 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 3.45 | % | |
| | 150,608 | | | Analog Devices, Inc. | | | 13,502,007 | | |
| | 35,717 | | | Lam Research Corporation | | | 8,572,080 | | |
| | 282,775 | | | Marvell Technology Group Ltd.(b) | | | 6,399,198 | | |
| | 193,851 | | | Micron Technology, Inc.(a) | | | 8,153,373 | | |
| | 56,830 | | | Monolithic Power Systems, Inc. | | | 9,516,752 | | |
| | | | 46,143,410 | | |
The accompanying notes are an integral part of these financial statements.
33
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Software | | | 12.29 | % | |
| | 436,880 | | | 8x8, Inc.(a) | | | 6,055,157 | | |
| | 132,575 | | | ACI Worldwide, Inc.(a) | | | 3,201,686 | | |
| | 168,368 | | | Aspen Technology, Inc.(a) | | | 16,006,746 | | |
| | 166,263 | | | Guidewire Software, Inc.(a) | | | 13,186,318 | | |
| | 15,645 | | | Paycom Software, Inc.(a) | | | 3,160,446 | | |
| | 73,568 | | | Proofpoint, Inc.(a) | | | 7,547,341 | | |
| | 238,004 | | | RealPage, Inc.(a) | | | 12,597,552 | | |
| | 92,312 | | | RingCentral, Inc.(a) | | | 19,561,836 | | |
| | 68,603 | | | ServiceNow, Inc.(a) | | | 19,660,248 | | |
| | 128,968 | | | Splunk, Inc.(a) | | | 16,279,631 | | |
| | 126,930 | | | Synopsys, Inc.(a) | | | 16,347,315 | | |
| | 46,213 | | | Tyler Technologies, Inc.(a) | | | 13,704,927 | | |
| | 140,630 | | | VMware, Inc. — Class A(a) | | | 17,030,293 | | |
| | | | 164,339,496 | | |
| Total Information Technology (Cost $346,774,073) | | | 360,587,937 | | |
Materials | | | 1.61 | % | |
| | | | | Chemicals | | | 0.51 | % | |
| | 43,548 | | | Ecolab Inc. | | | 6,786,085 | | |
| | | | | Construction Materials | | | 1.10 | % | |
| | 78,028 | | | Martin Marietta Materials, Inc. | | | 14,765,238 | | |
| Total Materials (Cost $29,963,052) | | | 21,551,323 | | |
| Total Common Stocks (Cost $1,158,505,244) | | | 1,201,133,060 | | |
REITs | | | 4.16 | % | |
Real Estate | | | 4.16 | % | |
| | | | | Equity Real Estate Investment Trusts (REITs) | | | 4.16 | % | |
| | 103,403 | | | Crown Castle International Corp. | | | 14,931,393 | | |
| | 33,068 | | | Equinix Inc. | | | 20,653,281 | | |
| | 74,227 | | | SBA Communications Corp. | | | 20,039,063 | | |
| Total Real Estate (Cost $38,882,604) | | | 55,623,737 | | |
| Total REITs (Cost $38,882,604) | | | 55,623,737 | | |
The accompanying notes are an integral part of these financial statements.
34
BUFFALO DISCOVERY FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Short Term Investments | | | 4.96 | % | |
Investment Company | | | 4.96 | % | |
| | 66,350,695 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(c) | | | 66,350,695 | | |
Total Investment Company | | | 66,350,695 | | |
| Total Short Term Investments (Cost $66,350,695) | | | 66,350,695 | | |
Total Investments (Cost $1,263,801,043)
| | | 98.91
1,323,107,492 | % | |
Other Assets in Excess of Liabilities
| | | 1.09
14,559,616 | % | |
Total Net Assets
| | | 100.00
1,337,667,108 | % | |
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $66,480,988 (4.97% of net assets) at March 31, 2020.
(c) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See Note 1A of the 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.
35
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 77.82 | % | |
Communication Services | | | 7.46 | % | |
| | | | | Diversified Telecommunication Services | | | 0.88 | % | |
| | 10,625 | | | Verizon Communications, Inc. | | | 570,881 | | |
| | | | | Entertainment | | | 2.29 | % | |
| | 10,750 | | | Activision Blizzard, Inc. | | | 639,410 | | |
| | 8,705 | | | The Walt Disney Co. | | | 840,903 | | |
| | | | 1,480,313 | | |
| | | | | Interactive Media & Services | | | 3.10 | % | |
| | 630 | | | Alphabet, Inc. — Class A(a) | | | 732,029 | | |
| | 650 | | | Alphabet, Inc. — Class C(a) | | | 755,826 | | |
| | 3,100 | | | Facebook, Inc. — Class A(a) | | | 517,080 | | |
| | | | 2,004,935 | | |
| | | | | Media | | | 1.19 | % | |
| | 22,500 | | | Comcast Corp. — Class A | | | 773,550 | | |
| Total Communication Services (Cost $3,383,757) | | | 4,829,679 | | |
Consumer Discretionary | | | 4.89 | % | |
| | | | | Hotels, Restaurants & Leisure | | | 2.01 | % | |
| | 6,775 | | | Cedar Fair, L.P. | | | 124,253 | | |
| | 5,000 | | | Las Vegas Sands Corp | | | 212,350 | | |
| | 9,500 | | | Starbucks Corp. | | | 624,530 | | |
| | 2,300 | | | Vail Resorts, Inc. | | | 339,733 | | |
| | | | 1,300,866 | | |
| | | | | Internet & Direct Marketing Retail | | | 1.66 | % | |
| | 550 | | | Amazon.com, Inc.(a) | | | 1,072,346 | | |
| | | | | Specialty Retail | | | 1.22 | % | |
| | 4,225 | | | The Home Depot, Inc. | | | 788,850 | | |
| Total Consumer Discretionary (Cost $2,329,751) | | | 3,162,062 | | |
Consumer Staples | | | 3.99 | % | |
| | | | | Beverages | | | 1.03 | % | |
| | 5,550 | | | PepsiCo, Inc. | | | 666,555 | | |
| | | | | Food & Staples Retailing | | | 0.61 | % | |
| | 3,450 | | | Walmart, Inc. | | | 391,989 | | |
The accompanying notes are an integral part of these financial statements.
36
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Food Products | | | 0.92 | % | |
| | 10,300 | | | Tyson Foods, Inc. | | | 596,061 | | |
| | | | | Household Products | | | 1.43 | % | |
| | 4,450 | | | Colgate-Palmolive Co. | | | 295,302 | | |
| | 5,725 | | | The Procter & Gamble Co. | | | 629,750 | | |
| | | | 925,052 | | |
| Total Consumer Staples (Cost $2,047,029) | | | 2,579,657 | | |
Energy | | | 3.64 | % | |
| | | | | Oil, Gas & Consumable Fuels | | | 3.64 | % | |
| | 81,240 | | | Energy Transfer Equity, L.P. | | | 373,704 | | |
| | 46,650 | | | Enterprise Products Partners L.P. | | | 667,095 | | |
| | 17,200 | | | Enviva Partners LP | | | 459,584 | | |
| | 9,875 | | | Hess Corp. | | | 328,838 | | |
| | 9,526 | | | Marathon Petroleum Corp. | | | 225,004 | | |
| | 45,000 | | | Viper Energy Partners LP | | | 298,350 | | |
| Total Energy (Cost $4,393,110) | | | 2,352,575 | | |
Financials | | | 13.34 | % | |
| | | | | Banks | | | 5.33 | % | |
| | 46,100 | | | Bank of America Corp. | | | 978,703 | | |
| | 8,550 | | | Citigroup, Inc. | | | 360,126 | | |
| | 8,500 | | | Citizens Financial Group, Inc. | | | 159,885 | | |
| | 11,000 | | | JPMorgan Chase & Co. | | | 990,330 | | |
| | 31,000 | | | Truist Financial Corp. | | | 956,040 | | |
| | | | 3,445,084 | | |
| | | | | Capital Markets | | | 3.77 | % | |
| | 1,100 | | | BlackRock, Inc. | | | 483,967 | | |
| | 4,025 | | | CME Group, Inc. | | | 695,963 | | |
| | 5,150 | | | S&P Global, Inc. | | | 1,262,008 | | |
| | | | 2,441,938 | | |
| | | | | Diversified Financial Services | | | 2.78 | % | |
| | 4,400 | | | Berkshire Hathaway Inc. — Class B(a) | | | 804,452 | | |
| | 27,000 | | | Compass Diversified Holdings | | | 361,800 | | |
| | 4,400 | | | Global Payments Inc. | | | 634,612 | | |
| | | | 1,800,864 | | |
The accompanying notes are an integral part of these financial statements.
37
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Insurance | | | 1.46 | % | |
| | 11,575 | | | Arthur J. Gallagher & Co. | | | 943,478 | | |
| Total Financials (Cost $6,570,676) | | | 8,631,364 | | |
Health Care | | | 13.97 | % | |
| | | | | Biotechnology | | | 1.25 | % | |
| | 4,000 | | | Amgen Inc. | | | 810,920 | | |
| | | | | Health Care Equipment & Supplies | | | 3.42 | % | |
| | 11,600 | | | Baxter International, Inc. | | | 941,804 | | |
| | 7,400 | | | Medtronic, PLC(b) | | | 667,332 | | |
| | 6,000 | | | Zimmer Biomet Holdings, Inc. | | | 606,480 | | |
| | | | 2,215,616 | | |
| | | | | Health Care Providers & Services | | | 5.79 | % | |
| | 3,375 | | | Anthem, Inc. | | | 766,260 | | |
| | 15,300 | | | CVS Health Corp. | | | 907,749 | | |
| | 7,500 | | | HCA Healthcare, Inc. | | | 673,875 | | |
| | 5,600 | | | UnitedHealth Group, Inc. | | | 1,396,528 | | |
| | | | 3,744,412 | | |
| | | | | Pharmaceuticals | | | 3.51 | % | |
| | 3,150 | | | Eli Lilly & Co. | | | 436,968 | | |
| | 8,225 | | | Johnson & Johnson | | | 1,078,544 | | |
| | 9,800 | | | Merck & Co., Inc. | | | 754,012 | | |
| | | | 2,269,524 | | |
| Total Health Care (Cost $8,038,000) | | | 9,040,472 | | |
Industrials | | | 6.25 | % | |
| | | | | Aerospace & Defense | | | 1.31 | % | |
| | 3,025 | | | The Boeing Co. | | | 451,148 | | |
| | 4,200 | | | United Technologies Corp. | | | 396,186 | | |
| | | | 847,334 | | |
| | | | | Airlines | | | 0.67 | % | |
| | 15,300 | | | Delta Air Lines, Inc. | | | 436,509 | | |
| | | | | Commercial Services & Supplies | | | 0.75 | % | |
| | 2,800 | | | Cintas Corp. | | | 485,016 | | |
| | | | | Electrical Equipment | | | 0.28 | % | |
| | 2,500 | | | AMETEK, Inc. | | | 180,050 | | |
The accompanying notes are an integral part of these financial statements.
38
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Industrial Conglomerates | | | 0.71 | % | |
| | 3,450 | | | Honeywell International, Inc. | | | 461,576 | | |
| | | | | Machinery | | | 0.79 | % | |
| | 3,950 | | | Parker-Hannifin Corp. | | | 512,434 | | |
| | | | | Professional Services | | | 1.24 | % | |
| | 3,200 | | | Equifax, Inc. | | | 382,240 | | |
| | 7,000 | | | IHS Markit Ltd.(b) | | | 420,000 | | |
| | | | 802,240 | | |
| | | | | Trading Companies & Distributors | | | 0.50 | % | |
| | 10,300 | | | Fastenal Co. | | | 321,875 | | |
| Total Industrials (Cost $4,571,501) | | | 4,047,034 | | |
Information Technology | | | 17.43 | % | |
| | | | | Communications Equipment | | | 1.08 | % | |
| | 17,750 | | | Cisco Systems, Inc. | | | 697,752 | | |
| | | | | IT Services | | | 4.71 | % | |
| | 4,000 | | | MasterCard, Inc. — Class A | | | 966,240 | | |
| | 12,925 | | | Visa Inc. — Class A | | | 2,082,476 | | |
| | | | 3,048,716 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 2.39 | % | |
| | 11,750 | | | Intel Corp. | | | 635,910 | | |
| | 9,075 | | | QUALCOMM, Inc. | | | 613,924 | | |
| | 2,950 | | | Texas Instruments, Inc. | | | 294,793 | | |
| | | | 1,544,627 | | |
| | | | | Software | | | 5.63 | % | |
| | 20,950 | | | Microsoft Corp. | | | 3,304,025 | | |
| | 7,700 | | | SS&C Technologies Holdings, Inc. | | | 337,414 | | |
| | | | 3,641,439 | | |
| | | | | Technology Hardware, Storage & Peripherals | | | 3.62 | % | |
| | 9,220 | | | Apple Inc. | | | 2,344,554 | | |
| Total Information Technology (Cost $5,407,403) | | | 11,277,088 | | |
Materials | | | 1.26 | % | |
| | | | | Construction Materials | | | 0.44 | % | |
| | 1,500 | | | Martin Marietta Materials, Inc. | | | 283,845 | | |
The accompanying notes are an integral part of these financial statements.
39
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Containers & Packaging | | | 0.82 | % | |
| | 43,700 | | | Graphic Packaging Holding Co. | | | 533,140 | | |
| Total Materials (Cost $1,045,888) | | | 816,985 | | |
Utilities | | | 5.59 | % | |
| | | | | Electric Utilities | | | 4.53 | % | |
| | 15,700 | | | American Electric Power Co., Inc. | | | 1,255,686 | | |
| | 30,550 | | | Edison International | | | 1,673,834 | | |
| | | | 2,929,520 | | |
| | | | | Multi-Utilities | | | 1.06 | % | |
| | 6,100 | | | Sempra Energy | | | 689,239 | | |
| Total Utilities (Cost $3,582,309) | | | 3,618,759 | | |
| Total Common Stocks (Cost $41,369,424) | | | 50,355,675 | | |
REITs | | | 4.99 | % | |
Real Estate | | | 4.99 | % | |
| | | | | Equity Real Estate Investment Trusts (REITs) | | | 4.99 | % | |
| | 3,200 | | | American Tower Corp. | | | 696,800 | | |
| | 14,006 | | | Community Healthcare Trust, Inc. | | | 536,150 | | |
| | 10,000 | | | CyrusOne, Inc. | | | 617,500 | | |
| | 5,000 | | | Digital Realty Trust, Inc. | | | 694,550 | | |
| | 1,100 | | | Equinix Inc. | | | 687,027 | | |
| Total Real Estate (Cost $2,505,544) | | | 3,232,027 | | |
| Total REITs (Cost $2,505,544) | | | 3,232,027 | | |
Convertible Preferred Stocks | | | 0.64 | % | |
Health Care | | | 0.64 | % | |
| | | | | Pharmaceuticals | | | 0.64 | % | |
| | 10,000 | | | Elanco Animal Health, Inc.(a) | | | 411,400 | | |
| Total Health Care (Cost $507,406) | | | 411,400 | | |
| Total Convertible Preferred Stocks (Cost $507,406) | | | 411,400 | | |
The accompanying notes are an integral part of these financial statements.
40
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Preferred Stocks | | | 0.40 | % | |
Financials | | | 0.40 | % | |
| | | | | Diversified Financial Services | | | 0.40 | % | |
| | 15,000 | | | Compass Diversified Holdings | | | 256,050 | | |
| Total Financials (Cost $379,031) | | | 256,050 | | |
| Total Preferred Stocks (Cost $379,031) | | | 256,050 | | |
Convertible Bonds | | | 13.50 | % | |
Communication Services | | | 1.54 | % | |
| | | | | Diversified Telecommunication Services | | | 0.75 | % | |
| | | | | Bandwidth, Inc. | | | |
| | 500,000 | | | 0.250%, 03/01/2026(c) | | | 484,516 | | |
| | | | | Entertainment | | | 0.79 | % | |
| | | | | Zynga, Inc. | | | |
| | 500,000 | | | 0.250%, 06/01/2024(c) | | | 514,015 | | |
| Total Communication Services (Cost $1,011,041) | | | 998,531 | | |
Health Care | | | 6.17 | % | |
| | | | | Biotechnology | | | 4.12 | % | |
| | | | | Apellis Pharmaceuticals, Inc. | | | |
| | 300,000 | | | 3.500%, 09/15/2026(c) | | | 307,801 | | |
| | | | | BioMarin Pharmaceutical, Inc. | | | |
| | 800,000 | | | 0.599%, 08/01/2024 | | | 840,346 | | |
| | | | | Exact Sciences Corp. | | | |
| | 100,000 | | | 0.375%, 03/15/2027 | | | 84,522 | | |
| | 1,000,000 | | | 0.375%, 03/01/2028 | | | 789,554 | | |
| | | | | PTC Therapeutics, Inc. | | | |
| | 600,000 | | | 1.500%, 09/15/2026(c) | | | 646,034 | | |
| | | | 2,668,257 | | |
| | | | | Pharmaceuticals | | | 2.05 | % | |
| | | | | Collegium Pharmaceutical, Inc. | | | |
| | 500,000 | | | 2.625%, 02/15/2026 | | | 457,764 | | |
| | | | | Horizon Pharma Investment Ltd. | | | |
| | 750,000 | | | 2.500%, 03/15/2022(b) | | | 866,250 | | |
| | | | 1,324,014 | | |
| Total Health Care (Cost $4,120,301) | | | 3,992,271 | | |
The accompanying notes are an integral part of these financial statements.
41
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Information Technology | | | 5.79 | % | |
| | | | | Communications Equipment | | | 1.58 | % | |
| | | | | Lumentum Holdings, Inc. | | | |
| | 1,000,000 | | | 0.500%, 12/15/2026(c) | | | 1,020,000 | | |
| | | | | IT Services | | | 0.88 | % | |
| | | | | Cardtronics plc | | | |
| | 600,000 | | | 1.000%, 12/01/2020(b) | | | 573,272 | | |
| | | | | Software | | | 3.33 | % | |
| | | | | 8x8, Inc. | | | |
| | 1,000,000 | | | 0.500%, 02/01/2024 | | | 876,011 | | |
| | | | | Guidewire Software, Inc. | | | |
| | 500,000 | | | 1.250%, 03/15/2025 | | | 484,242 | | |
| | | | | Nuance Communications, Inc. | | | |
| | 750,000 | | | 1.500%, 11/01/2035 | | | 794,100 | | |
| | | | 2,154,353 | | |
| Total Information Technology (Cost $3,855,675) | | | 3,747,625 | | |
| Total Convertible Bonds (Cost $8,987,017) | | | 8,738,427 | | |
Short Term Investments | | | 2.95 | % | |
Investment Company | | | 2.95 | % | |
| | 1,911,050 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(d) | | | 1,911,050 | | |
Total Investment Company | | | 1,911,050 | | |
| Total Short Term Investments (Cost $1,911,050) | | | 1,911,050 | | |
Total Investments (Cost $55,659,472)
| | | 100.30
64,904,629 | % | |
Liabilities in Excess of Other Assets | | | (0.30
(197,053) | )% | |
Total Net Assets
| | | 100.00
64,707,576 | % | |
The accompanying notes are an integral part of these financial statements.
42
BUFFALO DIVIDEND FOCUS FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
(a) Non Income Producing
(b) Foreign Issued Security. The total value of these securities amounted to $2,526,854 (3.91% of net assets) at March 31, 2020.
(c) Restricted security deemed liquid. The total value of restricted securities is $2,972,366 (4.59% of net assets) at March 31, 2020.
(d) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See the 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.
43
BUFFALO EMERGING OPPORTUNITIES FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 83.62 | % | |
Communication Services | | | 3.32 | % | |
| | | | | Interactive Media & Services | | | 1.39 | % | |
| | 23,900 | | | EverQuote, Inc.(a) | | | 627,375 | | |
| | 197,000 | | | Trivago N.V. — ADR(a) (b) | | | 287,620 | | |
| | | | 914,995 | | |
| | | | | Media | | | 1.93 | % | |
| | 13,000 | | | Cardlytics, Inc.(a) | | | 454,480 | | |
| | 42,800 | | | Liberty Media Corp-Liberty Braves(a) | | | 815,768 | | |
| | | | 1,270,248 | | |
| Total Communication Services (Cost $2,389,513) | | | 2,185,243 | | |
Consumer Discretionary | | | 7.96 | % | |
| | | | | Auto Components | | | 1.23 | % | |
| | 64,100 | | | Motorcar Parts of America, Inc.(a) | | | 806,378 | | |
| | | | | Hotels, Restaurants & Leisure | | | 1.77 | % | |
| | 125,000 | | | Accel Entertainment, Inc.(a) | | | 937,500 | | |
| | 67,100 | | | Del Taco Restaurants, Inc.(a) | | | 230,153 | | |
| | | | 1,167,653 | | |
| | | | | Household Durables | | | 2.40 | % | |
| | 13,000 | | | LGI Homes, Inc.(a) | | | 586,950 | | |
| | 90,000 | | | Lovesac Co/The(a) | | | 524,700 | | |
| | 12,100 | | | Universal Electronics, Inc.(a) | | | 464,277 | | |
| | | | 1,575,927 | | |
| | | | | Internet & Direct Marketing Retail | | | 1.69 | % | |
| | 34,500 | | | Shutterstock, Inc. | | | 1,109,520 | | |
| | | | | Leisure Products | | | 0.87 | % | |
| | 20,000 | | | Malibu Boats, Inc. — Class A(a) | | | 575,800 | | |
| Total Consumer Discretionary (Cost $8,898,962) | | | 5,235,278 | | |
Consumer Staples | | | 2.01 | % | |
| | | | | Beverages | | | 2.01 | % | |
| | 49,000 | | | MGP Ingredients, Inc. | | | 1,317,610 | | |
| Total Consumer Staples (Cost $2,160,133) | | | 1,317,610 | | |
The accompanying notes are an integral part of these financial statements.
44
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Financials | | | 6.74 | % | |
| | | | | Capital Markets | | | 2.60 | % | |
| | 30,885 | | | Hamilton Lane Inc. — Class A | | | 1,708,250 | | |
| | | | | Diversified Financial Services | | | 1.61 | % | |
| | 79,300 | | | Compass Diversified Holdings | | | 1,062,620 | | |
| | | | | Insurance | | | 2.53 | % | |
| | 15,900 | | | Kinsale Capital Group, Inc. | | | 1,662,027 | | |
| Total Financials (Cost $1,835,991) | | | 4,432,897 | | |
Health Care | | | 17.51 | % | |
| | | | | Biotechnology | | | 1.09 | % | |
| | 17,400 | | | Deciphera Pharmaceuticals, Inc.(a) | | | 716,358 | | |
| | | | | Health Care Equipment & Supplies | | | 6.07 | % | |
| | 64,300 | | | Establishment Labs Holdings, Inc.(a) (b) | | | 929,135 | | |
| | 26,590 | | | OrthoPediatrics Corp.(a) | | | 1,054,028 | | |
| | 113,400 | | | Oxford Immunotec Global PLC(a) (b) | | | 1,050,084 | | |
| | 153,600 | | | Sientra, Inc.(a) | | | 305,664 | | |
| | 20,075 | | | STAAR Surgical Co.(a) | | | 647,619 | | |
| | | | 3,986,530 | | |
| | | | | Health Care Providers & Services | | | 2.75 | % | |
| | 12,900 | | | LHC Group, Inc.(a) | | | 1,808,580 | | |
| | | | | Health Care Technology | | | 5.18 | % | |
| | 50,000 | | | HealthStream, Inc.(a) | | | 1,197,500 | | |
| | 17,985 | | | Inspire Medical Systems, Inc.(a) | | | 1,084,136 | | |
| | 17,100 | | | Omnicell, Inc.(a) | | | 1,121,418 | | |
| | | | 3,403,054 | | |
| | | | | Pharmaceuticals | | | 2.42 | % | |
| | 89,900 | | | Optinose, Inc.(a) | | | 403,651 | | |
| | 51,100 | | | Urovant Sciences Ltd.(a) (b) | | | 471,142 | | |
| | 65,651 | | | Verrica Pharmaceuticals, Inc.(a) | | | 717,565 | | |
| | | | 1,592,358 | | |
| Total Health Care (Cost $10,675,158) | | | 11,506,880 | | |
The accompanying notes are an integral part of these financial statements.
45
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Industrials | | | 19.02 | % | |
| | | | | Aerospace & Defense | | | 1.42 | % | |
| | 67,400 | | | Kratos Defense & Security Solutions, Inc.(a) | | | 932,816 | | |
| | | | | Air Freight & Logistics | | | 2.26 | % | |
| | 81,400 | | | Air Transport Services Group, Inc.(a) | | | 1,487,992 | | |
| | | | | Building Products | | | 4.15 | % | |
| | 44,400 | | | Advanced Drainage Systems, Inc. | | | 1,307,136 | | |
| | 27,500 | | | Apogee Enterprises, Inc. | | | 572,550 | | |
| | 30,000 | | | Patrick Industries, Inc. | | | 844,800 | | |
| | | | 2,724,486 | | |
| | | | | Construction & Engineering | | | 1.19 | % | |
| | 19,000 | | | NV5 Global, Inc.(a) | | | 784,510 | | |
| | | | | Machinery | | | 3.26 | % | |
| | 47,500 | | | Federal Signal Corporation | | | 1,295,800 | | |
| | 34,000 | | | Kornit Digital Ltd.(a) (b) | | | 846,260 | | |
| | | | 2,142,060 | | |
| | | | | Professional Services | | | 3.30 | % | |
| | 16,600 | | | ICF International, Inc. | | | 1,140,420 | | |
| | 48,100 | | | Willdan Group, Inc.(a) | | | 1,027,897 | | |
| | | | 2,168,317 | | |
| | | | | Trading Companies & Distributors | | | 3.44 | % | |
| | 60,200 | | | Foundation Building Materials, Inc.(a) | | | 619,458 | | |
| | 14,500 | | | SiteOne Landscape Supply, Inc.(a) | | | 1,067,490 | | |
| | 53,710 | | | Univar Inc.(a) | | | 575,771 | | |
| | | | 2,262,719 | | |
| Total Industrials (Cost $14,615,002) | | | 12,502,900 | | |
Information Technology | | | 27.06 | % | |
| | | | | Electronic Equipment, Instruments & Components | | | 0.64 | % | |
| | 40,000 | | | nLight, Inc.(a) | | | 419,600 | | |
| | | | | Internet Software & Services | | | 1.89 | % | |
| | 54,000 | | | NIC, Inc. | | | 1,242,000 | | |
The accompanying notes are an integral part of these financial statements.
46
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | IT Services | | | 4.69 | % | |
| | 80,100 | | | i3 Verticals, Inc. — Class A(a) | | | 1,529,109 | | |
| | 129,600 | | | Paysign, Inc.(a) | | | 668,736 | | |
| | 31,100 | | | Virtusa Corp.(a) | | | 883,240 | | |
| | | | 3,081,085 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 0.80 | % | |
| | 45,000 | | | MaxLinear, Inc.(a) | | | 525,150 | | |
| | | | | Software | | | 19.04 | % | |
| | 188,000 | | | 8x8, Inc.(a) | | | 2,605,680 | | |
| | 123,200 | | | Cerence, Inc.(a) | | | 1,897,280 | | |
| | 14,100 | | | CyberArk Software Ltd.(a) (b) | | | 1,206,396 | | |
| | 22,005 | | | Envestnet, Inc.(a) | | | 1,183,429 | | |
| | 13,400 | | | Five9, Inc.(a) | | | 1,024,564 | | |
| | 43,900 | | | Materialise NV — ADR(a) (b) | | | 815,223 | | |
| | 56,720 | | | Mimecast Ltd.(a) (b) | | | 2,002,216 | | |
| | 21,300 | | | Varonis Systems, Inc.(a) | | | 1,356,171 | | |
| | 42,000 | | | Yext, Inc.(a) | | | 427,980 | | |
| | | | 12,518,939 | | |
| Total Information Technology (Cost $14,312,021) | | | 17,786,774 | | |
| Total Common Stocks (Cost $54,886,780) | | | 54,967,582 | | |
REITs | | | 2.60 | % | |
Real Estate | | | 2.60 | % | |
| | | | | Equity Real Estate Investment Trusts (REITs) | | | 2.60 | % | |
| | 44,600 | | | Community Healthcare Trust, Inc. | | | 1,707,288 | | |
| Total Real Estate (Cost $971,976) | | | 1,707,288 | | |
| Total REITs (Cost $971,976) | | | 1,707,288 | | |
The accompanying notes are an integral part of these financial statements.
47
BUFFALO EMERGING OPPORTUNITIES
FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Short Term Investments | | | 14.82 | % | |
Investment Companies | | | 14.82 | % | |
| | 6,685,298 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.190%(c) | | | 6,685,298 | | |
| | 3,056,337 | | | The STIT-Treasury Portfolio — 0.118%(c) | | | 3,056,337 | | |
Total Investment Companies | | | 9,741,635 | | |
| Total Short Term Investments (Cost $9,741,635) | | | 9,741,635 | | |
| Total Investments (Cost $65,600,391) | | | 101.04
66,416,505 | % | |
Liabilities in Excess of Other Assets | | | (1.04
(681,554) | )% | |
Total Net Assets | | | 100.00
65,734,951 | % | |
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $7,608,076 (11.57% of net assets) at March 31, 2020.
(c) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See the 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.
48
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 91.97 | % | |
Communication Services | | | 6.54 | % | |
| | | | | Diversified Telecommunication Services | | | 5.27 | % | |
| | 312,500 | | | AT&T, Inc. | | | 9,109,375 | | |
| | 230,000 | | | Verizon Communications, Inc. | | | 12,357,900 | | |
| | | | 21,467,275 | | |
| | | | | Entertainment | | | 1.27 | % | |
| | 430,000 | | | Lions Gate Entertainment Corp. — Class A(b) | | | 2,614,400 | | |
| | 454,000 | | | Lions Gate Entertainment Corp. — Class B(b) | | | 2,533,320 | | |
| | | | 5,147,720 | | |
| Total Communication Services (Cost $44,269,478) | | | 26,614,995 | | |
Consumer Staples | | | 22.45 | % | |
| | | | | Beverages | | | 5.11 | % | |
| | 185,000 | | | The Coca Cola Co. | | | 8,186,250 | | |
| | 50,000 | | | Keurig Dr Pepper, Inc. | | | 1,213,500 | | |
| | 95,000 | | | PepsiCo, Inc. | | | 11,409,500 | | |
| | | | 20,809,250 | | |
| | | | | Food & Staples Retailing | | | 4.20 | % | |
| | 44,000 | | | Costco Wholesale Corp. | | | 12,545,720 | | |
| | 100,000 | | | Sysco Corp. | | | 4,563,000 | | |
| | | | 17,108,720 | | |
| | | | | Food Products | | | 3.50 | % | |
| | 180,000 | | | B&G Foods, Inc. | | | 3,256,200 | | |
| | 150,000 | | | General Mills, Inc. | | | 7,915,500 | | |
| | 51,500 | | | Kellogg Co. | | | 3,089,485 | | |
| | | | 14,261,185 | | |
| | | | | Household Products | | | 9.64 | % | |
| | 82,000 | | | The Clorox Co.(c) | | | 14,206,500 | | |
| | 25,000 | | | Colgate-Palmolive Co. | | | 1,659,000 | | |
| | 71,200 | | | Kimberly-Clark Corp. | | | 9,104,344 | | |
| | 130,000 | | | The Procter & Gamble Co.(c) | | | 14,300,000 | | |
| | | | 39,269,844 | | |
| Total Consumer Staples (Cost $48,884,374) | | | 91,448,999 | | |
The accompanying notes are an integral part of these financial statements.
49
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Energy | | | 17.15 | % | |
| | | | | Energy Equipment & Services | | | 1.06 | % | |
| | 321,000 | | | Schlumberger Ltd.(b) | | | 4,330,290 | | |
| | | | | Oil, Gas & Consumable Fuels | | | 16.09 | % | |
| | 451,200 | | | Apache Corp. | | | 1,886,016 | | |
| | 365,000 | | | BP PLC — ADR(b) | | | 8,902,350 | | |
| | 150,000 | | | Chevron Corp. | | | 10,869,000 | | |
| | 220,000 | | | ConocoPhillips | | | 6,776,000 | | |
| | 140,000 | | | Delek Logistics Partners LP | | | 1,274,000 | | |
| | 150,000 | | | Exxon Mobil Corp. | | | 5,695,500 | | |
| | 195,000 | | | Hess Corp. | | | 6,493,500 | | |
| | 260,000 | | | HollyFrontier Corp. | | | 6,372,600 | | |
| | 500,000 | | | Kinder Morgan, Inc. | | | 6,960,000 | | |
| | 89,000 | | | Marathon Petroleum Corp. | | | 2,102,180 | | |
| | 22,500 | | | Phillips 66 | | | 1,207,125 | | |
| | 200,000 | | | Royal Dutch Shell PLC. — Class A — ADR(b) | | | 6,978,000 | | |
| | | | 65,516,271 | | |
| Total Energy (Cost $123,829,685) | | | 69,846,561 | | |
Financials | | | 6.31 | % | |
| | | | | Banks | | | 2.06 | % | |
| | 35,000 | | | Citizens Financial Group, Inc. | | | 658,350 | | |
| | 250,000 | | | Truist Financial Corp. | | | 7,710,000 | | |
| | | | 8,368,350 | | |
| | | | | Insurance | | | 4.25 | % | |
| | 100,000 | | | The Allstate Corp. | | | 9,173,000 | | |
| | 100,000 | | | Arthur J. Gallagher & Co. | | | 8,151,000 | | |
| | | | 17,324,000 | | |
| Total Financials (Cost $17,485,496) | | | 25,692,350 | | |
Health Care | | | 16.56 | % | |
| | | | | Biotechnology | | | 0.64 | % | |
| | 35,000 | | | Gilead Sciences, Inc.(c) | | | 2,616,600 | | |
| | | | | Health Care Equipment & Supplies | | | 3.54 | % | |
| | 80,000 | | | Abbott Laboratories | | | 6,312,800 | | |
| | 100,000 | | | Baxter International, Inc. | | | 8,119,000 | | |
| | | | 14,431,800 | | |
The accompanying notes are an integral part of these financial statements.
50
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Pharmaceuticals | | | 12.38 | % | |
| | 25,400 | | | Bristol-Myers Squibb Co. | | | 1,415,796 | | |
| | 75,000 | | | Eli Lilly & Co. | | | 10,404,000 | | |
| | 260,000 | | | GlaxoSmithKline PLC — ADR(b) | | | 9,851,400 | | |
| | 105,000 | | | Johnson & Johnson(c) | | | 13,768,650 | | |
| | 80,000 | | | Merck & Co., Inc. | | | 6,155,200 | | |
| | 270,000 | | | Pfizer Inc. | | | 8,812,800 | | |
| | | | 50,407,846 | | |
| Total Health Care (Cost $37,644,993) | | | 67,456,246 | | |
Industrials | | | 5.94 | % | |
| | | | | Aerospace & Defense | | | 2.12 | % | |
| | 58,000 | | | The Boeing Co.(c) | | | 8,650,120 | | |
| | | | | Commercial Services & Supplies | | | 2.87 | % | |
| | 500,000 | | | Pitney Bowes Inc. | | | 1,020,000 | | |
| | 115,000 | | | Waste Management, Inc. | | | 10,644,400 | | |
| | | | 11,664,400 | | |
| | | | | Electrical Equipment | | | 0.95 | % | |
| | 210,000 | | | ABB Ltd. — ADR(b) | | | 3,624,600 | | |
| | 5,300 | | | Emerson Electric Co. | | | 252,545 | | |
| | | | 3,877,145 | | |
| Total Industrials (Cost $14,226,978) | | | 24,191,665 | | |
Information Technology | | | 15.19 | % | |
| | | | | Communications Equipment | | | 1.93 | % | |
| | 200,000 | | | Cisco Systems, Inc. | | | 7,862,000 | | |
| | | | | IT Services | | | 1.63 | % | |
| | 60,000 | | | International Business Machines Corp. | | | 6,655,800 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 5.55 | % | |
| | 280,000 | | | Intel Corp.(c) | | | 15,153,600 | | |
| | 109,950 | | | QUALCOMM, Inc. | | | 7,438,117 | | |
| | | | 22,591,717 | | |
| | | | | Software | | | 6.08 | % | |
| | 157,000 | | | Microsoft Corp. | | | 24,760,470 | | |
| Total Information Technology (Cost $27,491,525) | | | 61,869,987 | | |
The accompanying notes are an integral part of these financial statements.
51
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Materials | | | 1.83 | % | |
| | | | | Chemicals | | | 1.27 | % | |
| | 56,666 | | | Corteva, Inc. | | | 1,331,651 | | |
| | 65,500 | | | Dow Inc. | | | 1,915,220 | | |
| | 56,666 | | | DuPont de Nemours Inc. | | | 1,932,311 | | |
| | | | 5,179,182 | | |
| | | | | Metals & Mining | | | 0.56 | % | |
| | 50,000 | | | Rio Tinto PLC — ADR(b) | | | 2,278,000 | | |
| Total Materials (Cost $7,379,571) | | | 7,457,182 | | |
| Total Common Stocks (Cost $321,212,100) | | | 374,577,985 | | |
Real Estate Investment Trust (REITs) | | | 3.60 | % | |
| | | | | Real Estate | | | 3.60 | % | |
| | 85,300 | | | Digital Realty Trust, Inc. | | | 11,849,023 | | |
| | 165,000 | | | Weyerhaeuser Co. | | | 2,796,750 | | |
| Total Real Estate (Cost $9,700,300) | | | 14,645,773 | | |
| Total REITs (Cost $9,700,300) | | | 14,645,773 | | |
Convertible Bonds | | | 2.01 | % | |
Information Technology | | | 2.01 | % | |
| | | | | Software | | | 2.01 | % | |
| | | | | Nuance Communications, Inc. | | | |
| | 7,725,000 | | | 1.500%, 11/01/2035 | | | 8,179,230 | | |
| Total Information Technology (Cost $7,517,670) | | | 8,179,230 | | |
| Total Convertible Bonds (Cost $7,517,670) | | | 8,179,230 | | |
Corporate Bonds | | | 1.45 | % | |
Communication Services | | | 1.08 | % | |
| | | | | Diversified Telecommunication Services | | | 1.08 | % | |
| | | | | Consolidated Communications, Inc. | | | |
| | 5,000,000 | | | 6.500%, 10/01/2022 | | | 4,412,500 | | |
| Total Communication Services (Cost $4,956,500) | | | 4,412,500 | | |
The accompanying notes are an integral part of these financial statements.
52
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Financials | | | 0.37 | % | |
| | | Diversified Financial Services | | | 0.37 | % | |
| | | Everi Payments, Inc. | | | |
| | 1,938,000 | | | 7.500%, 12/15/2025(d) | | | 1,489,828 | | |
| Total Financials (Cost $1,938,000) | | | 1,489,828 | | |
| Total Corporate Bonds (Cost $6,894,500) | | | 5,902,328 | | |
Short Term Investments | | | 0.93 | % | |
Investment Company | | | 0.93 | % | |
| | 3,801,306 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(e) | | | 3,801,306 | | |
Total Investment Company | | | 3,801,306 | | |
| Total Short Term Investments (Cost $3,801,306) | | | 3,801,306 | | |
Total Investments (Cost $349,125,876)
| | | 99.96
407,106,622 | % | |
Other Assets in Excess of Liabilities
| | | 0.04
151,772 | % | |
Total Net Assets
| | | 100.00
407,258,394 | % | |
ADR American Depository Receipt
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $41,112,360 (10.09% of net assets) at March 31, 2020.
(c) A portion of these investments are segregated as collateral for open written option contracts.
(d) 144A Securities. The total value of this security is $1,489,828 (0.37% of net assets) at March 31, 2020.
(e) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See the 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.
53
BUFFALO FLEXIBLE INCOME FUND
SCHEDULE OF OPTIONS WRITTEN
MARCH 31, 2020 Continued
Contracts | | | | $ Notional Amount | | $ Value | |
Call Options | | | |
| | | | | The Boeing Co. | | | | | | | |
| | 80 | | | Expiration: April 2020, Exercise Price: $148.00 | | | 1,193,120 | | | | 62,400 | | |
| | | | | The Boeing Co. | | | | | | | |
| | 200 | | | Expiration: May 2020, Exercise Price: $325.00 | | | 2,982,800 | | | | 4,400 | | |
| | | | | The Boeing Co. | | | | | | | |
| | 200 | | | Expiration: June 2020, Exercise Price: $390.00 | | | 2,982,800 | | | | 4,000 | | |
| | | | | The Clorox Co. | | | | | | | |
| | 250 | | | Expiration: April 2020, Exercise Price: $170.00 | | | 4,331,250 | | | | 230,000 | | |
| | | | | Gilead Sciences, Inc. | | | | | |
| | 100 | | | Expiration: April 2020, Exercise Price: $105.00 | | | 747,600 | | | | 4,400 | | |
| | | | | Intel Corp. | | | | | | | |
| | 500 | | | Expiration: May 2020, Exercise Price: $65.00 | | | 2,706,000 | | | | 24,500 | | |
| | | | | Johnson & Johnson | | | | | | | |
| | 100 | | | Expiration: May 2020, Exercise Price: $155.00 | | | 1,311,300 | | | | 7,900 | | |
| | | | | The Procter & Gamble Co. | | | | | | | |
| | 200 | | | Expiration: May 2020, Exercise Price: $135.00 | | | 2,200,000 | | | | 8,000 | | |
| | | Total Written Options (Premiums received $303,373) | | | | | | | 345,600 | | |
The accompanying notes are an integral part of these financial statements.
54
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 93.98 | % | |
Communication Services | | | 12.32 | % | |
| | | | | Entertainment | | | 3.21 | % | |
| | 19,485 | | | Electronic Arts, Inc.(a) | | | 1,951,812 | | |
| | 28,457 | | | The Walt Disney Co. | | | 2,748,946 | | |
| | | | 4,700,758 | | |
| | | | | Interactive Media & Services | | | 9.11 | % | |
| | 3,645 | | | Alphabet, Inc. — Class A(a) | | | 4,235,308 | | |
| | 4,072 | | | Alphabet, Inc. — Class C(a) | | | 4,734,962 | | |
| | 16,181 | | | Facebook, Inc. — Class A(a) | | | 2,698,991 | | |
| | 9,273 | | | IAC/InterActiveCorp(a) | | | 1,662,000 | | |
| | | | 13,331,261 | | |
| Total Communication Services (Cost $10,018,485) | | | 18,032,019 | | |
Consumer Discretionary | | | 13.67 | % | |
| | | | | Hotels, Restaurants & Leisure | | | 0.54 | % | |
| | 5,317 | | | Vail Resorts, Inc. | | | 785,374 | | |
| | | | | Internet & Direct Marketing Retail | | | 8.38 | % | |
| | 12,275 | | | Alibaba Group Holding Ltd. — ADR(a) (b) | | | 2,387,242 | | |
| | 3,641 | | | Amazon.com, Inc.(a) | | | 7,098,930 | | |
| | 1,199 | | | Booking Holdings, Inc.(a) | | | 1,613,039 | | |
| | 30,959 | | | Chewy, Inc.(a) | | | 1,160,653 | | |
| | | | 12,259,864 | | |
| | | | | Specialty Retail | | | 2.42 | % | |
| | 19,018 | | | The Home Depot, Inc. | | | 3,550,851 | | |
| | | | | Textiles, Apparel & Luxury Goods | | | 2.33 | % | |
| | 41,312 | | | NIKE, Inc. — Class B | | | 3,418,155 | | |
| Total Consumer Discretionary (Cost $10,015,951) | | | 20,014,244 | | |
Energy | | | 0.40 | % | |
| | | | | Energy Equipment & Services | | | 0.40 | % | |
| | 1,752,466 | | | Schlumberger Ltd.(b) | | | 591,429 | | |
| Total Energy (Cost $1,752,466) | | | 591,429 | | |
The accompanying notes are an integral part of these financial statements.
55
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Financials | | | 7.09 | % | |
| | | | | Banks | | | 1.20 | % | |
| | 61,291 | | | Wells Fargo & Co. | | | 1,759,052 | | |
| | | | | Capital Markets | | | 4.65 | % | |
| | 11,550 | | | CME Group, Inc. | | | 1,997,110 | | |
| | 27,056 | | | Intercontinental Exchange, Inc. | | | 2,184,772 | | |
| | 10,702 | | | S&P Global, Inc. | | | 2,622,525 | | |
| | | | 6,804,407 | | |
| | | | | Diversified Financial Services | | | 1.24 | % | |
| | 12,522 | | | Global Payments Inc. | | | 1,806,048 | | |
| Total Financials (Cost $7,473,054) | | | 10,369,507 | | |
Health Care | | | 19.88 | % | |
| | | | | Biotechnology | | | 0.42 | % | |
| | 10,629 | | | Exact Sciences Corp.(a) | | | 616,482 | | |
| | | | | Health Care Equipment & Supplies | | | 16.37 | % | |
| | 58,228 | | | Abbott Laboratories | | | 4,594,771 | | |
| | 11,144 | | | Align Technology, Inc.(a) | | | 1,938,499 | | |
| | 47,557 | | | Baxter International, Inc. | | | 3,861,153 | | |
| | 12,032 | | | Becton Dickinson and Co. | | | 2,764,593 | | |
| | 28,005 | | | Danaher Corp. | | | 3,876,172 | | |
| | 8,335 | | | Edwards Lifesciences Corp.(a) | | | 1,572,148 | | |
| | 14,026 | | | IDEXX Laboratories, Inc.(a) | | | 3,397,658 | | |
| | 3,950 | | | Intuitive Surgical, Inc.(a) | | | 1,956,079 | | |
| | | | 23,961,073 | | |
| | | | | Life Sciences Tools & Services | | | 3.09 | % | |
| | 9,406 | | | Illumina, Inc.(a) | | | 2,568,967 | | |
| | 6,859 | | | Thermo Fisher Scientific, Inc. | | | 1,945,212 | | |
| | | | 4,514,179 | | |
| Total Health Care (Cost $20,121,883) | | | 29,091,734 | | |
Industrials | | | 6.18 | % | |
| | | | | Commercial Services & Supplies | | | 0.77 | % | |
| | 93,925 | | | KAR Auction Services, Inc. | | | 1,127,100 | | |
| | | | | Industrial Conglomerates | | | 1.73 | % | |
| | 18,916 | | | Honeywell International, Inc. | | | 2,530,772 | | |
The accompanying notes are an integral part of these financial statements.
56
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Professional Services | | | 2.64 | % | |
| | 38,457 | | | IHS Markit Ltd.(b) | | | 2,307,420 | | |
| | 23,414 | | | TransUnion | | | 1,549,538 | | |
| | | | 3,856,958 | | |
| | | | | Road & Rail | | | 1.04 | % | |
| | 10,822 | | | Union Pacific Corp. | | | 1,526,335 | | |
| Total Industrials (Cost $8,840,695) | | | 9,041,165 | | |
Information Technology | | | 30.66 | % | |
| | | | | IT Services | | | 6.37 | % | |
| | 17,565 | | | Broadridge Financial Solutions, Inc. | | | 1,665,689 | | |
| | 18,310 | | | MasterCard, Inc. — Class A | | | 4,422,964 | | |
| | 20,007 | | | Visa Inc. — Class A | | | 3,223,528 | | |
| | | | 9,312,181 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 4.61 | % | |
| | 19,815 | | | Analog Devices, Inc. | | | 1,776,415 | | |
| | 9,615 | | | Broadcom Inc. | | | 2,279,716 | | |
| | 4,681 | | | Lam Research Corporation | | | 1,123,440 | | |
| | 41,898 | | | Semtech Corp.(a) | | | 1,571,175 | | |
| | | | 6,750,746 | | |
| | | | | Software | | | 17.12 | % | |
| | 6,845 | | | Adobe, Inc.(a) | | | 2,178,353 | | |
| | 5,390 | | | Fair Isaac Corp.(a) | | | 1,658,449 | | |
| | 9,529 | | | Intuit, Inc. | | | 2,191,670 | | |
| | 76,828 | | | Microsoft Corp. | | | 12,116,544 | | |
| | 7,066 | | | Palo Alto Networks, Inc.(a) | | | 1,158,541 | | |
| | 14,222 | | | salesforce.com, Inc.(a) | | | 2,047,683 | | |
| | 6,703 | | | ServiceNow, Inc.(a) | | | 1,920,946 | | |
| | 14,739 | | | VMware, Inc. — Class A(a) | | | 1,784,893 | | |
| | | | 25,057,079 | | |
| | | | | Technology Hardware, Storage & Peripherals | | | 2.56 | % | |
| | 14,734 | | | Apple Inc. | | | 3,746,709 | | |
| Total Information Technology (Cost $29,079,640) | | | 44,866,715 | | |
The accompanying notes are an integral part of these financial statements.
57
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Materials | | | 3.78 | % | |
| | | | | Chemicals | | | 3.78 | % | |
| | 11,000 | | | Ecolab Inc. | | | 1,714,130 | | |
| | 22,090 | | | Linde PLC(b) | | | 3,821,570 | | |
| Total Materials (Cost $4,481,970) | | | 5,535,700 | | |
| Total Common Stocks (Cost $91,784,144) | | | 137,542,513 | | |
REITs | | | 3.48 | % | |
Real Estate | | | 3.48 | % | |
| | | | | Equity Real Estate Investment Trusts (REITs) | | | 3.48 | % | |
| | 8,395 | | | American Tower Corp. | | | 1,828,012 | | |
| | 5,237 | | | Equinix Inc. | | | 3,270,873 | | |
| Total Real Estate (Cost $2,164,198) | | | 5,098,885 | | |
| Total REITs (Cost $2,164,198) | | | 5,098,885 | | |
Short Term Investments | | | 2.56 | % | |
Investment Company | | | 2.56 | % | |
| | 3,740,463 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(c) | | | 3,740,463 | | |
Total Investment Company | | | 3,740,463 | | |
| Total Short Term Investments (Cost $3,740,463) | | | 3,740,463 | | |
Total Investments (Cost $97,688,805)
| | | 100.02
146,381,861 | % | |
Liabilities in Excess of Other Assets
| | | (0.02
(23,134) | )% | |
Total Net Assets
| | | 100.00
146,358,727 | % | |
The accompanying notes are an integral part of these financial statements.
58
BUFFALO GROWTH FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $9,107,661 (6.22% of net assets) at March 31, 2020.
(c) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See Note 1A of the 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.
59
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Preferred Stocks | | | 1.29 | % | |
Energy | | | 0.38 | % | |
| | | | | Oil, Gas & Consumable Fuels | | | 0.38 | % | |
| | 50,000 | | | Targa Resources Partners LP (1 Month LIBOR USD + 7.710%) | | | 719,500 | | |
| Total Energy (Cost $1,273,345) | | | 719,500 | | |
Financials | | | 0.91% | | |
| | | | | Diversified Financial Services | | | 0.91 | % | |
| | 100,000 | | | Compass Diversified Holdings | | | 1,707,000 | | |
| Total Financials (Cost $2,484,285) | | | 1,707,000 | | |
| Total Preferred Stocks (Cost $3,757,630) | | | 2,426,500 | | |
Common Stocks | | | 1.00 | % | |
Communication Services | | | 0.64 | % | |
| | | | | Entertainment | | | 0.64 | % | |
| | 24,485 | | | Lions Gate Entertainment Corp. — Class A(a) | | | 148,869 | | |
| | 24,485 | | | Lions Gate Entertainment Corp. — Class B(a) | | | 136,626 | | |
| | 20,000 | | | Live Nation Entertainment, Inc. | | | 909,200 | | |
| Total Communication Services (Cost $1,191,820) | | | 1,194,695 | | |
Energy | | | 0.18 | % | |
| | | | | Oil, Gas & Consumable Fuels | | | 0.18 | % | |
| | 75,000 | | | Energy Transfer Equity, L.P. | | | 345,000 | | |
| Total Energy (Cost $949,177) | | | 345,000 | | |
Industrials | | | 0.18 | % | |
| | | | | Machinery | | | 0.18 | % | |
| | 673,856 | | | The Greenbrier Companies, Inc. | | | 337,060 | | |
| Total Industrials (Cost $673,856) | | | 337,060 | | |
| Total Common Stocks (Cost $2,814,853) | | | 1,876,755 | | |
The accompanying notes are an integral part of these financial statements.
60
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Convertible Bonds | | | 16.61 | % | |
Communication Services | | | 0.88 | % | |
| | | | | Entertainment | | | 0.12 | % | |
| | | | | Live Nation Entertainment, Inc. | | | |
| | 250,000 | | | 2.500%, 03/15/2023 | | | 238,258 | | |
| | | | | Interactive Media & Services | | | 0.76 | % | |
| | | | | Twitter, Inc. | | | |
| | 1,500,000 | | | 1.000%, 09/15/2021 | | | 1,421,342 | | |
| Total Communication Services (Cost $1,702,688) | | | 1,659,600 | | |
Financials | | | 1.97 | % | |
| | | | | Consumer Finance | | | 1.97 | % | |
| | | | | PRA Group, Inc. | | | |
| | 2,000,000 | | | 3.000%, 08/01/2020 | | | 1,948,480 | | |
| | 2,000,000 | | | 3.500%, 06/01/2023 | | | 1,740,063 | | |
| Total Financials (Cost $4,028,096) | | | 3,688,543 | | |
Health Care | | | 2.89 | % | |
| | | | | Biotechnology | | | 1.71 | % | |
| | | | | Flexion Therapeutics, Inc. | | | |
| | 2,000,000 | | | 3.375%, 05/01/2024 | | | 1,554,039 | | |
| | | | | Ligand Pharmaceuticals, Inc. | | | |
| | 2,000,000 | | | 0.750%, 05/15/2023 | | | 1,656,250 | | |
| | | | 3,210,289 | | |
| | | | | Pharmaceuticals | | | 1.18 | % | |
| | | | | Dermira, Inc. | | | |
| | 1,000,000 | | | 3.000%, 05/15/2022 | | | 1,027,250 | | |
| | | | | Revance Therapeutics, Inc. | | | |
| | 1,500,000 | | | 1.750%, 02/15/2027(b) | | | 1,183,380 | | |
| | | | 2,210,630 | | |
| Total Health Care (Cost $6,053,149) | | | 5,420,919 | | |
The accompanying notes are an integral part of these financial statements.
61
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Industrials | | | 2.29 | % | |
| | | | | Air Freight & Logistics | | | 1.14 | % | |
| | | | | Air Transport Services Group, Inc. | | | |
| | 2,500,000 | | | 1.125%, 10/15/2024 | | | 2,150,000 | | |
| | | | | Construction & Engineering | | | 0.74 | % | |
| | | | | Tutor Perini Corporation | | | |
| | 1,500,000 | | | 2.875%, 06/15/2021 | | | 1,386,559 | | |
| | | | | Machinery | | | 0.41 | % | |
| | | | | The Greenbrier Companies, Inc. | | | |
| | 1,000,000 | | | 2.875%, 02/01/2024 | | | 766,250 | | |
| Total Industrials (Cost $4,931,653) | | | 4,302,809 | | |
Information Technology | | | 8.58 | % | |
| | | | | Communications Equipment | | | 0.95 | % | |
| | | | | Lumentum Holdings, Inc. | | | |
| | 1,750,000 | | | 0.500%, 12/15/2026(b) | | | 1,785,000 | | |
| | | | | IT Services | | | 2.31 | % | |
| | | | | Cardtronics plc | | | |
| | 3,000,000 | | | 1.000%, 12/01/2020(a) | | | 2,866,361 | | |
| | | | | MongoDB, Inc. | | | |
| | 1,500,000 | | | 0.250%, 01/15/2026(b) | | | 1,461,562 | | |
| | | | 4,327,923 | | |
| | | | | Software | | | 5.32 | % | |
| | | | | 8x8, Inc. | | | |
| | 2,000,000 | | | 0.500%, 02/01/2024 | | | 1,752,021 | | |
| | | | | Guidewire Software, Inc. | | | |
| | 2,000,000 | | | 1.250%, 03/15/2025 | | | 1,936,970 | | |
| | | | | J2 Global, Inc. | | | |
| | 2,250,000 | | | 1.750%, 11/01/2026(b) | | | 2,064,375 | | |
| | | | | Nuance Communications, Inc. | | | |
| | 3,310,000 | | | 1.500%, 11/01/2035 | | | 3,504,628 | | |
| | | | | Pluralsight, Inc. | | | |
| | 1,000,000 | | | 0.375%, 03/01/2024(b) | | | 740,250 | | |
| | | | 9,998,244 | | |
| Total Information Technology (Cost $16,692,113) | | | 16,111,167 | | |
| Total Convertible Bonds (Cost $33,407,699) | | | 31,183,038 | | |
The accompanying notes are an integral part of these financial statements.
62
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Corporate Bonds | | | 58.81 | % | |
Administrative and Support and Waste Management and Remediation Services | | | 0.25 | % | |
| | | | | Office Administrative Services | | | 0.25% | | |
| | | | | Cargo Aircraft Management, Inc. | | | |
| | 500,000 | | | 4.750%, 02/01/2028(b) | | | 467,500 | | |
| Total Administrative and Support and Waste Management and Remediation Services (Cost $500,000) | | | 467,500 | | |
Agriculture, Forestry, Fishing and Hunting | | | 0.79 | % | |
| | | | | Forest Nurseries and Gathering of Forest Products | | | 0.79 | % | |
| | | | | Enviva Partners LP / Enviva Partners Finance Corp. | | | |
| | 1,500,000 | | | 6.500%, 01/15/2026(b) | | | 1,473,750 | | |
| Total Agriculture, Forestry, Fishing and Hunting (Cost $1,500,000) | | | 1,473,750 | | |
Basic Materials | | | 0.48 | % | |
| | | | | Basic Chemical Manufacturing | | | 0.48 | % | |
| | | | | Tronox, Inc. | | | |
| | 1,000,000 | | | 6.500%, 04/15/2026(b) | | | 907,575 | | |
| Total Basic Materials (Cost $987,500) | | | 907,575 | | |
Communication Services | | | 8.89 | % | |
| | | | | Diversified Telecommunication Services | | | 2.35% | | |
| | | | | Consolidated Communications, Inc. | | | |
| | 5,000,000 | | | 6.500%, 10/01/2022 | | | 4,412,500 | | |
| | | | | Entertainment | | | 1.57 | % | |
| | | | | Live Nation Entertainment, Inc. | | | |
| | 1,000,000 | | | 4.875%, 11/01/2024(b) | | | 917,830 | | |
| | 500,000 | | | 5.625%, 03/15/2026(b) | | | 469,271 | | |
| | 250,000 | | | 4.750%, 10/15/2027(b) | | | 223,888 | | |
| | | | | Netflix, Inc. | | | |
| | 250,000 | | | 5.500%, 02/15/2022 | | | 256,250 | | |
| | 1,000,000 | | | 5.750%, 03/01/2024 | | | 1,078,745 | | |
| | | | 2,945,984 | | |
| | | | | Interactive Media & Services | | | 0.52 | % | |
| | | | | Match Group, Inc. | | | |
| | 1,000,000 | | | 5.000%, 12/15/2027(b) | | | 963,543 | | |
The accompanying notes are an integral part of these financial statements.
63
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Media | | | 4.25 | % | |
| | | | | AMC Networks, Inc. | | | |
| | 1,500,000 | | | 5.000%, 04/01/2024 | | | 1,447,500 | | |
| | | | | Cinemark USA, Inc. | | | |
| | 1,000,000 | | | 5.125%, 12/15/2022 | | | 798,436 | | |
| | | | | The E.W. Scripps Co. | | | |
| | 250,000 | | | 5.125%, 05/15/2025(b) | | | 222,186 | | |
| | | | | Gray Television, Inc. | | | |
| | 2,060,000 | | | 5.875%, 07/15/2026(b) | | | 1,994,801 | | |
| | | | | National CineMedia LLC | | | |
| | 1,500,000 | | | 5.750%, 08/15/2026 | | | 1,017,814 | | |
| | | | | Nexstar Broadcasting, Inc. | | | |
| | 500,000 | | | 5.625%, 08/01/2024(b) | | | 473,747 | | |
| | | | | Townsquare Media, Inc. | | | |
| | 2,100,000 | | | 6.500%, 04/01/2023(b) | | | 2,034,365 | | |
| | | | 7,988,849 | | |
| Total Communication Services (Cost $16,222,253) | | | 16,310,876 | | |
Consumer Staples | | | 1.49 | % | |
| | | | | Food Products | | | 1.49 | % | |
| | | | | Performance Food Group, Inc. | | | |
| | 3,000,000 | | | 5.500%, 10/15/2027(b) | | | 2,805,225 | | |
| Total Consumer Staples (Cost $3,000,000) | | | 2,805,225 | | |
Consumer Discretionary | | | 9.84 | % | |
| | | | | Auto Components | | | 0.52 | % | |
| | | | | Allison Transmission, Inc. | | | |
| | 1,000,000 | | | 5.000%, 10/01/2024(b) | | | 977,470 | | |
| | | | | Commercial Services | | | 1.56 | % | |
| | | | | Compass Group Diversified Holdings LLC | | | |
| | 2,000,000 | | | 8.000%, 05/01/2026(b) | | | 1,937,085 | | |
| | | | | The ServiceMaster Co. LLC | | | |
| | 1,000,000 | | | 5.125%, 11/15/2024(b) | | | 993,755 | | |
| | | | 2,930,840 | | |
The accompanying notes are an integral part of these financial statements.
64
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Hotels, Restaurants & Leisure | | | 2.07 | % | |
| | | | | Nathan's Famous, Inc. | | | |
| | 1,500,000 | | | 6.625%, 11/01/2025(b) | | | 1,402,500 | | |
| | | | | Royal Caribbean Cruises Ltd. | | | |
| | 1,615,000 | | | 7.500%, 10/15/2027(a) | | | 1,215,687 | | |
| | | | | Six Flags Entertainment Corp. | | | |
| | 1,500,000 | | | 5.500%, 04/15/2027(b) | | | 1,272,075 | | |
| | | | 3,890,262 | | |
| | | | | Leisure Products | | | 1.92 | % | |
| | | | | Brunswick Corp. | | | |
| | 3,000,000 | | | 7.375%, 09/01/2023 | | | 3,609,108 | | |
| | | | | Media | | | 0.80 | % | |
| | | | | Sirius XM Radio, Inc. | | | |
| | 1,500,000 | | | 4.625%, 05/15/2023(b) | | | 1,494,368 | | |
| | | | | Specialty Retail | | | 1.24 | % | |
| | | | | Penske Automotive Group, Inc. | | | |
| | 2,500,000 | | | 5.750%, 10/01/2022 | | | 2,331,198 | | |
| | | | | Textiles, Apparel & Luxury Goods | | | 1.73 | % | |
| | | | | PVH Corp. | | | |
| | 3,120,000 | | | 7.750%, 11/15/2023 | | | 3,250,399 | | |
| Total Consumer Discretionary (Cost $18,336,288) | | | 18,483,645 | | |
Consumer Staples | | | 3.20 | % | |
| | | | | Food Products | | | 3.20 | % | |
| | | | | Pilgrim's Pride Corp. | | | |
| | 1,000,000 | | | 5.750%, 03/15/2025(b) | | | 1,013,755 | | |
| | | | | TreeHouse Foods, Inc. | | | |
| | 2,000,000 | | | 4.875%, 03/15/2022 | | | 1,996,872 | | |
| | 3,000,000 | | | 6.000%, 02/15/2024(b) | | | 2,996,235 | | |
| Total Consumer Staples (Cost $5,979,833) | | | 6,006,862 | | |
The accompanying notes are an integral part of these financial statements.
65
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Energy | | | 4.62 | % | |
| | | | | Oil, Gas & Consumable Fuels | | | 4.62 | % | |
| | | | | Delek Logistics Partners LP / Delek Logistics Finance Corp. | | | |
| | 2,000,000 | | | 6.750%, 05/15/2025 | | | 1,962,510 | | |
| | | | | Energy Transfer Operating LP | | | |
| | 1,000,000 | | | 7.125% (5 Year CMT Rate + 5.306%), 11/15/2165 | | | 603,080 | | |
| | | | | MEG Energy Corp. | | | |
| | 500,000 | | | 7.000%, 03/31/2024(a) (b) | | | 233,752 | | |
| | 2,000,000 | | | 7.125%, 02/01/2027(a) (b) | | | 1,003,240 | | |
| | | | | MPLX LP | | | |
| | 3,500,000 | | | 6.875% (3 Month LIBOR USD + 4.652%), 08/15/2023 | | | 2,136,715 | | |
| | | | | Parsley Energy LLC / Parsley Finance Corp. | | | |
| | 1,000,000 | | | 5.375%, 01/15/2025(b) | | | 779,950 | | |
| | | | | Seven Generations Energy Ltd. | | | |
| | 1,275,000 | | | 6.750%, 05/01/2023(a) (b) | | | 903,650 | | |
| | 1,500,000 | | | 5.375%, 09/30/2025(a) (b) | | | 847,455 | | |
| | | | | Viper Energy Partners LP | | | |
| | 250,000 | | | 5.375%, 11/01/2027(b) | | | 211,388 | | |
| Total Energy (Cost $13,034,744) | | | 8,681,740 | | |
Financials | | | 3.47% | | |
| | | | | Capital Markets | | | 0.76 | % | |
| | | | | Donnelley Financial Solutions, Inc. | | | |
| | 1,500,000 | | | 8.250%, 10/15/2024 | | | 1,423,117 | | |
| | | | | Diversified Financial Services | | | 2.71 | % | |
| | | | | Cogent Communications Finance, Inc. | | | |
| | 3,000,000 | | | 5.625%, 04/15/2021(b) | | | 2,977,500 | | |
| | | | | Cott Holdings, Inc. | | | |
| | 1,250,000 | | | 5.500%, 04/01/2025(b) | | | 1,220,319 | | |
| | | | | Everi Payments, Inc. | | | |
| | 1,160,000 | | | 7.500%, 12/15/2025(b) | | | 891,744 | | |
| | | | 5,089,563 | | |
| Total Financials (Cost $6,875,750) | | | 6,512,680 | | |
Health Care | | | 5.68 | % | |
| | | | | Health Care Equipment & Supplies | | | 0.52 | % | |
| | | | | Catalent Pharma Solutions, Inc. | | | |
| | 1,000,000 | | | 4.875%, 01/15/2026(b) | | | 978,543 | | |
The accompanying notes are an integral part of these financial statements.
66
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Pharmaceuticals | | | 5.16 | % | |
| | | | | Bausch Health Americas, Inc. | | | |
| | 1,000,000 | | | 9.250%, 04/01/2026(b) | | | 1,062,350 | | |
| | | | | Bausch Health Companies Inc. | | | |
| | 1,500,000 | | | 5.500%, 11/01/2025(a) (b) | | | 1,524,832 | | |
| | 500,000 | | | 9.000%, 12/15/2025(a) (b) | | | 530,850 | | |
| | 100,000 | | | 5.000%, 01/30/2028(a) (b) | | | 95,420 | | |
| | 100,000 | | | 5.250%, 01/30/2030(a) (b) | | | 95,306 | | |
| | | | | Horizon Therapeutics USA, Inc. | | | |
| | 1,000,000 | | | 5.500%, 08/01/2027(b) | | | 1,009,450 | | |
| | | | | Mylan NV | | | |
| | 2,000,000 | | | 3.950%, 06/15/2026(a) | | | 1,977,980 | | |
| | | | | Teva Pharmaceutical Finance Netherlands III BV | | | |
| | 1,000,000 | | | 7.125%, 01/31/2025(a) (b) | | | 996,255 | | |
| | | | | Teva Pharmaceutical Industries Ltd. | | | |
| | 2,500,000 | | | 6.750%, 03/01/2028(a) | | | 2,395,125 | | |
| | | | 9,687,568 | | |
| Total Health Care (Cost $9,423,288) | | | 10,666,111 | | |
Industrials | | | 11.59% | | |
| | | | | Aerospace & Defense | | | 0.76 | % | |
| | | | | TransDigm, Inc. | | | |
| | 500,000 | | | 6.250%, 03/15/2026(b) | | | 500,936 | | |
| | 500,000 | | | 6.375%, 06/15/2026 | | | 481,525 | | |
| | | | | Triumph Group, Inc. | | | |
| | 500,000 | | | 6.250%, 09/15/2024(b) | | | 448,782 | | |
| | | | 1,431,243 | | |
| | | | | Building Products | | | 2.16% | | |
| | | | | Builders FirstSource, Inc. | | | |
| | 450,000 | | | 6.750%, 06/01/2027(b) | | | 444,844 | | |
| | 4,000,000 | | | 5.000%, 03/01/2030(b) | | | 3,622,500 | | |
| | | | 4,067,344 | | |
The accompanying notes are an integral part of these financial statements.
67
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Commercial Services & Supplies | | | 5.06 | % | |
| | | | | Cimpress NV | | | |
| | 2,000,000 | | | 7.000%, 06/15/2026(a) (b) | | | 1,777,085 | | |
| | | | | Covanta Holding Corp. | | | |
| | 250,000 | | | 5.875%, 03/01/2024 | | | 237,811 | | |
| | 1,500,000 | | | 5.875%, 07/01/2025 | | | 1,393,118 | | |
| | | | | Matthews International Corp. | | | |
| | 2,000,000 | | | 5.250%, 12/01/2025(b) | | | 1,787,530 | | |
| | | | | Mobile Mini, Inc. | | | |
| | 1,000,000 | | | 5.875%, 07/01/2024 | | | 965,000 | | |
| | | | | Quad Graphics, Inc. | | | |
| | 4,000,000 | | | 7.000%, 05/01/2022 | | | 3,333,744 | | |
| | | | 9,494,288 | | |
| | | | | Construction & Engineering | | | 1.68% | | |
| | | | | Great Lakes Dredge & Dock Corp. | | | |
| | 1,500,000 | | | 8.000%, 05/15/2022 | | | 1,480,776 | | |
| | | | | Tutor Perini Corp. | | | |
| | 2,000,000 | | | 6.875%, 05/01/2025(b) | | | 1,675,000 | | |
| | | | 3,155,776 | | |
| | | | | Trading Companies & Distributors | | | 1.93 | % | |
| | | | | Fly Leasing Ltd. | | | |
| | 2,000,000 | | | 6.375%, 10/15/2021(a) | | | 1,921,250 | | |
| | 2,000,000 | | | 5.250%, 10/15/2024(a) | | | 1,697,490 | | |
| | | | 3,618,740 | | |
| Total Industrials (Cost $24,204,753) | | | 21,767,391 | | |
Information | | | 0.98% | | |
| | | | | Radio and Television Broadcasting | | | 0.98% | | |
| | | | | iHeartCommunications, Inc. | | | |
| | 2,000,000 | | | 8.375%, 05/01/2027 | | | 1,752,340 | | |
| | 100,000 | | | 5.250%, 08/15/2027(b) | | | 88,055 | | |
| Total Information (Cost $2,200,234) | | | 1,840,395 | | |
The accompanying notes are an integral part of these financial statements.
68
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Information Technology | | | 4.37 | % | |
| | | | | Electronic Equipment, Instruments & Components | | | 1.56 | % | |
| | | | | Anixter, Inc. | | | |
| | 500,000 | | | 5.125%, 10/01/2021 | | | 501,850 | | |
| | 1,000,000 | | | 6.000%, 12/01/2025 | | | 987,495 | | |
| | | | | Itron, Inc. | | | |
| | 1,500,000 | | | 5.000%, 01/15/2026(b) | | | 1,437,814 | | |
| | | | 2,927,159 | | |
| | | | | IT Services | | | 1.41 | % | |
| | | | | Cardtronics Inc / Cardtronics USA, Inc. | | | |
| | 1,500,000 | | | 5.500%, 05/01/2025(a) (b) | | | 1,438,117 | | |
| | | | | j2 Cloud Services LLC / j2 Global Co-Obligor, Inc. | | | |
| | 1,200,000 | | | 6.000%, 07/15/2025(b) | | | 1,198,494 | | |
| | | | 2,636,611 | | |
| | | | | Technology Hardware, Storage & Peripherals | | | 1.40 | % | |
| | | | | Diebold Nixdorf, Inc. | | | |
| | 4,000,000 | | | 8.500%, 04/15/2024 | | | 2,635,020 | | |
| Total Information Technology (Cost $9,614,054) | | | 8,198,790 | | |
Management of Companies and Enterprises | | | 0.32 | % | |
| | | | | Management of Companies and Enterprises | | | 0.32 | % | |
| | | | | Weatherford International Ltd. | | | |
| | 1,000,000 | | | 11.000%, 12/01/2024(a) (b) | | | 605,000 | | |
| Total Management of Companies and Enterprises (Cost $1,064,174) | | | 605,000 | | |
Materials | | | 1.11 | % | |
| | | | | Chemicals | | | 0.49 | % | |
| | | | | OCI NV | | | |
| | 1,000,000 | | | 6.625%, 04/15/2023(a) (b) | | | 920,000 | | |
| | | | | Metals & Mining | | | 0.62 | % | |
| | | | | Commercial Metals Co. | | | |
| | 1,000,000 | | | 5.750%, 04/15/2026 | | | 940,512 | | |
| | 250,000 | | | 5.375%, 07/15/2027 | | | 232,136 | | |
| | | | 1,172,648 | | |
| Total Materials (Cost $2,261,250) | | | 2,092,648 | | |
The accompanying notes are an integral part of these financial statements.
69
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Retail Trade | | | 0.99 | % | |
| | | | | Sporting Goods, Hobby, and Musical Instrument Stores | | | 0.99 | % | |
| | | | | Michaels Stores, Inc. | | | |
| | 2,500,000 | | | 8.000%, 07/15/2027(b) | | | 1,863,875 | | |
Total Retail Trade (Cost $2,393,664) | | | 1,863,875 | | |
Wholesale Trade | | | 0.94 | % | |
| | | | | Drugs and Druggists' Sundries Merchant Wholesalers | | | 0.46 | % | |
| | | | | HLF Financing Sarl LLC / Herbalife International, Inc. | | | |
| | 1,000,000 | | | 7.250%, 08/15/2026(b) | | | 853,750 | | |
| | | | | Machinery, Equipment, and Supplies Merchant Wholesalers | | | 0.48 | % | |
| | | | | TransDigm, Inc. | | | |
| | 1,000,000 | | | 5.500%, 11/15/2027(b) | | | 903,050 | | |
| Total Wholesale Trade (Cost $2,023,750) | | | 1,756,800 | | |
| Total Corporate Bonds (Cost $122,107,520) | | | 110,440,863 | | |
Bank Loans | | | 18.94 | % | |
| | | | | Aerospace & Defense | | | 2.25 | % | |
| | 4,887,500 | | | Maxar Technologies Ltd., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.750%) | | | 4,219,550 | | |
| | | | | Aerospace/Defense | | | 0.97 | % | |
| | 1,945,325 | | | Transdigm, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.500%) | | | 1,826,660 | | |
| | | | | Broadcasting | | | 0.24 | % | |
| | 480,313 | | | Nexstar Media Group, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.750%) | | | 452,935 | | |
| | | | | Building Products | | | 0.16 | % | |
| | 334,142 | | | Builders FirstSource, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.000%) | | | 304,069 | | |
| | | | | Capital Goods | | | 0.94 | % | |
| | 1,921,155 | | | SiteOne Landscape Supply, Inc., Senior Secured First Lien Term Loan
(1 Month LIBOR USD + 2.750%) | | | 1,767,462 | | |
| | | | | Capital Markets | | | 0.46 | % | |
| | 955,134 | | | Blucora, Inc., Senior Secured First Lien Term Loan (2 Month LIBOR USD + 3.000%) | | | 866,784 | | |
| | | | | Consumer Discretionary | | | 0.44 | % | |
| | 1,000,000 | | | Vivint Smart Home Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 5.000%) | | | 832,345 | | |
The accompanying notes are an integral part of these financial statements.
70
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Diversified Consumer Services | | | 1.04 | % | |
| | 2,056,412 | | | Weight Watchers International, Inc., Senior Secured First Lien Term Loan
(3 Month LIBOR USD + 4.750%) | | | 1,943,309 | | |
| | | | | Food Products | | | 1.95 | % | |
| | 1,917,164 | | | Atkins Nutritionals, Inc., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 3.500%)(c) | | | 1,792,549 | | |
| | 1,975,000 | | | Bellring Brands LLC, Senior Secured First Lien Term Loan (1 Month LIBOR USD + 5.000%) | | | 1,861,437 | | |
| | | | | Health Care Equipment & Services | | | 0.89 | % | |
| | 1,885,714 | | | RadNet Management, Inc., Senior Secured First Lien Term Loan (3 Month LIBOR USD + 3.500%) | | | 1,664,143 | | |
| | | | | Machinery | | | 0.40 | % | |
| | 950,000 | | | Welbilt, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.500%) | | | 747,930 | | |
| | | | | Media | | | 1.29 | % | |
| | 626,737 | | | CBS Radio (Entercom Media Co.), Senior Secured First Lien Term Loan
(1 Month LIBOR USD + 2.500%) | | | 573,464 | | |
| | 990,025 | | | The E.W. Scripps Co., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.000%) | | | 945,474 | | |
| | 975,000 | | | The E.W. Scripps Co., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.750%) | | | 898,628 | | |
| | | | | Metals & Mining | | | 0.94 | % | |
| | 3,435,993 | | | U.S. Silica Co., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 4.000%) | | | 1,769,536 | | |
| | | | | Oil, Gas & Consumable Fuels | | | 0.35 | % | |
| | 982,500 | | | Keane Group Holdings, LLC, Senior Secured First Lien Term Loan (1 Month LIBOR USD + 3.750%) | | | 658,275 | | |
| | | | | Pharmaceuticals | | | 2.20 | % | |
| | 2,063,746 | | | Bausch Health Companies Inc., Senior Secured First Lien Term Loan
(1 Month LIBOR USD + 3.000%) | | | 1,975,181 | | |
| | 425,000 | | | Bausch Health Companies Inc., Senior Secured First Lien Term Loan
(1 Month LIBOR USD + 2.750%) | | | 405,875 | | |
| | 1,966,799 | | | Lannett Co, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 5.375%) | | | 1,750,451 | | |
| | | | | Software | | | 3.96 | % | |
| | 899,278 | | | Avaya, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 4.250%) | | | 775,627 | | |
| | 5,799,804 | | | Cerence Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 6.000%) | | | 5,277,821 | | |
| | 280,056 | | | SS&C Technologies, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.250%) | | | 264,653 | | |
| | 199,839 | | | SS&C Technologies, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.250%) | | | 188,848 | | |
| | 984,843 | | | SS&C Technologies, Inc., Senior Secured First Lien Term Loan (1 Month LIBOR USD + 2.250%) | | | 931,603 | | |
| | | | | Trading Companies & Distributors | | | 0.46 | % | |
| | 987,500 | | | Foundation Building Materials Holding Company LLC, Senior Secured First Lien Term Loan
(1 Month LIBOR USD + 3.000%) | | | 871,469 | | |
Total Bank Loans (Cost $40,707,686) | | | 35,566,078 | | |
The accompanying notes are an integral part of these financial statements.
71
BUFFALO HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Short Term Investments | | | 2.21 | % | |
Investment Company | | | 2.21 | % | |
| | 4,141,584 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(d) | | | 4,141,584 | | |
Total Investment Company | | | 4,141,584 | | |
| Total Short Term Investments (Cost $4,141,584) | | | 4,141,584 | | |
Total Investments (Cost $206,936,972) | | | 98.86
185,634,818 | % | |
Other Assets in Excess of Liabilities | | | 1.14
2,136,078 | % | |
Total Net Assets | | | 100.00
187,770,896 | % | |
(a) Foreign Issued Securities. The total value of these securities amounted to $23,330,351 (12.42% of net assets) at March 31, 2020.
(b) 144A Securities. The total value of these securities amounted to $67,202,327 (35.79% of net assets) at March 31, 2020.
(c) Illiquid Security. The total value of this security amounted to $1,792,549 (0.95% of net assets) at March 31, 2020.
(d) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See Note 1A of the 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.
72
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 90.13 | % | |
Belgium | | | 1.53 | % | |
| | | | | Beverages | | | 1.53 | % | |
| | 83,500 | | | Anheuser-Busch InBev SA/NV | | | 3,688,188 | | |
| | 41,500 | | | Anheuser-Busch InBev SA/NV — ADR | | | 1,830,980 | | |
| | | | 5,519,168 | | |
| Total Belgium (Cost $8,039,001) | | | 5,519,168 | | |
Canada | | | 1.44 | % | |
| | | | | Road & Rail | | | 1.44 | % | |
| | 67,000 | | | Canadian National Railway Co. | | | 5,201,210 | | |
| Total Canada (Cost $4,822,925) | | | 5,201,210 | | |
Cayman Islands | | | 1.34 | % | |
| | | | | Interactive Media & Services | | | 1.34 | % | |
| | 98,300 | | | Tencent Holdings Ltd. — ADR | | | 4,825,547 | | |
| Total Cayman Islands (Cost $4,100,750) | | | 4,825,547 | | |
Denmark | | | 1.27 | % | |
| | | | | Pharmaceuticals | | | 1.27 | % | |
| | 15,000 | | | Novo Nordisk A/S | | | 895,741 | | |
| | 61,000 | | | Novo Nordisk A/S — ADR | | | 3,672,200 | | |
| | | | 4,567,941 | | |
| Total Denmark (Cost $4,092,292) | | | 4,567,941 | | |
France | | | 18.96 | % | |
| | | | | Aerospace & Defense | | | 0.92 | % | |
| | 40,000 | | | Thales SA | | | 3,312,635 | | |
| | | | | Beverages | | | 1.36 | % | |
| | 34,500 | | | Pernod Ricard SA | | | 4,896,806 | | |
| | | | | Chemicals | | | 1.81 | % | |
| | 51,062 | | | Air Liquide SA | | | 6,517,941 | | |
The accompanying notes are an integral part of these financial statements.
73
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Construction & Engineering | | | 1.07 | % | |
| | 47,000 | | | Vinci SA | | | 3,840,341 | | |
| | | | | Electrical Equipment | | | 2.09 | % | |
| | 89,000 | | | Schneider Electric SE | | | 7,522,544 | | |
| | | | | Hotels, Restaurants & Leisure | | | 1.28 | % | |
| | 124,000 | | | Accor SA | | | 3,331,393 | | |
| | 50,000 | | | La Francaise des Jeux SAEM | | | 1,266,791 | | |
| | | | 4,598,184 | | |
| | | | | Life Sciences Tools & Services | | | 3.01 | % | |
| | 54,341 | | | Sartorius Stedim Biotech | | | 10,843,979 | | |
| | | | | Media | | | 0.56 | % | |
| | 113,000 | | | JCDecaux SA | | | 2,008,916 | | |
| | | | | Pharmaceuticals | | | 0.36 | % | |
| | 30,000 | | | Sanofi — ADR | | | 1,311,600 | | |
| | | | | Professional Services | | | 1.43 | % | |
| | 273,000 | | | Bureau Veritas SA | | | 5,145,753 | | |
| | | | | Software | | | 1.70 | % | |
| | 42,000 | | | Dassault Systemes SE | | | 6,131,630 | | |
| | | | | Textiles, Apparel & Luxury Goods | | | 3.37 | % | |
| | 12,300 | | | Kering SA | | | 6,413,385 | | |
| | 15,600 | | | LVMH Moet Hennessy Louis Vuitton SE | | | 5,721,326 | | |
| | | | 12,134,711 | | |
| Total France (Cost $54,027,108) | | | 68,265,040 | | |
Germany | | | 18.65 | % | |
| | | | | Capital Markets | | | 0.87 | % | |
| | 130,000 | | | DWS Group GmbH & Co KGaA | | | 3,156,217 | | |
| | | | | Chemicals | | | 1.44 | % | |
| | 56,000 | | | Symrise AG | | | 5,180,501 | | |
| | | | | Electronic Equipment, Instruments & Components | | | 0.60 | % | |
| | 133,711 | | | Jenoptik AG | | | 2,158,827 | | |
| | | | | Health Care Equipment & Supplies | | | 1.73 | % | |
| | 65,525 | | | Carl Zeiss Meditec AG(a) | | | 6,239,329 | | |
| | | | | Health Care Providers & Services | | | 1.52 | % | |
| | 147,000 | | | Fresenius SE & Co. KGaA | | | 5,473,209 | | |
The accompanying notes are an integral part of these financial statements.
74
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Household Products | | | 0.49 | % | |
| | 23,900 | | | Henkel AG & Co. KGaA | | | 1,755,645 | | |
| | | | | Industrial Conglomerates | | | 1.51 | % | |
| | 65,200 | | | Siemens A.G. — ADR | | | 5,459,533 | | |
| | | | | Insurance | | | 1.28 | % | |
| | 22,900 | | | Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | | | 4,604,516 | | |
| | | | | IT Services | | | 1.27 | % | |
| | 40,500 | | | Wirecard AG | | | 4,563,144 | | |
| | | | | Pharmaceuticals | | | 1.69 | % | |
| | 9,200 | | | Bayer AG | | | 527,146 | | |
| | 12,000 | | | Bayer AG — ADR | | | 173,640 | | |
| | 53,500 | | | Merck KGaA | | | 5,401,477 | | |
| | | | 6,102,263 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 1.02 | % | |
| | 254,000 | | | Infineon Technologies AG | | | 3,666,686 | | |
| | | | | Software | | | 1.99 | % | |
| | 64,800 | | | SAP SE — ADR | | | 7,160,400 | | |
| | | | | Textiles, Apparel & Luxury Goods | | | 2.15 | % | |
| | 19,700 | | | adidas AG | | | 4,373,942 | | |
| | 57,160 | | | Puma SE | | | 3,358,444 | | |
| | | | 7,732,386 | | |
| | | | | Trading Companies & Distributors | | | 1.09 | % | |
| | 108,000 | | | Brenntag AG | | | 3,923,874 | | |
| Total Germany (Cost $58,353,948) | | | 67,176,530 | | |
Hong Kong | | | 1.38 | % | |
| | | | | Gas Utilities | | | 0.41 | % | |
| | 405,000 | | | Beijing Enterprises Holdings Ltd. | | | 1,478,039 | | |
| | | | | Industrial Conglomerates | | | 0.97 | % | |
| | 44,184 | | | Jardine Matheson Holdings Ltd. | | | 2,223,866 | | |
| | 56,695 | | | Jardine Strategic Holdings Ltd. | | | 1,267,058 | | |
| | | | 3,490,924 | | |
| Total Hong Kong (Cost $6,213,446) | | | 4,968,963 | | |
The accompanying notes are an integral part of these financial statements.
75
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
India | | | 1.36 | % | |
| | | | | Banks | | | 1.36 | % | |
| | 577,480 | | | ICICI Bank Ltd. — ADR | | | 4,908,580 | | |
| Total India (Cost $5,766,502) | | | 4,908,580 | | |
Ireland | | | 6.12 | % | |
| | | | | Chemicals | | | 2.25 | % | |
| | 46,760 | | | Linde PLC | | | 8,109,971 | | |
| | | | | Construction Materials | | | 1.33 | % | |
| | 78,000 | | | CRH PLC — ADR | | | 2,093,520 | | |
| | 5,000 | | | CRH PLC | | | 135,673 | | |
| | 95,000 | | | CRH public limited company | | | 2,569,083 | | |
| | | | 4,798,276 | | |
| | | | | Food Products | | | 0.26 | % | |
| | 8,000 | | | Kerry Group Plc | | | 928,201 | | |
| | | | | Health Care Equipment & Supplies | | | 1.94 | % | |
| | 77,400 | | | Medtronic, PLC | | | 6,979,932 | | |
| | | | | Hotels, Restaurants & Leisure | | | 0.34 | % | |
| | 450,015 | | | Dalata Hotel Group PLC | | | 1,229,096 | | |
| Total Ireland (Cost $22,749,159) | | | 22,045,476 | | |
Italy | | | 1.31 | % | |
| | | | | Beverages | | | 1.31 | % | |
| | 660,000 | | | Davide Campari — Milano S.p.A. | | | 4,733,103 | | |
| Total Italy (Cost $2,618,672) | | | 4,733,103 | | |
Japan | | | 4.52 | % | |
| | | | | Beverages | | | 1.05 | % | |
| | 117,000 | | | Asahi Group Holdings Ltd. | | | 3,795,854 | | |
| | | | | Electronic Equipment, Instruments & Components | | | 2.88 | % | |
| | 3,500 | | | KEYENCE CORP. | | | 1,125,294 | | |
| | 75,000 | | | Murata Manufacturing Co., Ltd. | | | 3,728,607 | | |
| | 107,000 | | | Omron Corp. | | | 5,532,187 | | |
| | | | 10,386,088 | | |
The accompanying notes are an integral part of these financial statements.
76
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Machinery | | | 0.59 | % | |
| | 14,000 | | | FANUC Corp. | | | 1,870,762 | | |
| | 18,000 | | | FANUC Corp. — ADR(a) | | | 237,960 | | |
| | | | 2,108,722 | | |
| Total Japan (Cost $15,440,558) | | | 16,290,664 | | |
Luxembourg | | | 2.24 | % | |
| | | | | Life Sciences Tools & Services | | | 1.89 | % | |
| | 13,900 | | | Eurofins Scientific SE | | | 6,783,209 | | |
| | | | | Personal Products | | | 0.35 | % | |
| | 880,750 | | | L'Occitane International SA | | | 1,271,221 | | |
| Total Luxembourg (Cost $7,982,006) | | | 8,054,430 | | |
Netherlands | | | 6.31 | % | |
| | | | | IT Services | | | 0.75 | % | |
| | 3,200 | | | Adyen NV(a) | | | 2,719,665 | | |
| | | | | Personal Products | | | 1.43 | % | |
| | 97,200 | | | Unilever N.V. — NY Shares — ADR | | | 4,742,388 | | |
| | 8,000 | | | Unilever NV | | | 393,211 | | |
| | | | 5,135,599 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 2.74 | % | |
| | 25,741 | | | ASML Holding NV — NY Shares — ADR | | | 6,734,875 | | |
| | 65,000 | | | STMicroelectronics N.V. | �� | | 1,397,280 | | |
| | 80,600 | | | STMicroelectronics N.V. — NY Shares — ADR | | | 1,722,422 | | |
| | | | 9,854,577 | | |
| | | | | Trading Companies & Distributors | | | 1.39 | % | |
| | 70,000 | | | IMCD N.V. | | | 5,023,035 | | |
| Total Netherlands (Cost $16,254,948) | | | 22,732,876 | | |
Norway | | | 2.00 | % | |
| | | | | Commercial Services & Supplies | | | 1.77 | % | |
| | 228,000 | | | Tomra Systems ASA | | | 6,366,722 | | |
The accompanying notes are an integral part of these financial statements.
77
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Diversified Telecommunication Services | | | 0.23 | % | |
| | 56,000 | | | Telenor ASA | | | 818,480 | | |
| Total Norway (Cost $3,683,573) | | | 7,185,202 | | |
Republic of Korea | | | 0.43 | % | |
| | | | | Semiconductors & Semiconductor Equipment | | | 0.43 | % | |
| | 40,000 | | | Samsung Electronic Co., Ltd. | | | 1,555,261 | | |
| Total Republic of Korea (Cost $894,090) | | | 1,555,261 | | |
Spain | | | 2.35 | % | |
| | | | | Biotechnology | | | 1.82 | % | |
| | 325,200 | | | Grifols SA — ADR | | | 6,549,528 | | |
| | | | | Specialty Retail | | | 0.53 | % | |
| | 73,500 | | | Industria de Diseno Textil, S.A. | | | 1,904,654 | | |
| Total Spain (Cost $8,302,867) | | | 8,454,182 | | |
Sweden | | | 1.62 | % | |
| | | | | Electronic Equipment, Instruments & Components | | | 1.62 | % | |
| | 138,000 | | | Hexagon AB — B Shares | | | 5,835,356 | | |
| Total Sweden (Cost $7,083,723) | | | 5,835,356 | | |
Switzerland | | | 6.11 | % | |
| | | | | Capital Markets | | | 0.48 | % | |
| | 51,037 | | | Julius Baer Group Ltd. | | | 1,709,610 | | |
| | | | | Health Care Equipment & Supplies | | | 0.57 | % | |
| | 40,000 | | | Alcon, Inc.(a) | | | 2,049,229 | | |
| | | | | Insurance | | | 1.15 | % | |
| | 54,000 | | | Swiss Re AG | | | 4,157,942 | | |
| | | | | Life Sciences Tools & Services | | | 2.34 | % | |
| | 20,500 | | | Lonza Group AG | | | 8,432,140 | | |
The accompanying notes are an integral part of these financial statements.
78
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Pharmaceuticals | | | 1.57 | % | |
| | 11,800 | | | Roche Holding AG | | | 3,796,556 | | |
| | 45,400 | | | Roche Holding AG — ADR | | | 1,841,878 | | |
| | | | 5,638,434 | | |
| Total Switzerland (Cost $19,731,846) | | | 21,987,355 | | |
Taiwan, Province of China | | | 2.25 | % | |
| | | | | Semiconductors & Semiconductor Equipment | | | 2.25 | % | |
| | 169,281 | | | Taiwan Semiconductor Manufacturing Co. Ltd. — ADR | | | 8,089,939 | | |
| Total Taiwan, Province of China (Cost $2,497,332) | | | 8,089,939 | | |
United Kingdom | | | 8.94 | % | |
| | | | | Beverages | | | 1.42 | % | |
| | 40,300 | | | Diageo PLC — ADR | | | 5,122,936 | | |
| | | | | Health Care Equipment & Supplies | | | 1.47 | % | |
| | 147,000 | | | Smith & Nephew Plc — ADR | | | 5,272,890 | | |
| | | | | Hotels, Restaurants & Leisure | | | 0.71 | % | |
| | 60,100 | | | InterContinental Hotels Group PLC | | | 2,556,845 | | |
| | | | | Insurance | | | 2.20 | % | |
| | 48,000 | | | Aon PLC | | | 7,921,920 | | |
| | | | | Internet & Direct Marketing Retail | | | 0.18 | % | |
| | 44,000 | | | ASOS Plc(a) | | | 647,424 | | |
| | | | | Pharmaceuticals | | | 1.33 | % | |
| | 89,000 | | | AstraZeneca PLC — ADR | | | 3,974,740 | | |
| | 9,000 | | | AstraZeneca PLC | | | 801,888 | | |
| | | | 4,776,628 | | |
| | | | | Trading Companies & Distributors | | | 1.63 | % | |
| | 272,000 | | | Ashtead Group Plc | | | 5,878,982 | | |
| Total United Kingdom (Cost $32,008,371) | | | 32,177,625 | | |
| Total Common Stocks (Cost $284,663,117) | | | 324,574,448 | | |
The accompanying notes are an integral part of these financial statements.
79
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Short Term Investments | | | 9.65 | % | |
Investment Company | | | 9.65 | % | |
| | 34,737,494 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(b) | | | 34,737,494 | | |
Total Investment Company | | | 34,737,494 | | |
| Total Short Term Investments (Cost $34,737,494) | | | 34,737,494 | | |
Total Investments (Cost $319,400,611)
| | | 99.78
359,311,942 | % | |
Other Assets in Excess of Liabilities
| | | 0.22
781,538 | % | |
Total Net Assets
| | | 100.00
360,093,480 | % | |
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 March 31, 2020.
* See Note 1A of the 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.
80
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
As of March 31, 2020, the industry diversification was as follows:
| | | $ Fair Value | | Percentage | |
Common Stocks | |
Aerospace & Defense | | | 3,312,635 | | | | 0.92 | % | |
Banks | | | 4,908,580 | | | | 1.36 | % | |
Beverages | | | 24,067,867 | | | | 6.68 | % | |
Biotechnology | | | 6,549,528 | | | | 1.82 | % | |
Capital Markets | | | 4,865,827 | | | | 1.35 | % | |
Chemicals | | | 19,808,412 | | | | 5.50 | % | |
Commercial Services & Supplies | | | 6,366,722 | | | | 1.77 | % | |
Construction & Engineering | | | 3,840,341 | | | | 1.07 | % | |
Construction Materials | | | 4,798,276 | | | | 1.33 | % | |
Diversified Telecommunication Services | | | 818,480 | | | | 0.23 | % | |
Electrical Equipment | | | 7,522,544 | | | | 2.09 | % | |
Electronic Equipment, Instruments & Components | | | 18,380,270 | | | | 5.10 | % | |
Food Products | | | 928,201 | | | | 0.26 | % | |
Gas Utilities | | | 1,478,040 | | | | 0.41 | % | |
Health Care Equipment & Supplies | | | 20,541,380 | | | | 5.70 | % | |
Health Care Providers & Services | | | 5,473,210 | | | | 1.52 | % | |
Hotels, Restaurants & Leisure | | | 8,384,124 | | | | 2.33 | % | |
Household Products | | | 1,755,645 | | | | 0.49 | % | |
Industrial Conglomerates | | | 8,950,457 | | | | 2.49 | % | |
Insurance | | | 16,684,378 | | | | 4.63 | % | |
Interactive Media & Services | | | 4,825,547 | | | | 1.34 | % | |
Internet & Direct Marketing Retail | | | 647,424 | | | | 0.18 | % | |
IT Services | | | 7,282,809 | | | | 2.02 | % | |
Life Sciences Tools & Services | | | 26,059,328 | | | | 7.24 | % | |
Machinery | | | 2,108,722 | | | | 0.58 | % | |
Media | | | 2,008,916 | | | | 0.56 | % | |
Personal Products | | | 6,406,820 | | | | 1.78 | % | |
Pharmaceuticals | | | 22,396,867 | | | | 6.22 | % | |
Professional Services | | | 5,145,753 | | | | 1.43 | % | |
Road & Rail | | | 5,201,210 | | | | 1.44 | % | |
Semiconductors & Semiconductor Equipment | | | 23,166,463 | | | | 6.43 | % | |
Software | | | 13,292,030 | | | | 3.69 | % | |
Specialty Retail | | | 1,904,654 | | | | 0.53 | % | |
Textiles, Apparel & Luxury Goods | | | 19,867,097 | | | | 5.52 | % | |
Trading Companies & Distributors | | | 14,825,891 | | | | 4.12 | % | |
Total Common Stocks | | | 324,574,448 | | | | 90.13 | % | |
The accompanying notes are an integral part of these financial statements.
81
BUFFALO INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
| | | $ Fair Value | | Percentage | |
Short Term Investments | |
Investment Company | | | 34,737,494 | | | | 9.65 | % | |
Total Short Term Investments | | | 34,737,494 | | | | 9.65 | % | |
Total Investments | | | 359,311,942 | | | | 99.78 | % | |
Other Assets in Excess of Liabilities | | | 781,538 | | | | 0.22 | % | |
TOTAL NET ASSETS | | | 360,093,480 | | | | 100.00 | % | |
The accompanying notes are an integral part of these financial statements.
82
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 90.93 | % | |
Communication Services | | | 9.07 | % | |
| | | | | Entertainment | | | 1.71 | % | |
| | 12,510 | | | Electronic Arts, Inc.(a) | | | 1,253,127 | | |
| | | | | Interactive Media & Services | | | 7.36 | % | |
| | 2,845 | | | Alphabet, Inc. — Class A(a) | | | 3,305,747 | | |
| | 1,148 | | | Alphabet, Inc. — Class C(a) | | | 1,334,906 | | |
| | 4,450 | | | Facebook, Inc. — Class A(a) | | | 742,260 | | |
| | | | 5,382,913 | | |
| Total Communication Services (Cost $3,463,099) | | | 6,636,040 | | |
Consumer Discretionary | | | 16.11 | % | |
| | | | | Hotels, Restaurants & Leisure | | | 3.03 | % | |
| | 19,575 | | | Las Vegas Sands Corp | | | 831,350 | | |
| | 7,050 | | | Marriott International, Inc. — Class A | | | 527,411 | | |
| | 12,555 | | | Yum! Brands, Inc. | | | 860,394 | | |
| | | | 2,219,155 | | |
| | | | | Internet & Direct Marketing Retail | | | 7.78 | % | |
| | 2,485 | | | Amazon.com, Inc.(a) | | | 4,845,054 | | |
| | 625 | | | Booking Holdings, Inc.(a) | | | 840,825 | | |
| | | | 5,685,879 | | |
| | | | | Specialty Retail | | | 3.80 | % | |
| | 12,705 | | | Lowe's Companies, Inc. | | | 1,093,265 | | |
| | 2,350 | | | O'Reilly Automotive, Inc.(a) | | | 707,468 | | |
| | 20,465 | | | The TJX Companies, Inc. | | | 978,432 | | |
| | | | 2,779,165 | | |
| | | | | Textiles, Apparel & Luxury Goods | | | 1.50 | % | |
| | 13,260 | | | NIKE, Inc. — Class B | | | 1,097,132 | | |
| Total Consumer Discretionary (Cost $7,238,015) | | | 11,781,331 | | |
Consumer Staples | | | 1.35 | % | |
| | | | | Personal Products | | | 1.35 | % | |
| | 6,180 | | | The Estee Lauder Companies Inc. — Class A | | | 984,721 | | |
| Total Consumer Staples (Cost $665,699) | | | 984,721 | | |
The accompanying notes are an integral part of these financial statements.
83
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Energy | | | 0.40 | % | |
| | | | | Energy Equipment & Services | | | 0.40 | % | |
| | 21,579 | | | Schlumberger Ltd.(b) | | | 291,101 | | |
| Total Energy (Cost $1,286,750) | | | 291,101 | | |
Financials | | | 7.93 | % | |
| | | | | Capital Markets | | | 7.93 | % | |
| | 11,140 | | | CME Group, Inc. | | | 1,926,218 | | |
| | 19,375 | | | Intercontinental Exchange, Inc. | | | 1,564,531 | | |
| | 7,100 | | | S&P Global, Inc. | | | 1,739,855 | | |
| | 5,800 | | | T Rowe Price Group, Inc. | | | 566,370 | | |
| Total Financials (Cost $2,537,425) | | | 5,796,974 | | |
Health Care | | | 17.43 | % | |
| | | | | Biotechnology | | | 1.87 | % | |
| | 6,720 | | | Alnylam Pharmaceuticals, Inc.(a) | | | 731,472 | | |
| | 2,000 | | | Biogen Idec Inc.(a) | | | 632,760 | | |
| | | | 1,364,232 | | |
| | | | | Health Care Equipment & Supplies | | | 8.01 | % | |
| | 13,890 | | | Abbott Laboratories | | | 1,096,060 | | |
| | 3,645 | | | The Cooper Companies, Inc. | | | 1,004,817 | | |
| | 12,150 | | | Danaher Corp. | | | 1,681,682 | | |
| | 13,200 | | | Medtronic, PLC (b) | | | 1,190,376 | | |
| | 8,755 | | | Zimmer Biomet Holdings, Inc. | | | 884,955 | | |
| | | | 5,857,890 | | |
| | | | | Health Care Providers & Services | | | 2.72 | % | |
| | 7,585 | | | Laboratory Corporation of America Holdings(a) | | | 958,668 | | |
| | 4,125 | | | UnitedHealth Group, Inc. | | | 1,028,693 | | |
| | | | 1,987,361 | | |
| | | | | Health Care Technology | | | 0.82 | % | |
| | 9,550 | | | Cerner Corp. | | | 601,555 | | |
| | | | | Life Sciences Tools & Services | | | 1.39 | % | |
| | 3,710 | | | Illumina, Inc.(a) | | | 1,013,275 | | |
The accompanying notes are an integral part of these financial statements.
84
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Pharmaceuticals | | | 2.62 | % | |
| | 25,000 | | | Mylan NV(a) (b) | | | 372,750 | | |
| | 38,085 | | | Roche Holding AG — ADR(b) | | | 1,545,108 | | |
| | | | 1,917,858 | | |
| Total Health Care (Cost $12,439,774) | | | 12,742,171 | | |
Industrials | | | 8.32 | % | |
| | | | | Air Freight & Logistics | | | 1.35 | % | |
| | 8,150 | | | FedEx Corp. | | | 988,269 | | |
| | | | | Airlines | | | 0.60 | % | |
| | 15,340 | | | Delta Air Lines, Inc. | | | 437,650 | | |
| | | | | Building Products | | | 1.31 | % | |
| | 27,660 | | | Masco Corp. | | | 956,206 | | |
| | | | | Commercial Services & Supplies | | | 1.74 | % | |
| | 13,800 | | | Waste Management, Inc. | | | 1,277,328 | | |
| | | | | Industrial Conglomerates | | | 1.30 | % | |
| | 7,100 | | | Honeywell International, Inc. | | | 949,909 | | |
| | | | | Road & Rail | | | 2.02 | % | |
| | 11,600 | | | Kansas City Southern | | | 1,475,288 | | |
| Total Industrials (Cost $6,238,920) | | | 6,084,650 | | |
Information Technology | | | 27.36 | % | |
| | | | | Electronic Equipment, Instruments & Components | | | 0.94 | % | |
| | 21,600 | | | Trimble, Inc.(a) | | | 687,528 | | |
| | | | | IT Services | | | 5.44 | % | |
| | 14,060 | | | PayPal Holdings, Inc.(a) | | | 1,346,104 | | |
| | 6,415 | | | Square, Inc.(a) | | | 336,018 | | |
| | 14,260 | | | Visa Inc. — Class A | | | 2,297,571 | | |
| | | | 3,979,693 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 3.66 | % | |
| | 15,320 | | | QUALCOMM, Inc. | | | 1,036,398 | | |
| | 7,370 | | | Texas Instruments, Inc. | | | 736,484 | | |
| | 11,570 | | | Xilinx, Inc. | | | 901,766 | | |
| | | | 2,674,648 | | |
The accompanying notes are an integral part of these financial statements.
85
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Software | | | 12.80 | % | |
| | 3,825 | | | Intuit, Inc. | | | 879,750 | | |
| | 43,800 | | | Microsoft Corp. | | | 6,907,698 | | |
| | 10,900 | | | salesforce.com, Inc.(a) | | | 1,569,382 | | |
| | | | 9,356,830 | | |
| | | | | Technology Hardware, Storage & Peripherals | | | 4.52 | % | |
| | 12,995 | | | Apple Inc. | | | 3,304,499 | | |
| Total Information Technology (Cost $10,766,666) | | | 20,003,198 | | |
Materials | | | 2.96 | % | |
| | | | | Chemicals | | | 2.96 | % | |
| | 7,215 | | | International Flavors & Fragrances Inc. | | | 736,507 | | |
| | 8,280 | | | Linde PLC (b) | | | 1,432,440 | | |
| Total Materials (Cost $2,253,572) | | | 2,168,947 | | |
| Total Common Stocks (Cost $46,889,920) | | | 66,489,133 | | |
REITs | | | 3.19 | % | |
Real Estate | | | 3.19 | % | |
| | | | | Equity Real Estate Investment Trusts (REITs) | | | 3.19 | % | |
| | 3,736 | | | Equinix Inc. | | | 2,333,393 | | |
| Total Real Estate (Cost $852,434) | | | 2,333,393 | | |
| Total REITs (Cost $852,434) | | | 2,333,393 | | |
Short Term Investments | | | 5.67 | % | |
Investment Company | | | 5.67 | % | |
| | 4,142,609 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(c) | | | 4,142,609 | | |
Total Investment Company | | | 4,142,609 | | |
| | | Total Short Term Investments (Cost $4,142,609) | | | 4,142,609 | | |
The accompanying notes are an integral part of these financial statements.
86
BUFFALO LARGE CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | $ Fair Value* | |
Total Investments (Cost $51,884,963)
| | | 99.79
72,965,135 | % | |
Other Assets in Excess of Liabilities
| | | 0.21
150,848 | % | |
Total Net Assets
| | | 100.00
73,115,983 | % | |
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $4,831,775 (6.61% of net assets) at March 31, 2020.
(c) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See Note 1A of the 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.
87
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 89.11 | % | |
Communication Services | | | 4.80 | % | |
| | | | | Entertainment | | | 4.38 | % | |
| | 20,860 | | | Electronic Arts, Inc.(a) | | | 2,089,546 | | |
| | 23,537 | | | Live Nation Entertainment, Inc.(a) | | | 1,069,992 | | |
| | 24,070 | | | Interactive Software, Inc.(a) | | | 2,854,943 | | |
| | | | 6,014,481 | | |
| | | | | Media | | | 0.42 | % | |
| | 22,329 | | | Liberty Media Corp-Liberty Formula One(a) | | | 576,535 | | |
| Total Communication Services (Cost $6,469,847) | | | 6,591,016 | | |
Consumer Discretionary | | | 5.40 | % | |
| | | | | Distributors | | | 0.53 | % | |
| | 35,823 | | | LKQ Corp.(a) | | | 734,730 | | |
| | | | | Diversified Consumer Services | | | 1.74 | % | |
| | 10,550 | | | Bright Horizons Family Solutions, Inc.(a) | | | 1,076,100 | | |
| | 48,500 | | | ServiceMaster Global Holdings, Inc.(a) | | | 1,309,500 | | |
| | | | 2,385,600 | | |
| | | | | Hotels, Restaurants & Leisure | | | 0.86 | % | |
| | 7,956 | | | Vail Resorts, Inc. | | | 1,175,181 | | |
| | | | | Internet & Direct Marketing Retail | | | 1.30 | % | |
| | 47,780 | | | Chewy, Inc.(a) | | | 1,791,272 | | |
| | | | | Specialty Retail | | | 0.97 | % | |
| | 1,627,541 | | | CarMax, Inc.(a) | | | 1,336,868 | | |
| Total Consumer Discretionary (Cost $7,734,786) | | | 7,423,651 | | |
Consumer Staples | | | 2.59 | % | |
| | | | | Food Products | | | 1.92 | % | |
| | 19,920 | | | The Hershey Company | | | 2,639,400 | | |
| | | | | Household Products | | | 0.67 | % | |
| | 31,505 | | | Reynolds Consumer Products, Inc. | | | 919,001 | | |
| Total Consumer Staples (Cost $3,409,289) | | | 3,558,401 | | |
The accompanying notes are an integral part of these financial statements.
88
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Financials | | | 9.12 | % | |
| | | | | Capital Markets | | | 9.12 | % | |
| | 7,260 | | | CME Group, Inc. | | | 1,255,327 | | |
| | 6,985 | | | MarketAxess Holdings, Inc. | | | 2,323,001 | | |
| | 14,974 | | | Moody's Corp. | | | 3,167,001 | | |
| | 19,990 | | | MSCI, Inc. | | | 5,776,310 | | |
| Total Financials (Cost $1,841,767) | | | 12,521,639 | | |
Health Care | | | 20.16 | % | |
| | | | | Biotechnology | | | 0.39 | % | |
| | 18,050 | | | Moderna, Inc.(a) | | | 540,598 | | |
| | | | | Health Care Equipment & Supplies | | | 5.16 | % | |
| | 8,210 | | | The Cooper Companies, Inc. | | | 2,263,251 | | |
| | 17,420 | | | Hill-Rom Holdings, Inc. | | | 1,752,452 | | |
| | 9,820 | | | Masimo Corp.(a) | | | 1,739,318 | | |
| | 8,990 | | | ResMed, Inc. | | | 1,324,137 | | |
| | | | 7,079,158 | | |
| | | | | Health Care Providers & Services | | | 4.36 | % | |
| | 16,660 | | | AmerisourceBergen Corp. | | | 1,474,410 | | |
| | 4,930 | | | Chemed Corp. | | | 2,135,676 | | |
| | 18,770 | | | Laboratory Corporation of America Holdings(a) | | | 2,372,340 | | |
| | | | 5,982,426 | | |
| | | | | Health Care Technology | | | 2.67 | % | |
| | 11,500 | | | Cerner Corp. | | | 724,385 | | |
| | 18,850 | | | Veeva Systems, Inc.(a) | | | 2,947,574 | | |
| | | | 3,671,959 | | |
| | | | | Life Sciences Tools & Services | | | 5.76 | % | |
| | 9,500 | | | Agilent Technologies, Inc. | | | 680,390 | | |
| | 7,080 | | | Bio-Rad Laboratories, Inc.(a) | | | 2,481,965 | | |
| | 14,900 | | | Bio-Techne Corp. | | | 2,825,338 | | |
| | 7,055 | | | Illumina, Inc.(a) | | | 1,926,861 | | |
| | | | 7,914,554 | | |
| | | | | Pharmaceuticals | | | 1.82 | % | |
| | 5,120 | | | Jazz Pharmaceuticals Public Limited Company(a) (b) | | | 510,669 | | |
| | 16,862 | | | Zoetis, Inc. | | | 1,984,489 | | |
| | | | 2,495,158 | | |
| Total Health Care (Cost $22,762,803) | | | 27,683,853 | | |
The accompanying notes are an integral part of these financial statements.
89
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Industrials | | | 19.84 | % | |
| | | | | Building Products | | | 1.14 | % | |
| | 19,601 | | | Trex Co., Inc.(a) | | | 1,570,824 | | |
| | | | | Commercial Services & Supplies | | | 2.97 | % | |
| | 30,337 | | | Copart, Inc.(a) | | | 2,078,691 | | |
| | 51,423 | | | IAA Inc.(a) | | | 1,540,633 | | |
| | 38,599 | | | KAR Auction Services, Inc. | | | 463,188 | | |
| | | | 4,082,512 | | |
| | | | | Electrical Equipment | | | 2.06 | % | |
| | 39,255 | | | AMETEK, Inc. | | | 2,827,145 | | |
| | | | | Professional Services | | | 10.34 | % | |
| | 7,525 | | | CoStar Group, Inc.(a) | | | 4,418,755 | | |
| | 12,483 | | | Equifax, Inc. | | | 1,491,095 | | |
| | 73,119 | | | IHS Markit Ltd.(b) | | | 4,387,140 | | |
| | 28,003 | | | Verisk Analytics, Inc. | | | 3,903,058 | | |
| | | | 14,200,048 | | |
| | | | | Road & Rail | | | 2.13 | % | |
| | 22,978 | | | Kansas City Southern | | | 2,922,342 | | |
| | | | | Trading Companies & Distributors | | | 1.20 | % | |
| | 57,925 | | | HD Supply Holdings, Inc.(a) | | | 1,646,808 | | |
| Total Industrials (Cost $18,231,260) | | | 27,249,679 | | |
Information Technology | | | 22.62 | % | |
| | | | | Communications Equipment | | | 0.65 | % | |
| | 8,400 | | | F5 Networks, Inc.(a) | | | 895,692 | | |
| | | | | IT Services | | | 3.58 | % | |
| | 8,700 | | | Broadridge Financial Solutions, Inc. | | | 825,021 | | |
| | 11,190 | | | EPAM Systems, Inc.(a) | | | 2,077,535 | | |
| | 8,000 | | | Euronet Worldwide, Inc.(a) | | | 685,760 | | |
| | 7,400 | | | VeriSign, Inc.(a) | | | 1,332,666 | | |
| | | | 4,920,982 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 1.41 | % | |
| | 18,340 | | | Maxim Integrated Products, Inc. | | | 891,507 | | |
| | 13,300 | | | Xilinx, Inc. | | | 1,036,602 | | |
| | | | 1,928,109 | | |
The accompanying notes are an integral part of these financial statements.
90
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Software | | | 16.74 | % | |
| | 29,909 | | | Aspen Technology, Inc.(a) | | | 2,843,449 | | |
| | 16,300 | | | Citrix Systems, Inc. | | | 2,307,265 | | |
| | 27,231 | | | Guidewire Software, Inc.(a) | | | 2,159,691 | | |
| | 13,520 | | | Palo Alto Networks, Inc.(a) | | | 2,216,739 | | |
| | 15,780 | | | Proofpoint, Inc.(a) | | | 1,618,870 | | |
| | 56,350 | | | RealPage, Inc.(a) | | | 2,982,606 | | |
| | 7,520 | | | ServiceNow, Inc.(a) | | | 2,155,082 | | |
| | 40,989 | | | SS&C Technologies Holdings, Inc. | | | 1,796,138 | | |
| | 9,890 | | | Tyler Technologies, Inc.(a) | | | 2,932,978 | | |
| | 16,393 | | | VMware, Inc. — Class A(a) | | | 1,985,192 | | |
| | | | 22,998,010 | | |
| | | | | Technology Hardware, Storage & Peripherals | | | 0.24 | % | |
| | 7,900 | | | Western Digital Corp. | | | 328,798 | | |
| Total Information Technology (Cost $24,279,623) | | | 31,071,591 | | |
Materials | | | 2.66 | % | |
| | | | | Chemicals | | | 1.55 | % | |
| | 26,060 | | | FMC Corp. | | | 2,128,842 | | |
| | | | | Construction Materials | | | 1.11 | % | |
| | 8,027 | | | Martin Marietta Materials, Inc. | | | 1,518,949 | | |
| Total Materials (Cost $2,155,399) | | | 3,647,791 | | |
Real Estate | | | 1.92 | % | |
| | | | | Real Estate Management & Development | | | 1.92 | % | |
| | 70,022 | | | CBRE Group, Inc. — Class A(a) | | | 2,640,530 | | |
| Total Real Estate (Cost $3,186,459) | | | 2,640,530 | | |
| Total Common Stocks (Cost $90,071,233) | | | 122,388,151 | | |
REITs | | | 4.08 | % | |
Real Estate | | | 4.08 | % | |
| | | | | Equity Real Estate Investment Trusts (REITs) | | | 4.08 | % | |
| | 33,700 | | | American Campus Communities, Inc. | | | 935,175 | | |
| | 4,234 | | | Equinix Inc. | | | 2,644,429 | | |
| | 7,510 | | | SBA Communications Corp. | | | 2,027,475 | | |
| Total Real Estate (Cost $4,085,647) | | | 5,607,079 | | |
| Total REITs (Cost $4,085,647) | | | 5,607,079 | | |
The accompanying notes are an integral part of these financial statements.
91
BUFFALO MID CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Short Term Investments | | | 7.19 | % | |
Investment Company | | | 7.19 | % | |
| | 9,879,082 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(c) | | | 9,879,082 | | |
Total Investment Company | | | 9,879,082 | | |
| Total Short Term Investments (Cost $9,879,082) | | | 9,879,082 | | |
Total Investments (Cost $104,035,962)
| | | 100.38
137,874,312 | % | |
Liabilities in Excess of Other Assets
| | | (0.38
(520,861) | )% | |
Total Net Assets
| | | 100.00
137,353,451 | % | |
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $4,897,809 (3.57% of net assets) at March 31, 2020.
(c) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See Note 1A of the 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.
92
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020
Shares or Face Amount | | | | $ Fair Value* | |
Common Stocks | | | 94.20 | % | |
Communication Services | | | 3.45 | % | |
| | | | | Diversified Telecommunication Services | | | 2.72 | % | |
| | 175,015 | | | Bandwidth, Inc.(a) | | | 11,776,759 | | |
| | | | | Interactive Media & Services | | | 0.73 | % | |
| | 166,275 | | | CarGurus, Inc.(a) | | | 3,149,249 | | |
| Total Communication Services (Cost $14,140,065) | | | 14,926,008 | | |
Consumer Discretionary | | | 6.79 | % | |
| | | | | Auto Components | | | 0.64 | % | |
| | 220,790 | | | Motorcar Parts of America, Inc.(a) | | | 2,777,538 | | |
| | | | | Diversified Consumer Services | | | 0.71 | % | |
| | 86,075 | | | Chegg, Inc.(a) | | | 3,079,763 | | |
| | | | | Hotels, Restaurants & Leisure | | | 1.53 | % | |
| | 41,075 | | | Texas Roadhouse, Inc. | | | 1,696,397 | | |
| | 62,025 | | | Wingstop, Inc. | | | 4,943,393 | | |
| | | | 6,639,790 | | |
| | | | | Household Durables | | | 0.79 | % | |
| | 583,955 | | | Lovesac Co/The(a) | | | 3,404,458 | | |
| | | | | Internet & Direct Marketing Retail | | | 1.96 | % | |
| | 84,250 | | | Chewy, Inc.(a) | | | 3,158,532 | | |
| | 133,110 | | | Fiverr International Ltd.(a) (b) | | | 3,350,379 | | |
| | 280,875 | | | RealReal Inc/The(a) | | | 1,968,934 | | |
| | | | 8,477,845 | | |
| | | | | Specialty Retail | | | 0.46 | % | |
| | 28,500 | | | Five Below, Inc.(a) | | | 2,005,830 | | |
| | | | | Textiles, Apparel & Luxury Goods | | | 0.70 | % | |
| | 130,217 | | | Steven Madden Ltd. | | | 3,024,941 | | |
| Total Consumer Discretionary (Cost $37,627,149) | | | 29,410,165 | | |
Financials | | | 9.26 | % | |
| | | | | Capital Markets | | | 1.93 | % | |
| | 151,195 | | | Hamilton Lane Inc. — Class A | | | 8,362,596 | | |
The accompanying notes are an integral part of these financial statements.
93
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Consumer Finance | | | 1.17 | % | |
| | 199,000 | | | Green Dot Corp.(a) | | | 5,052,610 | | |
| | | | | Insurance | | | 6.16 | % | |
| | 204,610 | | | Benefytt Technologies, Inc.(a) | | | 4,581,218 | | |
| | 93,800 | | | eHealth, Inc.(a) | | | 13,208,916 | | |
| | 152,670 | | | Palomar Holdings, Inc.(a) | | | 8,879,287 | | |
| | | | 26,669,421 | | |
| Total Financials (Cost $20,714,889) | | | 40,084,627 | | |
Health Care | | | 34.38 | % | |
| | | | | Biotechnology | | | 13.34 | % | |
| | 108,935 | | | ACADIA Pharmaceuticals, Inc.(a) | | | 4,602,504 | | |
| | 454,945 | | | CareDx, Inc.(a) | | | 9,931,449 | | |
| | 172,285 | | | Deciphera Pharmaceuticals, Inc.(a) | | | 7,092,973 | | |
| | 456,745 | | | Halozyme Therapeutics, Inc.(a) | | | 8,216,843 | | |
| | 135,915 | | | Ligand Pharmaceuticals, Inc.(a) | | | 9,883,739 | | |
| | 351,030 | | | Natera, Inc.(a) | | | 10,481,756 | | |
| | 78,210 | | | Repligen Corp.(a) | | | 7,550,393 | | |
| | | | 57,759,657 | | |
| | | | | Health Care Equipment & Supplies | | | 4.94 | % | |
| | 91,310 | | | Novocure Ltd.(a) (b) | | | 6,148,815 | | |
| | 109,040 | | | Quidel Corp.(a) | | | 10,665,203 | | |
| | 142,005 | | | STAAR Surgical Co.(a) | | | 4,581,081 | | |
| | | | 21,395,099 | | |
| | | | | Health Care Providers & Services | | | 2.10 | % | |
| | 130,893 | | | HealthEquity, Inc.(a) | | | 6,621,877 | | |
| | 116,995 | | | Progyny, Inc.(a) | | | 2,479,124 | | |
| | | | 9,101,001 | | |
| | | | | Health Care Technology | | | 5.04 | % | |
| | 145,950 | | | HMS Holdings Corp.(a) | | | 3,688,156 | | |
| | 331,275 | | | Livongo Health, Inc.(a) | | | 9,451,276 | | |
| | 55,880 | | | Teladoc Health, Inc.(a) | | | 8,661,959 | | |
| | | | 21,801,391 | | |
| | | | | Life Sciences Tools & Services | | | 5.44 | % | |
| | 191,875 | | | Adaptive Biotechnologies Corporation(a) | | | 5,330,287 | | |
| | 47,795 | | | Bio-Techne Corp. | | | 9,062,888 | | |
| | 260,770 | | | Quanterix Corp.(a) | | | 4,790,345 | | |
| | 110,625 | | | Syneos Health, Inc.(a) | | | 4,360,838 | | |
| | | | 23,544,358 | | |
The accompanying notes are an integral part of these financial statements.
94
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
| | | | | Pharmaceuticals | | | 3.52 | % | |
| | 170,940 | | | Catalent, Inc.(a) | | | 8,880,333 | | |
| | 465,265 | | | Optinose, Inc.(a) | | | 2,089,040 | | |
| | 391,020 | | | Verrica Pharmaceuticals, Inc.(a)(c) | | | 4,273,848 | | |
| | | | 15,243,221 | | |
| Total Health Care (Cost $118,948,996) | | | 148,844,727 | | |
Industrials | | | 17.60 | % | |
| | | | | Air Freight & Logistics | | | 2.25 | % | |
| | 532,020 | | | Air Transport Services Group, Inc.(a) | | | 9,725,326 | | |
| | | | | Building Products | | | 2.41 | % | |
| | 118,115 | | | Advanced Drainage Systems, Inc. | | | 3,477,306 | | |
| | 322,245 | | | PGT Innovations, Inc.(a) | | | 2,703,635 | | |
| | 52,910 | | | Trex Co., Inc.(a) | | | 4,240,207 | | |
| | | | 10,421,148 | | |
| | | | | Commercial Services & Supplies | | | 0.66 | % | |
| | 95,295 | | | IAA Inc.(a) | | | 2,855,038 | | |
| | | | | Construction & Engineering | | | 1.66 | % | |
| | 220,205 | | | MasTec, Inc.(a) | | | 7,207,310 | | |
| | | | | Electrical Equipment | | | 1.58 | % | |
| | 73,450 | | | Generac Holdings, Inc.(a) | | | 6,843,336 | | |
| | | | | Machinery | | | 3.09 | % | |
| | 79,280 | | | John Bean Technologies Corp. | | | 5,888,125 | | |
| | 300,510 | | | Kornit Digital Ltd.(a) (b) | | | 7,479,694 | | |
| | | | 13,367,819 | | |
| | | | | Professional Services | | | 4.95 | % | |
| | 64,945 | | | FTI Consulting, Inc.(a) | | | 7,778,463 | | |
| | 151,458 | | | ICF International, Inc. | | | 10,405,165 | | |
| | 132,620 | | | Korn Ferry | | | 3,225,318 | | |
| | | | 21,408,946 | | |
| | | | | Trading Companies & Distributors | | | 1.00 | % | |
| | 59,045 | | | SiteOne Landscape Supply, Inc.(a) | | | 4,346,893 | | |
| Total Industrials (Cost $76,062,507) | | | 76,175,816 | | |
The accompanying notes are an integral part of these financial statements.
95
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
Information Technology | | | 21.25 | % | |
| | | | | Communications Equipment | | | 3.57 | % | |
| | 228,470 | | | ADTRAN, Inc. | | | 1,754,650 | | |
| | 155,490 | | | Ciena Corp.(a) | | | 6,190,057 | | |
| | 101,585 | | | Lumentum Holdings, Inc.(a) | | | 7,486,814 | | |
| | | | 15,431,521 | | |
| | | | | IT Services | | | 1.60 | % | |
| | 85,920 | | | Endava Plc — ADR(a) (b) | | | 3,020,947 | | |
| | 759,910 | | | Paysign, Inc.(a) | | | 3,921,136 | | |
| | | | 6,942,083 | | |
| | | | | Semiconductors & Semiconductor Equipment | | | 4.71 | % | |
| | 106,690 | | | Inphi Corporation(a) | | | 8,446,647 | | |
| | 47,935 | | | Monolithic Power Systems, Inc. | | | 8,027,195 | | |
| | 45,900 | | | Silicon Laboratories, Inc.(a) | | | 3,920,319 | | |
| | | | 20,394,161 | | |
| | | | | Software | | | 11.37 | % | |
| | 397,540 | | | 8x8, Inc.(a) | | | 5,509,905 | | |
| | 89,125 | | | Avalara, Inc.(a) | | | 6,648,725 | | |
| | 237,261 | | | Mimecast Ltd.(a) (b) | | | 8,375,313 | | |
| | 63,890 | | | Paylocity Holding Corp.(a) | | | 5,642,765 | | |
| | 521,800 | | | Pluralsight, Inc.(a) | | | 5,729,364 | | |
| | 204,145 | | | PROS Holdings, Inc.(a) | | | 6,334,619 | | |
| | 217,020 | | | Sprout Social, Inc.(a) | | | 3,463,639 | | |
| | 117,795 | | | Varonis Systems, Inc.(a) | | | 7,500,008 | | |
| | | | 49,204,338 | | |
| Total Information Technology (Cost $75,672,669) | | | 91,972,103 | | |
Materials | | | 1.47 | % | |
| | | | | Construction Materials | | | 1.47 | % | |
| | 424,783 | | | Summit Materials, Inc. — Class A(a) | | | 6,371,745 | | |
| Total Materials (Cost $6,849,459) | | | 6,371,745 | | |
| Total Common Stocks (Cost $350,015,734) | | | 407,785,191 | | |
The accompanying notes are an integral part of these financial statements.
96
BUFFALO SMALL CAP FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 2020 Continued
Shares or Face Amount | | | | $ Fair Value* | |
REITs | | | 4.14 | % | |
Real Estate | | | 4.14 | % | |
| | | | | Equity Real Estate Investment Trusts (REITs) | | | 4.14 | % | |
| | 169,360 | | | CyrusOne, Inc. | | | 10,457,980 | | |
| | 129,180 | | | QTS Realty Trust, Inc. | | | 7,493,732 | | |
| Total Real Estate (Cost $13,915,178) | | | 17,951,712 | | |
| Total REITs (Cost $13,915,178) | | | 17,951,712 | | |
Short Term Investments | | | 0.86 | % | |
Investment Company | | | 0.86 | % | |
| | 3,717,021 | | | Fidelity Investments Money Market Funds — Government Portfolio — Class I — 0.19%(d) | | | 3,717,021 | | |
Total Investment Company | | | 3,717,021 | | |
| Total Short Term Investments (Cost $3,717,021) | | | 3,717,021 | | |
Total Investments (Cost $367,647,933)
| | | 99.20
429,453,924 | % | |
Other Assets in Excess of Liabilities
| | | 0.80
3,445,725 | % | |
Total Net Assets
| | | 100.00
432,899,649 | % | |
ADR American Depositary Receipt
PLC Public Limited Company
(a) Non Income Producing.
(b) Foreign Issued Security. The total value of these securities amounted to $28,375,148 (6.55% of net assets) at March 31, 2020.
(c) Illiquid Security. The total value of this security amounted to $4,273,848 (0.99% of net assets) at March 31, 2020.
(d) The rate quoted is the annualized seven-day effective yield as of March 31, 2020.
* See Note 1A of the 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.
97
STATEMENTS OF ASSETS AND
LIABILITIES
March 31, 2020
| | | Buffalo
Discovery
Fund | | Buffalo
Dividend Focus
Fund | | Buffalo
Emerging
Opportunities
Fund | | Buffalo
Flexible Income
Fund | | Buffalo
Growth
Fund | |
ASSETS: | |
Investments in securities, at cost: | | $ | 1,263,801,043 | | | $ | 55,659,472 | | | $ | 65,600,391 | | | $ | 349,125,876 | | | $ | 97,688,805 | | |
Investments in securities, at value: | | | 1,323,107,492 | | | | 64,904,629 | | | | 66,416,505 | | | | 407,106,622 | | | | 146,381,861 | | |
Cash: | | | — | | | | — | | | | — | | | | — | | | | — | | |
Cash denominated in foreign currency, at value(1): | | | — | | | | — | | | | — | | | | — | | | | — | | |
Receivables: | |
Investments sold | | | 39,843,325 | | | | 157,516 | | | | 326,200 | | | | 22,849 | | | | — | | |
Fund shares sold | | | 1,290,143 | | | | 174,926 | | | | 11,705 | | | | 16,020 | | | | 45,137 | | |
Dividends | | | 414,350 | | | | 59,735 | | | | 10,146 | | | | 993,562 | | | | 118,904 | | |
Interest | | | 53,717 | | | | 16,329 | | | | 6,913 | | | | 256,984 | | | | 3,636 | | |
Other receivables | | | — | | | | — | | | | — | | | | — | | | | — | | |
Other assets | | | 61,349 | | | | 16,477 | | | | 14,099 | | | | 21,108 | | | | 23,607 | | |
Total assets | | | 1,364,770,376 | | | | 65,329,612 | | | | 66,785,568 | | | | 408,417,145 | | | | 146,573,145 | | |
LIABILITIES: | |
Payables: | |
Investments purchased | | | 23,976,811 | | | | 450,790 | | | | 750,142 | | | | — | | | | — | | |
Written options, at value(2) (Note 8) | | | — | | | | — | | | | — | | | | 345,600 | | | | — | | |
Fund shares purchased | | | 1,657,054 | | | | 123,938 | | | | 196,706 | | | | 343,957 | | | | 71,483 | | |
Management fees (Note 3) | | | 1,030,927 | | | | 43,505 | | | | 77,458 | | | | 315,404 | | | | 96,471 | | |
Custodian fees (Note 3) | | | — | | | | — | | | | — | | | | — | | | | — | | |
Accrued shareholder service fees — Investor Class (Note 7) | | | 421,686 | | | | 1,356 | | | | 18,286 | | | | 76,698 | | | | 28,909 | | |
Other payables | | | — | | | | — | | | | — | | | | — | | | | — | | |
Accrued expenses | | | 16,790 | | | | 2,447 | | | | 8,025 | | | | 77,092 | | | | 17,555 | | |
Total liabilities | | | 27,103,268 | | | | 622,036 | | | | 1,050,617 | | | | 1,158,751 | | | | 214,418 | | |
NET ASSETS | | $ | 1,337,667,108 | | | $ | 64,707,576 | | | $ | 65,734,951 | | | $ | 407,258,394 | | | $ | 146,358,727 | | |
NET ASSETS CONSIST OF: | |
Capital (capital stock and paid-in capital) | | $ | 1,293,149,205 | | | $ | 57,162,481 | | | $ | 64,979,523 | | | $ | 344,266,848 | | | $ | 99,164,758 | | |
Total distributable earnings | | | 44,517,903 | | | | 7,545,095 | | | | 755,428 | | | | 62,991,546 | | | | 47,193,969 | | |
NET ASSETS APPLICABLE TO OUTSTANDING SHARES | | $ | 1,337,667,108 | | | $ | 64,707,576 | | | $ | 65,734,951 | | | $ | 407,258,394 | | | $ | 146,358,727 | | |
Net Assets — Investor Class | | $ | 1,132,236,944 | | | $ | 23,820,813 | | | $ | 42,632,675 | | | $ | 273,415,692 | | | $ | 88,051,439 | | |
Outstanding Shares — Investor Class | | | 56,943,476 | | | | 1,577,565 | | | | 3,411,459 | | | | 22,916,648 | | | | 4,154,311 | | |
NET ASSET VALUE PER SHARE — Investor Class | | $ | 19.88 | | | $ | 15.10 | | | $ | 12.50 | | | $ | 11.93 | | | $ | 21.20 | | |
Net Assets — Institutional Class | | $ | 205,430,164 | | | $ | 40,886,763 | | | $ | 23,102,276 | | | $ | 133,842,702 | | | $ | 58,307,287 | | |
Outstanding Shares — Institutional Class | | | 10,318,185 | | | | 2,707,957 | | | | 1,846,233 | | | | 11,222,362 | | | | 2,750,000 | | |
NET ASSET VALUE PER SHARE — Institutional Class | | $ | 19.91 | | | $ | 15.10 | | | $ | 12.51 | | | $ | 11.93 | | | $ | 21.20 | | |
Capital shares, $1.00 par value: | |
Authorized | | | Unlimited | | | | Unlimited | | | | Unlimited | | | | Unlimited | | | | Unlimited | | |
| (1) Cash denominated in foreign currencies, at cost | | | — | | | | — | | | | — | | | | — | | | | — | | |
| (2) Written options, premiums received | | | — | | | | — | | | | — | | | | 303,373 | | | | — | | |
The accompanying notes are an integral part of these financial statements.
98
| | | 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: | | $ | 206,936,972 | | | $ | 319,400,611 | | | $ | 51,884,963 | | | $ | 104,035,962 | | | $ | 367,647,933 | | |
Investments in securities, at value: | | | 185,634,818 | | | | 359,311,942 | | | | 72,965,135 | | | | 137,874,312 | | | | 429,453,924 | | |
Cash: | | | — | | | | 17,102 | | | | — | | | | — | | | | — | | |
Cash denominated in foreign currency, at value(1): | | | — | | | | 33,346 | | | | — | | | | — | | | | — | | |
Receivables: | |
Investments sold | | | 287,688 | | | | 55,631 | | | | 906,354 | | | | 489,919 | | | | 5,280,118 | | |
Fund shares sold | | | 188,881 | | | | 957,478 | | | | 31,908 | | | | 15,887 | | | | 207,011 | | |
Dividends | | | — | | | | 1,291,858 | | | | 49,905 | | | | 73,662 | | | | 272,403 | | |
Interest | | | 2,966,654 | | | | 23,582 | | | | 2,529 | | | | 8,531 | | | | 28,250 | | |
Other receivables | | | — | | | | — | | | | — | | | | — | | | | — | | |
Other assets | | | 35,411 | | | | 26,761 | | | | 21,708 | | | | 22,759 | | | | 29,166 | | |
Total assets | | | 189,136,932 | | | | 361,717,700 | | | | 73,977,539 | | | | 138,485,070 | | | | 435,270,872 | | |
LIABILITIES: | |
Payables: | |
Investments purchased | | | 1,105,000 | | | | 56,735 | | | | 754,949 | | | | 892,231 | | | | 1,581,797 | | |
Written options, at value(2) (Note 8) | | | — | | | | — | | | | — | | | | — | | | | — | | |
Fund shares purchased | | | 114,107 | | | | 1,218,181 | | | | 54,992 | | | | 93,189 | | | | 268,945 | | |
Management fees (Note 3) | | | 144,349 | | | | 261,369 | | | | 47,652 | | | | 102,909 | | | | 322,285 | | |
Custodian fees (Note 3) | | | — | | | | 15,543 | | | | — | | | | — | | | | — | | |
Accrued shareholder service fees — Investor Class (Note 7) | | | — | | | | 33,881 | | | | 3,143 | | | | 30,245 | | | | 192,203 | | |
Other payables | | | — | | | | — | | | | — | | | | — | | | | — | | |
Accrued expenses | | | 2,580 | | | | 38,511 | | | | 820 | | | | 13,045 | | | | 5,988 | | |
Total liabilities | | | 1,366,036 | | | | 1,624,220 | | | | 861,556 | | | | 1,131,619 | | | | 2,371,218 | | |
NET ASSETS | | $ | 187,770,896 | | | $ | 360,093,480 | | | $ | 73,115,983 | | | $ | 137,353,451 | | | $ | 432,899,654 | | |
NET ASSETS CONSIST OF: | |
Capital (capital stock and paid-in capital) | | $ | 208,961,098 | | | $ | 321,181,061 | | | $ | 51,946,975 | | | $ | 103,136,193 | | | $ | 379,972,373 | | |
Total distributable earnings | | | (21,190,202 | ) | | | 38,912,419 | | | | 21,169,008 | | | | 34,217,258 | | | | 52,927,281 | | |
NET ASSETS APPLICABLE TO OUTSTANDING SHARES | | $ | 187,770,896 | | | $ | 360,093,480 | | | $ | 73,115,983 | | | $ | 137,353,451 | | | $ | 432,899,654 | | |
Net Assets — Investor Class | | $ | 46,035,806 | | | $ | 183,808,893 | | | $ | 27,871,979 | | | $ | 86,029,510 | | | $ | 337,804,412 | | |
Outstanding Shares — Investor Class | | | 4,736,809 | | | | 13,570,769 | | | | 943,997 | | | | 6,609,362 | | | | 30,871,843 | | |
NET ASSET VALUE PER SHARE — Investor Class | | $ | 9.72 | | | $ | 13.54 | | | $ | 29.53 | | | $ | 13.02 | | | $ | 10.94 | | |
Net Assets — Institutional Class | | $ | 141,735,090 | | | $ | 176,284,587 | | | $ | 45,244,005 | | | $ | 51,323,941 | | | $ | 95,095,237 | | |
Outstanding Shares — Institutional Class | | | 14,596,353 | | | | 13,010,403 | | | | 1,530,501 | | | | 3,938,612 | | | | 8,680,190 | | |
NET ASSET VALUE PER SHARE — Institutional Class | | $ | 9.71 | | | $ | 13.55 | | | $ | 29.56 | | | $ | 13.03 | | | $ | 10.96 | | |
Capital shares, $1.00 par value: | |
Authorized | | | Unlimited | | | | Unlimited | | | | Unlimited | | | | Unlimited | | | | Unlimited | | |
| (1) Cash denominated in foreign currencies, at cost | | | — | | | | 33,263 | | | | — | | | | — | | | | — | | |
| (2) Written options, premiums received | | | — | | | | — | | | | — | | | | — | | | | — | | |
99
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2020
| | | Buffalo
Discovery
Fund | | Buffalo
Dividend Focus
Fund | | Buffalo
Emerging
Opportunities
Fund | | Buffalo
Flexible Income
Fund | | Buffalo
Growth
Fund | |
INVESTMENT INCOME: | |
Interest | | | — | | | $ | 84,317 | | | | — | | | $ | 959,480 | | | | — | | |
Dividends from securities | | $ | 12,267,953 | | | | 1,188,106 | | | $ | 350,217 | | | | 17,339,158 | | | $ | 1,841,621 | | |
Foreign tax withheld on dividends | | | (15,762 | ) | | | (2,517 | ) | | | (30 | ) | | | (164,311 | ) | | | — | | |
Total investment income | | | 12,252,191 | | | | 1,269,906 | | | | 350,187 | | | | 18,134,327 | | | | 1,841,621 | | |
EXPENSES: | |
Management fees (Note 3) | | | 15,553,851 | | | | 524,331 | | | | 1,148,351 | | | | 5,127,063 | | | | 1,394,385 | | |
Shareholder Service Fees — Investor Class (Note 7) | | | 1,740,985 | | | | 33,499 | | | | 65,479 | | | | 445,077 | | | | 132,376 | | |
Registration fees | | | 71,480 | | | | 31,957 | | | | 32,524 | | | | 35,725 | | | | 34,217 | | |
Custody fees | | | — | | | | — | | | | — | | | | — | | | | — | | |
Other expenses | | | 33,285 | | | | 1,847 | | | | 2,142 | | | | 12,477 | | | | 3,884 | | |
Total expenses | | | 17,399,601 | | | | 591,634 | | | | 1,248,496 | | | | 5,620,342 | | | | 1,564,862 | | |
Net investment income (loss) | | | (5,147,410 | ) | | | 678,272 | | | | (898,309 | ) | | | 12,513,985 | | | | 276,759 | | |
NET REALIZED AND UNREALIZED GAIN (LOSS): | |
Net realized gain (loss) from: | |
Investment transactions | | | 239,791,313 | | | | (1,235,429 | ) | | | 4,967,396 | | | | 7,119,200 | | | | 17,594,269 | | |
Options written (Note 8) | | | — | | | | — | | | | — | | | | 2,172,593 | | | | — | | |
Net unrealized appreciation/depreciation during the year on: | |
Investments | | | (372,840,225 | ) | | | (6,934,578 | ) | | | (14,748,717 | ) | | | (124,969,627 | ) | | | (22,605,705 | ) | |
Options written (Note 8) | | | — | | | | — | | | | — | | | | (56,451 | ) | | | — | | |
Net realized and unrealized gain (loss) | | | (133,048,912 | ) | | | (8,170,007 | ) | | | (9,781,321 | ) | | | (115,734,285 | ) | | | (5,011,436 | ) | |
Net decrease in net assets resulting from operations | | $ | (138,133,822 | ) | | $ | (7,491,735 | ) | | $ | (10,679,630 | ) | | $ | (103,220,300 | ) | | $ | (4,734,677 | ) | |
The accompanying notes are an integral part of these financial statements.
100
| | | Buffalo
High Yield
Fund | | Buffalo
International
Fund | | Buffalo
Large Cap
Fund | | Buffalo
Mid Cap
Fund | | Buffalo
Small Cap
Fund | |
INVESTMENT INCOME: | |
Interest | | $ | 10,320,691 | | | | — | | | | — | | | | — | | | | — | | |
Dividends from securities | | | 337,674 | | | $ | 7,227,970 | | | $ | 919,025 | | | $ | 992,629 | | | $ | 1,719,623 | | |
Foreign tax withheld on dividends | | | (111 | ) | | | (879,943 | ) | | | (6,493 | ) | | | (989 | ) | | | (14,070 | ) | |
Total investment income | | | 10,658,254 | | | | 6,348,027 | | | | 912,532 | | | | 991,640 | | | | 1,705,553 | | |
EXPENSES: | |
Management fees (Note 3) | | | 1,803,965 | | | | 3,420,058 | | | | 612,178 | | | | 1,453,065 | | | | 4,628,519 | | |
Shareholder Service Fees — Investor Class (Note 7) | | | 71,080 | | | | 235,659 | | | | 39,156 | | | | 129,613 | | | | 488,940 | | |
Registration fees | | | 33,986 | | | | 47,491 | | | | 32,660 | | | | 40,173 | | | | 38,011 | | |
Custody fees | | | — | | | | 85,306 | | | | — | | | | — | | | | — | | |
Other expenses | | | 14,348 | | | | 7,167 | | | | 2,032 | | | | 3,121 | | | | 10,382 | | |
Total expenses | | | 1,923,379 | | | | 3,795,681 | | | | 686,026 | | | | 1,625,972 | | | | 5,165,852 | | |
Net investment income (loss) | | | 8,734,875 | | | | 2,552,346 | | | | 226,506 | | | | (634,332 | ) | | | (3,460,299 | ) | |
NET REALIZED AND UNREALIZED GAIN (LOSS): | |
Net realized gain (loss) from: | |
Investment transactions | | | 545,930 | | | | 46,628 | | | | 116,976 | | | | 11,862,668 | | | | 22,298,931 | | |
Options written (Note 8) | | | — | | | | — | | | | — | | | | — | | | | — | | |
Net unrealized appreciation/depreciation during the year on: | |
Investments | | | (24,152,200 | ) | | | (34,252,460 | ) | | | (3,183,801 | ) | | | (15,719,274 | ) | | | (51,997,098 | ) | |
Options written (Note 8) | | | — | | | | — | | | | — | | | | — | | | | — | | |
Net realized and unrealized gain (loss) | | | (23,606,270 | ) | | | (34,205,832 | ) | | | (3,066,825 | ) | | | (3,856,606 | ) | | | (29,698,167 | ) | |
Net decrease in net assets resulting from operations | | $ | (14,871,395 | ) | | $ | (31,653,486 | ) | | $ | (2,840,319 | ) | | $ | (4,490,938 | ) | | $ | 33,158,466 | | |
101
STATEMENTS OF CHANGES IN
NET ASSETS
| | | Buffalo
Discovery Fund | | Buffalo
Dividend Focus Fund | | Buffalo
Emerging Opportunities Fund | |
| | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | |
OPERATIONS: | |
Net investment income (loss) | | $ | (5,147,410 | ) | | $ | (4,123,459 | ) | | $ | 678,272 | | | $ | 847,467 | | | $ | (898,309 | ) | | $ | (870,567 | ) | |
Net realized gain on investment transactions | | | 239,791,313 | | | | 109,271,672 | | | | (1,235,429 | ) | | | 1,214,980 | | | | 4,967,396 | | | | 10,221,223 | | |
Net unrealized appreciation/depreciation during the year on investments and translation of
assets and liabilities in foreign currencies | | | (372,840,225 | ) | | | 56,258,991 | | | | (6,934,578 | ) | | | 2,058,259 | | | | (14,748,717 | ) | | | (1,859,026 | ) | |
Net increase (decrease) in net assets resulting from operations | | | (138,196,322 | ) | | | 161,407,204 | | | | (7,491,735 | ) | | | 4,120,706 | | | | (10,679,630 | ) | | | 7,491,630 | | |
DISTRIBUTIONS TO SHAREHOLDERS: | |
Distributable earnings | | | (236,305,302 | ) | | | (110,113,837 | ) | | | (708,148 | ) | | | (2,716,751 | ) | | | (4,253,755 | ) | | | (9,489,887 | ) | |
Return of capital | | | — | | | | — | | | | (42,916 | ) | | | — | | | | — | | | | — | | |
Total distributions | | | (236,305,302 | ) | | | (110,113,837 | ) | | | (751,064 | ) | | | (2,716,751 | ) | | | (4,253,755 | ) | | | (9,489,887 | ) | |
CAPITAL SHARE TRANSACTIONS: | |
Shares sold | |
Investor Class | | | 206,300,631 | | | | 415,923,525 | | | | 6,815,282 | | | | 9,078,114 | | | | 6,245,478 | | | | 6,067,632 | | |
Institutional Class | | | 322,701,272 | | | | — | | | | 52,078,530 | | | | — | | | | 31,935,871 | | | | — | | |
Reinvested dividends and distributions | |
Investor Class | | | 197,048,623 | | | | 106,874,653 | | | | 414,171 | | | | 2,654,601 | | | | 2,727,174 | | | | 9,179,140 | | |
Institutional Class | | | 32,726,500 | | | | — | | | | 312,479 | | | | — | | | | 1,395,082 | | | | — | | |
Shares Issued | | | 758,777,026 | | | | 522,798,178 | | | | 59,620,462 | | | | 11,732,715 | | | | 42,303,605 | | | | 15,246,772 | | |
Redemptions | |
Investor Class | | | (716,838,812 | ) | | | (726,779,933 | ) | | | (40,365,885 | ) | | | (14,201,824 | ) | | | (42,636,704 | ) | | | (17,184,615 | ) | |
Institutional Class | | | (74,031,084 | ) | | | — | | | | (4,602,812 | ) | | | — | | | | (3,031,053 | ) | | | — | | |
Redemption fees (Note 5) | |
Investor Class | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | |
Institutional Class | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | |
Shares repurchased | | | (790,869,896 | ) | | | (726,779,933 | ) | | | (44,968,697 | ) | | | (14,201,824 | ) | | | (45,667,757 | ) | | | (17,184,615 | ) | |
Net increase (decrease) from capital share transactions | | | (32,092,870 | ) | | | (203,981,755 | ) | | | 14,651,765 | | | | (2,469,109 | ) | | | (3,364,152 | ) | | | (1,937,843 | ) | |
Total increase (decrease) in net assets | | | (406,594,494 | ) | | | (152,688,388 | ) | | | 6,408,966 | | | | (1,065,154 | ) | | | (18,297,537 | ) | | | (3,936,100 | ) | |
NET ASSETS: | |
Beginning of year | | | 1,744,261,602 | | | | 1,896,949,990 | | | | 58,298,610 | | | | 59,363,764 | | | | 84,032,488 | | | | 87,968,588 | | |
End of year | | $ | 1,337,667,108 | | | $ | 1,744,261,602 | | | $ | 64,707,576 | | | $ | 58,298,610 | | | $ | 65,734,951 | | | $ | 84,032,488 | | |
Fund share transactions: | |
Shares issued | |
Investor Class | | | 8,114,121 | | | | 16,719,992 | | | | 383,278 | | | | 544,728 | | | | 395,510 | | | | 378,496 | | |
Institutional Class | | | 12,059,154 | | | | — | | | | 2,957,318 | | | | — | | | | 1,950,037 | | | | — | | |
| | | 20,173,275 | | | | 16,719,992 | | | | 3,340,596 | | | | 544,728 | | | | 2,345,547 | | | | 378,496 | | |
Reinvested dividends and distributions | |
Investor Class | | | 8,210,360 | | | | 5,027,030 | | | | 24,235 | | | | 169,194 | | | | 164,090 | | | | 706,631 | | |
Institutional Class | | | 1,362,469 | | | | — | | | | 18,699 | | | | — | | | | 83,839 | | | | — | | |
| | | | 9,572,829 | | | | 5,027,030 | | | | 42,934 | | | | 169,194 | | | | 247,929 | | | | 706,631 | | |
Shares Issued | | | 29,746,104 | | | | 21,747,022 | | | | 3,383,530 | | | | 713,922 | | | | 2,593,476 | | | | 1,085,127 | | |
Shares repurchased | |
Investor Class | | | (28,341,179 | ) | | | (30,153,058 | ) | | | (2,332,103 | ) | | | (857,868 | ) | | | (2,639,316 | ) | | �� | (1,082,528 | ) | |
Institutional Class | | | (3,103,438 | ) | | | — | | | | (268,060 | ) | | | — | | | | (187,644 | ) | | | — | | |
Total Shares Repurchased | | | (31,444,617 | ) | | | (30,153,058 | ) | | | (2,600,163 | ) | | | (857,868 | ) | | | (2,826,960 | ) | | | (1,082,528 | ) | |
Net increase (decrease) in fund shares | | | (1,698,513 | ) | | | (8,406,036 | ) | | | 783,367 | | | | (143,946 | ) | | | (233,484 | ) | | | 2,599 | | |
The accompanying notes are an integral part of these financial statements.
102
| | | Buffalo
Flexible Income Fund | | Buffalo
Growth Fund | |
| | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | |
OPERATIONS: | |
Net investment income (loss) | | $ | 12,513,985 | | | $ | 17,085,190 | | | $ | 276,759 | | | $ | 334,186 | | |
Net realized gain on investment transactions | | | 9,291,793 | | | | 11,198,576 | | | | 17,594,269 | | | | 25,981,469 | | |
Net unrealized appreciation/depreciation during the year on investments and translation of
assets and liabilities in foreign currencies | | | (125,026,078 | ) | | | 21,161,075 | | | | (22,605,705 | ) | | | (3,409,082 | ) | |
Net increase (decrease) in net assets resulting from operations | | | (103,220,300 | ) | | | 49,444,841 | | | | (4,734,677 | ) | | | 22,906,573 | | |
DISTRIBUTIONS TO SHAREHOLDERS: | |
Distributable earnings | | | (16,305,324 | ) | | | (35,878,816 | ) | | | (22,442,337 | ) | | | (44,229,643 | ) | |
Return of capital | | | — | | | | — | | | | — | | | | — | | |
Total distributions | | | (16,305,324 | ) | | | (35,878,816 | ) | | | (22,442,337 | ) | | | (44,229,643 | ) | |
CAPITAL SHARE TRANSACTIONS: | |
Shares sold | |
Investor Class | | | 8,468,198 | | | | 24,699,685 | | | | 6,138,725 | | | | 11,315,580 | | |
Institutional Class | | | 192,711,625 | | | | — | | | | 72,785,092 | | | | — | | |
Reinvested dividends and distributions | |
Investor Class | | | 11,940,056 | | | | 34,755,445 | | | | 13,954,602 | | | | 43,555,073 | | |
Institutional Class | | | 3,679,342 | | | | — | | | | 8,131,987 | | | | — | | |
Shares Issued | | | 216,799,221 | | | | 59,455,130 | | | | 101,010,406 | | | | 54,870,653 | | |
Redemptions | |
Investor Class | | | (291,492,747 | ) | | | (145,756,801 | ) | | | (94,869,871 | ) | | | (63,228,598 | ) | |
Institutional Class | | | (23,871,195 | ) | | | — | | | | (7,174,880 | ) | | | — | | |
Redemption fees (Note 5) | |
Investor Class | | | — | | | | — | | | | — | | | | — | | |
Institutional Class | | | — | | | | — | | | | — | | | | — | | |
Shares repurchased | | | (315,363,942 | ) | | | (145,756,801 | ) | | | (102,044,751 | ) | | | (63,228,598 | ) | |
Net increase (decrease) from capital share transactions | | | (98,564,721 | ) | | | (86,301,671 | ) | | | (1,034,345 | ) | | | (8,357,945 | ) | |
Total increase (decrease) in net assets | | | (218,090,345 | ) | | | (72,735,646 | ) | | | (28,211,359 | ) | | | (29,681,015 | ) | |
NET ASSETS: | |
Beginning of year | | | 625,348,739 | | | | 698,084,385 | | | | 174,570,086 | | | | 204,251,101 | | |
End of year | | $ | 407,258,394 | | | $ | 625,348,739 | | | $ | 146,358,727 | | | $ | 174,570,086 | | |
Fund share transactions: | |
Shares issued | |
Investor Class | | | 559,738 | | | | 1,606,175 | | | | 239,496 | | | | 402,669 | | |
Institutional Class | | | 12,609,730 | | | | — | | | | 2,703,466 | | | | — | | |
| | | 13,169,468 | | | | 1,606,175 | | | | 2,942,962 | | | | 402,669 | | |
Reinvested dividends and distributions | |
Investor Class | | | 793,912 | | | | 2,380,628 | | | | 560,201 | | | | 1,992,455 | | |
Institutional Class | | | 245,232 | | | | — | | | | 326,455 | | | | — | | |
| | | | 1,039,144 | | | | 2,380,628 | | | | 886,656 | | | | 1,992,455 | | |
Shares Issued | | | 14,208,612 | | | | 3,986,803 | | | | 3,829,618 | | | | 2,395,124 | | |
Shares repurchased | |
Investor Class | | | (19,385,727 | ) | | | (9,590,693 | ) | | | (3,600,122 | ) | | | (2,287,622 | ) | |
Institutional Class | | | (1,632,600 | ) | | | — | | | | (279,922 | ) | | | — | | |
Total Shares Repurchased | | | (21,018,327 | ) | | | (9,590,693 | ) | | | (3,880,044 | ) | | | (2,287,622 | ) | |
Net increase (decrease) in fund shares | | | (6,809,715 | ) | | | (5,603,890 | ) | | | (50,426 | ) | | | 107,502 | | |
103
STATEMENTS OF CHANGES IN
NET ASSETS
| | | Buffalo
High Yield Fund | | Buffalo
International Fund | | Buffalo
Large Cap Fund | |
| | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | |
OPERATIONS: | |
Net investment income (loss) | | $ | 8,734,875 | | | $ | 9,703,149 | | | $ | 2,552,346 | | | $ | 1,880,028 | | | $ | 226,506 | | | $ | 181,352 | | |
Net realized gain on investment transactions | | | 545,930 | | | | 248,000 | | | | 46,628 | | | | 3,934,373 | | | | 116,976 | | | | 2,467,683 | | |
Net unrealized appreciation/depreciation during the year on investments and translation of
assets and liabilities in foreign currencies | | | (24,152,200 | ) | | | (3,139,572 | ) | | | (34,252,460 | ) | | | (3,163,588 | ) | | | (3,183,801 | ) | | | 5,730,182 | | |
Net increase (decrease) in net assets resulting from operations | | | (14,871,395 | ) | | | 6,811,577 | | | | (31,653,486 | ) | | | 2,650,813 | | | | (2,840,319 | ) | | | 8,379,217 | | |
DISTRIBUTIONS TO SHAREHOLDERS: | |
Distributable earnings | | | (8,705,714 | ) | | | (10,394,594 | ) | | | (2,604,701 | ) | | | (6,555,569 | ) | | | (1,260,297 | ) | | | (3,420,115 | ) | |
Return of capital | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | |
Total distributions | | | (8,705,714 | ) | | | (10,394,594 | ) | | | (2,604,701 | ) | | | (6,555,569 | ) | | | (1,260,297 | ) | | | (3,420,115 | ) | |
CAPITAL SHARE TRANSACTIONS: | |
Shares sold | |
Investor Class | | | 16,651,157 | | | | 36,291,699 | | | | 89,387,217 | | | | 107,233,312 | | | | 5,577,768 | | | | 6,477,705 | | |
Institutional Class | | | 181,490,562 | | | | — | | | | 261,186,092 | | | | — | | | | 54,591,180 | | | | — | | |
Reinvested dividends and distributions | |
Investor Class | | | 3,844,464 | | | | 9,744,720 | | | | 1,202,548 | | | | 6,071,856 | | | | 472,165 | | | | 3,284,029 | | |
Institutional Class | | | 4,078,662 | | | | — | | | | 1,214,800 | | | | — | | | | 739,158 | | | | — | | |
Shares Issued | | | 206,064,845 | | | | 46,036,419 | | | | 352,990,657 | | | | 113,305,168 | | | | 61,380,271 | | | | 9,761,734 | | |
Redemptions | |
Investor Class | | | (162,179,247 | ) | | | (82,297,800 | ) | | | (244,307,743 | ) | | | (46,385,811 | ) | | | (48,314,639 | ) | | | (14,742,594 | ) | |
Institutional Class | | | (23,988,189 | ) | | | — | | | | (55,210,922 | ) | | | — | | | | (4,851,305 | ) | | | — | | |
Redemption fees (Note 5) | |
Investor Class | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | |
Institutional Class | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | |
Shares repurchased | | | (186,167,436 | ) | | | (82,297,800 | ) | | | (299,518,665 | ) | | | (46,385,811 | ) | | | (53,165,944 | ) | | | (14,742,594 | ) | |
Net increase (decrease) from capital share transactions | | | 19,897,409 | | | | (36,261,381 | ) | | | 53,471,992 | | | | 66,919,357 | | | | 8,214,327 | | | | (4,980,860 | ) | |
Total increase (decrease) in net assets | | | (3,679,700 | ) | | | (39,844,398 | ) | | | 19,213,805 | | | | 63,014,601 | | | | 4,113,711 | | | | (21,758 | ) | |
NET ASSETS: | |
Beginning of period | | | 191,450,596 | | | | 231,294,994 | | | | 340,879,675 | | | | 277,865,074 | | | | 69,002,272 | | | | 69,024,030 | | |
End of period | | $ | 187,770,896 | | | $ | 191,450,596 | | | $ | 360,093,480 | | | $ | 340,879,675 | | | $ | 73,115,983 | | | $ | 69,002,272 | | |
Fund share transactions: | |
Shares issued | |
Investor Class | | | 1,516,951 | | | | 3,354,334 | | | | 6,008,278 | | | | 7,417,295 | | | | 172,360 | | | | 215,365 | | |
Institutional Class | | | 16,458,266 | | | | — | | | | 16,486,606 | | | | — | | | | 1,655,235 | | | | — | | |
| | | 17,975,217 | | | | 3,354,334 | | | | 22,494,884 | | | | 7,417,295 | | | | 1,827,595 | | | | 215,365 | | |
Reinvested dividends and distributions | |
Investor Class | | | 350,903 | | | | 898,676 | | | | 71,966 | | | | 456,874 | | | | 13,678 | | | | 120,382 | | |
Institutional Class | | | 372,852 | | | | — | | | | 72,699 | | | | — | | | | 21,394 | | | | — | | |
| | | 723,754 | | | | 898,676 | | | | 144,665 | | | | 456,874 | | | | 35,072 | | | | 120,382 | | |
Shares Issued | | | 18,698,971 | | | | 4,253,010 | | | | 22,639,549 | | | | 7,874,169 | | | | 1,862,667 | | | | 335,747 | | |
Shares repurchased | |
Investor Class | | | (14,764,965 | ) | | | (7,576,892 | ) | | | (15,607,068 | ) | | | (3,174,368 | ) | | | (1,466,945 | ) | | | (484,776 | ) | |
Institutional Class | | | (2,234,765 | ) | | | — | | | | (3,548,902 | ) | | | — | | | | (146,127 | ) | | | — | | |
Total Shares Repurchased | | | (16,999,730 | ) | | | (7,576,892 | ) | | | (19,155,970 | ) | | | (3,174,368 | ) | | | (1,613,072 | ) | | | (484,776 | ) | |
Net increase (decrease) in fund shares | | | 1,699,241 | | | | (3,323,882 | ) | | | 3,483,579 | | | | 4,699,801 | | | | 249,595 | | | | (149,029 | ) | |
The accompanying notes are an integral part of these financial statements.
104
| | | Buffalo
Mid Cap Fund | | Buffalo
Small Cap Fund | |
| | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | | Year Ended
March 31, 2020 | | Year Ended
March 31, 2019 | |
OPERATIONS: | |
Net investment income (loss) | | $ | (634,332 | ) | | $ | (389,521 | ) | | $ | (3,460,299 | ) | | $ | (3,321,236 | ) | |
Net realized gain on investment transactions | | | 11,862,668 | | | | 10,703,705 | | | | 22,298,931 | | | | 82,752,622 | | |
Net unrealized appreciation/depreciation during the year on investments and translation of
assets and liabilities in foreign currencies | | | (15,719,274 | ) | | | 574,142 | | | | (51,997,098 | ) | | | (16,807,095 | ) | |
Net increase (decrease) in net assets resulting from operations | | | (4,490,938 | ) | | | 10,888,326 | | | | (33,158,466 | ) | | | 62,624,291 | | |
DISTRIBUTIONS TO SHAREHOLDERS: | |
Distributable earnings | | | (13,465,597 | ) | | | (5,175,731 | ) | | | (46,863,860 | ) | | | (103,368,251 | ) | |
Return of capital | | | — | | | | — | | | | — | | | | — | | |
Total distributions | | | (13,465,597 | ) | | | (5,175,731 | ) | | | (46,863,860 | ) | | | (103,368,251 | ) | |
CAPITAL SHARE TRANSACTIONS: | |
Shares sold | |
Investor Class | | | 46,767,088 | | | | 4,820,981 | | | | 26,737,339 | | | | 52,782,283 | | |
Institutional Class | | | 63,911,053 | | | | — | | | | 120,044,991 | | | | — | | |
Reinvested dividends and distributions | |
Investor Class | | | 8,843,404 | | | | 5,138,307 | | | | 37,817,344 | | | | 101,824,965 | | |
Institutional Class | | | 4,461,718 | | | | — | | | | 8,235,789 | | | | — | | |
Shares Issued | | | 123,983,263 | | | | 9,959,288 | | | | 192,835,463 | | | | 154,607,248 | | |
Redemptions | |
Investor Class | | | (97,399,541 | ) | | | (35,996,580 | ) | | | (181,346,811 | ) | | | (139,273,015 | ) | |
Institutional Class | | | (6,535,831 | ) | | | — | | | | (8,976,585 | ) | | | — | | |
Redemption fees (Note 5) | |
Investor Class | | | — | | | | — | | | | — | | | | — | | |
Institutional Class | | | — | | | | — | | | | — | | | | — | | |
Shares repurchased | | | (103,935,372 | ) | | | (35,996,580 | ) | | | (190,323,396 | ) | | | (139,273,015 | ) | |
Net increase (decrease) from capital share transactions | | | 20,047,891 | | | | (26,037,292 | ) | | | 2,512,067 | | | | 15,334,233 | | |
Total increase (decrease) in net assets | | | 2,091,356 | | | | (20,324,697 | ) | | | (77,510,259 | ) | | | (25,409,727 | ) | |
NET ASSETS: | |
Beginning of period | | | 135,262,095 | | | | 155,586,792 | | | | 510,409,913 | | | | 535,819,640 | | |
End of period | | $ | 137,353,451 | | | $ | 135,262,095 | | | $ | 432,899,654 | | | $ | 510,409,913 | | |
Fund share transactions: | |
Shares issued | |
Investor Class | | | 3,071,189 | | | | 347,891 | | | | 1,964,337 | | | | 3,464,564 | | |
Institutional Class | | | 4,082,600 | | | | — | | | | 8,772,669 | | | | — | | |
| | | 7,153,789 | | | | 347,891 | | | | 10,737,006 | | | | 3,464,564 | | |
Reinvested dividends and distributions | |
Investor Class | | | 581,420 | | | | 422,558 | | | | 2,782,733 | | | | 9,480,910 | | |
Institutional Class | | | 293,149 | | | | — | | | | 605,573 | | | | — | | |
| | | 874,569 | | | | 422,558 | | | | 3,388,306 | | | | 9,480,910 | | |
Shares Issued | | | 8,028,358 | | | | 770,449 | | | | 14,125,312 | | | | 12,945,474 | | |
Shares repurchased | |
Investor Class | | | (6,358,182 | ) | | | (2,573,659 | ) | | | (13,476,585 | ) | | | (9,077,196 | ) | |
Institutional Class | | | (437,136 | ) | | | — | | | | (698,052 | ) | | | — | | |
Total Shares Repurchased | | | (6,795,318 | ) | | | (2,573,659 | ) | | | (14,174,637 | ) | | | (9,077,196 | ) | |
Net increase (decrease) in fund shares | | | 1,233,040 | | | | (1,803,210 | ) | | | (49,325 | ) | | | 3,868,278 | | |
105
FINANCIAL HIGHLIGHTS
BUFFALO DISCOVERY FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 25.29 | | | $ | 24.52 | | | $ | 21.86 | | | $ | 19.30 | | | $ | 21.50 | | |
Income from investment operations: | |
Net investment loss | | | (0.06 | ) | | | (0.06 | ) | | | (0.04 | ) | | | (0.02 | ) | | | (0.03 | ) | |
Net realized and unrealized gains (losses) | | | (1.76 | ) | | | 2.31 | | | | 3.82 | | | | 3.10 | | | | (0.69 | ) | |
Total from investment operations | | | (1.82 | ) | | | 2.25 | | | | 3.78 | | | | 3.08 | | | | (0.72 | ) | |
Less distributions: | |
Distributions from capital gains | | | (3.59 | ) | | | (1.48 | ) | | | (1.12 | ) | | | (0.52 | ) | | | (1.48 | ) | |
Total distributions | | | (3.59 | ) | | | (1.48 | ) | | | (1.12 | ) | | | (0.52 | ) | | | (1.48 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 19.88 | | | $ | 25.29 | | | $ | 24.52 | | | $ | 21.86 | | | $ | 19.30 | | |
Total return | | | (9.64 | %) | | | 10.34 | % | | | 17.35 | % | | | 16.07 | % | | | (3.30 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 1,132,237 | | | $ | 1,744,262 | | | $ | 1,896,950 | | | $ | 1,254,238 | | | $ | 1,010,583 | | |
Ratio of expenses to average net assets | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | |
Ratio of net investment income (loss) to average net assets | | | (0.30 | %) | | | (0.21 | %) | | | (0.20 | %) | | | (0.11 | %) | | | (0.18 | %) | |
Portfolio turnover rate | | | 123 | % | | | 77 | % | | | 42 | % | | | 51 | % | | | 59 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
106
FINANCIAL HIGHLIGHTS
BUFFALO DISCOVERY FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 27.10 | | |
Income from investment operations: | |
Net investment loss | | | (0.04 | ) | |
Net realized and unrealized gains (losses) | | | (3.56 | ) | |
Total from investment operations | | | (3.60 | ) | |
Less distributions: | |
Distributions from capital gains | | | (3.59 | ) | |
Total distributions | | | (3.59 | ) | |
Net asset value, end of period | | $ | 19.91 | | |
Total return | | | (15.55 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 205,430 | | |
Ratio of expenses to average net assets** | | | 0.86 | % | |
Ratio of net investment income (loss) to average net assets** | | | (0.25 | %) | |
Portfolio turnover rate | | | 123 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
107
FINANCIAL HIGHLIGHTS
BUFFALO DIVIDEND FOCUS FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 16.65 | | | $ | 16.28 | | | $ | 15.32 | | | $ | 13.20 | | | $ | 13.76 | | |
Income from investment operations: | |
Net investment income | | | 0.44 | | | | 0.25 | | | | 0.19 | | | | 0.18 | | | | 0.16 | | |
Net realized and unrealized gains (losses) | | | (1.81 | ) | | | 0.91 | | | | 1.11 | | | | 2.22 | | | | (0.30 | ) | |
Total from investment operations | | | (1.37 | ) | | | 1.16 | | | | 1.30 | | | | 2.40 | | | | (0.14 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.17 | ) | | | (0.25 | ) | | | (0.19 | ) | | | (0.18 | ) | | | (0.17 | ) | |
Distributions from capital gains | | | — | | | | (0.54 | ) | | | (0.15 | ) | | | (0.10 | ) | | | (0.26 | ) | |
Distributions from return of capital | | | (0.01 | ) | | | — | | | | — | | | | — | | | | — | | |
Total distributions | | | (0.18 | ) | | | (0.79 | ) | | | (0.34 | ) | | | (0.28 | ) | | | (0.43 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | 0.01 | | |
Net asset value, end of period | | $ | 15.10 | | | $ | 16.65 | | | $ | 16.28 | | | $ | 15.32 | | | $ | 13.20 | | |
Total return | | | (8.32 | %) | | | 7.48 | % | | | 8.51 | % | | | 18.35 | % | | | (0.88 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 23,821 | | | $ | 58,299 | | | $ | 59,364 | | | $ | 59,795 | | | $ | 38,222 | | |
Ratio of expenses to average net assets | | | 0.95 | % | | | 0.94 | % | | | 0.94 | % | | | 0.95 | % | | | 0.97 | % | |
Ratio of net investment income (loss) to average net assets | | | 0.84 | % | | | 1.45 | % | | | 1.16 | % | | | 1.34 | % | | | 1.21 | % | |
Portfolio turnover rate | | | 31 | % | | | 20 | % | | | 21 | % | | | 26 | % | | | 65 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
108
FINANCIAL HIGHLIGHTS
BUFFALO DIVIDEND FOCUS FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 17.37 | | |
Income from investment operations: | |
Net investment income | | | 0.28 | | |
Net realized and unrealized gains (losses) | | | (2.41 | ) | |
Total from investment operations | | | (2.13 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.13 | ) | |
Distributions from capital gains | | | — | | |
Distributions from return of capital | | | (0.01 | ) | |
Total distributions | | | (0.14 | ) | |
Net asset value, end of period | | $ | 15.10 | | |
Total return | | | (12.34 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 40,887 | | |
Ratio of expenses to average net assets** | | | 0.80 | % | |
Ratio of net investment income (loss) to average net assets** | | | 1.23 | % | |
Portfolio turnover rate | | | 31 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
109
FINANCIAL HIGHLIGHTS
BUFFALO EMERGING OPPORTUNITIES FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 15.30 | | | $ | 16.03 | | | $ | 15.78 | | | $ | 13.89 | | | $ | 17.85 | | |
Income from investment operations: | |
Net investment loss | | | (0.15 | ) | | | (0.15 | ) | | | (0.18 | ) | | | (0.13 | ) | | | (0.28 | ) | |
Net realized and unrealized gains (losses) | | | (1.85 | ) | | | 1.32 | | | | 3.55 | | | | 3.25 | | | | (2.45 | ) | |
Total from investment operations | | | (2.00 | ) | | | 1.17 | | | | 3.37 | | | | 3.12 | | | | (2.73 | ) | |
Less distributions: | |
Distributions from capital gains | | | (0.80 | ) | | | (1.90 | ) | | | (3.12 | ) | | | (1.23 | ) | | | (1.23 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 12.50 | | | $ | 15.30 | | | $ | 16.03 | | | $ | 15.78 | | | $ | 13.89 | | |
Total return | | | (14.38 | %) | | | 9.39 | % | | | 21.84 | % | | | 22.99 | % | | | (15.47 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 42,633 | | | $ | 84,032 | | | $ | 87,969 | | | $ | 85,336 | | | $ | 114,270 | | |
Ratio of expenses to average net assets | | | 1.49 | % | | | 1.48 | % | | | 1.48 | % | | | 1.48 | % | | | 1.47 | % | |
Ratio of net investment income (loss) to average net assets | | | (1.00 | %) | | | (0.94 | %) | | | (1.10 | %) | | | (0.62 | %) | | | (1.19 | %) | |
Portfolio turnover rate | | | 22 | % | | | 40 | % | | | 48 | % | | | 95 | % | | | 70 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
110
FINANCIAL HIGHLIGHTS
BUFFALO EMERGING OPPORTUNITIES FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 16.44 | | |
Income from investment operations: | |
Net investment loss | | | (0.14 | ) | |
Net realized and unrealized gains (losses) | | | (2.99 | ) | |
Total from investment operations | | | (3.13 | ) | |
Less distributions: | |
Distributions from capital gains | | | (0.80 | ) | |
Net asset value, end of period | | $ | 12.51 | | |
Total return | | | (20.25 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 23,102 | | |
Ratio of expenses to average net assets** | | | 1.35 | % | |
Ratio of net investment income (loss) to average net assets** | | | (1.19 | %) | |
Portfolio turnover rate | | | 22 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
111
FINANCIAL HIGHLIGHTS
BUFFALO FLEXIBLE INCOME FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 15.27 | | | $ | 15.00 | | | $ | 14.74 | | | $ | 13.70 | | | $ | 14.53 | | |
Income from investment operations: | |
Net investment income | | | 0.72 | | | | 0.39 | | | | 0.34 | | | | 0.35 | | | | 0.38 | | |
Net realized and unrealized gains (losses) | | | (3.63 | ) | | | 0.71 | | | | 0.77 | | | | 1.14 | | | | (0.70 | ) | |
Total from investment operations | | | (2.91 | ) | | | 1.10 | | | | 1.11 | | | | 1.49 | | | | (0.32 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.32 | ) | | | (0.39 | ) | | | (0.36 | ) | | | (0.38 | ) | | | (0.41 | ) | |
Distributions from capital gains | | | (0.11 | ) | | | (0.44 | ) | | | (0.49 | ) | | | (0.07 | ) | | | (0.10 | ) | |
Total distributions | | | (0.43 | ) | | | (0.83 | ) | | | (0.85 | ) | | | (0.45 | ) | | | (0.51 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 11.93 | | | $ | 15.27 | | | $ | 15.00 | | | $ | 14.74 | | | $ | 13.70 | | |
Total return | | | (19.63 | %) | | | 7.73 | % | | | 7.57 | % | | | 11.02 | % | | | (2.24 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 273,416 | | | $ | 625,349 | | | $ | 698,084 | | | $ | 797,453 | | | $ | 899,246 | | |
Ratio of expenses to average net assets | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | |
Ratio of net investment income (loss) to average net assets | | | 1.99 | % | | | 2.57 | % | | | 2.27 | % | | | 2.45 | % | | | 2.72 | % | |
Portfolio turnover rate | | | 5 | % | | | 6 | % | | | 2 | % | | | 1 | % | | | 5 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
112
FINANCIAL HIGHLIGHTS
BUFFALO FLEXIBLE INCOME FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 15.31 | | |
Income from investment operations: | |
Net investment income | | | 0.57 | | |
Net realized and unrealized gains (losses) | | | (3.60 | ) | |
Total from investment operations | | | (3.03 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.25 | ) | |
Distributions from capital gains | | | (0.10 | ) | |
Total distributions | | | (0.35 | ) | |
Net asset value, end of period | | $ | 11.93 | | |
Total return | | | (20.20 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 133,843 | | |
Ratio of expenses to average net assets** | | | 0.86 | % | |
Ratio of net investment income (loss) to average net assets** | | | 2.79 | % | |
Portfolio turnover rate | | | 5 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
113
FINANCIAL HIGHLIGHTS
BUFFALO GROWTH FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 25.10 | | | $ | 29.83 | | | $ | 30.83 | | | $ | 28.86 | | | $ | 34.60 | | |
Income from investment operations: | |
Net investment income | | | 0.08 | | | | 0.05 | | | | 0.39 | | | | 0.23 | | | | 0.18 | | |
Net realized and unrealized gains (losses) | | | (0.55 | ) | | | 2.76 | | | | 4.58 | | | | 3.36 | | | | (0.61 | ) | |
Total from investment operations | | | (0.47 | ) | | | 2.81 | | | | 4.97 | | | | 3.59 | | | | (0.43 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.08 | ) | | | (0.01 | ) | | | (0.45 | ) | | | (0.22 | ) | | | (0.19 | ) | |
Distributions from capital gains | | | (3.35 | ) | | | (7.53 | ) | | | (5.52 | ) | | | (1.40 | ) | | | (5.12 | ) | |
Total distributions | | | (3.43 | ) | | | (7.54 | ) | | | (5.97 | ) | | | (1.62 | ) | | | (5.31 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 21.20 | | | $ | 25.10 | | | $ | 29.83 | | | $ | 30.83 | | | $ | 28.86 | | |
Total return | | | (3.90 | %) | | | 13.17 | % | | | 16.42 | % | | | 12.88 | % | | | (0.96 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 88,051 | | | $ | 174,570 | | | $ | 204,251 | | | $ | 326,944 | | | $ | 395,511 | | |
Ratio of expenses to average net assets | | | 0.92 | % | | | 0.91 | % | | | 0.91 | % | | | 0.91 | % | | | 0.91 | % | |
Ratio of net investment income (loss) to average net assets | | | 0.11 | % | | | 0.17 | % | | | 0.90 | % | | | 0.70 | % | | | 0.52 | % | |
Portfolio turnover rate | | | 33 | % | | | 16 | % | | | 32 | % | | | 18 | % | | | 42 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
114
FINANCIAL HIGHLIGHTS
BUFFALO GROWTH FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 27.10 | | |
Income from investment operations: | |
Net investment income | | | 0.15 | | |
Net realized and unrealized gains (losses) | | | (2.59 | ) | |
Total from investment operations | | | (2.44 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.10 | ) | |
Distributions from capital gains | | | (3.36 | ) | |
Total distributions | | | (3.46 | ) | |
Net asset value, end of period | | $ | 21.20 | | |
Total return | | | (10.92 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 58,307 | | |
Ratio of expenses to average net assets** | | | 0.78 | % | |
Ratio of net investment income (loss) to average net assets** | | | 0.28 | % | |
Portfolio turnover rate | | | 33 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
115
FINANCIAL HIGHLIGHTS
BUFFALO HIGH YIELD FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 10.86 | | | $ | 11.04 | | | $ | 11.21 | | | $ | 11.04 | | | $ | 11.71 | | |
Income from investment operations: | |
Net investment income | | | 1.17 | | | | 0.51 | | | | 0.50 | | | | 0.48 | | | | 0.44 | | |
Net realized and unrealized gains (losses) | | | (1.85 | ) | | | (0.15 | ) | | | (0.15 | ) | | | 0.42 | | | | (0.48 | ) | |
Total from investment operations | | | (0.68 | ) | | | 0.36 | | | | 0.35 | | | | 0.90 | | | | (0.04 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.46 | ) | | | (0.51 | ) | | | (0.47 | ) | | | (0.47 | ) | | | (0.46 | ) | |
Distributions from capital gains | | | — | | | | (0.03 | ) | | | (0.05 | ) | | | (0.26 | ) | | | (0.17 | ) | |
Total distributions | | | (0.46 | ) | | | (0.54 | ) | | | (0.52 | ) | | | (0.73 | ) | | | (0.63 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 9.72 | | | $ | 10.86 | | | $ | 11.04 | | | $ | 11.21 | | | $ | 11.04 | | |
Total return | | | (6.67 | %) | | | 3.46 | % | | | 3.20 | % | | | 8.37 | % | | | (0.41 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 46,036 | | | $ | 191,451 | | | $ | 231,295 | | | $ | 236,006 | | | $ | 282,385 | | |
Ratio of expenses to average net assets | | | 1.02 | % | | | 1.02 | % | | | 1.02 | % | | | 1.02 | % | | | 1.01 | % | |
Ratio of net investment income (loss) to average net assets | | | 3.60 | % | | | 4.68 | % | | | 4.06 | % | | | 4.27 | % | | | 3.79 | % | |
Portfolio turnover rate | | | 36 | % | | | 22 | % | | | 41 | % | | | 40 | % | | | 44 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
116
FINANCIAL HIGHLIGHTS
BUFFALO HIGH YIELD FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 11.01 | | |
Income from investment operations: | |
Net investment income | | | 0.71 | | |
Net realized and unrealized gains (losses) | | | (1.66 | ) | |
Total from investment operations | | | (0.95 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.35 | ) | |
Distributions from capital gains | | | — | | |
Total distributions | | | (0.35 | ) | |
Net asset value, end of period | | $ | 9.71 | | |
Total return | | | (8.94 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 141,735 | | |
Ratio of expenses to average net assets** | | | 0.88 | % | |
Ratio of net investment income (loss) to average net assets** | | | 4.90 | % | |
Portfolio turnover rate | | | 36 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
117
FINANCIAL HIGHLIGHTS
BUFFALO INTERNATIONAL FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 14.76 | | | $ | 15.10 | | | $ | 12.80 | | | $ | 11.40 | | | $ | 11.93 | | |
Income from investment operations: | |
Net investment income | | | 0.19 | | | | 0.09 | | | | 0.06 | | | | 0.13 | | | | 0.06 | | |
Net realized and unrealized gains (losses) | | | (1.31 | ) | | | (0.11 | ) | | | 2.29 | | | | 1.39 | | | | (0.54 | ) | |
Total from investment operations | | | (1.12 | ) | | | (0.02 | ) | | | 2.35 | | | | 1.52 | | | | (0.48 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.10 | ) | | | (0.08 | ) | | | (0.04 | ) | | | (0.12 | ) | | | (0.05 | ) | |
Distributions from capital gains | | | — | | | | (0.24 | ) | | | (0.01 | ) | | | — | | | | — | | |
Total distributions | | | (0.10 | ) | | | (0.32 | ) | | | (0.05 | ) | | | (0.12 | ) | | | (0.05 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 13.54 | | | $ | 14.76 | | | $ | 15.10 | | | $ | 12.80 | | | $ | 11.40 | | |
Total return | | | (7.67 | %) | | | 0.11 | % | | | 18.40 | % | | | 13.46 | % | | | (4.02 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 183,809 | | | $ | 340,880 | | | $ | 277,865 | | | $ | 203,276 | | | $ | 234,446 | | |
Ratio of expenses to average net assets | | | 1.03 | % | | | 1.04 | % | | | 1.03 | % | | | 1.04 | % | | | 1.04 | % | |
Ratio of net investment income (loss) to average net assets | | | 0.55 | % | | | 0.64 | % | | | 0.42 | % | | | 1.02 | % | | | 0.52 | % | |
Portfolio turnover rate | | | 13 | % | | | 16 | % | | | 13 | % | | | 4 | % | | | 7 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
118
FINANCIAL HIGHLIGHTS
BUFFALO INTERNATIONAL FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 15.85 | | |
Income from investment operations: | |
Net investment income | | | 0.20 | | |
Net realized and unrealized gains (losses) | | | (2.39 | ) | |
Total from investment operations | | | (2.19 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.11 | ) | |
Distributions from capital gains | | | — | | |
Total distributions | | | (0.11 | ) | |
Net asset value, end of period | | $ | 13.55 | | |
Total return | | | (13.95 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 176,285 | | |
Ratio of expenses to average net assets** | | | 0.88 | % | |
Ratio of net investment income (loss) to average net assets** | | | 0.86 | % | |
Portfolio turnover rate | | | 13 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
119
FINANCIAL HIGHLIGHTS
BUFFALO LARGE CAP FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 31.01 | | | $ | 29.08 | | | $ | 26.53 | | | $ | 23.09 | | | $ | 25.09 | | |
Income from investment operations: | |
Net investment income | | | 0.09 | | | | 0.09 | | | | 0.09 | | | | 0.08 | | | | 0.09 | | |
Net realized and unrealized gains (losses) | | | (1.07 | ) | | | 3.46 | | | | 4.01 | | | | 4.18 | | | | (0.47 | ) | |
Total from investment operations | | | (0.98 | ) | | | 3.55 | | | | 4.10 | | | | 4.26 | | | | (0.38 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.07 | ) | | | (0.11 | ) | | | (0.04 | ) | | | (0.13 | ) | | | (0.04 | ) | |
Distributions from capital gains | | | (0.43 | ) | | | (1.51 | ) | | | (1.51 | ) | | | (0.69 | ) | | | (1.58 | ) | |
Total distributions | | | (0.50 | ) | | | (1.62 | ) | | | (1.55 | ) | | | (0.82 | ) | | | (1.62 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 29.53 | | | $ | 31.01 | | | $ | 29.08 | | | $ | 26.53 | | | $ | 23.09 | | |
Total return | | | (3.40 | %) | | | 12.96 | % | | | 15.41 | % | | | 18.67 | % | | | (1.56 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 27,872 | | | $ | 69,002 | | | $ | 69,024 | | | $ | 57,881 | | | $ | 47,794 | | |
Ratio of expenses to average net assets | | | 0.94 | % | | | 0.93 | % | | | 0.93 | % | | | 0.95 | % | | | 0.94 | % | |
Ratio of net investment income (loss) to average net assets | | | 0.21 | % | | | 0.27 | % | | | 0.33 | % | | | 0.34 | % | | | 0.41 | % | |
Portfolio turnover rate | | | 6 | % | | | 10 | % | | | 40 | % | | | 41 | % | | | 62 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
120
FINANCIAL HIGHLIGHTS
BUFFALO LARGE CAP FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 32.79 | | |
Income from investment operations: | |
Net investment income | | | 0.16 | | |
Net realized and unrealized gains (losses) | | | (2.89 | ) | |
Total from investment operations | | | (2.73 | ) | |
Less distributions: | |
Distributions from investment Income | | | (0.07 | ) | |
Distributions from capital gains | | | (0.43 | ) | |
Total distributions | | | (0.50 | ) | |
Net asset value, end of period | | $ | 29.56 | | |
Total return | | | (8.55 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 45,244 | | |
Ratio of expenses to average net assets** | | | 0.80 | % | |
Ratio of net investment income (loss) to average net assets** | | | 0.40 | % | |
Portfolio turnover rate | | | 6 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
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FINANCIAL HIGHLIGHTS
BUFFALO MID CAP FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 14.52 | | | $ | 13.99 | | | $ | 15.68 | | | $ | 15.04 | | | $ | 18.68 | | |
Income from investment operations: | |
Net investment loss | | | (0.05 | ) | | | (0.04 | ) | | | (0.03 | ) | | | (0.01 | ) | | | (0.02 | ) | |
Net realized and unrealized gains (losses) | | | (0.19 | ) | | | 1.11 | | | | 1.77 | | | | 1.85 | | | | (1.62 | ) | |
Total from investment operations | | | (0.24 | ) | | | 1.07 | | | | 1.74 | | | | 1.84 | | | | (1.64 | ) | |
Less distributions: | |
Distributions from investment Income | | | — | | | | — | | | | — | | | | — | | | | — | (1) | |
Distributions from capital gains | | | (1.26 | ) | | | (0.54 | ) | | | (3.43 | ) | | | (1.20 | ) | | | (2.00 | ) | |
Total distributions | | | (1.26 | ) | | | (0.54 | ) | | | (3.43 | ) | | | (1.20 | ) | | | (2.00 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 13.02 | | | $ | 14.52 | | | $ | 13.99 | | | $ | 15.68 | | | $ | 15.04 | | |
Total return | | | (2.89 | %) | | | 8.40 | % | | | 11.69 | % | | | 12.94 | % | | | (8.83 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 86,030 | | | $ | 135,262 | | | $ | 155,587 | | | $ | 395,413 | | | $ | 458,635 | | |
Ratio of expenses to average net assets | | | 1.02 | % | | | 1.02 | % | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | |
Ratio of net investment income (loss) to average net assets | | | (0.39 | %) | | | (0.27 | %) | | | (0.13 | %) | | | (0.09 | %) | | | (0.10 | %) | |
Portfolio turnover rate | | | 52 | % | | | 36 | % | | | 51 | % | | | 51 | % | | | 46 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
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FINANCIAL HIGHLIGHTS
BUFFALO MID CAP FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 15.63 | | |
Income from investment operations: | |
Net investment loss | | | (0.04 | ) | |
Net realized and unrealized gains (losses) | | | (1.30 | ) | |
Total from investment operations | | | (1.34 | ) | |
Less distributions: | |
Distributions from capital gains | | | (1.26 | ) | |
Net asset value, end of period | | $ | 13.03 | | |
Total return | | | (9.72 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 51,324 | | |
Ratio of expenses to average net assets** | | | 0.89 | % | |
Ratio of net investment income (loss) to average net assets** | | | (0.38 | %) | |
Portfolio turnover rate | | | 52 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
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FINANCIAL HIGHLIGHTS
BUFFALO SMALL CAP FUND INVESTOR CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
| | | Years Ended March 31, | |
Condensed data for a share of capital stock
outstanding throughout the period. | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | |
Net asset value, beginning of period | | $ | 12.89 | | | $ | 15.00 | | | $ | 16.61 | | | $ | 16.64 | | | $ | 32.83 | | |
Income from investment operations: | |
Net investment loss | | | (0.08 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.13 | ) | | | (0.20 | ) | |
Net realized and unrealized gains (losses) | | | (0.62 | ) | | | 1.25 | | | | 2.92 | | | | 3.19 | | | | (3.60 | ) | |
Total from investment operations | | | (0.70 | ) | | | 1.17 | | | | 2.83 | | | | 3.06 | | | | (3.80 | ) | |
Less distributions: | |
Distributions from capital gains | | | (1.25 | ) | | | (3.28 | ) | | | (4.44 | ) | | | (3.09 | ) | | | (12.39 | ) | |
Paid-in capital from redemption fees(2) | | | — | | | | — | | | | — | | | | — | (1) | | | — | (1) | |
Net asset value, end of period | | $ | 10.94 | | | $ | 12.89 | | | $ | 15.00 | | | $ | 16.61 | | | $ | 16.64 | | |
Total return | | | (7.33 | %) | | | 12.19 | % | | | 17.65 | % | | | 24.51 | % | | | (13.28 | %) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 337,804 | | | $ | 510,410 | | | $ | 535,820 | | | $ | 563,002 | | | $ | 961,411 | | |
Ratio of expenses to average net assets | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | | | 1.01 | % | |
Ratio of net investment income (loss) to average net assets | | | (0.65 | %) | | | (0.55 | %) | | | (0.64 | %) | | | (0.52 | %) | | | (0.61 | %) | |
Portfolio turnover rate | | | 67 | % | | | 57 | % | | | 49 | % | | | 45 | % | | | 41 | % | |
(1) Less than $0.01 per share.
(2) Effective December 1, 2016, the Board of Trustees approved the elimination of redemption fees on shares of the Funds.
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FINANCIAL HIGHLIGHTS
BUFFALO SMALL CAP FUND INSTITUTIONAL CLASS
The following tables are intended to help you understand the Fund's financial performance for the periods shown. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund. 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.
Condensed data for a share of capital stock
outstanding throughout the period. | | For the period
July 1, 2019*
through
March 31, 2020 | |
Net asset value, beginning of period | | $ | 13.78 | | |
Income from investment operations: | |
Net investment loss | | | (0.06 | ) | |
Net realized and unrealized gains (losses) | | | (1.51 | ) | |
Total from investment operations | | | (1.57 | ) | |
Less distributions: | |
Distributions from capital gains | | | (1.25 | ) | |
Net asset value, end of period | | $ | 10.96 | | |
Total return | | | (13.24 | %)(1) | |
Ratios/Supplemental Data | |
Net assets, end of period (in thousands) | | $ | 95,095 | | |
Ratio of expenses to average net assets** | | | 0.86 | % | |
Ratio of net investment income (loss) to average net assets** | | | (0.73 | %) | |
Portfolio turnover rate | | | 67 | % | |
* Inception date
** Annualized
(1) The return listed is the non-annualized return for the Institutional Class since inception date.
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NOTES TO FINANCIAL STATEMENTS
March 31, 2020
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.
As of July 1, 2019, each of the Funds offers two classes of shares, Investor Class and Institutional Class. Each class of share represents an equal interest in the Fund, except the difference of class specific expenses, which reflects the difference in the range of services provided to each class. The shareholder servicing fees for the Investor Class represent the class specific expenses. See Note 7 for more information regarding shareholder servicing fees for the Investor Class. Income, expenses (other than class specific), and realized and unrealized gains and losses on investments are allocated daily to each class based on relative net assets.
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 objective of the Buffalo Flexible Income Fund is high current income, with long-term growth of capital as a secondary objective. The investment objectives of the Buffalo Dividend Focus Fund and 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 — 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.
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 March 31, 2020, none of the Funds held fair
126
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 March 31, 2020, the Buffalo International Fund held 62 securities where a foreign fair value factor was applied, with a market value of $230,557,497 or 64.02% of total net assets.
Debt securities, including treasury bills, commercial paper, corporate and convertible bonds, bank loans, etc., with remaining maturities of 60 days or less are normally valued at the last reported sale price. If there is no trade on the valuation date, 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 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' valuation policies.
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, Inc. ("Advisor" or "KCM"), the Funds' investment 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 8 — 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.
127
The following table provides the fair value measurement of applicable Fund assets and liabilities by level within the fair value hierarchy as of March 31, 2020. These assets are measured on a recurring basis.
BUFFALO DISCOVERY FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 1,201,133,060 | | | $ | — | | | $ | — | | | $ | 1,201,133,060 | | |
REITS | | | 55,623,737 | | | | — | | | | — | | | | 55,623,737 | | |
Short Term Investment | | | 66,350,695 | | | | — | | | | — | | | | 66,350,695 | | |
Total* | | $ | 1,323,107,492 | | | $ | — | | | $ | — | | | $ | 1,323,107,492 | | |
BUFFALO DIVIDEND FOCUS FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 50,355,675 | | | | — | | | | — | | | $ | 50,355,675 | | |
REITS | | | 3,232,027 | | | | — | | | | — | | | | 3,232,027 | | |
Convertible Preferred Stocks | | | 411,400 | | | | — | | | | — | | | | 411,400 | | |
Preferred Stocks | | | 256,050 | | | | — | | | | — | | | | 256,050 | | |
Convertible Bonds | | | — | | | | 8,738,427 | | | | — | | | | 8,738,427 | | |
Short Term Investment | | | 1,911,050 | | | | — | | | | — | | | | 1,911,050 | | |
Total* | | $ | 64,904,629 | | | $ | — | | | $ | — | | | $ | 64,904,629 | | |
BUFFALO EMERGING OPPORTUNIES FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 54,967,582 | | | | — | | | | — | | | $ | 54,967,582 | | |
REIT | | | 1,707,288 | | | | — | | | | — | | | | 1,707,288 | | |
Short Term Investments | | | 9,741,635 | | | | — | | | | — | | | | 9,741,635 | | |
Total* | | $ | 66,416,505 | | | $ | — | | | $ | — | | | $ | 66,416,505 | | |
BUFFALO FLEXIBLE INCOME FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 377,374,735 | | | | — | | | | — | | | $ | 377,374,735 | | |
REITS | | | 11,849,023 | | | | — | | | | — | | | | 11,849,023 | | |
Convertible Bonds | | | — | | | | 8,179,230 | | | | — | | | | 8,179,230 | | |
Corporate Bonds | | | — | | | | 5,902,328 | | | | — | | | | 5,902,328 | | |
Short Term Investment | | | 3,801,306 | | | | — | | | | — | | | | 3,801,306 | | |
Total* | | $ | 393,025,064 | | | $ | 14,081,558 | | | $ | — | | | $ | 407,106,622 | | |
Written Options | | $ | 345,600 | | | $ | — | | | $ | — | | | $ | 345,600 | | |
BUFFALO GROWTH FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 137,542,513 | | | | — | | | | — | | | $ | 137,542,513 | | |
REITS | | | 5,098,885 | | | | — | | | | — | | | | 5,098,885 | | |
Short Term Investment | | | 3,740,463 | | | | — | | | | — | | | | 3,740,463 | | |
Total* | | $ | 146,381,861 | | | $ | — | | | $ | — | | | $ | 146,381,861 | | |
BUFFALO HIGH YIELD FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Preferred Stocks | | $ | 2,426,500 | | | | — | | | | — | | | $ | 2,426,500 | | |
Common Stocks | | | 1,876,755 | | | | — | | | | — | | | | 1,876,755 | | |
Convertible Bonds | | | — | | | | 31,183,038 | | | | — | | | | 31,183,038 | | |
Corporate Bonds | | | — | | | | 110,440,863 | | | | — | | | | 110,440,863 | | |
Bank Loans | | | — | | | | 35,566,078 | | | | — | | | | 35,566,078 | | |
Short Term Investment | | | 4,141,584 | | | | — | | | | — | | | | 4,141,584 | | |
Total* | | $ | 8,444,839 | | | $ | 177,189,979 | | | $ | — | | | $ | 185,634,818 | | |
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BUFFALO INTERNATIONAL FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 94,016,951 | | | | 230,557,497 | | | | — | | | $ | 324,574,448 | | |
Short Term Investment | | | 34,737,494 | | | | — | | | | — | | | | 34,737,494 | | |
Total* | | $ | 128,754,445 | | | $ | 230,557,497 | | | $ | — | | | $ | 359,311,942 | | |
BUFFALO LARGE CAP FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 66,489,133 | | | | — | | | | — | | | $ | 66,489,133 | | |
REIT | | | 2,333,393 | | | | — | | | | — | | | | 2,333,393 | | |
Short Term Investment | | | 4,142,609 | | | | — | | | | — | | | | 4,142,609 | | |
Total* | | $ | 72,965,135 | | | $ | — | | | $ | — | | | $ | 72,965,135 | | |
BUFFALO MID CAP FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 122,388,151 | | | | — | | | | — | | | $ | 122,388,151 | | |
REIT | | | 5,607,079 | | | | — | | | | — | | | | 5,607,079 | | |
Short Term Investment | | | 9,879,082 | | | | — | | | | — | | | | 9,879,082 | | |
Total* | | $ | 137,874,312 | | | $ | — | | | $ | — | | | $ | 137,874,312 | | |
BUFFALO SMALL CAP FUND
| | Level 1 | | Level 2 | | Level 3 | | Total | |
Common Stocks | | $ | 407,785,191 | | | | — | | | | — | | | $ | 407,785,191 | | |
REITS | | | 17,951,712 | | | | — | | | | | | 17,951,712 | | |
Short Term Investment | | | 3,717,021 | | | | — | | | | — | | | | 3,717,021 | | |
Total* | | $ | 429,453,924 | | | $ | — | | | $ | — | | | $ | 429,453,924 | | |
* Additional information regarding the industry and/or geographical classification of these investments is disclosed in the schedule of investments.
There were no transfers into or out of Level 1, Level 2 or Level 3 fair value measurements during the reporting year. The basis for recognizing and valuing transfers is as of the beginning of the year in which transfers occur.
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, 2020, 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, 2017 through March 31, 2020. 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 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.
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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 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 March 31, 2020.
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 high 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 7 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, 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.
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in the ASU shorten the amortization period for certain callable debt securities, held at a premium, to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount; which continues to be amortized to maturity. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Management has determined that the changes due to the ASU do not have a material impact on the Funds' financial statements.
2. FEDERAL TAX MATTERS:
The tax character of distributions paid during the year ended March 31, 2020 and the year ended March 31, 2019 were as follows:
| | | Year Ended March 31, 2020 | | Year Ended March 31, 2019 | |
| | | Ordinary
Income | | Return
of Capital | | Long-Term
Capital Gains* | | Ordinary
Income | | Long-Term
Capital Gains | |
Buffalo Discovery Fund | | $ | 44,023,909 | | | $ | — | | | $ | 192,281,393 | | | $ | 12,334,576 | | | $ | 97,779,261 | | |
Buffalo Dividend Focus Fund | | | 708,148 | | | | 42,916 | | | | — | | | | 959,250 | | | | 1,757,501 | | |
Buffalo Emerging Opportunities Fund | | | — | | | | — | | | | 4,253,755 | | | | 2,389,211 | | | | 7,100,676 | | |
Buffalo Flexible Income Fund | | | 13,493,126 | | | | — | | | | 2,812,198 | | | | 17,960,609 | | | | 17,918,207 | | |
Buffalo Growth Fund | | | 1,002,914 | | | | — | | | | 21,439,423 | | | | 273,363 | | | | 43,956,280 | | |
Buffalo High Yield Fund | | | 8,705,714 | | | | — | | | | — | | | | 9,788,238 | | | | 606,356 | | |
Buffalo International Fund | | | 2,604,701 | | | | — | | | | — | | | | 1,570,569 | | | | 4,985,000 | | |
Buffalo Large Cap Fund | | | 657,920 | | | | — | | | | 602,377 | | | | 722,703 | | | | 2,697,412 | | |
Buffalo Mid Cap Fund | | | — | | | | — | | | | 13,465,597 | | | | — | | | | 5,175,731 | | |
Buffalo Small Cap Fund | | | — | | | | — | | | | 46,863,860 | | | | 2,587,277 | | | | 100,780,974 | | |
* 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, 2020.
For tax purposes, distributions from short-term capital gain distributions are included in ordinary income distributions.
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, 2020, the following table shows the reclassifications made:
| | | Distributable
Earnings | | Paid In
Capital | |
Buffalo Discovery Fund | | $ | (29,628,441 | ) | | $ | 29,628,441 | | |
Buffalo Dividend Focus Fund | | | — | | | | — | | |
Buffalo Emerging Opportunities Fund | | | 832,932 | | | | (832,932 | ) | |
Buffalo Flexible Income Fund | | | (1,530,114 | ) | | | 1,530,114 | | |
Buffalo Growth Fund | | | (2,498,540 | ) | | | 2,498,540 | | |
Buffalo High Yield Fund | | | (23,643 | ) | | | 23,643 | | |
Buffalo International Fund | | | — | | | | — | | |
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| | | Distributable
Earnings | | Paid In
Capital | |
Buffalo Large Cap Fund | | $ | (167,234 | ) | | | 167,234 | | |
Buffalo Mid Cap Fund | | | (1,130,214 | ) | | | 1,130,214 | | |
Buffalo Small Cap Fund | | | (2,968,770 | ) | | | 2,968,770 | | |
The permanent differences primarily relate to net operating losses and utilization of earnings and profit distributions to shareholders on redemption of shares.
As of March 31, 2020, the components of distributable 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) | | $ | 1,272,846,659 | | | $ | 55,731,230 | | | $ | 66,150,429 | | | $ | 349,109,770 | | | $ | 97,688,804 | | |
Unrealized Appreciation | | | 183,618,498 | | | | 15,129,360 | | | | 14,447,040 | | | | 148,500,597 | | | | 58,005,638 | | |
Unrealized Depreciation | | | (133,357,665 | ) | | | (5,955,961 | ) | | | (14,180,964 | ) | | | (90,849,345 | ) | | | (9,312,581 | ) | |
Net unrealized appreciation | | | 50,260,833 | | | | 9,173,399 | | | | 266,076 | | | | 57,651,252 | | | | 48,693,057 | | |
Undistributed Ordinary Income | | | — | | | | — | | | | — | | | | 921,499 | | | | — | | |
Undistributed Long Term
Capital Gain | | | 13,952,573 | | | | — | | | | 711,300 | | | | 4,920,429 | | | | 1,606,859 | | |
Distributable earnings | | | 13,952,573 | | | | — | | | | 711,300 | | | | 5,841,928 | | | | 1,606,859 | | |
Other accumulated gain/(loss) | | | (19,695,503 | ) | | | (1,628,304 | ) | | | (221,948 | ) | | | (501,634 | ) | | | (3,105,947 | ) | |
Total distributable earnings | | | 44,517,903 | | | | 7,545,095 | | | | 755,428 | | | | 62,991,546 | | | | 47,193,969 | | |
| | | Buffalo
High Yield
Fund | | Buffalo
International
Fund | | Buffalo
Large Cap
Fund | | Buffalo
Mid Cap
Fund | | Buffalo
Small Cap
Fund | |
Tax cost of Investments(a) | | $ | 207,025,369 | | | $ | 319,522,275 | | | $ | 51,913,749 | | | $ | 104,035,962 | | | $ | 369,136,916 | | |
Unrealized Appreciation | | | 2,007,204 | | | | 74,222,506 | | | | 26,510,265 | | | | 39,795,833 | | | | 108,251,047 | | |
Unrealized Depreciation | | | (23,397,755 | ) | | | (34,399,493 | ) | | | (5,458,879 | ) | | | (5,957,483 | ) | | | (47,934,039 | ) | |
Net unrealized appreciation/
depreciation | | | (21,390,551 | ) | | | 39,823,013 | | | | 21,051,386 | | | | 33,838,350 | | | | 60,317,008 | | |
Undistributed Ordinary Income | | | 382,214 | | | | 43,181 | | | | 226,492 | | | | — | | | | — | | |
Undistributed Long Term
Capital Gain | | | — | | | | — | | | | — | | | | 551,872 | | | | — | | |
Distributable earnings | | | 382,214 | | | | 43,181 | | | | 226,492 | | | | 551,872 | | | | — | | |
Other accumulated gain/(loss) | | | (181,865 | ) | | | (953,775 | ) | | | (108,870 | ) | | | (172,964 | ) | | | (7,389,727 | ) | |
Total distributable earnings | | | (21,190,202 | ) | | | 38,912,419 | | | | 21,169,008 | | | | 34,217,258 | | | | 52,927,281 | | |
The differences between book-basis and tax-basis unrealized appreciation/depreciation 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 straddle loss deferrals.
(a) Represents cost for federal income tax purposes and may differ from the cost for financial reporting purposes.
As of March 31, 2020, the Buffalo Funds had the following capital loss carryovers available to offset future taxable gains:
| | Short Term
Capital Loss
Carryover | | Long Term
Capital Loss
Carryover | | Total
Capital Loss
Carryover | | Expires | |
Buffalo Discovery Fund | | | — | | | | — | | | | — | | | | — | | |
Buffalo Dividend Focus Fund | | | 912,402 | | | | 715,902 | | | | 1,628,304 | | | | unlimited | | |
Buffalo Emerging Opportunities Fund | | | — | | | | — | | | | — | | | | — | | |
Buffalo Flexible Income Fund | | | — | | | | — | | | | — | | | | — | | |
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| | Short Term
Capital Loss
Carryover | | Long Term
Capital Loss
Carryover | | Total
Capital Loss
Carryover | | Expires | |
Buffalo Growth Fund | | | — | | | | — | | | | — | | | | — | | |
Buffalo High Yield Fund | | | 181,865 | | | | — | | | | 181,865 | | | | unlimited | | |
Buffalo International Fund | | | 953,775 | | | | — | | | | 953,775 | | | | unlimited | | |
Buffalo Large Cap Fund | | | — | | | | — | | | | — | | | | — | | |
Buffalo Mid Cap Fund | | | — | | | | — | | | | — | | | | — | | |
Buffalo Small Cap Fund | | | — | | | | — | | | | — | | | | — | | |
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 capital losses incurred between November 1 and the end of their fiscal year, March 31, 2020. Qualified late year ordinary losses are generally losses incurred between January 1 and the end of their fiscal year, March 31, 2020.
At March 31, 2020, 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 Discovery Fund | | | — | | | | 19,695,503 | | |
Buffalo Dividend Focus Fund | | | — | | | | — | | |
Buffalo Emerging Opportunities Fund | | | 221,948 | | | | — | | |
Buffalo Flexible Income Fund | | | — | | | | — | | |
Buffalo Growth Fund | | | — | | | | 3,105,947 | | |
Buffalo High Yield Fund | | | — | | | | — | | |
Buffalo International Fund | | | — | | | | — | | |
Buffalo Large Cap Fund | | | — | | | | 108,870 | | |
Buffalo Mid Cap Fund | | | 172,964 | | | | — | | |
Buffalo Small Cap Fund | | | 974,554 | | | | 6,415,173 | | |
For the Year Ended March 31, 2020, the Buffalo International Fund earned foreign source income and paid foreign taxes, as noted below, which it intends to pass through to its shareholders pursuant to Section 853 of the Internal Revenue Code.
| | | Gross Foreign
Income | | Foreign Tax
Paid | |
Buffalo International Fund | | | 6,656,837 | | | | 849,512 | | |
| | | | 6,656,837 | | | | 849,512 | | |
3. RELATED PARTY TRANSACTIONS:
Management fees are paid to KCM at the rate of 0.85% 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 1.30%, 0.75%, 0.75% and 0.75%, 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; and other items incidental to corporate administration. Pursuant to a Master Services Agreement with U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services ("GFS"), KCM pays GFS 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 GFS receives 25/100 of 1% (0.25%). GFS 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 GFS.
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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 GFS 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 GFS are set forth in the following table:
BUFFALO SMALL CAP FUND FEE BREAKPOINTS
| | | (As a % Of Average Daily Net Assets) | |
Asset Level | | Management Fee | | GFS Fee | |
Assets up to $6 billion | | | 0.85 | % | | | 0.300 | % | |
Assets over $6 billion up to $7 billion | | | 0.80 | % | | | 0.275 | % | |
Assets over $7 billion up to $8 billion | | | 0.75 | % | | | 0.250 | % | |
Assets over $8 billion up to $9 billion | | | 0.70 | % | | | 0.225 | % | |
Assets over $9 billion | | | 0.65 | % | | | 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. With respect to each Fund's Investor Class, the management fees do not include the shareholder servicing fees.
The Buffalo International Fund incurred $85,306 in custody fees during the period ended March 31, 2020, and owed $15,543 for custody fees as of March 31, 2020.
4. AGGREGATE COMPENSATION TO TRUSTEES:
The Funds do not directly compensate any of their trustees. GFS 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 March 31, 2020 was $165,000. Interested trustees who are affiliated with KCM do not receive any compensation from the Funds, but are compensated directly by KCM in connection with their employment with 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 year ended March 31, 2020, were as follows:
| | | Buffalo
Discovery
Fund | | Buffalo
Dividend Focus
Fund | | Buffalo
Emerging
Opportunities
Fund | | Buffalo
Flexible Income
Fund | | Buffalo
Growth
Fund | |
Purchases | | | 2,023,362,588 | | | | 39,914,085 | | | | 16,755,236 | | | | 27,810,280 | | | | 54,797,916 | | |
Proceeds from Sales | | | 2,322,293,057 | | | | 19,600,475 | | | | 23,486,964 | | | | 72,005,512 | | | | 79,303,813 | | |
| | | Buffalo
High Yield
Fund | | Buffalo
International
Fund | | Buffalo
Large Cap
Fund | | Buffalo
Mid Cap
Fund | | Buffalo
Small Cap
Fund | |
Purchases | | | 92,620,549 | | | | 96,779,477 | | | | 10,608,551 | | | | 78,851,660 | | | | 332,844,763 | | |
Proceeds from Sales | | | 67,062,115 | | | | 46,098,822 | | | | 4,488,840 | | | | 80,087,898 | | | | 364,859,371 | | |
There were no purchases or sales of long-term U.S. government securities for any Funds during the period ended March 31, 2020.
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 Funds during the period ended March 31, 2020.
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7. SHAREHOLDER SERVICING PLAN:
The Trust, on behalf of the Funds, has adopted a Shareholder Servicing Plan, effective July 1, 2019, to pay a fee at an annual rate of up to 0.15% of average daily net assets of the Investor Class shares serviced by shareholder servicing agents who provide administrative and support services to their customers. No shareholder servicing fees are charged to the Institutional Class. For the period ended March 31, 2020, Investor Class shareholder servicing fees were as follows:
| Fund: | | Investor Class
Shareholder
Servicing Fee | |
Buffalo Discovery Fund | | $ | 1,740,985 | | |
Buffalo Dividend Focus Fund | | | 33,499 | | |
Buffalo Emerging Opportunities Fund | | | 65,479 | | |
Buffalo Flexible Income Fund | | | 445,077 | | |
Buffalo Growth Fund | | | 132,376 | | |
Buffalo High Yield Fund | | | 71,080 | | |
Buffalo International Fund | | | 235,659 | | |
Buffalo Large Cap Fund | | | 39,156 | | |
Buffalo Mid Cap Fund | | | 129,613 | | |
Buffalo Small Cap Fund | | | 488,940 | | |
8. OPTIONS WRITTEN:
FASB ASC 815, Derivatives and Hedging (ASC 815) requires disclosures to enable investors to better understand how and why the Funds use 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 year ended March 31, 2020. For the year ended March 31, 2020, the quarterly average gross notional amount of derivatives held by the Fund was $31,217,379, 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 March 31, 2020, 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 March 31, 2020:
Derivative Investment Type | | Value | |
Liability Derivatives | |
Buffalo Flexible Income Fund | | | |
Written Options — equity contracts | | $ | 345,600 | | |
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 Fund as of March 31, 2020:
Derivative Investment Type | | Realized Gain (Loss) on Options | |
Liability Derivatives | |
Buffalo Flexible Income Fund | | | |
Written Options — equity contracts | | $ | 2,172,593 | | |
Derivative Investment Type | | Change in Unrealized Appreciation/Depreciation on Options | |
Liability Derivatives | |
Buffalo Flexible Income Fund | | | |
Written Options — equity contracts | | $ | (56,451 | ) | |
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The following table presents 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 March 31, 2020:
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 | | $ | 345,600 | | | $ | — | | | $ | 345,600 | | | $ | 345,600 | | | $ | 345,600 | | | $ | — | | |
| | | $ | 345,600 | | | $ | — | | | $ | 345,600 | | | $ | 345,600 | | | $ | 345,600 | | | $ | — | | |
* Any over-collateralization of total financial instruments or cash is not shown.
9. 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 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.
10. 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, 2020. 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. As of March 31, 2020, the Prime Rate was 3.25%. During the year ended March 31, 2020, the Funds had average outstanding borrowings of $3,074 under the credit facility and paid a weighted average interest rate of 3.25%, totaling $101.56 which is shown as interest expense on the Statement of Operations. The March 18, 2020 balance of $568,000 for the Funds was the maximum borrowing during the year ended March 31, 2020.
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11. SUBSEQUENT EVENTS:
Management has evaluated the events and transactions that have occurred after March 31, 2020 and through the date the financial statements were issued. The recent global outbreak of COVID-19 has disrupted economic markets and the prolonged economic impact is uncertain. The operational and financial performance of the issuers of securities in which the Fund invests depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn impact the value of the Fund's investments. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19. Nevertheless, COVID-19 presents material uncertainty and risk with respect to the Funds' performance and financial results.
Effective March 31, 2020, Foreside Financial Group, LLC ("Foreside") acquired Quasar Distributors, LLC ("Quasar"), the Funds' distributor, from U.S. Bancorp. As a result of the acquisition, Quasar became a wholly-owned broker-dealer subsidiary of Foreside and is no longer affiliated with U.S. Bancorp. The Board has approved a new Distribution Agreement to enable Quasar to continue serving as the Funds' distributor.
On April 30, 2020, the Board accepted the resignation of Mr. Clay E. Brethour from his role as President, Treasurer and Trustee of the Trust effective as of April 19, 2020.
On April 30, 2020, the Board approved the appointment of Mr. Kent Gasaway as President and Treasurer of the Trust and Mr. Robert J. Male as an Interested Trustee of the Trust.
Effective May 1, 2020, Mr. Jamie Cuellar and Mr. Ken Laudan have been added as Co-Portfolio Managers of the Buffalo Discovery Fund, and Mr. Josh West has been added as a Co-Portfolio Manager of the Buffalo Growth Fund.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of
Buffalo Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the Buffalo Funds (the "Trust") (comprising 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 (collectively referred to as the "Funds")), including the schedules of investments, as of March 31, 2020, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising the Buffalo Funds at March 31, 2020, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on each of the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2020, by correspondence with the custodian, brokers, and agent banks or by other appropriate auditing procedures where replies from brokers and agent banks were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of the Buffalo Funds since 1994.
Kansas City, Missouri
May 29, 2020
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NOTICE TO SHAREHOLDERS (UNAUDITED)
MARCH 31, 2020
TAX INFORMATION
For the fiscal year ended March 31, 2020, certain dividends paid by the Funds may be subject to a maximum tax rate of 23.8%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from ordinary income designated as qualified dividend income was as follows (unaudited):
Buffalo Discovery Fund | | | 20.12 | % | |
Buffalo Dividend Focus Fund | | | 100.00 | % | |
Buffalo Emerging Opportunities Fund | | | 0.00 | % | |
Buffalo Flexible Income Fund | | | 100.00 | % | |
Buffalo Growth Fund | | | 100.00 | % | |
Buffalo High Yield Fund | | | 0.63 | % | |
Buffalo International Fund | | | 100.00 | % | |
Buffalo Large Cap Fund | | | 100.00 | % | |
Buffalo Mid Cap Fund | | | 0.00 | % | |
Buffalo Small Cap Fund | | | 0.00 | % | |
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended March 31, 2020 was as follows (unaudited):
Buffalo Discovery Fund | | | 19.25 | % | |
Buffalo Dividend Focus Fund | | | 99.60 | % | |
Buffalo Emerging Opportunities Fund | | | 0.00 | % | |
Buffalo Flexible Income Fund | | | 91.72 | % | |
Buffalo Growth Fund | | | 100.00 | % | |
Buffalo High Yield Fund | | | 0.62 | % | |
Buffalo International Fund | | | 0.11 | % | |
Buffalo Large Cap Fund | | | 89.95 | % | |
Buffalo Mid Cap Fund | | | 0.00 | % | |
Buffalo Small Cap Fund | | | 0.00 | % | |
FOREIGN SHAREHOLDERS: The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for the year ended March 31, 2020 was as follows (unaudited).
Buffalo Discovery Fund | | | 100.00 | % | |
Buffalo Dividend Focus Fund | | | 0.00 | % | |
Buffalo Emerging Opportunities Fund | | | 0.00 | % | |
Buffalo Flexible Income Fund | | | 9.46 | % | |
Buffalo Growth Fund | | | 47.82 | % | |
Buffalo High Yield Fund | | | 0.00 | % | |
Buffalo International Fund | | | 0.00 | % | |
Buffalo Large Cap Fund | | | 74.34 | % | |
Buffalo Mid Cap Fund | | | 0.00 | % | |
Buffalo Small Cap Fund | | | 0.00 | % | |
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With respect to the taxable year ended March 31, 2020, the Funds hereby designate as capital gain dividends the amounts listed below, or, if subsequently determined to be different, the net capital gains of such year:
Funds | | From long-term capital
gains, subject to the 15%
rate gains category: | | From long-term capital
gains, using proceeds from
shareholder redemptions: | |
Buffalo Discovery Fund | | $ | 192,281,393 | | | $ | 29,430,132 | | |
Buffalo Dividend Focus Fund | | | — | | | | — | | |
Buffalo Emerging Opportunities Fund | | | 4,253,755 | | | | 123,215 | | |
Buffalo Flexible Income Fund | | | 2,812,198 | | | | 1,530,114 | | |
Buffalo Growth Fund | | | 21,439,423 | | | | 2,498,540 | | |
Buffalo High Yield Fund | | | — | | | | — | | |
Buffalo International Fund | | | — | | | | — | | |
Buffalo Large Cap Fund | | | 602,377 | | | | 167,234 | | |
Buffalo Mid Cap Fund | | | 13,465,597 | | | | 1,808,511 | | |
Buffalo Small Cap Fund | | | 46,863,860 | | | | 5,308,105 | | |
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Trustees and Officers of the Funds
The management and affairs for the Funds are supervised by the Board of Trustees ("Trustees") under the laws of the State of Delaware. The Trustees and executive officers of the Funds and their principal occupations for the last five years are set forth below. Each may have held other positions with the named companies during that period. The Funds' Statement of Additional Information includes additional information about the Trustees and is available without charge, upon request, by calling the Funds toll-free at 1-800-49-BUFFALO.
Name, Age and Address | | Position(s) Held
with Funds | | Term of Office
and Length of
Time Served | | Principal Occupation(s)
During Past Five Years | | Number of
Portfolios in
Fund Complex
Overseen by
Trustee | | Other Directorships
Held by Trustee During
the Past Five Years | |
INTERESTED TRUSTEES(1) | | | | | | | | | | | |
Clay E. Brethour(2)
5420 West 61st Place
Shawnee Mission, KS 66205
Year of Birth: 1969 | | Trustee
President and Treasurer | | Indefinite term and served since August 2013.
One year term and served since September 2014. | | Portfolio Manager, Kornitzer Capital Management, Inc. (management company) 2000-present. | | | 10 | | | None | |
INDEPENDENT TRUSTEES | | | | | | | | | | | |
Philip J. Kennedy
5420 West 61st Place
Shawnee Mission, KS 66205
Year of Birth: 1945 | | Trustee | | Indefinite term and served since May 1995. | | Business Consultant | | | 10 | | | None | |
Rachel F. Lupardus
5420 West 61st Place
Shawnee Mission, KS 66205
Year of Birth: 1972 | | Trustee | | Indefinite term and served since October 2015. | | Chief Operating Officer/Chief Financial Officer, Trozzolo Communications Group (marketing communications agency), 2015-present; Chief Financial Officer, Customer Engagement, KBM Group LLC (marketing services company) 2014-2015. | | | 10 | | | None | |
Jeffrey D. Yowell
5420 West 61st Place
Shawnee Mission, KS 66205
Year of Birth: 1967 | | Chairman
Trustee | | One year term and served since December 2017.
Indefinite term and served since October 2015. | | President and Owner, Getter Farms, LLC (agriculture and farm-related operations), 2007-present. | | | 10 | | | None | |
OFFICERS | | | | | | | | | | | |
Fred Coats
5420 West 61st Place
Shawnee Mission, KS 66205
Year of Birth: 1965 | | Chief Compliance Officer and Secretary | | Indefinite term and served since May 2015. | | Chief Compliance Officer, Kornitzer Capital Management, Inc. (management company) May 2015-present; Private Practice Attorney May 1993-present. | | | N/A | | | None | |
1 Mr. Brethour is deemed to be an interested person of the Funds as that term is defined in the 1940 Act, by virtue of the fact that he is a board member and an employee of the Advisor.
2 Mr. Brethour resigned as a Trustee, President and Treasurer of the Trust effective April 19, 2020 and also resigned from KCM.
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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 Trust files the Schedule of Portfolio Holdings with the SEC on Form N-CSR (second and fourth quarters) and as an exhibit to its reports on Form N-PORT (first and third quarters). Shareholders may view the Funds' Forms N-CSR and N-PORT on the SEC's website at http://www.sec.gov.
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APPROVAL OF INVESTMENT
ADVISORY CONTRACTS
The Board of Trustees (the "Trustees") of Buffalo Funds, a Delaware statutory trust, on behalf of its series, Buffalo Flexible Income Fund, Buffalo High Yield Fund, Buffalo Large Cap Fund, Buffalo Small Cap Fund, Buffalo Growth Fund, Buffalo Discovery Fund, Buffalo Mid Cap Fund, Buffalo Emerging Opportunities Fund, Buffalo International Fund and Buffalo Dividend Focus Fund (all such funds referred to collectively as the "Funds") met in person on November 21, 2019 to consider the renewal of the Amended and Restated Management Agreements (the "Agreements") between the Trust, on behalf of the Funds, and Kornitzer Capital Management, Inc., the Funds' investment adviser (the "Adviser" or "KCM"). In advance of the meeting, the Trustees requested and received materials to assist them in considering the renewal of the Agreements. The materials provided contained information with respect to the factors enumerated below, including a copy of the Agreements, a memorandum prepared by the Trust's outside legal counsel discussing in detail the Trustees' fiduciary obligations and the factors they should assess in considering the renewal of the Agreements, detailed comparative information relating to the advisory fees, overall expenses and performance of the Funds, due diligence materials relating to the Adviser (including the Adviser's Form ADV, select financial information of the Adviser, including a profitability analysis prepared by the Adviser, other comparative performance and fee information, information regarding key personnel, information relating to the Adviser's and the Funds' compliance programs, including risk management, and the Code of Ethics), information that the Adviser regularly provides to the Trustees in connection with reports on its activities and the activities of the Funds at the Trustees' periodic Board meetings, and other pertinent information. In addition, the Independent Trustees, as defined below, met with their independent counsel on November 11, 2019 and in executive session immediately prior to the Board meeting held on November 21, 2019, to review and discuss the information provided to them and their duties and responsibilities in connection with the renewal of the Agreements. Based on their evaluation of information provided by the Adviser, in conjunction with the Funds' other service providers, the Trustees, by a unanimous vote (including a separate vote of the Trustees who are not "interested persons," as that term is defined in the Investment Company Act of 1940, as amended (the "Independent Trustees")), approved the
renewal of the Agreements for an additional term of one year ending November 30, 2020.
In considering the renewal of the Agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors enumerated below.
1. Nature, Extent and Quality of Services Provided to the Funds
The Trustees considered the nature, extent and quality of services provided by KCM to the Funds and the amount of time devoted to the Funds' affairs by KCM's staff. The Trustees considered KCM's specific responsibilities in all aspects of day-to-day management of the Funds, including the investment strategies implemented by KCM, as well as the qualifications, experience and responsibilities of the Funds' portfolio managers and other key personnel at KCM involved in the day-to-day activities of the Funds. In executive session and the separate meeting of the Independent Trustees on November 11, 2019, the Independent Trustees reviewed information provided by KCM in response to the Board's 15(c) Request for Information, including the structure of KCM's compliance program and KCM's continuing commitment to the growth of the Funds' assets. The Trustees noted during the course of the prior year they had met with representatives of KCM in person to discuss the Funds' performance and outlook, along with the marketing and compliance efforts made by KCM throughout the year. The Trustees also noted any services that extended beyond portfolio management, and they considered the trading capability of KCM, and the lack of both significant shareholder complaints and financial statement issues. The Trustees discussed KCM's handling of compliance matters, including the quarterly and annual reports of the Trust's chief compliance officer to the Trustees on the effectiveness of KCM's compliance program. The Trustees concluded that KCM had sufficient quality and depth of personnel, resources, investment methods and compliance policies and procedures essential to performing its duties under the Agreements and that the nature, overall quality and extent of the management services provided to the Funds, as well as KCM's compliance program, were satisfactory.
2. Investment Performance of the Funds and KCM
In assessing the quality of the portfolio management services delivered by KCM, the Trustees compared the short-term and longer-term performance of the Investor Class shares of each Fund on both an absolute basis and in comparison to a benchmark index and in comparison
143
(Unaudited)
to a peer group as constructed using data from Morningstar, Inc. (each a "Morningstar Peer Group").
Buffalo Discovery Fund. The Trustees noted the Buffalo Discovery Fund's performance for the three-year, five-year and ten-year periods ended June 30, 2019 was above the median for the Morningstar Peer Group of U.S. open-end mid cap growth funds, falling within the first quartile of the Morningstar Peer Group for the ten-year period, and the second quartile of the Morningstar Peer Group for the three-year and five-year periods. The Trustees also noted the Buffalo Discovery Fund's performance for the year-to-date and one-year periods was slightly below the median for the Morningstar Peer Group, falling into the third quartile for both periods. The Trustees further noted for the year-to-date, one-year, five-year, ten-year and since inception periods ended September 30, 2019, the Buffalo Discovery Fund outperformed the Morningstar US Mid Growth Total Return Index, the Russell Midcap Growth Total Return Index and the Lipper Multi Cap Growth Funds Index. The Trustees also noted for the three-year period ended September 30, 2019, the Buffalo Discovery Fund underperformed the Morningstar US Mid Growth Total Return Index, the Russell Midcap Growth Index and the Lipper Multi Cap Growth Funds Index. The Trustees also compared the performance of the Buffalo Discovery Fund to that of other accounts managed by KCM using investment strategies substantially similar to that of the Fund, and noted for all periods the performance of the Fund was comparable to that of the other accounts, noting the performance for the other accounts was presented gross of fees.
Buffalo Dividend Focus Fund. The Trustees noted the Buffalo Dividend Focus Fund's performance for the one-year and five-year periods ended June 30, 2019 was above the median for the Morningstar Peer Group of U.S. open-end large blend category funds, falling within the first quartile of the Morningstar Peer Group for the five-year period, and the second quartile of the Morningstar Peer Group for the one-year period. The Trustees further noted the Buffalo Dividend Focus Fund's performance for the year-to-date, and three-year periods ended June 30, 2019 was below the median for the Morningstar Peer Group, falling into the third quartile for the three-year period and the fourth quartile for the year-to-date period. The Trustees further noted that for the three-year, five-year and since inception periods ended September 30, 2019, the Buffalo Dividend Focus Fund outperformed the Lipper Equity Income Funds Index, but had underperformed the Lipper Equity Income Funds Index for the year-to-date and one-year periods ended
September 30, 2019. The Trustees also noted the Buffalo Dividend Focus Fund had underperformed the Morningstar US Large-Mid TR Index and the S&P 500 Index for the year-to-date, one-year, three-year, five-year and since inception periods ended September 30, 2019.
Buffalo Emerging Opportunities Fund. The Trustees noted the Buffalo Emerging Opportunities Fund's performance for the year-to-date, one-year, three-year and ten-year periods ended June 30, 2019 was above the median for the Morningstar Peer Group of U.S. open-end small growth funds, falling into the second quartile for the year-to-date, one-year and three-year period. The Trustees further noted that the Buffalo Emerging Opportunities Fund's performance for the ten-year period was the best in the Morningstar Peer Group. The Trustees next noted the Buffalo Emerging Opportunities Fund's performance for the five-year period ended June 30, 2019 was below the median for the Morningstar Peer Group, falling in the third quartile of the Morningstar Peer Group. The Trustees further noted for the one-year, three-year and ten-year periods ended September 30, 2019, the Buffalo Emerging Opportunities Fund outperformed the Lipper Small Cap Growth Funds Index, the Russell 2000 Growth Total Return Index and the Morningstar US Small Growth Index, and had also outperformed the Russell 2000 Growth Total Return Index and the Morningstar US Small Growth Index for the year-to-date and five-year periods ended September 30, 2019. The Trustees then noted that the Fund had underperformed each index for the since inception period ended September 30, 2019, and had underperformed the Lipper Small Cap Growth Funds Index for the year-to-date and five-year periods ended September 30, 2019.
Buffalo Flexible Income Fund. The Trustees noted the Buffalo Flexible Income Fund's performance for the one-year period ended June 30, 2019 was above the median for the Morningstar Peer Group of U.S. open-end allocation 70-85% equity funds, falling within the second quartile of the Morningstar Peer Group, and for the five-year period ended June 30, 2019, was at the Morningstar Peer Group median. The Trustees further noted the Buffalo Flexible Income Fund's performance was below the Morningstar Peer Group median for the year-to-date, three-year and ten-year periods ended June 30, 2019, falling within the third quartile for the year-to-date periods, and falling within the fourth quartile for the three-year and ten-year periods. The Trustees further noted for the year-to-date, three-year, ten-year and since inception periods ended September 30, 2019, the Buffalo Flexible Income Fund outperformed the
144
Lipper Mixed-Asset Target Allocation Moderate Funds Index and the ICE BofA Merrill Lynch High Yield Master Index II, but underperformed for the one-year and five-year periods ended September 30, 2019. The Trustees also noted that the Buffalo Flexible Income Fund underperformed a blended index of 60% Morningstar U.S. Large Cap Index and 40% ICE BofA Merrill Lynch U.S. High Yield Master Index II, a blended index of 60% S&P 500 Index and 40% ICE BofA Merrill Lynch U.S. High Yield Master Index II and the Morningstar US Large Cap Index for all periods ended September 30, 2019.
Buffalo Growth Fund. The Trustees noted the Buffalo Growth Fund's performance for the three-year and five-year periods ended June 30, 2019 was generally in line with the median for the Morningstar Peer Group of U.S. open-end large growth funds, falling within the third quartile of the Morningstar Peer Group for both periods. The Trustees further noted for the year-to-date, one-year and ten-year periods ended June 30, 2019, the Buffalo Growth Fund's performance was above that of the Morningstar Peer Group median, falling within the second quartile of the Morningstar Peer Group for the one-year period and ten-year periods, and within the first quartile for the year-to-date period. The Trustees further noted that for the one-year period ended September 30, 2019, the Buffalo Growth Fund had outperformed the Morningstar US Growth Index, the Lipper Large Cap Growth Funds Index and the Russell 1000 Growth Index, but that for the three-year, five-year, and ten-year periods ended September 30, 2019 the Buffalo Growth Fund had underperformed those same indexes; for the since inception period ended September 30, 2019, the Buffalo Growth Fund had also outperformed the Lipper Large Cap Growth Funds Index and the Russell 1000 Growth Index; and for the year-to-date period ended September 30, 2019, the Buffalo Growth Fund had outperformed the Morningstar US Growth Index and the Lipper Large Cap Growth Funds Index, but had underperformed the Russell 1000 Growth Index. The Trustees also compared the performance of the Buffalo Growth Fund to that of other accounts managed by KCM using investment strategies substantially similar to that of the Fund and noted for all periods the performance of the Fund was comparable to that of the other accounts, noting that the performance for the other accounts was presented gross of fees.
Buffalo High Yield Fund. The Trustees noted the Buffalo High Yield Fund's performance for the five-year period ended June 30, 2019 was in line with the median for the Morningstar Peer Group of U.S. open-end high yield bond funds, falling within the second quartile of the
Morningstar Peer Group. The Trustees further noted the Buffalo High Yield Fund's performance for the year-to-date, one-year, three-year, five-year and ten-year periods ended June 30, 2019 was below the median for the Morningstar Peer Group, falling within the third quartile of the Morningstar Peer Group for the year-to-date and one-year periods, and within the fourth quartile for the three-year and ten-year periods. The Trustees further noted for the since inception period ended September 30, 2019, the Buffalo High Yield Fund outperformed the Lipper High Yield Bond Funds Index, but had underperformed the Index for all other periods, and had also underperformed the ICE BofA Merrill Lynch High Yield Master Index II for all periods ended September 30, 2019. However, the Trustees noted that the Adviser explained that the credit quality of the securities held in the Buffalo High Yield Fund tends to be higher than more traditional high yield funds.
Buffalo International Fund. The Trustees noted the Buffalo International Fund's performance for the year-to-date, one-year, three-year, five-year and ten-year periods ended June 30, 2019 was above the median for the Morningstar Peer Group of U.S. open-end foreign large growth funds, noting the Fund's performance was near the top of the first quartile for the five-year period, within the first quartile for the three-year and ten-year periods, and within the second quartile for the year-to-date and one-year periods. The Trustees further noted for the year-to-date, one-year, three-year, five-year, ten-year and since-inception periods ended September 30, 2019, the Buffalo International Fund outperformed the Lipper International Funds Index and the Morningstar Global Markets ex-US Index. The Trustees also compared the performance of the Buffalo International Fund to that of other accounts managed by KCM using investment strategies substantially similar to that of the Fund and noted for all periods the performance of the Fund was comparable to that of the other accounts, noting that the performance for the other accounts was presented gross of fees.
Buffalo Large Cap Fund. The Trustees noted the Buffalo Large Cap Fund's performance for the year-to-date, one-year, three-year, five-year and ten-year periods ended June 30, 2019 was above the median for the Morningstar Peer Group of U.S. open-end large growth funds, noting the Fund's performance was near the top of the first quartile for the five-year period, fell within the first quartile for the one-year and ten-year periods, and within the second quartile for the year-to-date and three-year periods. The Trustees further noted that for the one-year period ended September 30, 2019, the Buffalo Large Cap
145
(Unaudited)
Fund outperformed the Morningstar US Large Growth Total Return Index, the Lipper Large Cap Growth Funds Index and the Russell 1000 Growth Total Return Index, but for the three-year and ten-year periods ended September 30, 2019, the Buffalo Large Cap Fund underperformed those same indexes; for the year-to-date, five-year and ten-year periods ended September 30, 2019, the Buffalo Large Cap Fund outperformed the Lipper Large Cap Growth Funds Index; for the year-to-date period ended September 30, 2019, the Buffalo Large Cap Fund had outperformed the Morningstar US Large Growth Total Return Index, but had underperformed the same index for the five-year period ended; for the since-inception period ended September 30, 2019, the Buffalo Large Cap Fund had outperformed the Russell 1000 Growth Index, but for the year-to-date and five-year period ended September 30, 2019, the Buffalo Large Cap Fund had underperformed the same index. The Trustees also compared the performance of the Buffalo Large Cap Fund to that of other accounts managed by KCM using investment strategies substantially similar to that of the Fund and noted for all periods the performance of the Fund was comparable to that of the other accounts, noting that the performance for the other accounts was presented gross of fees.
Buffalo Mid Cap Fund. The Trustees noted the Buffalo Mid Cap Fund's performance for the year-to-date period ended June 30, 2019 was above the median for the Morningstar Peer Group of U.S. open-end mid-cap growth funds, falling within the second quartile. The Trustees further noted the Buffalo Mid Cap Fund's performance for the one-year period ended June 30, 2019 was at the Morningstar Peer Group median, and for the three-year, five-year and ten-year periods ended June 30, 2019 was below the median, falling within the fourth quartile for each period. The Trustees also noted the Buffalo Mid Cap Fund outperformed the Lipper Mid Cap Growth Funds Index, the Morningstar US Mid Growth Index and the Russell Midcap Growth Total Return Index for the year-to-date and one-year periods ended September 30, 2019, but that for the three-year, five-year, ten-year and since inception periods ended September 30, 2019, the Buffalo Mid Cap Fund underperformed those same indexes. The Trustees also compared the performance of the Buffalo Mid Cap Fund to that of other accounts managed by KCM using investment strategies substantially similar to that of the Fund and noted for all periods the performance of the Fund was comparable to that of the other accounts, noting that the performance for the other accounts was presented gross of fees.
Buffalo Small Cap Fund. The Trustees noted the Buffalo Small Cap Fund's performance for the year-to-date, one-year and three-year periods ended June 30, 2019 was above the median of the Morningstar Peer Group of U.S. open-end small growth funds, falling within the first quartile of the Morningstar Peer Group for the year-to-date and three-year periods, and within the second quartile for the one-year period. The Trustees further noted the Buffalo Small Cap Fund's performance for the five-year and ten-year periods ended June 30, 2019 was below the median for the Morningstar Peer Group, falling within the third quartile for the five-year period and the fourth quartile for the ten-year period. The Trustees further noted that for the year-to-date, three-year and since-inception periods ended September 30, 2019 the Buffalo Small Cap Fund outperformed the Russell 2000 Growth Total Return Index, the Lipper Small Cap Growth Funds Index, and the Morningstar US Small Growth Index, but that for the ten-year period ended September 30, 2019, the Buffalo Small Cap Fund underperformed those same indexes; for the one-year period ended September 30, 2019, the Buffalo Small Cap Fund outperformed the Morningstar US Small Growth Index and the Russell 2000 Growth Total Return Index, but underperformed the Lipper Small Cap Growth Funds Index; and for the five-year period ended September 30, 2019, the Buffalo Small Cap Fund outperformed the Russell 2000 Growth Index, but underperformed the Morningstar US Small Growth Index and the Lipper Small Cap Growth Funds Index. The Trustees also compared the performance of the Buffalo Small Cap Fund to that of other accounts managed by KCM using investment strategies substantially similar to that of the Fund and noted for all periods the performance of the Fund was comparable to that of the other accounts, noting that the performance for the other accounts was presented gross of fees.
After considering all of the information including specific responses regarding Fund performance, including KCM's efforts to improve performance of underperforming Funds, the Trustees concluded that the performance obtained by KCM for the Funds was satisfactory under current market conditions and in light of each Fund's investment objective, strategies and policies. Although past performance is not a guarantee or indication of future results, the Trustees determined that the Funds and their shareholders were likely to benefit from KCM's continued management.
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3. Costs of Services Provided and Profits Realized by KCM
The Trustees considered the cost of services and the structure of KCM's fees, including a review of the expense analyses and other pertinent material with respect to the Funds. The Trustees reviewed related statistical information, including the comparative expenses, expense components and peer group selections. The Trustees considered the cost structure of each Fund relative to its Morningstar Peer Group.
The Trustees also considered the overall profitability of the Funds to KCM and examined the level of profits that could be expected to accrue to KCM from the fees payable under the Agreements, as well as the Funds' brokerage commissions and use of soft dollars by KCM. The Trustees also considered the profitability of each Fund before and after any distribution costs borne by KCM. These considerations were based on materials requested by the Trustees specifically for the meeting, as well as the presentations made by KCM over the course of the year.
In reviewing the Morningstar 15(c) materials, the Board noted the Institutional Class shares of the Buffalo Funds operate under a unitary fee structure whereby many of the Funds' ordinary operating expenses are paid by KCM out of its advisory fee rather than paid directly by the Funds. The Board noted the difficulty of comparing the Buffalo Funds' to non-unitary fee funds and observed that the advisory fee comparison in the Board materials which used the management fee excluding the fees paid by KCM to U.S. Bancorp Fund Services, LLC under a master servicing agreement, and referred to below as the net management fee, was the most appropriate. The Board also noted the net expense ratio used in the Morningstar comparative data excludes any 12b-1 fees imposed by other funds.
Buffalo Discovery Fund. The Trustees noted the Buffalo Discovery Fund's net management fee of 0.55% fell within the first quartile and was below both the Morningstar Peer Group average of 0.76% and the Morningstar Peer Group median of 0.75%. The Trustees further noted the net expense ratio of 1.01% for the Buffalo Discovery Fund fell in the fourth quartile, above the Morningstar Peer Group average of 0.91%, which fell in the upper second quartile. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profit from sponsoring the Discovery Fund had not been, and currently was not, excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo Dividend Focus Fund. The Trustees noted the Buffalo Dividend Focus Fund's net management fee of 0.50% was below both the Morningstar Peer Group median of 0.74% and the Morningstar Peer Group average of 0.72%. The Trustees further noted the net expense ratio of 0.94% for the Buffalo Dividend Focus Fund fell into the second quartile, below the Morningstar Peer Group average of 0.99%, which also fell into the second quartile. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profit before distribution costs, was not excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo Emerging Opportunities Fund. The Trustees noted the Buffalo Emerging Opportunities Fund's net management fee of 1.00% was above the Morningstar Peer Group average of 0.84% and median of 0.85%. The Trustees further noted the net expense ratio of 1.48% for the Buffalo Emerging Opportunities Fund fell within the fourth quartile, above the Morningstar Peer Group average of 1.20%. The Trustees noted that based on information provided by KCM, the Emerging Opportunities Fund would more closely align with a micro-cap category, but Morningstar does not have such a category and is therefore included in the small growth category. Based on a profitability analysis prepared by KCM, the Trustees concluded that while KCM was not realizing profits in connection with its management of the Emerging Opportunities Fund, KCM maintained adequate profit levels to support its services to the Fund from the revenues of its overall investment advisory business.
Buffalo Flexible Income Fund. The Trustees noted the Buffalo Flexible Income Fund's net management fee of 0.55% fell within the first quartile and was below the Morningstar Peer Group average of 0.68% and median of 0.67%. The Trustees further noted the net expense ratio of 1.01% for the Buffalo Flexible Income Fund fell within the third quartile, above the Morningstar Peer Group average of 0.95%, which fell within the second quartile. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profits from sponsoring the Flexible Income Fund had not been, and currently were not excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo Growth Fund. The Trustees noted the Buffalo Growth Fund's net management fee of 0.50% fell within the first quartile, below the Morningstar Peer Group average of 0.72% and median of 0.73%. The Trustees further noted the net expense ratio of 0.91% for the Buffalo Growth Fund fell within the second quartile,
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(Unaudited)
below the Morningstar Peer Group average of 0.97%, which fell at the bottom of the third quartile and the median of 0.96%. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profits from sponsoring the Growth Fund had not been, and currently were not excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo High Yield Fund. The Trustees noted the Buffalo High Yield Fund's net management fee of 0.55% fell within the first quartile, below the Morningstar Peer Group average of 0.62% and median of 0.60%. The Trustees further noted the net expense ratio of 1.02% for the Buffalo High Yield Fund fell within the fourth quartile, above the Morningstar Peer Group average of 0.81%, which fell within the third quartile. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profit from sponsoring the High Yield Fund had not been, and currently was not, excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo International Fund. The Trustees noted the Buffalo International Fund's net management fee of 0.55% fell in the first quartile and was the lowest in the Morningstar Peer Group, below the Morningstar Peer Group average of 0.77% and median of 0.78%. The Trustees further noted the net expense ratio of 1.04% for the Buffalo International Fund fell within the fourth quartile, above the Morningstar Peer Group average of 0.96%, which fell within the second quartile and slightly above the Morningstar Peer Group median of 1.01%. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profits, before distribution costs, were not excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo Large Cap Fund. The Trustees noted the Buffalo Large Cap Fund's net management fee of 0.50% fell into the first quartile, below the Morningstar Peer Group average and median of 0.75%. The Trustees further noted the net expense ratio of 0.93% for the Buffalo Large Cap Fund fell within the second quartile, below the Morningstar Peer Group average of 1.04%, which fell within the third quartile and the Morningstar Peer Group median of 1.00%. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profits from sponsoring the Large Cap Fund, had not been, and currently were not excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo Mid Cap Fund. The Trustees noted the Buffalo Mid Cap Fund's net management fee of 0.55% fell within the first quartile, below the Morningstar Peer Group average of 0.82% and median of 0.80%. The Trustees further noted the net expense ratio of 1.02% for the Buffalo Mid Cap Fund fell in the third quartile, above the Morningstar Peer Group average of 1.00%, which also fell within the third quartile, and above the median of 0.95%. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profit from sponsoring the Mid Cap Fund had not been, and currently was not, excessive and that KCM maintained adequate profit levels to support its services to the Fund.
Buffalo Small Cap Fund. The Trustees noted the Buffalo Small Cap Fund's net management fee of 0.55% fell within the first quartile and was below the Morningstar Peer Group average and median of 0.83%. The Trustees further noted the net expense ratio of 1.01% for the Buffalo Small Cap Fund fell within the second quartile and was below the Morningstar Peer Group average of 1.08%, which also fell within the second quartile and below the Morningstar Peer Group median of 1.09%. The Trustees further noted the annual management fee is subject to reduced fees paid on assets in excess of certain levels. Based on a profitability analysis prepared by KCM, the Trustees concluded that KCM's profit from sponsoring the Small Cap Fund had not been, and currently was not, excessive and that KCM maintained adequate profit levels to support its services to the Fund.
The Trustees concluded that each Fund's expenses and the management fees paid to KCM were fair and reasonable in light of the comparative performance, expense and management fee information. The Trustees further concluded that KCM's profit from sponsoring the Funds had not been, and currently was not, excessive and that KCM maintained adequate profit levels to support the services to the Funds.
4. Extent of Economies of Scale as the Funds Grow
The Trustees compared each Fund's expenses relative to its peer group and discussed realized and potential economies of scale. In considering the economies of scale for each Fund, the Board considered that the Buffalo Funds' Institutional Class shares operate under a unitary fee structure whereby many of the Funds' ordinary operating expenses are paid by KCM out of its advisory fee rather than being paid directly by the Funds.
Buffalo Discovery Fund. The Trustees reviewed the structure of the Buffalo Discovery Fund's management fee and total expense ratio, and considered whether the
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Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo Discovery Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo Dividend Focus Fund. The Trustees reviewed the structure of the Buffalo Dividend Focus Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo Dividend Focus Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo Emerging Opportunities Fund. The Trustees reviewed the structure of the Buffalo Emerging Opportunities Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo Emerging Opportunities Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo Flexible Income Fund. The Trustees reviewed the structure of the Buffalo Flexible Income Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo Flexible Income Fund's
management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo Growth Fund. The Trustees reviewed the structure of the Buffalo Growth Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo Growth Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo High Yield Fund. The Trustees reviewed the structure of the Buffalo High Yield Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo High Yield Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo International Fund. The Trustees reviewed the structure of the Buffalo International Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo International Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
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Buffalo Large Cap Fund. The Trustees reviewed the structure of the Buffalo Large Cap Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo Large Cap Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo Mid Cap Fund. The Trustees reviewed the structure of the Buffalo Mid Cap Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be shared with shareholders). The Trustees noted the Buffalo Mid Cap Fund's management fee structure did not contain any breakpoint reductions as the Fund's assets grow in size, but that during the past year the contractual advisory fee had been reduced by 0.15%, and the feasibility of incorporating breakpoints would continue to be reviewed on a regular basis.
Buffalo Small Cap Fund. The Trustees reviewed the structure of the Buffalo Small Cap Fund's management fee and total expense ratio, and considered whether the Fund was large enough to generate economies of scale for shareholders or whether economies of scale would be expected to be realized as Fund assets grow (and if so, how those economies of scale were being or would be
shared with shareholders). The Trustees further noted the Buffalo Small Cap Fund's management fee structure contained breakpoint reductions as the Fund's assets grow in size and that during the past year the contractual advisory had been reduced by 0.15%.
The Trustees concluded that the current fee structure for each Fund was reasonable and reflected a sharing of economies of scale between KCM and each Fund at each Fund's current asset levels.
5. Benefits Derived from the Relationship with the Funds
The Trustees considered the direct and indirect benefits that could be received by KCM from its association with the Funds. The Trustees examined the brokerage and commissions of KCM with respect to the Funds. The Trustees concluded that the benefits KCM may receive, such as greater name recognition, growth in separate account management services, greater exposure to press coverage, or increased ability to obtain research or brokerage services, appear to be reasonable, and may benefit the Funds through growth in assets.
CONCLUSIONS
The Trustees considered all of the foregoing factors. In considering the Agreements, the Trustees did not identify any one factor as all-important, but rather considered these factors collectively in light of the Funds' surrounding circumstances and concluded that the Funds and their shareholders would benefit from the Adviser's continued management. Based on this review, the Trustees, including a majority of the Independent Trustees, approved the renewal of the Agreements with the Funds as being in the best interests of the Funds and their shareholders.
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PRIVACY POLICY (UNAUDITED)
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
Buffalofundannual
Item 2. Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer and principal financial officer. The Registrant has not made any amendments to its code of ethics during the period covered by this report. The Registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report. A copy of the Registrant’s Code of Ethics is incorporated by reference to the Registrant’s Form N-CSR filed on June 3, 2011.
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has determined that there is at least one audit committee financial expert serving on its audit committee. The name of the audit committee financial experts are Philip J. Kennedy and Rachel F. Lupardus. Both Mr. Kennedy and Ms. Lupardus are “independent” as defined in Item 3(a)(2) of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(1) (a) – (d) Aggregate fees billed to the Registrant for each of the last two fiscal years for professional services rendered by the Registrant’s Independent Registered Public Accounting Firm were as follows:
| | | FYE 3/31/2020 | | | FYE 3/31/2019 | |
| Audit Fees | | $ | 223,000 | | | $ | 214,400 | |
| Audit-Related Fees | | $ | 7,600 | | | $ | 7,300 | |
| Tax Fees | | $ | 36,500 | | | $ | 35,080 | |
| All Other Fees | | $ | 0 | | | $ | 0 | |
Audit fees include amounts related to the audit of the Registrant’s annual financial statements and services normally provided by the Independent Registered Public Accounting Firm in connection with statutory and regulatory filings, including registration statements. Audit-related fees refer to the reading and commenting on the Registrant’s semi-annual reports. Tax fees include amounts related to tax compliance, tax planning, and tax advice, including specifically tax return review and excise tax distribution review services. There were no fees billed for services rendered to the Registrant’s investment adviser or any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant that were required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e) (1) The Registrant’s audit committee charter requires pre-approval in advance of (i) audit and non-audit services performed by the Registrant’s Independent Registered Public Accounting Firm for the Registrant; and (ii) audit and non-audit services relating directly to the operations and financial reporting of the Registrant performed by the Registrant’s principal accounting officer for the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant.
(2) None of the services described in (b) – (d) above were approved by the audit committee specifically pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate non-audit fees were for audit-related and tax services rendered to the Registrant. As disclosed above, the amount of fees billed for such services were $44,100 and $42,380 for the 2020 and 2019 fiscal years, respectively.
(h) The aggregate fees billed for non-audit services rendered to the Registrant’s investment advisor related to surprise security count procedures were $12,500 and $12,500 for the 2020 and 2019 fiscal years respectively. These fees were not required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
Item 5. Audit Committee of Listed Registrants.
Not applicable because the Registrant is not a listed issuer.
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.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.
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 Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on his review, the Principal Executive Office 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 provider. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the 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.
| | (3) | Not applicable because the Registrant is an open-end investment company. |
| | (4) | There was no change in the registrant’s independent public accountant for the period covered by this report. |
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.
| | Buffalo Funds |
| | |
| | By | /s/Kent W. Gasaway | |
| | | Kent W. Gasaway |
| | | President and Treasurer |
| | |
| | Date | 6/9/2020 | |
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 person on behalf of the registrant and in the capacities and on the date indicated.
| | Buffalo Funds |
| | |
| | By | /s/Kent W. Gasaway | |
| | | Kent W. Gasaway, |
| | | President and Treasurer |
| | |
| | Date | 6/9/2020 | |
