UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-08898
Buffalo High Yield Fund, Inc.
(Exact name of registrant as specified in charter)
(Exact name of registrant as specified in charter)
5420 W. 61st Place
Shawnee Mission, KS 66205
(Address of principal executive offices) (Zip code)
Shawnee Mission, KS 66205
(Address of principal executive offices) (Zip code)
Kent W. Gasaway
5420 W. 61st Place
Shawnee Mission, KS 66205
(Name and address of agent for service)
5420 W. 61st Place
Shawnee Mission, KS 66205
(Name and address of agent for service)
(913) 384-1513
Registrant's telephone number, including area code
Registrant's telephone number, including area code
Date of fiscal year end: March 31, 2007
Date of reporting period: September 30, 2006
Item 1. Report to Stockholders.
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1)
BUFFALO ® FUNDS | |
Balanced Fund High Yield Fund Large Cap Fund Micro Cap Fund Mid Cap Fund Science & Technology Fund Small Cap Fund USA Global Fund | |
SEMIANNUAL REPORT | |
September 30, 2006 |
MESSAGE |
To Our Shareholders |
The accompanying portfolio management review provides a glimpse of fund results and positioning for the six months ended September 30, 2006. After a swoon during the summer months from late May through early August, the stock market has been back on a strong uptrend this fall. As we discussed in the annual report in March, we sensed that we might be entering a period where growth stocks would start to perform much better. Valuations are on the cheap side, expectations quite low, and with the economy slowing, investors might lean toward companies growing more independently of the pace of the economy. As of this writing, we are even more convinced we are entering this type of environment. We remain excited about this possibility as the Buffalo Funds’ equity strategy and growth-oriented holdings would fit this environment quite well.
We have been traveling and meeting with the management of dozens of the companies we’re invested in over the past few months. During times of maximum uncertainty, it always helps to “kick the tires” one more time to help separate Wall Street and media chatter from reality. With $75 oil, the housing bubble beginning to unravel, the Federal Reserve still raising rates and the media talking about the possibility of a consumer-led recession, we felt the summer months certainly fit the definition of maximum uncertainty. In these uncertain times it is our level of due diligence and in-depth research on our companies that gives us the level of conviction needed to buy when others are panicking. This is exactly what we were doing in August and September - adding more shares to many of our core holdings when others were selling.
We often get asked why company management teams are so willing to meet with us. We believe they are generous with their time because of our long-term orientation. They find it refreshing that the holding period for our companies is 4-5 years on average and in many cases much longer. They view us as long-term partners, not speculators or traders. We invest in America’s growth industries. This approach will not change.
I think it is important that shareholders know that the entire Buffalo staff met recently to discuss and jointly formulate a formal mission statement. The intent was to be razor sharp in defining the focus of our firm. I believe this exercise was valuable and defines our goals as follows:
Buffalo Mission Statement
As a group our goals are to:
• | Deliver exceptional long-term investment returns and great service to our mutual fund shareholders. |
• | Maintain our focus on independent research and invest long-term in what we believe are high quality growth companies. |
• | Maintain a company culture that promotes team-work and mutual respect, stimulates and attracts talent and rewards hard work and success. |
• | Be good community and corporate citizens and conduct ourselves with the highest ethical standards. |
• | Continually improve and strive for excellence in everything we do. |
I am proud to announce that three more members of our investment team passed level III of the Chartered Financial Analyst exam this summer and will soon receive their CFA charter. A total of 23 members of our staff of portfolio managers, research analysts and traders will now hold the CFA charter. This is a testament to their strong work ethic and dedication to their profession.
As always, we are grateful for your trust in the Buffalo Funds. As fellow shareholders, you can rest assured we will remain focused and work diligently for you over the coming years.
Sincerely, Kent W. Gasaway President Buffalo Funds |
Past performance does not guarantee future results. Mutual fund investing involves risk; loss of principle is possible. Please see the following Semi-Annual Report for the Funds’ holdings information. |
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PORTFOLIO MANAGEMENT REVIEW
Buffalo Balanced Fund posted a positive return during the six-month reporting period of 5.33% compared to the Lipper Balanced Funds Index, which returned 2.86%. Please refer to our investment results page for longer-term performance information. Much of the out performance was due to the Fund’s equity holdings. Particular holdings that performed well during the six-month period included Allstate Corporation (an insurer) and Baxter International, Inc. (healthcare products). We believe that the Fund has maintained an attractive yield and is actively managed with the goal of providing consistent increasing income plus capital appreciation.
The Fund looks for equities that increase their dividend at least every other year. We buy companies that have good cash flows, stock repurchases and rising earnings. We also considered shareholder friendliness and integrity of management.
On the fixed income side, we invest in convertible bonds, convertible preferred and high yield bonds. We buy mostly unsecured, high-yield bonds with ratings of BBB or lower, feeling that we can add value in that area because of our portfolio manager and research team’s depth, experience and expertise.
The Buffalo High Yield Fund was up 1.29% during the last six months while the Lipper High Yield Bond Funds Index was up 3.05%. The Fund’s performance during the first half of the fiscal year was hindered due to its exposure to small cap oriented convertible securities, which slightly lagged the overall market. The securities held by the Fund had no noteworthy credit problems during the reporting period. Please refer to our investment results page for longer-term performance information.
At the end of the period, the Fund was invested in 69.18% corporate bonds, 21.30% convertible bonds, 4.30% convertible preferred stocks, 0.20% common stocks and 3.39% cash. We are maintaining these basic weightings, waiting for convertibles to reach their potential. We may reduce our convertible positions somewhat in the coming quarter, if they begin to reach our targets. Our corporate bond emphasis is on companies with improving quality profiles within the high yield markets, and with the recent economic slowing we are being careful and diligent with credit research. At the same time we are maintaining our yield discipline on what we are willing to accept, believing that yields in the mid 7% to 8% range are required to maintain an adequate risk/reward balance. That being said, we are seeing adequate supply.
The Buffalo Large Cap Fund was up 3.38% in the first six months of our fiscal year compared to the S&P 500 Index, which posted a gain of 4.14% during the same period. Please refer to our investment results page for longer-term performance information.
At the end of the period, the Fund had 22.66% of its portfolio invested in technology, 29.71% in healthcare, 16.68% in financials, 14.78% in consumer discretionary, 5.59% in consumer staples and 7.64% in industrials. The bulk of the portfolio is invested in growth-oriented sectors. Our significant holdings in technology and healthcare helped propel the Fund in the period. Notable performers in the quarter included T. Rowe Price Group, Inc., Motorola, Inc. and Baxter International, Inc.
The style we adhere to in all our equity funds is “long-term investments in growth companies at a reasonable price” so the improving performance of the Fund is noteworthy, during a time when more cyclical, value-oriented stocks have been in the spotlight. While large cap growth stocks have underperformed over the last five years, we believe that their recent leadership suggests that their relative prospects have never been better.
The Buffalo Micro Cap Fund was down 7.49% in the first half of our fiscal year (April through September) compared to the Lipper Micro-Cap Funds Index, which was down 7.76% during the same period. Please refer to our investment results page for longer-term performance information. Micro cap companies can be very volatile in the short-term, and this is reflected in the Fund’s recent up and down performance. With the Federal Reserve’s recent stabilization of short-term rates and the pullback in energy and other commodity prices, the Fund should be well positioned with a strong consumer discretionary weighting.
The Fund’s top performers during the six-month period were Align Technology, Inc. and Cohen & Steers, Inc. Shares of Align Technology, Inc. increased after it settled a patent dispute with its competitor Orthoclear, Inc., which removed Align Technology, Inc.’s only competitor in the clear aligner market worldwide. Cohen & Steers, Inc. an asset manager, posted steady gains in performance as well as fund flows.
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MESSAGE |
To Our Shareholders (Continued) |
As of the end of September, the Fund had 29.80% of its assets invested in the consumer discretionary sector, 28.06% in healthcare, 14.64% in technology, 13.07% in industrials and 11.38% in financials. The Fund carries a lighter technology weighting than some of our other funds, with the holdings in that sector more software-oriented. Our sector weighting decisions for the Fund will vary from the weightings in other Buffalo Funds from time to time, driven by where we see value in the micro-capitalization realm. However, our trend-based strategy still drives the initial analysis of these companies.
Inflation expectations and energy prices have subsided recently but skepticism about future economic growth remains. We believe that growth fears are discounted in today's relatively low valuation levels. Our strategy is long term, not reactive or shortsighted. We have a 3-5 year time horizon and we continue to stick to our strategy of buying growth companies at good prices that we feel are well positioned to benefit from solid underlying growth trends regardless of the state of the economy.
The Buffalo Mid Cap Fund was down 5.95% during the last six months. During this same period, the S&P Midcap 400 Index was down 4.19%. Please refer to our investment results page for longer-term performance information. Our performance for the period was primarily driven by our heavy weighting in the consumer discretionary sector. Abercrombie & Fitch Co. and International Game Technology were among the better performers in the quarter. Due to what we believe are attractive valuation levels, we have recently been adding to consumer stocks. We believe that the recent drop in energy prices, the Fed holding down interest rates and the strong job market are all positives for consumer spending. In the third quarter, consumer discretionary stocks were the biggest contributors in the Russell Midcap Index.
At the end of the period, the Fund had 28.77% of its portfolio invested in consumer discretionary, 24.17% in technology, 27.88% in healthcare, 8.55% in financials and 8.17% in industrials. The bulk of the portfolio is invested in growth-oriented sectors.
You may remember several quarters during which the Fund’s performance suffered because of our underinvestment in energy. With oil and gas prices now tumbling, that sector has recently underperformed. Some of the better performing sectors in the index (REITs and utilities) are not sectors that are consistent with our long-term growth strategy.
The Buffalo Science & Technology Fund was down 1.98% for the six-month period ended September 30, 2006, strongly ahead of the Lipper Science & Technology Funds Index, which was down 5.88% during the same period. Please refer to our investment results page for longer-term performance information. The Fund benefited from good performance in large cap technology holdings, several individual stock standouts and the market's more favorable outlook for growth stocks.
The Fund has 53.60% invested in the information technology and services sector and 37.44% in the healthcare technology and services sector. Portfolio construction is driven by the attractiveness of individual investment ideas and our ability to discover long-term growth opportunities at attractive prices. Turnover is up slightly year-to-date and cash is at the lower end of our range as we have found ample opportunity to transition into growth-oriented stocks at attractive prices.
During the reporting period, top performing names included Align Technology, Inc., Symantec Corp. and FileNet Corp. Shares of Align Technology, Inc. increased after it settled a patent dispute with its competitor Orthoclear, Inc., which removed Align Technology, Inc.’s only competitor in the clear aligner market worldwide. Symantec Corp.’s stock benefited from increasing confidence in the company's ability to reaccelerate growth in security and storage products and improve sales execution after a lull related to their merger with Veritas Software in mid-2005. As for FileNet Corp., IBM announced that it would acquire FileNet Corp. for $35 per share, a 30% premium to its stock price. In general, the Fund's performance was helped by strong performance from our larger capitalization technology names like Symantec Corp., Motorola, Inc., Cisco Systems, Inc. and Oracle Corp. and offset by relatively weak performance in some of our smaller capitalization semi-conductor names.
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The Buffalo Small Cap Fund was down 6.20% in the first half of our fiscal year compared to the Russell 2000 Index, which was down 4.61% during the same period. Please refer to our investment results page for longer-term performance information.
At the end of the period, the Fund had 27.87% of its portfolio invested in consumer discretionary, 27.08% in healthcare, 24.92% in technology, 14.23% in industrials and 4.36% in financials. These are generally growth-oriented sectors that we have typically held in larger percentages relative to the benchmark.
Looking at the Russell 2000 Index, the sectors that significantly outpaced the index were utilities and REITs with solid performance in consumer discretionary, technology and healthcare. Most of the performance differential in the period can be attributed to our weighting in underperforming sectors and our lack of exposure to utilities and REITs.
Some of the Fund’s top performers in the six-month period ended September 30, 2006, were FileNet Corp. and Align Technology, Inc. FileNet Corp. provides business management software and announced that it was being acquired by IBM.
The strongest performing sectors in the Russell 2000 Index during the period (REITs and utilities) were sectors that are not consistent with our long-term growth strategy. Another sector we do not typically invest in is energy, which posted a very strong return in the second calendar quarter, but a sharply negative return in the third quarter. While we hate for our shareholders to miss dramatic upswings, we feel vindicated when they are able to avoid inevitable downturns of more volatile, highly cyclical industries.
The Buffalo USA Global Fund was up 1.40% during the six-month period ended September 30, 2006, outperforming the Lipper Capital Appreciation Funds Index, which was down 1.07%. This can be attributed to specific stock selection, and the international operating diversification our companies offer. Please refer to our investment results page for longer-term performance information.
The Fund's largest sector weightings were in healthcare (30.90% of Fund assets) and technology (28.08% of Fund assets), followed by consumer staples (12.45% of Fund assets) and consumer discretionary (11.92% of Fund assets). The Fund’s holdings in the technology (Oracle Corp., Cisco Systems, Inc. and Microsoft Corp.) and healthcare sectors were among the better performers during the reporting period. The Fund’s limited exposure to commodities and industrials, however, hurt the Fund’s performance compared to its benchmark.
The Fund's strategy of investing in U.S.-based companies that receive at least 40% of their sales or income from international sources is fairly unique, and focuses on U.S. companies that we believe will benefit from the growth in international markets. Political and economic dynamics set the stage for much of the volatility seen in stock prices around the globe, but we believe that the companies in which we invest do not experience quite the same volatility in their geographically diversified operations. Notably, while these companies have operating exposure to many emerging markets, they did not experience the same volatility as stocks did in many emerging markets. We are committed long-term investors, and we continue to believe that expansion of global trade and development will benefit the Fund.
Thank you for your investments and confidence in the Buffalo Funds.
Sincerely, John C. Kornitzer President | Kent W. Gasaway Sr. Vice President | ||
Robert Male Sr. Vice President | Grant P. Sarris Sr. Vice President | ||
William J. Kornitzer III Sr. Vice President |
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INVESTMENT RESULTS |
Total Returns as of September 30, 2006 (unaudited) | |||||||||||||||||
AVERAGE ANNUAL | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SIX MONTHS | ONE YEAR | FIVE YEARS | TEN YEARS | SINCE INCEPTION | |||||||||||||
Buffalo Balanced Fund (inception date 8/12/94) | 5.33 | % | 10.12 | % | 9.70 | % | 6.72 | % | 7.92 | % | |||||||
S&P 500 Index | 4.14 | % | 10.79 | % | 6.97 | % | 8.59 | % | 11.08 | % | |||||||
S&P 500 Index & Merrill Lynch High Yield Master Index Weighted Average* | 4.16 | % | 9.63 | % | 8.23 | % | 7.89 | % | 9.80 | % | |||||||
Lipper Balanced Funds Index | 2.86 | % | 8.02 | % | 6.79 | % | 7.49 | % | 8.63 | % | |||||||
Buffalo High Yield Fund (inception date 5/19/95) | 1.29 | % | 5.75 | % | 7.88 | % | 6.77 | % | 8.04 | % | |||||||
Merrill Lynch High Yield Master Index | 4.20 | % | 7.90 | % | 10.13 | % | 6.83 | % | 7.34 | % | |||||||
Lipper High Yield Bond Funds Index | 3.05 | % | 6.75 | % | 9.29 | % | 4.96 | % | 5.80 | % | |||||||
Buffalo Large Cap Fund (inception date 5/19/95) | 3.38 | % | 10.30 | % | 5.45 | % | 7.33 | % | 10.06 | % | |||||||
Russell 1000 Growth Index** | -0.12 | % | 6.04 | % | 4.42 | % | 5.46 | % | 7.98 | % | |||||||
S&P 500 Index | 4.14 | % | 10.79 | % | 6.97 | % | 8.59 | % | 10.51 | % | |||||||
Lipper Large-Cap Growth Funds Index | -3.38 | % | 2.46 | % | 3.56 | % | 4.64 | % | 7.08 | % | |||||||
Buffalo Micro Cap Fund (inception date 5/21/04) | -7.49 | % | 6.41 | % | N/A | N/A | 10.00 | % | |||||||||
Russell Microcap Growth Index** | -11.80 | % | 2.25 | % | N/A | N/A | 7.09 | % | |||||||||
Russell 2000 Index | -4.61 | % | 9.92 | % | N/A | N/A | 14.15 | % | |||||||||
Lipper Micro-Cap Funds Index | -7.76 | % | 6.10 | % | N/A | N/A | 11.62 | % | |||||||||
Buffalo Mid Cap Fund (inception date 12/17/01) | -5.95 | % | 6.24 | % | N/A | N/A | 8.77 | % | |||||||||
Russell Midcap Growth Index** | -3.85 | % | 7.03 | % | N/A | N/A | 7.66 | % | |||||||||
S&P Midcap 400 Index | -4.19 | % | 6.56 | % | N/A | N/A | 10.38 | % | |||||||||
Lipper Mid-Cap Growth Funds Index | -5.85 | % | 6.27 | % | N/A | N/A | 5.38 | % | |||||||||
Buffalo Science & Technology Fund (inception date 4/16/01) | -1.98 | % | 11.78 | % | 11.76 | % | N/A | 5.59 | % | ||||||||
NASDAQ Composite Index** | -3.48 | % | 4.96 | % | 8.55 | % | N/A | 3.12 | % | ||||||||
S&P 500 Index | 4.14 | % | 10.79 | % | 6.97 | % | N/A | 4.08 | % | ||||||||
Lipper Science & Technology Funds Index | -5.88 | % | 4.28 | % | 5.37 | % | N/A | -2.43 | % | ||||||||
Buffalo Small Cap Fund (inception date 4/14/98) | -6.20 | % | 8.32 | % | 15.33 | % | N/A | 16.39 | % | ||||||||
Russell 2000 Growth Index** | -8.88 | % | 5.88 | % | 10.15 | % | N/A | 1.81 | % | ||||||||
S&P Smallcap 600 Index | -5.40 | % | 7.16 | % | 15.05 | % | N/A | 8.32 | % | ||||||||
Lipper Small-Cap Growth Funds Index | -8.83 | % | 4.08 | % | 8.94 | % | N/A | 4.46 | % | ||||||||
Buffalo USA Global Fund (inception date 5/19/95) | 1.40 | % | 5.85 | % | 7.01 | % | 8.41 | % | 10.63 | % | |||||||
Russell 1000 Growth Index** | -0.12 | % | 6.04 | % | 4.42 | % | 5.46 | % | 7.98 | % | |||||||
S&P 500 Index | 4.14 | % | 10.79 | % | 6.97 | % | 8.59 | % | 10.51 | % | |||||||
Russell 3000 Growth Index | -0.93 | % | 6.05 | % | 4.83 | % | 5.27 | % | 7.88 | % | |||||||
Lipper Multi-Cap Growth Funds Index | -3.75 | % | 5.72 | % | 6.98 | % | 6.04 | % | 8.21 | % |
* | The performance figure shown for comparison purposes is a weighted average made up of 60% of the S&P 500 Index and 40% of the Merrill Lynch High Yield Master Index. |
** | This is a new index that has been chosen because the Portfolio Managers believe it is the most appropriate broad-based securities index to be used for comparative purposes given the investment growth-oriented strategy. The securities index that has historically been shown for comparative purposes is also shown, but may be excluded for future shareholder reports and prospectuses. |
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 to the most recent month end may be obtained by visiting www.buffalofunds.com.
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The Buffalo Balanced, Large Cap, Mid Cap, Science & Technology and USA Global Funds impose a 2.00% redemption fee on shares held for less than 60 days and the Buffalo High Yield, Micro Cap and Small Cap Funds impose a 2.00% redemption fee on shares held less than 180 days. Performance data does not reflect the redemption fee. If reflected, total returns would be reduced.
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 S&P 500 Index is a capitalization weighted index of 500 large capitalization stocks which is designed to measure broad domestic securities markets. The Merrill Lynch High Yield Master Index is an unmanaged index comprised of over 1,200 high yield bonds representative of high yield bond markets as a whole. The Lipper Balanced Funds Index is an unmanaged, net asset value weighted index of the 30 largest balanced mutual funds. 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 Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index consists of the 1,000 largest companies in the Russell 3000 Index. 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 Russell Microcap Growth Index measures the performance of those Russell Microcap companies with higher price-to-book ratios and higher forecasted growth values. The Russell Microcap Index consists of the smallest 1,000 companies in the small-cap Russell 2000 Index plus the next 1,000 securities. The Russell 2000 Index consists of the smallest 2,000 securities in the Russell 3000 Index, representing approximately 8% of the Russell 3000 total market capitalization. The Lipper Micro-Cap Funds Index is an unmanaged equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Micro-Cap classification. The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The Russell Midcap Index consists of the 800 smallest companies in the Russell 1000 Index. The S&P Midcap 400 Index consists of 400 domestic stocks chosen for market size, liquidity and industry group representation. It is a market-weighted index with each stock affecting the index in proportion to its market value. The Lipper Mid-Cap Growth Funds Index is an unman- aged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Mid-Cap classification. The NASDAQ Composite Index is a broad-based capitalization-weighted index of stocks in all three NASDAQ tiers: Global Select, Global Market and Capital Market. The Lipper Science & Technology Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Science and Technology classification. The Russell 2000 Growth Index measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The S&P Smallcap 600 Index consists of 600 domestic stocks chosen for market size, liquidity, bid-asked spread, ownership, share turnover and number of no-trade days and industry group representation. 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 Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Index consists of the 3,000 largest U.S. companies based on total market capitalization. The Lipper Multi-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 Multi-Cap Growth classification.
References to specific securities should not be construed as recommendations by the Funds or their Advisor. Please refer to the schedule of investments in the report for Fund holdings information.
Cash flow: measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest to pretax income.
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, foreign, lower- or non-rated securities and smaller companies.
Must be preceded or accompanied by a current prospectus.
Quasar Distributors, LLC, distributor. 11/06
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EXPENSE EXAMPLE |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs (including redemption fees) and (2) ongoing costs, including management fees and other Fund specific expenses. The example below is 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 (4/1/06 – 9/30/06). This information is unaudited.
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. You will be charged a redemption fee equal to 2.00% of the net amount of the redemption if you redeem your shares of the Buffalo Balanced, Large Cap, Mid Cap, Science & Technology and USA Global Funds within 60 days of purchase. The Buffalo High Yield, Small Cap and Micro Cap Funds will charge a redemption fee equal to 2.00% of the net amount of the redemption if you redeem your shares within 180 days of purchase. 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 example below. The example below includes management fees, registration fees and other expenses. However, the example below does 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 the tables 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, such as redemption fees. 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 BALANCED FUND | ||||||||||||
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BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 1,053.30 | $ 5.25 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,019.95 | $ 5.16 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
BUFFALO HIGH YIELD FUND | ||||||||||||
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BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 1,012.90 | $ 5.15 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,019.95 | $ 5.16 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
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BUFFALO LARGE CAP FUND | ||||||||||||
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BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 1,033.80 | $ 5.35 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,019.80 | $ 5.32 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.05%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
BUFFALO MICRO CAP FUND | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 925.10 | $ 7.24 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,017.55 | $ 7.59 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
BUFFALO MID CAP FUND | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 940.50 | $ 4.96 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,019.95 | $ 5.16 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
BUFFALO SCIENCE & TECHNOLOGY FUND | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 980.20 | $ 5.11 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,019.90 | $ 5.22 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.03%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
BUFFALO SMALL CAP FUND | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 938.00 | $ 4.91 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,020.00 | $ 5.11 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
BUFFALO USA GLOBAL FUND | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
BEGINNING ACCOUNT VALUE APRIL 1, 2006 | ENDING ACCOUNT VALUE SEPTEMBER 30, 2006 | EXPENSES PAID DURING PERIOD APRIL 1, 2006 - SEPTEMBER 30, 2006* | ||||||||||
Actual | $ 1,000.00 | $ 1,014.00 | $ 5.25 | |||||||||
Hypothetical (5% return before expenses) | $ 1,000.00 | $ 1,019.85 | $ 5.27 |
* | Expenses are equal to the Fund’s annualized expense ratio of 1.04%, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
9 |
ALLOCATION OF PORTFOLIO HOLDINGS |
Percentages represent market value as a percentage of total investments on September 30, 2006 (unaudited).
BUFFALO BALANCED FUND | BUFFALO LARGE CAP FUND |
BUFFALO HIGH YIELD FUND | BUFFALO MICRO CAP FUND |
10 |
BUFFALO MID CAP FUND | BUFFALO SMALL CAP FUND |
BUFFALO SCIENCE & TECHNOLOGY FUND | BUFFALO USA GLOBAL FUND |
11 |
BUFFALO |
BALANCED FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 63.15% | ||||||||
CONSUMER DISCRETIONARY — 1.71% | ||||||||
Auto Components — 0.46% | ||||||||
30,000 | Modine Manufacturing Co. | $ | 729,900 | |||||
Hotels, Restaurants & Leisure — 0.41% | ||||||||
10,000 | Harrah’s Entertainment, Inc. | 664,300 | ||||||
Leisure Equipment & Products — 0.84% | ||||||||
60,000 | Eastman Kodak Co. | 1,344,000 | ||||||
Total Consumer Discretionary | 2,738,200 | |||||||
CONSUMER STAPLES — 9.53% | ||||||||
Beverages — 3.26% | ||||||||
80,000 | The Coca-Cola Co. | 3,574,400 | ||||||
25,000 | PepsiCo, Inc. | 1,631,500 | ||||||
5,205,900 | ||||||||
Food & Staples Retailing — 1.09% | ||||||||
35,000 | Costco Wholesale Corp. | 1,738,800 | ||||||
Food Products — 3.61% | ||||||||
75,000 | ConAgra Foods, Inc. | 1,836,000 | ||||||
10,000 | Del Monte Foods Co. | 104,500 | ||||||
30,000 | General Mills, Inc. | 1,698,000 | ||||||
20,000 | Kellogg Co. | 990,400 | ||||||
25,000 | Wm. Wrigley Jr. Co. | 1,151,500 | ||||||
5,780,400 | ||||||||
Household Products — 1.57% | ||||||||
30,000 | Colgate-Palmolive Co. | 1,863,000 | ||||||
10,000 | Kimberly-Clark Corp. | 653,600 | ||||||
2,516,600 | ||||||||
Total Consumer Staples | 15,241,700 | |||||||
ENERGY — 20.66% | ||||||||
Energy Equipment & Services — 1.53% | ||||||||
11,742 | Eagle Geophysical, Inc.(a)(b) | 249,517 | ||||||
40,000 | Patterson-UTI Energy, Inc. | 950,400 | ||||||
10,000 | Schlumberger Ltd. | 620,300 | ||||||
15,000 | Weatherford International Ltd.(a) | 625,800 | ||||||
2,446,017 | ||||||||
Oil & Gas — 19.13% | ||||||||
50,000 | Anadarko Petroleum Corp. | 2,191,500 | ||||||
30,000 | Apache Corp. | 1,896,000 | ||||||
50,000 | BP PLC, ADR | 3,279,000 | ||||||
70,000 | ChevronTexaco Corp. | 4,540,200 | ||||||
90,000 | ConocoPhillips | 5,357,700 | ||||||
60,000 | Exxon Mobil Corp. | 4,026,000 | ||||||
40,000 | Frontier Oil Corp. | 1,063,200 | ||||||
30,000 | Hess Corp. | 1,242,600 | ||||||
35,000 | Marathon Oil Corp. | 2,691,500 | ||||||
60,000 | Suncor Energy, Inc. | 4,323,000 | ||||||
30,610,700 | ||||||||
Total Energy | 33,056,717 | |||||||
12 |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
FINANCIALS — 9.12% | ||||||||
Commercial Banks — 1.22% | ||||||||
10,000 | Marshall & Ilsley Corp. | $ | 481,800 | |||||
10,000 | Northern Trust Corp. | 584,300 | ||||||
20,000 | Wilmington Trust Corp. | 891,000 | ||||||
1,957,100 | ||||||||
Diversified Financial Services — 3.14% | ||||||||
70,000 | Citigroup, Inc. | 3,476,900 | ||||||
25,000 | JPMorgan Chase & Co. | 1,174,000 | ||||||
10,000 | Regions Financial Corp. | 367,900 | ||||||
5,018,800 | ||||||||
Insurance — 4.76% | ||||||||
50,000 | The Allstate Corp. | 3,136,500 | ||||||
40,000 | The Chubb Corp. | 2,078,400 | ||||||
50,000 | Cincinnati Financial Corp. | 2,403,000 | ||||||
7,617,900 | ||||||||
Total Financials | 14,593,800 | |||||||
HEALTH CARE — 5.35% | ||||||||
Health Care Equipment & Supplies — 0.71% | ||||||||
25,000 | Baxter International, Inc. | 1,136,500 | ||||||
Pharmaceuticals — 4.64% | ||||||||
60,000 | Abbott Laboratories | 2,913,600 | ||||||
15,000 | Eli Lilly & Co. | 855,000 | ||||||
25,000 | GlaxoSmithKline PLC, ADR | 1,330,750 | ||||||
20,000 | Johnson & Johnson | 1,298,800 | ||||||
20,000 | Wyeth | 1,016,800 | ||||||
7,414,950 | ||||||||
Total Health Care | 8,551,450 | |||||||
INDUSTRIALS — 9.36% | ||||||||
Aerospace & Defense — 3.41% | ||||||||
25,000 | Lockheed Martin Corp. | 2,151,500 | ||||||
30,000 | Northrop Grumman Corp. | 2,042,100 | ||||||
20,000 | United Technologies Corp. | 1,267,000 | ||||||
5,460,600 | ||||||||
Air Freight & Logistics — 0.34% | ||||||||
5,000 | FedEx Corp. | 543,400 | ||||||
Airlines — 0.47% | ||||||||
45,000 | Southwest Airlines Co. | 749,700 | ||||||
Commercial Services & Supplies — 2.77% | ||||||||
100,000 | Pitney Bowes, Inc. | 4,437,000 | ||||||
Industrial Conglomerates — 2.37% | ||||||||
100,000 | General Electric Co. | 3,530,000 | ||||||
5,000 | ITT Corp. | 256,350 | ||||||
3,786,350 | ||||||||
Total Industrials | 14,977,050 | |||||||
13 |
BUFFALO |
BALANCED FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
INFORMATION TECHNOLOGY — 6.44% | ||||||||
Computers & Peripherals — 1.54% | ||||||||
30,000 | International Business Machines Corp. | $ | 2,458,200 | |||||
Semiconductor & Semiconductor Equipment — 2.85% | ||||||||
60,000 | Applied Materials, Inc. | 1,063,800 | ||||||
170,000 | Intel Corp. | 3,496,900 | ||||||
4,560,700 | ||||||||
Software — 2.05% | ||||||||
120,000 | Microsoft Corp. | 3,279,600 | ||||||
Total Information Technology | 10,298,500 | |||||||
UTILITIES — 0.98% | ||||||||
Electric Utilities — 0.45% | ||||||||
20,000 | OGE Energy Corp. | 722,200 | ||||||
Multi-Utilities & Unregulated Power — 0.53% | ||||||||
8,000 | Kinder Morgan, Inc. | 838,800 | ||||||
Total Utilities | 1,561,000 | |||||||
TOTAL COMMON STOCKS | 101,018,417 | |||||||
(COST $79,498,599) | ||||||||
CONVERTIBLE PREFERRED STOCKS — 0.82% | ||||||||
MATERIALS — 0.82% | ||||||||
Chemicals — 0.82% | ||||||||
52,500 | ICO, Inc.(a) | 1,314,600 | ||||||
Total Materials | 1,314,600 | |||||||
TOTAL CONVERTIBLE PREFERRED STOCKS | 1,314,600 | |||||||
(COST $904,109) | ||||||||
CORPORATE BONDS — 22.97% | ||||||||
CONSUMER DISCRETIONARY — 6.15% | ||||||||
Automobiles — 2.43% | ||||||||
Ford Motor Credit Company | ||||||||
$ | 4,000,000 | 7.375%, 10/28/2009 | 3,889,824 | |||||
Hotels, Restaurants & Leisure — 0.48% | ||||||||
Circus Circus | ||||||||
55,000 | 7.625%, 07/15/2013 | 54,588 | ||||||
Mikohn Gaming Corp. | ||||||||
692,000 | 11.875%, 08/15/2008 | 716,005 | ||||||
770,593 | ||||||||
Leisure Equipment & Products — 0.61% | ||||||||
Eastman Kodak Co. | ||||||||
1,000,000 | 7.250%, 11/15/2013 | 981,485 | ||||||
Media — 0.07% | ||||||||
Fisher Communications, Inc. | ||||||||
100,000 | 8.625%, 09/15/2014 | 104,250 | ||||||
14 |
FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
CONSUMER DISCRETIONARY(Continued) | ||||||||
Specialty Retail — 0.62% | ||||||||
FTD, Inc. | ||||||||
$ | 1,000,000 | 7.750%, 02/15/2014 | $ | 990,000 | ||||
Textiles, Apparel & Luxury Goods — 1.94% | ||||||||
Interface, Inc. | ||||||||
3,000,000 | 9.500%, 02/01/2014 | 3,105,000 | ||||||
Total Consumer Discretionary | 9,841,152 | |||||||
CONSUMER STAPLES — 2.04% | ||||||||
Food Products — 0.81% | ||||||||
Pilgrim’s Pride Corp. | ||||||||
1,250,000 | 9.250%, 11/15/2013 | 1,287,500 | ||||||
Personal Products — 1.23% | ||||||||
Elizabeth Arden, Inc. | ||||||||
2,000,000 | 7.750%, 01/15/2014 | 1,970,000 | ||||||
Total Consumer Staples | 3,257,500 | |||||||
ENERGY — 6.02% | ||||||||
Oil & Gas — 6.02% | ||||||||
Giant Industries, Inc. | ||||||||
4,000,000 | 8.000%, 05/15/2014 | 4,350,000 | ||||||
Swift Energy Co. | ||||||||
10,000 | 9.375%, 05/01/2012 | 10,600 | ||||||
United Refining Co. | ||||||||
5,000,000 | 10.500%, 08/15/2012 | 5,275,000 | ||||||
Total Energy | 9,635,600 | |||||||
HEALTH CARE — 3.92% | ||||||||
Health Care Equipment & Supplies — 0.10% | ||||||||
Inverness Medical Innovations, Inc. | ||||||||
150,000 | 8.750%, 02/15/2012 | 148,500 | ||||||
Health Care Providers & Services — 1.22% | ||||||||
Carriage Services, Inc. | ||||||||
2,000,000 | 7.875%, 01/15/2015 | 1,955,000 | ||||||
Pharmaceuticals — 2.60% | ||||||||
Warner Chilcott Corp. | ||||||||
4,000,000 | 8.750%, 02/01/2015 | 4,160,000 | ||||||
Total Health Care | 6,263,500 | |||||||
INDUSTRIALS — 2.88% | ||||||||
Commercial Services & Supplies — 2.88% | ||||||||
Greenbrier Companies, Inc. | ||||||||
1,500,000 | 8.375%, 05/15/2015 | 1,530,000 | ||||||
Iron Mountain, Inc. | ||||||||
3,000,000 | 8.625%, 04/01/2013 | 3,082,500 | ||||||
Total Industrials | 4,612,500 | |||||||
15 |
BUFFALO |
BALANCED FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
MATERIALS — 1.96% | ||||||||
Metals & Mining — 1.96% | ||||||||
Chaparral Steel Co. | ||||||||
$ | 2,800,000 | 10.000%, 07/15/2013 | $ | 3,136,000 | ||||
Total Materials | 3,136,000 | |||||||
TOTAL CORPORATE BONDS | 36,746,252 | |||||||
(COST $35,257,343) | ||||||||
CONVERTIBLE BONDS — 8.30% | ||||||||
CONSUMER DISCRETIONARY — 4.10% | ||||||||
Hotels, Restaurants & Leisure — 0.60% | ||||||||
Magna Entertainment Corp. | ||||||||
1,000,000 | 7.250%, 12/15/2009 | 963,750 | ||||||
Media — 3.50% | ||||||||
Lions Gate Entertainment Corp. | ||||||||
3,500,000 | 2.938%, 10/15/2024 | 3,661,875 | ||||||
2,000,000 | 3.625%, 03/15/2025 | 1,937,500 | ||||||
5,599,375 | ||||||||
Total Consumer Discretionary | 6,563,125 | |||||||
HEALTH CARE — 2.52% | ||||||||
Pharmaceuticals — 2.52% | ||||||||
Amylin Pharmaceuticals, Inc. | ||||||||
2,700,000 | 2.500%, 04/15/2011 | 4,026,375 | ||||||
Total Health Care | 4,026,375 | |||||||
INDUSTRIALS — 1.68% | ||||||||
Airlines — 1.68% | ||||||||
JetBlue Airways Corp. | ||||||||
3,000,000 | 3.750%, 03/15/2035 | 2,681,250 | ||||||
Total Industrials | 2,681,250 | |||||||
TOTAL CONVERTIBLE BONDS | 13,270,750 | |||||||
(COST $12,180,287) |
16 |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
SHORT TERM INVESTMENTS — 3.95% | ||||||||
INVESTMENT COMPANY — 0.68% | ||||||||
$ | 1,078,411 | SEI Daily Income Trust Treasury II Fund — Class B | $ | 1,078,411 | ||||
Total Investment Companies | 1,078,411 | |||||||
U.S. TREASURY OBLIGATIONS — 3.27% | ||||||||
Public Finance, Taxation, And Monetary Policy — 3.27% | ||||||||
471,000 | 4.653%, 10/05/2006 | 470,749 | ||||||
4,765,000 | 4.900%, 10/12/2006 | 4,759,249 | ||||||
Total U.S. Treasury Obligations | 5,229,998 | |||||||
TOTAL SHORT TERM INVESTMENTS | 6,308,409 | |||||||
(COST $6,308,409) | ||||||||
TOTAL INVESTMENTS — 99.19% | 158,658,428 | |||||||
(COST $134,148,747) | ||||||||
Other Assets in Excess of Liabilities — 0.81% | 1,299,895 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 159,958,323 | ||||||
ADR — American Depository Receipt
(a) | Non-Income Producing |
(b) | Fair valued security. The total value of this security amounted to $249,517 (0.16% of net assets) at September 30, 2006. |
The accompanying notes are an integral part of these financial statements.
17 |
BUFFALO |
HIGH YIELD FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 0.20% | ||||||||
ENERGY — 0.20% | ||||||||
Energy Equipment & Services — 0.20% | ||||||||
17,025 | Eagle Geophysical, Inc.(a)(b) | $ | 361,781 | |||||
Total Energy | 361,781 | |||||||
TOTAL COMMON STOCKS | 361,781 | |||||||
(COST $0) | ||||||||
CONVERTIBLE PREFERRED STOCKS — 4.30% | ||||||||
FINANCIALS — 3.24% | ||||||||
Commercial Banks — 3.24% | ||||||||
118,200 | Boston Private Capital Trust I | 5,850,900 | ||||||
Total Financials | 5,850,900 | |||||||
MATERIALS — 1.06% | ||||||||
Chemicals — 1.06% | ||||||||
76,200 | ICO, Inc.(a) | 1,908,048 | ||||||
Total Materials | 1,908,048 | |||||||
TOTAL CONVERTIBLE PREFERRED STOCKS | 7,758,948 | |||||||
(COST $7,224,769) | ||||||||
PREFERRED STOCKS — 0.00% | ||||||||
CONSUMER DISCRETIONARY — 0.00% | ||||||||
Media — 0.00% | ||||||||
7,250 | Adelphia Communications Corp.(a)(d) | 3,625 | ||||||
Total Consumer Discretionary | 3,625 | |||||||
TOTAL PREFERRED STOCKS | 3,625 | |||||||
(COST $719,125) | ||||||||
CORPORATE BONDS — 69.18% | ||||||||
CONSUMER DISCRETIONARY — 43.04% | ||||||||
Automobiles — 4.34% | ||||||||
Ford Motor Credit Company | ||||||||
$ | 4,700,000 | 7.375%, 10/28/2009 | 4,570,543 | |||||
General Motors Acceptance Corp. | ||||||||
3,295,000 | 6.875%, 08/28/2012 | 3,265,296 | ||||||
7,835,839 | ||||||||
Distributors — 1.92% | ||||||||
Inergy L.P./Inergy Finance Corp.(a) | ||||||||
3,600,000 | 6.875%, 12/15/2014 | 3,465,000 | ||||||
Hotels, Restaurants & Leisure — 15.09% | ||||||||
Aztar Corp. | ||||||||
1,700,000 | 7.875%, 06/15/2014 | 1,840,250 |
18 |
FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
CONSUMER DISCRETIONARY (Continued) | ||||||||
Hotels, Restaurants & Leisure (Continued) | ||||||||
Circus Circus | ||||||||
$ | 3,100,000 | 7.625%, 07/15/2013 | $ | 3,076,750 | ||||
Host Marriott LP | ||||||||
2,185,000 | 9.250%, 10/01/2007 | 2,264,206 | ||||||
Isle of Capri Casinos | ||||||||
4,025,000 | 7.000%, 03/01/2014 | 3,843,875 | ||||||
Las Vegas Sands Corp. | ||||||||
925,000 | 6.375%, 02/15/2015 | 872,969 | ||||||
Mandalay Resort Group | ||||||||
460,000 | 10.250%, 08/01/2007 | 477,250 | ||||||
MGM Mirage | ||||||||
180,000 | 8.375%, 02/01/2011 | 188,559 | ||||||
Mikohn Gaming Corp. | ||||||||
3,211,000 | 11.875%, 08/15/2008 | 3,322,389 | ||||||
Park Place Entertainment Corp. | ||||||||
300,000 | 8.875%, 09/15/2008 | 315,000 | ||||||
595,000 | 8.125%, 05/15/2011 | 630,700 | ||||||
Penn National Gaming, Inc. | ||||||||
1,480,000 | 6.750%, 03/01/2015 | 1,448,550 | ||||||
Royal Caribbean Cruises Ltd. | ||||||||
3,930,000 | 7.500%, 10/15/2027 | 3,857,873 | ||||||
Trump Entertainment Resorts, Inc. | ||||||||
5,275,000 | 8.500%, 06/01/2015 | 5,070,594 | ||||||
27,208,965 | ||||||||
Household Durables — 4.70% | ||||||||
Jarden Corp. | ||||||||
2,200,000 | 9.750%, 05/01/2012 | 2,332,000 | ||||||
Rent-A-Center, Inc. | ||||||||
5,100,000 | 7.500%, 05/01/2010 | 5,151,000 | ||||||
Rent-Way, Inc. | ||||||||
850,000 | 11.875%, 06/15/2010 | 990,250 | ||||||
8,473,250 | ||||||||
Leisure Equipment & Products — 1.45% | ||||||||
Pinnacle Entertainment, Inc. | ||||||||
2,570,000 | 8.250%, 03/15/2012 | 2,614,975 | ||||||
Media — 0.90% | ||||||||
Fisher Communications, Inc. | ||||||||
175,000 | 8.625%, 09/15/2014 | 182,437 | ||||||
XM Satellite Radio, Inc. | ||||||||
1,500,000 | 9.750%, 05/01/2014 (Acquired 04/21/2006-05/04/2006, Cost $1,496,395)(c) | 1,447,500 | ||||||
1,629,937 | ||||||||
Multiline Retail — 0.01% | ||||||||
Wal-Mart Stores | ||||||||
12,000 | 8.750%, 12/29/2006 | 12,024 | ||||||
Specialty Retail — 6.38% | ||||||||
Autonation, Inc. | ||||||||
100,000 | 7.000%, 04/15/2014 (Acquired 04/05/2006, Cost $100,000)(c) | 100,250 | ||||||
Central Garden and Pet Co. | ||||||||
4,500,000 | 9.125%, 02/01/2013 | 4,691,250 | ||||||
FTD, Inc. | ||||||||
4,000,000 | 7.750%, 02/15/2014 | 3,960,000 |
19 |
BUFFALO |
HIGH YIELD FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
CONSUMER DISCRETIONARY (Continued) | ||||||||
Specialty Retail (Continued) | ||||||||
Group 1 Automotive, Inc. | ||||||||
$ | 900,000 | 8.250%, 08/15/2013 | $ | 924,750 | ||||
GSC Holdings Corp. | ||||||||
1,770,000 | 8.000%, 10/01/2012 | 1,831,950 | ||||||
11,508,200 | ||||||||
Textiles, Apparel & Luxury Goods — 7.26% | ||||||||
Interface, Inc. | ||||||||
2,250,000 | 10.375%, 02/01/2010 | 2,463,750 | ||||||
3,570,000 | 9.500%, 02/01/2014 | 3,694,950 | ||||||
Oxford Industries, Inc. | ||||||||
3,650,000 | 8.875%, 06/01/2011 | 3,741,250 | ||||||
Phillips Van-Heusen | ||||||||
3,120,000 | 7.750%, 11/15/2023 | 3,190,200 | ||||||
13,090,150 | ||||||||
Wireless Telecommunication Services — 0.99% | ||||||||
Rogers Wireless, Inc. | ||||||||
1,665,000 | 7.500%, 03/15/2015 | 1,785,713 | ||||||
Total Consumer Discretionary | 77,624,053 | |||||||
CONSUMER STAPLES — 3.04% | ||||||||
Food Products — 0.63% | ||||||||
Pilgrim’s Pride Corp. | ||||||||
1,110,000 | 9.250%, 11/15/2013 | 1,143,300 | ||||||
Household Products — 1.32% | ||||||||
Prestige Brands, Inc. | ||||||||
2,350,000 | 9.250%, 04/15/2012 | 2,373,500 | ||||||
Personal Products — 1.09% | ||||||||
Elizabeth Arden, Inc. | ||||||||
2,000,000 | 7.750%, 01/15/2014 | 1,970,000 | ||||||
Total Consumer Staples | 5,486,800 | |||||||
ENERGY — 8.45% | ||||||||
Oil & Gas — 8.45% | ||||||||
Giant Industries, Inc. | ||||||||
4,615,000 | 8.000%, 05/15/2014 | 5,018,812 | ||||||
The Premcor Refining Group, Inc. | ||||||||
2,200,000 | 9.250%, 02/01/2010 | 2,327,420 | ||||||
450,000 | 9.500%, 02/01/2013 | 490,499 | ||||||
2,530,000 | 7.500%, 06/15/2015 | 2,646,160 | ||||||
Swift Energy Co. | ||||||||
300,000 | 9.375%, 05/01/2012 | 318,000 | ||||||
United Refining Co. | ||||||||
4,200,000 | 10.500%, 08/15/2012 | 4,431,000 | ||||||
Total Energy | 15,231,891 | |||||||
20 |
FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
FINANCIALS — 0.82% | ||||||||
Capital Markets — 0.82% | ||||||||
E*Trade Financial Corp. | ||||||||
$ | 1,400,000 | 7.875%, 12/01/2015 | $ | 1,480,500 | ||||
Total Financials | 1,480,500 | |||||||
HEALTH CARE — 3.87% | ||||||||
Health Care Equipment & Supplies — 0.38% | ||||||||
Inverness Medical Innovations, Inc. | ||||||||
680,000 | 8.750%, 02/15/2012 | 673,200 | ||||||
Pharmaceuticals — 3.49% | ||||||||
Warner Chilcott Corp. | ||||||||
6,055,000 | 8.750%, 02/01/2015 | 6,297,200 | ||||||
Total Health Care | 6,970,400 | |||||||
INDUSTRIALS — 8.56% | ||||||||
Commercial Services & Supplies — 8.56% | ||||||||
Allied Waste North America | ||||||||
867,000 | 9.250%, 09/01/2012 | 928,774 | ||||||
3,600,000 | 7.875%, 04/15/2013 | 3,699,000 | ||||||
FTI Consulting, Inc. | ||||||||
100,000 | 7.750%, 10/01/2016 (Acquired 09/27/2006, Cost $100,000)(c) | 101,500 | ||||||
Greenbrier Companies, Inc. | ||||||||
2,715,000 | 8.375%, 05/15/2015 | 2,769,300 | ||||||
Iron Mountain, Inc. | ||||||||
1,350,000 | 8.625%, 04/01/2013 | 1,387,125 | ||||||
4,875,000 | 7.750%, 01/15/2015 | 4,899,375 | ||||||
Mobile Mini, Inc. | ||||||||
822,000 | 9.500%, 07/01/2013 | 883,650 | ||||||
Williams Scotsman, Inc. | ||||||||
750,000 | 8.500%, 10/01/2015 | 770,625 | ||||||
Total Industrials | 15,439,349 | |||||||
MATERIALS — 1.40% | ||||||||
Construction Materials — 1.40% | ||||||||
U.S. Concrete, Inc. | ||||||||
2,615,000 | 8.375%, 04/01/2014 | 2,526,744 | ||||||
Total Materials | 2,526,744 | |||||||
TOTAL CORPORATE BONDS | 124,759,737 | |||||||
(COST $121,111,610) |
21 |
BUFFALO |
HIGH YIELD FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
CONVERTIBLE BONDS — 21.30% | ||||||||
CONSUMER DISCRETIONARY — 8.72% | ||||||||
Leisure Equipment & Products — 2.75% | ||||||||
WMS Industries, Inc. | ||||||||
$ | 3,140,000 | 2.750%, 07/15/2010 | $ | 4,961,200 | ||||
Media — 4.50% | ||||||||
Lions Gate Entertainment Corp. | ||||||||
700,000 | 4.875%, 12/15/2010 | 1,313,375 | ||||||
6,500,000 | 2.938%, 10/15/2024 | 6,800,625 | ||||||
8,114,000 | ||||||||
Specialty Retail — 1.47% | ||||||||
Best Buy | ||||||||
2,175,000 | 2.250%, 01/15/2022 | 2,642,625 | ||||||
Total Consumer Discretionary | 15,717,825 | |||||||
ENERGY — 0.09% | ||||||||
Energy Equipment & Services — 0.09% | ||||||||
Moran Energy, Inc. | ||||||||
161,000 | 8.750%, 01/15/2008 | 158,585 | ||||||
Total Energy | 158,585 | |||||||
HEALTH CARE — 6.84% | ||||||||
Pharmaceuticals — 6.84% | ||||||||
Amylin Pharmaceuticals, Inc. | ||||||||
5,040,000 | 2.500%, 04/15/2011 | 7,515,900 | ||||||
First Horizon Pharmaceutical Corp. | ||||||||
4,760,000 | 1.750%, 03/08/2024 | 4,825,450 | ||||||
Total Health Care | 12,341,350 | |||||||
INDUSTRIALS — 2.99% | ||||||||
Airlines — 2.99% | ||||||||
JetBlue Airways Corp. | ||||||||
6,030,000 | 3.750%, 03/15/2035. | 5,389,312 | ||||||
Total Industrials | 5,389,312 | |||||||
INFORMATION TECHNOLOGY — 2.66% | ||||||||
Semiconductor & Semiconductor Equipment — 2.66% | ||||||||
Fairchild Semiconductor International | ||||||||
4,830,000 | 5.000%, 11/01/2008 | 4,805,850 | ||||||
Total Information Technology | 4,805,850 | |||||||
TOTAL CONVERTIBLE BONDS | 38,412,922 | |||||||
(COST $32,683,731) |
22 |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
SHORT TERM INVESTMENTS — 3.39% | ||||||||
INVESTMENT COMPANY — 0.61% | ||||||||
$ | 1,105,276 | SEI Daily Income Trust Treasury II Fund — Class B | $ | 1,105,276 | ||||
Total Investment Companies | 1,105,276 | |||||||
U.S. TREASURY OBLIGATIONS — 2.78% | ||||||||
Public Finance, Taxation, And Monetary Policy — 2.78% | ||||||||
5,008,000 | 4.653%, 10/05/2006 | 5,005,328 | ||||||
Total U.S. Treasury Obligations | 5,005,328 | |||||||
TOTAL SHORT TERM INVESTMENTS | 6,110,604 | |||||||
(COST $6,110,604) | ||||||||
TOTAL INVESTMENTS — 98.37% | 177,407,617 | |||||||
(COST $167,849,839) | ||||||||
Other Assets in Excess of Liabilities — 1.63% | 2,944,491 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 180,352,108 | ||||||
(a) | Non-Income Producing |
(b) | Fair valued security. The total value of these securities amounted to $361,781 (0.20% of net assets) at September 30, 2006. |
(c) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutional buyers. The total value of these securities amounted to $1,649,250 (0.91% of net assets) at September 30, 2006. |
(d) | Security is in default at September 30, 2006. |
The accompanying notes are an integral part of these financial statements.
23 |
BUFFALO |
LARGE CAP FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 97.06% | ||||||||
CONSUMER DISCRETIONARY — 14.78% | ||||||||
Hotels, Restaurants & Leisure — 6.46% | ||||||||
18,000 | Harrah’s Entertainment, Inc. | $ | 1,195,740 | |||||
36,200 | Marriott International, Inc. — Class A | 1,398,768 | ||||||
13,700 | Starwood Hotels & Resorts Worldwide, Inc. | 783,503 | ||||||
3,378,011 | ||||||||
Internet & Catalog Retail — 0.90% | ||||||||
16,600 | eBay, Inc.(a) | 470,776 | ||||||
Media — 7.42% | ||||||||
83,500 | Time Warner, Inc. | 1,522,205 | ||||||
34,250 | Viacom Inc. — Class B(a) | 1,273,415 | ||||||
35,000 | The Walt Disney Co. | 1,081,850 | ||||||
3,877,470 | ||||||||
Total Consumer Discretionary | 7,726,257 | |||||||
CONSUMER STAPLES — 5.59% | ||||||||
Beverages — 1.71% | ||||||||
13,700 | PepsiCo, Inc. | 894,062 | ||||||
Food & Staples Retailing — 3.88% | ||||||||
45,200 | CVS Corp. | 1,451,824 | ||||||
13,000 | Walgreen Co. | 577,070 | ||||||
2,028,894 | ||||||||
Total Consumer Staples | 2,922,956 | |||||||
FINANCIALS — 16.68% | ||||||||
Capital Markets — 7.41% | ||||||||
4,300 | The Goldman Sachs Group, Inc. | 727,431 | ||||||
9,600 | Legg Mason, Inc. | 968,256 | ||||||
17,400 | Morgan Stanley | 1,268,634 | ||||||
19,000 | T. Rowe Price Group, Inc. | 909,150 | ||||||
3,873,471 | ||||||||
Commercial Banks — 3.07% | ||||||||
27,500 | Northern Trust Corp. | 1,606,825 | ||||||
Diversified Financial Services — 3.87% | ||||||||
19,500 | American Express Co. | 1,093,560 | ||||||
8,800 | Franklin Resources, Inc. | 930,600 | ||||||
2,024,160 | ||||||||
Insurance — 2.33% | ||||||||
22,400 | Principal Financial Group, Inc. | 1,215,872 | ||||||
Total Financials | 8,720,328 | |||||||
HEALTH CARE — 29.71% | ||||||||
Biotechnology — 2.25% | ||||||||
40,200 | MedImmune, Inc.(a) | 1,174,242 | ||||||
Health Care Equipment & Supplies — 7.81% | ||||||||
33,800 | Baxter International, Inc. | 1,536,548 | ||||||
23,500 | C.R. Bard, Inc. | 1,762,500 | ||||||
22,300 | St. Jude Medical, Inc.(a) | 786,967 | ||||||
4,086,015 | ||||||||
24 |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
HEALTH CARE (Continued) | ||||||||
Health Care Providers & Services — 3.73% | ||||||||
17,500 | Medco Health Solutions, Inc.(a) | $ | 1,051,925 | |||||
14,700 | Quest Diagnostics, Inc. | 899,052 | ||||||
1,950,977 | ||||||||
Pharmaceuticals — 15.92% | ||||||||
25,800 | Abbott Laboratories | 1,252,848 | ||||||
43,100 | Bayer AG, ADR | 2,195,945 | ||||||
57,100 | Schering-Plough Corp. | 1,261,339 | ||||||
44,600 | Teva Pharmaceutical Industries, Ltd., ADR | 1,520,414 | ||||||
41,200 | Wyeth | 2,094,608 | ||||||
8,325,154 | ||||||||
Total Health Care | 15,536,388 | |||||||
INDUSTRIALS — 7.64% | ||||||||
Air Freight & Logistics — 3.41% | ||||||||
16,400 | FedEx Corp. | 1,782,352 | ||||||
Commercial Services & Supplies — 4.23% | ||||||||
21,000 | Automatic Data Processing, Inc. | 994,140 | ||||||
29,022 | First Data Corp. | 1,218,924 | ||||||
2,213,064 | ||||||||
Total Industrials | 3,995,416 | |||||||
INFORMATION TECHNOLOGY — 22.66% | ||||||||
Communications Equipment — 8.33% | ||||||||
43,300 | Cisco Systems, Inc.(a) | 995,900 | ||||||
76,100 | Corning, Inc.(a) | 1,857,601 | ||||||
60,000 | Motorola, Inc. | 1,500,000 | ||||||
4,353,501 | ||||||||
Semiconductor & Semiconductor Equipment — 9.86% | ||||||||
60,700 | Altera Corp.(a) | 1,115,666 | ||||||
13,700 | Analog Devices, Inc. | 402,643 | ||||||
65,800 | Applied Materials, Inc. | 1,166,634 | ||||||
46,200 | Intel Corp. | 950,334 | ||||||
10,800 | Intersil Corp. | 265,140 | ||||||
11,200 | National Semiconductor Corp. | 263,536 | ||||||
29,900 | Texas Instruments, Inc. | 994,175 | ||||||
5,158,128 | ||||||||
Software — 4.47% | ||||||||
39,500 | Microsoft Corp. | 1,079,535 | ||||||
59,000 | Symantec Corp.(a) | 1,255,520 | ||||||
2,335,055 | ||||||||
Total Information Technology | 11,846,684 | |||||||
TOTAL COMMON STOCKS | 50,748,029 | |||||||
(COST $41,231,284) |
25 |
BUFFALO |
LARGE CAP FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
SHORT TERM INVESTMENTS — 0.31% | ||||||||
INVESTMENT COMPANY — 0.31% | ||||||||
161,898 | SEI Daily Income Trust Treasury II Fund — Class B | $ | 161,898 | |||||
Total Investment Companies | 161,898 | |||||||
TOTAL SHORT TERM INVESMENTS | 161,898 | |||||||
(COST $161,898) | ||||||||
TOTAL INVESTMENTS — 97.37% | 50,909,927 | |||||||
(COST $41,393,182) | ||||||||
Other Assets in Excess of Liabilities — 2.63% | 1,377,540 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 52,287,467 | ||||||
ADR — American Depository Receipt
(a) | Non-Income Producing |
The accompanying notes are an integral part of these financial statements.
26 |
BUFFALO |
MICRO CAP FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 96.95% | ||||||||
CONSUMER DISCRETIONARY — 29.80% | ||||||||
Hotels, Restaurants & Leisure — 9.36% | ||||||||
30,726 | McCormick & Schmick’s Seafood Restaurants, Inc.(a) | $ | 691,028 | |||||
73,100 | Morton’s Restaurant Group, Inc.(a) | 1,126,471 | ||||||
16,600 | Orient-Express Hotels Ltd. — Class A | 620,508 | ||||||
15,400 | Steiner Leisure Ltd.(a) | 647,570 | ||||||
65,200 | Sunterra Corp.(a) | 738,716 | ||||||
73,200 | Trump Entertainment Resorts, Inc.(a) | 1,241,472 | ||||||
5,065,765 | ||||||||
Leisure Equipment & Products — 6.49% | ||||||||
79,500 | DTS, Inc.(a) | 1,683,810 | ||||||
37,600 | MarineMax, Inc.(a) | 956,920 | ||||||
77,900 | Monaco Coach Corp. | 867,806 | ||||||
3,508,536 | ||||||||
Multiline Retail — 1.73% | ||||||||
67,400 | Tuesday Morning Corp. | 935,512 | ||||||
Specialty Retail — 6.76% | ||||||||
75,300 | A.C. Moore Arts & Crafts, Inc.(a) | 1,432,959 | ||||||
54,750 | Cache, Inc.(a) | 979,477 | ||||||
95,600 | Golf Galaxy, Inc.(a) | 1,242,800 | ||||||
3,655,236 | ||||||||
Textiles, Apparel & Luxury Goods — 5.46% | ||||||||
81,300 | The Dixie Group, Inc.(a) | 1,212,996 | ||||||
23,000 | Oxford Industries, Inc. | 986,930 | ||||||
35,800 | True Religion Apparel, Inc.(a) | 755,738 | ||||||
2,955,664 | ||||||||
Total Consumer Discretionary | 16,120,713 | |||||||
FINANCIALS — 11.38% | ||||||||
Capital Markets — 3.83% | ||||||||
25,000 | Hennessy Advisors, Inc. | 622,500 | ||||||
60,000 | Sanders Morris Harris Group, Inc. | 750,600 | ||||||
43,600 | Thomas Weisel Partners Group, Inc.(a) | 699,780 | ||||||
2,072,880 | ||||||||
Commercial Banks — 2.16% | ||||||||
24,100 | Boston Private Financial Holdings, Inc. | 671,908 | ||||||
10,800 | PrivateBancorp, Inc. | 493,776 | ||||||
1,165,684 | ||||||||
Diversified Financial Services — 5.39% | ||||||||
50,200 | Cohen & Steers, Inc. | 1,624,472 | ||||||
123,200 | MarketAxess Holdings, Inc.(a) | 1,289,904 | ||||||
2,914,376 | ||||||||
Total Financials | 6,152,940 | |||||||
27 |
BUFFALO |
MICRO CAP FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
HEALTH CARE — 28.06% | ||||||||
Biotechnology — 4.62% | ||||||||
15,000 | Altus Pharmaceuticals, Inc.(a) | $ | 239,550 | |||||
47,000 | AtheroGenics, Inc.(a) | 618,990 | ||||||
51,000 | LifeCell Corp.(a) | 1,643,220 | ||||||
2,501,760 | ||||||||
Health Care Equipment & Supplies — 17.43% | ||||||||
148,900 | Align Technology, Inc.(a) | 1,694,482 | ||||||
61,600 | AngioDynamics, Inc.(a) | 1,275,736 | ||||||
48,100 | ev3, Inc.(a) | 818,181 | ||||||
90,500 | Lifecore Biomedical, Inc.(a) | 1,276,050 | ||||||
34,750 | Meridian Bioscience, Inc. | 816,973 | ||||||
55,400 | Merit Medical Systems, Inc.(a) | 752,332 | ||||||
46,000 | Molecular Devices Corp.(a) | 850,540 | ||||||
61,500 | Neurometrix, Inc.(a) | 1,169,115 | ||||||
66,300 | Spectranetics Corp.(a) | 775,710 | ||||||
9,429,119 | ||||||||
Health Care Providers & Services — 6.01% | ||||||||
51,500 | Health Fitness Corp.(a) | 81,370 | ||||||
24,400 | ICON PLC, ADR(a) | 1,722,152 | ||||||
14,800 | MWI Veterinary Supply, Inc.(a) | 496,244 | ||||||
35,600 | PRA International(a) | 950,164 | ||||||
3,249,930 | ||||||||
Total Health Care | 15,180,809 | |||||||
INDUSTRIALS — 13.07% | ||||||||
Commercial Services & Supplies — 13.07% | ||||||||
87,700 | Clayton Holdings, Inc.(a) | 1,102,389 | ||||||
23,700 | CRA International, Inc.(a) | 1,129,542 | ||||||
151,900 | Educate, Inc.(a) | 1,213,681 | ||||||
22,100 | First Advantage Corp. — Class A(a) | 461,006 | ||||||
30,800 | FirstService Corp.(a) | 733,656 | ||||||
40,000 | Heidrick & Struggles International, Inc.(a) | 1,440,000 | ||||||
101,200 | Hudson Highland Group, Inc.(a) | 991,760 | ||||||
Total Industrials | 7,072,034 | |||||||
INFORMATION TECHNOLOGY — 14.64% | ||||||||
Electronic Equipment & Instruments — 1.44% | ||||||||
41,700 | Measurement Specialties, Inc.(a) | 777,705 | ||||||
Internet Software & Services — 5.43% | ||||||||
66,400 | eCollege.com, Inc.(a) | 1,061,736 | ||||||
101,400 | Jupitermedia Corp.(a) | 878,124 | ||||||
92,200 | Stellent, Inc. | 999,448 | ||||||
2,939,308 | ||||||||
Semiconductor & Semiconductor Equipment — 1.73% | ||||||||
85,841 | Entegris, Inc.(a) | 936,525 | ||||||
28 |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
INFORMATION TECHNOLOGY (Continued) | ||||||||
Software — 6.04% | ||||||||
55,700 | Neoware Systems, Inc.(a) | $ | 756,963 | |||||
78,300 | Packeteer, Inc.(a) | 674,163 | ||||||
89,100 | PDF Solutions, Inc.(a) | 976,536 | ||||||
29,400 | THQ, Inc.(a) | 857,598 | ||||||
3,265,260 | ||||||||
Total Information Technology | 7,918,798 | |||||||
TOTAL COMMON STOCKS | 52,445,294 | |||||||
(COST $47,350,424) | ||||||||
SHORT TERM INVESTMENTS — 4.44% | ||||||||
INVESTMENT COMPANY — 1.99% | ||||||||
1,074,235 | SEI Daily Income Trust Treasury II Fund — Class B | 1,074,235 | ||||||
Total Investment Companies | 1,074,235 | |||||||
U.S. TREASURY OBLIGATIONS — 2.45% | ||||||||
Public Finance, Taxation, And Monetary Policy — 2.45% | ||||||||
$ | 911,000 | 4.653%, 10/05/2006 | 910,545 | |||||
415,000 | 4.900%, 10/12/2006 | 414,479 | ||||||
Total U.S. Treasury Obligations | 1,325,024 | |||||||
TOTAL SHORT TERM INVESTMENTS | 2,399,259 | |||||||
(COST $2,399,259) | ||||||||
TOTAL INVESTMENTS — 101.39% | 54,844,553 | |||||||
(COST $49,749,683) | ||||||||
Liabilities in Excess of Other Assets — (1.39)% | (749,697 | ) | ||||||
TOTAL NET ASSETS — 100.00% | $ | 54,094,856 | ||||||
ADR — American Depository Receipt
(a) | Non-Income Producing |
The accompanying notes are an integral part of these financial statements.
29 |
BUFFALO |
MID CAP FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 97.54% | ||||||||
CONSUMER DISCRETIONARY — 28.77% | ||||||||
Auto Components — 3.45% | ||||||||
106,000 | Autoliv, Inc. | $ | 5,841,660 | |||||
446,800 | Gentex Corp. | 6,349,028 | ||||||
12,190,688 | ||||||||
Hotels, Restaurants & Leisure — 7.06% | ||||||||
122,500 | Boyd Gaming Corp. | 4,708,900 | ||||||
67,900 | Harrah’s Entertainment, Inc. | 4,510,597 | ||||||
128,475 | Life Time Fitness, Inc.(a) | 5,947,108 | ||||||
155,300 | Penn National Gaming, Inc.(a) | 5,671,556 | ||||||
105,800 | Royal Caribbean Cruises Ltd. | 4,106,098 | ||||||
24,944,259 | ||||||||
Leisure Equipment & Products — 0.91% | ||||||||
102,800 | Brunswick Corp. | 3,206,332 | ||||||
Media — 1.82% | ||||||||
647,200 | EMI Group PLC, ADR | 6,431,485 | ||||||
Specialty Retail — 13.17% | ||||||||
59,000 | Abercrombie & Fitch Co. — Class A | 4,099,320 | ||||||
109,700 | Barnes & Noble, Inc. | 4,162,018 | ||||||
189,000 | Chico’s FAS, Inc.(a) | 4,069,170 | ||||||
234,500 | PETsMART, Inc. | 6,507,375 | ||||||
208,600 | Talbots, Inc. | 5,684,350 | ||||||
157,100 | Tiffany & Co. | 5,215,720 | ||||||
327,700 | Urban Outfitters, Inc.(a) | 5,797,013 | ||||||
116,700 | Weight Watchers International, Inc. | 5,174,478 | ||||||
178,500 | Williams-Sonoma, Inc. | 5,781,615 | ||||||
46,491,059 | ||||||||
Textiles, Apparel & Luxury Goods — 2.36% | ||||||||
34,900 | Mohawk Industries, Inc.(a) | 2,598,305 | ||||||
88,800 | Polo Ralph Lauren Corp. | 5,744,472 | ||||||
8,342,777 | ||||||||
Total Consumer Discretionary | 101,606,600 | |||||||
FINANCIALS — 8.55% | ||||||||
Capital Markets — 6.29% | ||||||||
114,175 | A.G. Edwards, Inc. | 6,083,244 | ||||||
330,700 | Janus Capital Group, Inc. | 6,521,404 | ||||||
41,250 | Legg Mason, Inc. | 4,160,475 | ||||||
114,000 | T. Rowe Price Group, Inc. | 5,454,900 | ||||||
22,220,023 | ||||||||
Diversified Financial Services — 2.26% | ||||||||
216,300 | Morningstar, Inc.(a) | 7,981,470 | ||||||
Total Financials | 30,201,493 | |||||||
30 |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
HEALTH CARE — 27.88% | ||||||||
Biotechnology — 5.16% | ||||||||
241,500 | Amylin Pharmaceuticals, Inc.(a) | $ | 10,642,905 | |||||
259,900 | MedImmune, Inc.(a) | 7,591,679 | ||||||
18,234,584 | ||||||||
Health Care Equipment & Supplies — 6.58% | ||||||||
72,000 | Millipore Corp.(a) | 4,413,600 | ||||||
463,300 | Qiagen N.V.(a) | 7,338,672 | ||||||
80,050 | Sigma-Aldrich Corp. | 6,057,383 | ||||||
120,300 | Waters Corp.(a) | 5,447,184 | ||||||
23,256,839 | ||||||||
Health Care Providers & Services — 6.77% | ||||||||
215,800 | Charles River Laboratories International, Inc.(a) | 9,367,878 | ||||||
333,600 | IMS Health, Inc. | 8,887,104 | ||||||
158,000 | Pharmaceutical Product Development, Inc. | 5,639,020 | ||||||
23,894,002 | ||||||||
Pharmaceuticals — 9.37% | ||||||||
161,600 | Barr Pharmaceuticals, Inc.(a) | 8,393,504 | ||||||
289,900 | Endo Pharmaceuticals Holdings, Inc.(a) | 9,436,245 | ||||||
240,600 | Medicis Pharmaceutical Corp. — Class A | 7,783,410 | ||||||
151,600 | Shire Pharmaceuticals PLC, ADR | 7,487,524 | ||||||
33,100,683 | ||||||||
Total Health Care | 98,486,108 | |||||||
INDUSTRIALS — 8.17% | ||||||||
Commercial Services & Supplies — 8.17% | ||||||||
115,800 | ChoicePoint Inc.(a) | 4,145,640 | ||||||
230,000 | DeVry, Inc.(a) | 4,892,100 | ||||||
288,800 | Hewitt Associates, Inc. — Class A(a) | 7,006,288 | ||||||
202,100 | Iron Mountain, Inc.(a) | 8,678,174 | ||||||
114,500 | Monster Worldwide, Inc.(a) | 4,143,755 | ||||||
Total Industrials | 28,865,957 | |||||||
INFORMATION TECHNOLOGY — 24.17% | ||||||||
Communications Equipment — 1.17% | ||||||||
84,800 | Garmin Ltd. | 4,136,544 | ||||||
Electronic Equipment & Instruments — 1.54% | ||||||||
190,000 | Jabil Circuit, Inc. | 5,428,300 | ||||||
IT Services — 2.05% | ||||||||
175,200 | CheckFree Corp.(a) | 7,239,264 | ||||||
Semiconductor & Semiconductor Equipment — 9.33% | ||||||||
373,800 | Altera Corp.(a) | 6,870,444 | ||||||
108,300 | KLA-Tencor Corp. | 4,816,101 | ||||||
204,100 | National Semiconductor Corp. | 4,802,473 | ||||||
278,600 | Novellus Systems, Inc.(a) | 7,706,076 | ||||||
60,900 | SanDisk Corp.(a) | 3,260,586 | ||||||
431,000 | Semtech Corp.(a) | 5,499,560 | ||||||
32,955,240 | ||||||||
31 |
BUFFALO |
MID CAP FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
INFORMATION TECHNOLOGY (Continued) | ||||||||
Software — 10.08% | ||||||||
534,400 | BEA Systems, Inc.(a) | $ | 8,122,880 | |||||
211,450 | Cadence Design Systems, Inc.(a) | 3,586,192 | ||||||
155,200 | Citrix Systems, Inc.(a) | 5,619,792 | ||||||
149,000 | F5 Networks, Inc.(a) | 8,004,280 | ||||||
487,100 | Red Hat, Inc.(a) | 10,268,068 | ||||||
35,601,212 | ||||||||
Total Information Technology | 85,360,560 | |||||||
TOTAL COMMON STOCKS | 344,520,718 | |||||||
(COST $305,420,630) | ||||||||
SHORT TERM INVESTMENTS — 2.90% | ||||||||
INVESTMENT COMPANY — 0.23% | ||||||||
810,058 | SEI Daily Income Trust Treasury II Fund — Class B | 810,058 | ||||||
Total Investment Companies | 810,058 | |||||||
U.S. TREASURY OBLIGATIONS — 2.67% | ||||||||
Public Finance, Taxation, And Monetary Policy — 2.67% | ||||||||
$ | 4,723,000 | 4.653%, 10/05/2006 | 4,720,481 | |||||
4,733,000 | 4.900%, 10/12/2006 | 4,726,902 | ||||||
Total U.S. Treasury Obligations | 9,447,383 | |||||||
TOTAL SHORT TERM INVESTMENTS | 10,257,441 | |||||||
(COST $10,257,441) | ||||||||
TOTAL INVESTMENTS — 100.44% | 354,778,159 | |||||||
(COST $315,678,071) | ||||||||
Liabilities in Excess of Other Assets — (0.44)% | (1,570,742 | ) | ||||||
TOTAL NET ASSETS — 100.00% | $ | 353,207,417 | ||||||
ADR — American Depository Receipt
(a) | Non-Income Producing |
The accompanying notes are an integral part of these financial statements.
32 |
BUFFALO SCIENCE & |
TECHNOLOGY FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 95.88% | ||||||||
CONSUMER DISCRETIONARY — 1.61% | ||||||||
Internet & Catalog Retail — 1.61% | ||||||||
65,700 | eBay, Inc.(a) | $ | 1,863,252 | |||||
Total Consumer Discretionary | 1,863,252 | |||||||
HEALTH CARE — 37.44% | ||||||||
Biotechnology — 5.73% | ||||||||
63,800 | Amylin Pharmaceuticals, Inc.(a) | 2,811,666 | ||||||
65,900 | AtheroGenics, Inc.(a) | 867,903 | ||||||
59,800 | MedImmune, Inc.(a) | 1,746,758 | ||||||
34,800 | Myogen, Inc.(a) | 1,220,784 | ||||||
6,647,111 | ||||||||
Health Care Equipment & Supplies — 16.47% | ||||||||
133,100 | Align Technology, Inc.(a) | 1,514,678 | ||||||
59,900 | American Medical Systems Holdings, Inc.(a) | 1,103,957 | ||||||
19,200 | C.R. Bard, Inc. | 1,440,000 | ||||||
107,700 | ev3, Inc.(a) | 1,831,977 | ||||||
16,700 | Fisher Scientific International, Inc.(a) | 1,306,608 | ||||||
63,550 | Immucor, Inc.(a) | 1,424,155 | ||||||
40,900 | Mentor Corp. | 2,060,951 | ||||||
14,900 | Millipore Corp.(a) | 913,370 | ||||||
53,200 | Neurometrix, Inc.(a) | 1,011,332 | ||||||
93,600 | Qiagen N.V.(a) | 1,482,624 | ||||||
15,400 | Sigma-Aldrich Corp. | 1,165,318 | ||||||
29,800 | St. Jude Medical, Inc.(a) | 1,051,642 | ||||||
26,400 | Varian Medical Systems, Inc.(a) | 1,409,496 | ||||||
30,900 | Waters Corp.(a) | 1,399,152 | ||||||
19,115,260 | ||||||||
Health Care Providers & Services — 5.82% | ||||||||
43,900 | Charles River Laboratories International, Inc.(a) | 1,905,699 | ||||||
20,900 | Covance, Inc.(a) | 1,387,342 | ||||||
79,400 | IMS Health, Inc. | 2,115,216 | ||||||
37,700 | Pharmaceutical Product Development, Inc. | 1,345,513 | ||||||
6,753,770 | ||||||||
Pharmaceuticals — 9.42% | ||||||||
25,600 | Abbott Laboratories | 1,243,136 | ||||||
32,100 | Barr Pharmaceuticals, Inc.(a) | 1,667,274 | ||||||
24,500 | Bayer AG, ADR | 1,248,275 | ||||||
56,600 | Medicis Pharmaceutical Corp. — Class A | 1,831,010 | ||||||
56,200 | Schering-Plough Corp. | 1,241,458 | ||||||
23,400 | Shire Pharmaceuticals Group PLC, ADR | 1,155,726 | ||||||
33,000 | Teva Pharmaceutical Industries, Ltd., ADR | 1,124,970 | ||||||
28,100 | Wyeth | 1,428,604 | ||||||
10,940,453 | ||||||||
Total Health Care | 43,456,594 | |||||||
INDUSTRIALS — 3.23% | ||||||||
Commercial Services & Supplies — 3.23% | ||||||||
112,400 | Hewitt Associates, Inc. — Class A(a) | 2,726,824 | ||||||
28,200 | Monster Worldwide, Inc.(a) | 1,020,558 | ||||||
Total Industrials | 3,747,382 | |||||||
33 |
BUFFALO SCIENCE & |
TECHNOLOGY FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
INFORMATION TECHNOLOGY — 53.60% | ||||||||
Communications Equipment — 7.74% | ||||||||
75,300 | Adtran, Inc. | $ | 1,795,152 | |||||
84,400 | Cisco Systems, Inc.(a) | 1,941,200 | ||||||
70,400 | Corning, Inc.(a) | 1,718,464 | ||||||
78,900 | Motorola, Inc. | 1,972,500 | ||||||
78,900 | Nokia OYJ, ADR | 1,553,541 | ||||||
8,980,857 | ||||||||
Computers & Peripherals — 2.26% | ||||||||
142,800 | EMC Corp.(a) | 1,710,744 | ||||||
33,500 | Rackable Systems, Inc.(a) | 916,895 | ||||||
2,627,639 | ||||||||
Electronic Equipment & Instruments — 6.44% | ||||||||
76,800 | Dolby Laboratories, Inc. — Class A(a) | 1,524,480 | ||||||
98,100 | Jabil Circuit, Inc. | 2,802,717 | ||||||
20,300 | Molex, Inc. | 791,091 | ||||||
45,850 | National Instruments Corp. | 1,253,539 | ||||||
23,300 | Trimble Navigation Ltd.(a) | 1,096,964 | ||||||
7,468,791 | ||||||||
Internet Software & Services — 1.33% | ||||||||
25,700 | Equinix, Inc.(a) | 1,544,570 | ||||||
IT Services — 1.35% | ||||||||
38,000 | CheckFree Corp.(a) | 1,570,160 | ||||||
Semiconductor & Semiconductor Equipment — 18.41% | ||||||||
85,150 | Altera Corp.(a) | 1,565,057 | ||||||
34,200 | Analog Devices, Inc. | 1,005,138 | ||||||
102,400 | Applied Materials, Inc. | 1,815,552 | ||||||
82,200 | Cabot Microelectronics Corp.(a) | 2,369,004 | ||||||
75,200 | Cree, Inc.(a) | 1,512,272 | ||||||
120,700 | Entegris, Inc.(a) | 1,316,837 | ||||||
35,800 | FormFactor, Inc.(a) | 1,508,254 | ||||||
86,150 | Intel Corp. | 1,772,105 | ||||||
60,150 | Maxim Integrated Products, Inc. | 1,688,411 | ||||||
31,000 | Microchip Technology, Inc. | 1,005,020 | ||||||
49,900 | MKS Instruments, Inc.(a) | 1,013,469 | ||||||
55,200 | Novellus Systems, Inc.(a) | 1,526,832 | ||||||
145,500 | Semtech Corp.(a) | 1,856,580 | ||||||
42,500 | Texas Instruments, Inc. | 1,413,125 | ||||||
21,367,656 | ||||||||
34 |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
INFORMATION TECHNOLOGY (Continued) | ||||||||
Software — 16.07% | ||||||||
123,600 | BEA Systems, Inc.(a) | $ | 1,878,720 | |||||
63,650 | Cadence Design Systems, Inc.(a) | 1,079,504 | ||||||
37,500 | Citrix Systems, Inc.(a) | 1,357,875 | ||||||
40,600 | F5 Networks, Inc.(a) | 2,181,032 | ||||||
30,000 | FileNet Corp.(a) | 1,044,900 | ||||||
46,500 | Kronos, Inc.(a) | �� | 1,585,185 | |||||
70,900 | Manhattan Associates, Inc.(a) | 1,711,526 | ||||||
67,900 | Microsoft Corp. | 1,855,707 | ||||||
86,300 | Oracle Corp.(a) | 1,530,962 | ||||||
36,800 | PDF Solutions, Inc.(a) | 403,328 | ||||||
100,200 | Red Hat, Inc.(a) | 2,112,216 | ||||||
89,700 | Symantec Corp.(a) | 1,908,816 | ||||||
18,649,771 | ||||||||
Total Information Technology | 62,209,444 | |||||||
TOTAL COMMON STOCKS | 111,276,672 | |||||||
(COST $94,380,516) | ||||||||
SHORT TERM INVESTMENTS — 3.85% | ||||||||
INVESTMENT COMPANY — 0.93% | ||||||||
1,077,539 | SEI Daily Income Trust Treasury II Fund — Class B | 1,077,539 | ||||||
Total Investment Companies | 1,077,539 | |||||||
U.S. TREASURY OBLIGATIONS — 2.92% | ||||||||
Public Finance, Taxation, And Monetary Policy — 2.92% | ||||||||
$ | 2,422,000 | 4.653%, 10/05/2006 | 2,420,789 | |||||
965,000 | 4.900%, 10/12/2006 | 963,824 | ||||||
Total U.S. Treasury Obligations | 3,384,613 | |||||||
TOTAL SHORT TERM INVESTMENTS | 4,462,152 | |||||||
(COST $4,462,152) | ||||||||
TOTAL INVESTMENTS — 99.73% | 115,738,824 | |||||||
(COST $98,842,668) | ||||||||
Other Assets in Excess of Liabilities — 0.27% | 318,916 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 116,057,740 | ||||||
ADR — American Depository Receipt
(a) | Non-Income Producing |
The accompanying notes are an integral part of these financial statements.
35 |
BUFFALO |
SMALL CAP FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 98.46% | ||||||||
CONSUMER DISCRETIONARY — 27.87% | ||||||||
Auto Components — 1.04% | ||||||||
1,389,764 | Gentex Corp. | $ | 19,748,546 | |||||
Hotels, Restaurants & Leisure — 7.82% | ||||||||
1,136,600 | Ameristar Casinos, Inc. | 24,675,586 | ||||||
996,750 | Orient-Express Hotels Ltd. — Class A | 37,258,515 | ||||||
1,264,500 | P.F. Chang’s China Bistro, Inc.(a) | 43,890,795 | ||||||
1,184,660 | Penn National Gaming, Inc.(a) | 43,263,783 | ||||||
149,088,679 | ||||||||
Household Durables — 0.62% | ||||||||
12,600 | Ethan Allen Interiors, Inc. | 436,716 | ||||||
655,600 | WCI Communities, Inc.(a) | 11,433,664 | ||||||
11,870,380 | ||||||||
Leisure Equipment & Products — 4.95% | ||||||||
4,700 | Brunswick Corp. | 146,593 | ||||||
1,017,100 | Winnebago Industries, Inc. | 31,916,598 | ||||||
2,132,350 | WMS Industries, Inc.(a)(b) | 62,285,944 | ||||||
94,349,135 | ||||||||
Media — 1.58% | ||||||||
3,019,700 | Lions Gate Entertainment Corp.(a) | 30,227,197 | ||||||
Multiline Retail — 0.96% | ||||||||
1,322,200 | Tuesday Morning Corp. | 18,352,136 | ||||||
Specialty Retail — 9.29% | ||||||||
1,865,400 | Borders Group, Inc. | 38,054,160 | ||||||
735,550 | Central Garden & Pet Co.(a) | 35,497,643 | ||||||
661,548 | Christopher & Banks Corp. | 19,502,435 | ||||||
1,208,602 | Gamestop Corp. — Class B(a) | 54,036,595 | ||||||
1,078,100 | Zale Corp.(a) | 29,906,494 | ||||||
176,997,327 | ||||||||
Textiles, Apparel & Luxury Goods — 1.61% | ||||||||
713,825 | Oxford Industries, Inc. | 30,630,231 | ||||||
Total Consumer Discretionary | 531,263,631 | |||||||
FINANCIALS — 4.36% | ||||||||
Capital Markets — 2.21% | ||||||||
1,064,812 | Raymond James Financial, Inc. | 31,135,103 | ||||||
878,250 | W.P. Stewart & Co. Ltd. | 10,942,995 | ||||||
42,078,098 | ||||||||
Commercial Banks — 2.15% | ||||||||
787,500 | Boston Private Financial Holdings, Inc. | 21,955,500 | ||||||
429,250 | Wilmington Trust Corp. | 19,123,087 | ||||||
41,078,587 | ||||||||
Total Financials | 83,156,685 | |||||||
36 |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
HEALTH CARE — 27.08% | ||||||||
Biotechnology — 4.87% | ||||||||
1,501,600 | Amylin Pharmaceuticals, Inc.(a) | $ | 66,175,512 | |||||
755,900 | Myogen, Inc.(a) | 26,516,972 | ||||||
92,692,484 | ||||||||
Health Care Equipment & Supplies — 10.97% | ||||||||
2,894,000 | Align Technology, Inc.(a) | 32,933,720 | ||||||
1,705,560 | American Medical Systems Holdings, Inc.(a) | 31,433,471 | ||||||
1,912,500 | ev3, Inc.(a) | 32,531,625 | ||||||
1,849,500 | Immucor, Inc.(a) | 41,447,295 | ||||||
948,800 | Mentor Corp. | 47,810,032 | ||||||
947,800 | Wright Medical Group, Inc.(a) | 22,984,150 | ||||||
209,140,293 | ||||||||
Health Care Providers & Services — 8.17% | ||||||||
755,575 | Charles River Laboratories International, Inc.(a) | 32,799,511 | ||||||
767,625 | Covance, Inc.(a) | 50,954,947 | ||||||
1,413,156 | Pharmaceutical Product Development, Inc. | 50,435,538 | ||||||
1,078,000 | PSS World Medical, Inc.(a) | 21,549,220 | ||||||
155,739,216 | ||||||||
Pharmaceuticals — 3.07% | ||||||||
1,224,200 | Medicis Pharmaceutical Corp. — Class A | 39,602,870 | ||||||
1,002,750 | Sciele Pharma, Inc.(a) | 18,891,810 | ||||||
58,494,680 | ||||||||
Total Health Care | 516,066,673 | |||||||
INDUSTRIALS — 14.23% | ||||||||
Commercial Services & Supplies — 14.23% | ||||||||
521,500 | Bright Horizons Family Solutions, Inc.(a) | 21,762,195 | ||||||
2,264,325 | Corinthian Colleges, Inc.(a) | 24,477,353 | ||||||
1,742,400 | DeVry, Inc.(a) | 37,060,848 | ||||||
1,748,500 | Educate, Inc.(a) | 13,970,515 | ||||||
1,249,800 | FirstService Corp.(a) | 29,770,236 | ||||||
1,247,100 | Heidrick & Struggles International, Inc.(a)(b) | 44,895,600 | ||||||
521,700 | ITT Educational Services, Inc.(a) | 34,588,710 | ||||||
1,593,400 | Korn/Ferry International(a) | 33,365,796 | ||||||
1,559,050 | Navigant Consulting, Inc.(a) | 31,274,543 | ||||||
Total Industrials | 271,165,796 | |||||||
INFORMATION TECHNOLOGY — 24.92% | ||||||||
Communications Equipment — 2.16% | ||||||||
1,728,450 | Adtran, Inc. | 41,206,248 | ||||||
Computers & Peripherals — 1.00% | ||||||||
693,500 | Rackable Systems, Inc.(a) | 18,981,095 | ||||||
Electronic Equipment & Instruments — 3.65% | ||||||||
1,854,275 | Dolby Laboratories, Inc. — Class A(a)(b) | 36,807,359 | ||||||
883,100 | National Instruments Corp. | 24,143,954 | ||||||
184,675 | Trimble Navigation Ltd.(a) | 8,694,499 | ||||||
69,645,812 | ||||||||
Internet Software & Services — 1.37% | ||||||||
434,250 | Equinix, Inc.(a) | 26,098,425 | ||||||
37 |
BUFFALO |
SMALL CAP FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
INFORMATION TECHNOLOGY (Continued) | ||||||||
Semiconductor & Semiconductor Equipment — 11.72% | ||||||||
1,219,800 | Cabot Microelectronics Corp.(a)(b) | $ | 35,154,636 | |||||
1,738,000 | Cree, Inc.(a) | 34,951,180 | ||||||
1,936,350 | Fairchild Semiconductor International, Inc.(a) | 36,209,745 | ||||||
637,300 | FormFactor, Inc.(a) | 26,849,449 | ||||||
3,191,000 | Micrel, Inc.(a) | 30,601,690 | ||||||
1,748,368 | MKS Instruments, Inc.(a) | 35,509,354 | ||||||
1,883,600 | Semtech Corp.(a) | 24,034,736 | ||||||
223,310,790 | ||||||||
Software — 5.02% | ||||||||
756,400 | FileNet Corp.(a) | 26,345,412 | ||||||
972,675 | Kronos, Inc.(a) | 33,158,491 | ||||||
1,500,500 | Manhattan Associates, Inc.(a)(b) | 36,222,070 | ||||||
95,725,973 | ||||||||
Total Information Technology | 474,968,343 | |||||||
TOTAL COMMON STOCKS | 1,876,621,128 | |||||||
(COST $1,491,554,044) | ||||||||
SHORT TERM INVESTMENTS — 1.39% | ||||||||
INVESTMENT COMPANY — 0.06% | ||||||||
1,068,558 | SEI Daily Income Trust Treasury II Fund — Class B | 1,068,558 | ||||||
Total Investment Companies | 1,068,558 | |||||||
U.S. TREASURY OBLIGATIONS — 1.33% | ||||||||
Public Finance, Taxation, And Monetary Policy — 1.33% | ||||||||
$ | 24,846,000 | 4.653%, 10/05/2006 | 24,833,182 | |||||
455,000 | 4.900%, 10/12/2006 | 454,455 | ||||||
Total U.S. Treasury Obligations | 25,287,637 | |||||||
TOTAL SHORT TERM INVESTMENTS | 26,356,195 | |||||||
(COST $26,356,195) | ||||||||
TOTAL INVESTMENTS — 99.85% | 1,902,977,323 | |||||||
(COST $1,517,910,239) | ||||||||
Other Assets in Excess of Liabilities — 0.15% | 2,882,523 | |||||||
TOTAL NET ASSETS — 100.00% | $ | 1,905,859,846 | ||||||
(a) | Non-Income Producing |
(b) | Affliliated company; the Fund owns 5% or more of the outstanding voting securities of the issuer. |
The accompanying notes are an integral part of these financial statements.
38 |
BUFFALO |
USA GLOBAL FUND |
SCHEDULE OF INVESTMENTS |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
COMMON STOCKS — 95.41% | ||||||||
CONSUMER DISCRETIONARY — 11.92% | ||||||||
Auto Components — 5.18% | ||||||||
117,000 | Gentex Corp. | $ | 1,662,570 | |||||
25,900 | Johnson Controls, Inc. | 1,858,066 | ||||||
3,520,636 | ||||||||
Hotels, Restaurants & Leisure — 4.98% | ||||||||
20,400 | Las Vegas Sands Corp.(a) | 1,394,340 | ||||||
51,000 | McDonald’s Corp. | 1,995,120 | ||||||
3,389,460 | ||||||||
Specialty Retail — 1.76% | ||||||||
36,000 | Tiffany & Co. | 1,195,200 | ||||||
Total Consumer Discretionary | 8,105,296 | |||||||
CONSUMER STAPLES — 12.45% | ||||||||
Beverages — 1.83% | ||||||||
27,900 | The Coca-Cola Co. | 1,246,572 | ||||||
Food Products — 3.17% | ||||||||
46,850 | Wm. Wrigley Jr. Co. | 2,157,911 | ||||||
Household Products — 7.45% | ||||||||
24,700 | Colgate-Palmolive Co. | 1,533,870 | ||||||
24,800 | Kimberly-Clark Corp. | 1,620,928 | ||||||
30,815 | Procter & Gamble Co. | 1,909,914 | ||||||
5,064,712 | ||||||||
Total Consumer Staples | 8,469,195 | |||||||
ENERGY — 2.21% | ||||||||
Energy Equipment & Services — 2.21% | ||||||||
52,900 | Halliburton Co. | 1,505,005 | ||||||
Total Energy | 1,505,005 | |||||||
FINANCIALS — 5.54% | ||||||||
Insurance — 5.54% | ||||||||
42,100 | AFLAC, Inc. | 1,926,496 | ||||||
27,800 | American International Group, Inc. | 1,842,028 | ||||||
Total Financials | 3,768,524 | |||||||
HEALTH CARE — 30.90% | ||||||||
Health Care Equipment & Supplies — 15.98% | ||||||||
51,600 | Baxter International, Inc. | 2,345,736 | ||||||
46,200 | ev3, Inc.(a) | 785,862 | ||||||
36,600 | Mentor Corp. | 1,844,274 | ||||||
22,500 | Millipore Corp.(a) | 1,379,250 | ||||||
22,700 | Sigma-Aldrich Corp. | 1,717,709 | ||||||
14,100 | Varian Medical Systems, Inc.(a) | 752,799 | ||||||
45,000 | Waters Corp.(a) | 2,037,600 | ||||||
10,863,230 | ||||||||
Health Care Providers & Services — 2.68% | ||||||||
68,500 | IMS Health, Inc. | 1,824,840 | ||||||
39 |
BUFFALO |
USA GLOBAL FUND |
SCHEDULE OF INVESTMENTS (continued) |
September 30, 2006 (unaudited) |
SHARES | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
HEALTH CARE (Continued) | ||||||||
Pharmaceuticals — 12.24% | ||||||||
54,600 | Abbott Laboratories | $ | 2,651,376 | |||||
18,100 | Johnson & Johnson | 1,175,414 | ||||||
95,500 | Schering-Plough Corp. | 2,109,595 | ||||||
47,000 | Wyeth | 2,389,480 | ||||||
8,325,865 | ||||||||
Total Health Care | 21,013,935 | |||||||
INDUSTRIALS — 4.31% | ||||||||
Aerospace & Defense — 0.96% | ||||||||
11,700 | Teleflex, Inc. | 650,988 | ||||||
Commercial Services & Supplies — 3.35% | ||||||||
7,700 | Getty Images, Inc.(a) | 382,536 | ||||||
52,600 | Heidrick & Struggles International, Inc.(a) | 1,893,600 | ||||||
2,276,136 | ||||||||
Total Industrials | 2,927,124 | |||||||
INFORMATION TECHNOLOGY — 28.08% | ||||||||
Communications Equipment — 4.90% | ||||||||
76,000 | Cisco Systems, Inc.(a) | 1,748,000 | ||||||
63,400 | Motorola, Inc. | 1,585,000 | ||||||
3,333,000 | ||||||||
Electronic Equipment & Instruments — 3.16% | ||||||||
53,300 | Dolby Laboratories, Inc. — Class A(a) | 1,058,005 | ||||||
27,900 | Molex, Inc. | 1,087,263 | ||||||
2,145,268 | ||||||||
Semiconductor & Semiconductor Equipment — 15.19% | ||||||||
26,500 | Analog Devices, Inc. | 778,835 | ||||||
80,002 | Applied Materials, Inc. | 1,418,435 | ||||||
32,405 | Cabot Microelectronics Corp.(a) | 933,912 | ||||||
70,300 | Entegris, Inc.(a) | 766,973 | ||||||
21,800 | FormFactor, Inc.(a) | 918,434 | ||||||
61,800 | Integrated Device Technology, Inc.(a) | 992,508 | ||||||
86,300 | Intel Corp. | 1,775,191 | ||||||
31,400 | KLA-Tencor Corp. | 1,396,358 | ||||||
57,300 | National Semiconductor Corp. | 1,348,269 | ||||||
10,328,915 | ||||||||
Software — 4.83% | ||||||||
59,800 | Microsoft Corp. | 1,634,334 | ||||||
57,200 | Oracle Corp.(a) | 1,014,728 | ||||||
30,200 | Red Hat, Inc.(a) | 636,616 | ||||||
3,285,678 | ||||||||
Total Information Technology | 19,092,861 | |||||||
TOTAL COMMON STOCKS | 64,881,940 | |||||||
(COST $46,812,052) |
40 |
SHARES OR FACE AMOUNT | MARKET VALUE | |||||||
---|---|---|---|---|---|---|---|---|
SHORT TERM INVESTMENTS — 4.80% | ||||||||
INVESTMENT COMPANY — 1.46% | ||||||||
993,096 | SEI Daily Income Trust Treasury II Fund — Class B | $ | 993,096 | |||||
Total Investment Companies | 993,096 | |||||||
U.S. TREASURY OBLIGATIONS — 3.34% | ||||||||
Public Finance, Taxation, And Monetary Policy — 3.34% | ||||||||
$ | 1,320,000 | 4.653%, 10/05/2006 | 1,319,340 | |||||
954,000 | 4.900%, 10/12/2006 | 952,857 | ||||||
Total U.S. Treasury Obligations | 2,272,197 | |||||||
TOTAL SHORT TERM INVESTMENTS | 3,265,293 | |||||||
(COST $3,265,293) | ||||||||
TOTAL INVESTMENTS — 100.21% | 68,147,233 | |||||||
(COST $50,077,345) | ||||||||
Liabilities in Excess of Other Assets — (0.21)% | (141,695 | ) | ||||||
TOTAL NET ASSETS — 100.00% | $ | 68,005,538 | ||||||
(a) | Non-Income Producing |
The accompanying notes are an integral part of these financial statements.
41 |
STATEMENTS OF ASSETS AND LIABILITIES |
September 30, 2006 (unaudited) |
BUFFALO BALANCED FUND | BUFFALO HIGH YIELD FUND | BUFFALO LARGE CAP FUND | BUFFALO MICRO CAP FUND | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ASSETS: | ||||||||||||||
Investments in securities, at cost: | ||||||||||||||
Investments in securities of unaffiliated issuers | $ | 134,148,747 | $ | 167,849,839 | $ | 41,393,182 | $ | 49,749,683 | ||||||
Investments in securities of affiliated issuers | — | — | — | — | ||||||||||
Total investments, at cost | $ | 134,148,747 | $ | 167,849,839 | $ | 41,393,182 | $ | 49,749,683 | ||||||
Investments in securities, at value: | ||||||||||||||
Investments in securities of unaffiliated issuers | $ | 158,658,428 | $ | 177,407,617 | $ | 50,909,927 | $ | 54,844,553 | ||||||
Investments in securities of affiliated issuers | — | — | — | — | ||||||||||
Total investments, at value | 158,658,428 | 177,407,617 | 50,909,927 | 54,844,553 | ||||||||||
Cash: | — | — | 123,650 | — | ||||||||||
Receivables: | ||||||||||||||
Investments sold | 83,598 | — | — | 319,817 | ||||||||||
Fund shares sold | 1,665,015 | 204,972 | 1,324,043 | 10,929 | ||||||||||
Dividends | 113,059 | — | 21,960 | 6,526 | ||||||||||
Interest | 939,992 | 3,210,863 | 3,272 | 3,953 | ||||||||||
Other assets | 27,357 | 16,533 | 13,214 | 12,308 | ||||||||||
Total assets | 161,487,449 | 180,839,985 | 52,396,066 | 55,198,086 | ||||||||||
LIABILITIES: | ||||||||||||||
Payables: | ||||||||||||||
Investments purchased | 1,070,191 | 100,000 | — | 995,814 | ||||||||||
Fund shares purchased | 306,544 | 236,244 | 66,196 | 43,535 | ||||||||||
Management fees | 150,909 | 150,356 | 41,999 | 63,341 | ||||||||||
Accrued expenses | 1,482 | 1,277 | 404 | 540 | ||||||||||
Total liabilities | 1,529,126 | 487,877 | 108,599 | 1,103,230 | ||||||||||
NET ASSETS | $ | 159,958,323 | $ | 180,352,108 | $ | 52,287,467 | $ | 54,094,856 | ||||||
NET ASSETS CONSIST OF: | ||||||||||||||
Capital (capital stock and paid-in capital) | $ | 137,566,910 | $ | 174,462,504 | $ | 43,232,672 | $ | 45,387,086 | ||||||
Accumulated net investment income (loss) | 109,321 | (938,858 | ) | (26,799 | ) | (282,234 | ) | |||||||
Accumulated net realized gain (loss) from investment transactions | (2,227,589 | ) | (2,729,316 | ) | (435,151 | ) | 3,895,134 | |||||||
Net unrealized appreciation of investments | 24,509,681 | 9,557,778 | 9,516,745 | 5,094,870 | ||||||||||
NET ASSETS APPLICABLE TO OUTSTANDING SHARES | $ | 159,958,323 | $ | 180,352,108 | $ | 52,287,467 | $ | 54,094,856 | ||||||
Capital shares, $1.00 par value: | ||||||||||||||
Authorized | 25,000,000 | 100,000,000 | 10,000,000 | Unlimited | ||||||||||
Outstanding | 14,268,094 | 16,350,519 | 2,603,031 | 4,338,224 | ||||||||||
NET ASSET VALUE PER SHARE | $ | 11.21 | $ | 11.03 | $ | 20.09 | $ | 12.47 | ||||||
The accompanying notes are an integral part of these financial statements.
42 |
BUFFALO MID CAP FUND | BUFFALO SCIENCE & TECHNOLOGY FUND | BUFFALO SMALL CAP FUND | BUFFALO USA GLOBAL FUND | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ASSETS: | ||||||||||||||
Investments in securities, at cost: | ||||||||||||||
Investments in securities of unaffiliated issuers | $ | 315,678,071 | $ | 98,842,668 | $ | 1,328,273,551 | $ | 50,077,345 | ||||||
Investments in securities of affiliated issuers | — | — | 189,636,688 | — | ||||||||||
Total investments, at cost | $ | 315,678,071 | $ | 98,842,668 | $ | 1,517,910,239 | $ | 50,077,345 | ||||||
Investments in securities, at value: | ||||||||||||||
Investments in securities of unaffiliated issuers | $ | 354,778,159 | $ | 115,738,824 | $ | 1,687,611,714 | $ | 68,147,233 | ||||||
Investments in securities of affiliated issuers | — | — | 215,365,609 | — | ||||||||||
Total investments, at value | 354,778,159 | 115,738,824 | 1,902,977,323 | 68,147,233 | ||||||||||
Cash: | 241,656 | — | — | — | ||||||||||
Receivables: | ||||||||||||||
Investments sold | — | 603,080 | 4,269,225 | — | ||||||||||
Fund shares sold | 731,689 | 316,834 | 1,139,107 | 21,982 | ||||||||||
Dividends | 270,495 | 16,158 | 434,098 | 37,971 | ||||||||||
Interest | 3,666 | 3,908 | 3,524 | 3,470 | ||||||||||
Other assets | 22,235 | 14,510 | 45,921 | 13,351 | ||||||||||
Total assets | 356,047,900 | 116,693,314 | 1,908,869,198 | 68,224,007 | ||||||||||
LIABILITIES: | ||||||||||||||
Payables: | ||||||||||||||
Investments purchased | 2,232,539 | 434,832 | — | — | ||||||||||
Fund shares purchased | 317,520 | 106,534 | 1,451,844 | 161,898 | ||||||||||
Management fees | 287,833 | 93,142 | 1,555,371 | 56,210 | ||||||||||
Accrued expenses | 2,591 | 1,066 | 2,137 | 361 | ||||||||||
Total liabilities | 2,840,483 | 635,574 | 3,009,352 | 218,469 | ||||||||||
NET ASSETS | $ | 353,207,417 | $ | 116,057,740 | $ | 1,905,859,846 | $ | 68,005,538 | ||||||
NET ASSETS CONSIST OF: | ||||||||||||||
Capital (capital stock and paid-in capital) | $ | 305,433,346 | $ | 98,456,849 | $ | 1,395,513,852 | $ | 48,486,107 | ||||||
Accumulated net investment income (loss) | (482,119 | ) | (222,160 | ) | (5,465,480 | ) | 13,575 | |||||||
Accumulated net realized gain (loss) from investment transactions | 9,156,102 | 926,895 | 130,744,390 | 1,435,968 | ||||||||||
Net unrealized appreciation of investments | 39,100,088 | 16,896,156 | 385,067,084 | 18,069,888 | ||||||||||
NET ASSETS APPLICABLE TO OUTSTANDING SHARES | $ | 353,207,417 | $ | 116,057,740 | $ | 1,905,859,846 | $ | 68,005,538 | ||||||
Capital shares, $1.00 par value: | ||||||||||||||
Authorized | Unlimited | Unlimited | 100,000,000 | 10,000,000 | ||||||||||
Outstanding | 24,293,459 | 9,006,004 | 70,776,803 | 3,140,222 | ||||||||||
NET ASSET VALUE PER SHARE | $ | 14.54 | $ | 12.89 | $ | 26.93 | $ | 21.66 | ||||||
43 |
STATEMENTS OF OPERATIONS |
Six Months Ended September 30, 2006 (unaudited) |
BUFFALO BALANCED FUND | BUFFALO HIGH YIELD FUND | BUFFALO LARGE CAP FUND | BUFFALO MICRO CAP FUND | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INVESTMENT INCOME: | ||||||||||||||
Interest | $ | 2,093,999 | $ | 6,283,685 | $ | 28,659 | $ | 88,558 | ||||||
Dividends: | ||||||||||||||
Dividends from securities of unaffiliated issuers | 1,021,058 | 178,965 | 244,044 | 49,493 | ||||||||||
Dividends from securities of affiliated issuers (Note 7) | — | — | — | — | ||||||||||
Foreign tax withheld | (1,284 | ) | — | (12,169 | ) | — | ||||||||
Total investment income | 3,113,773 | 6,462,650 | 260,534 | 138,051 | ||||||||||
EXPENSES: | ||||||||||||||
Management fees | 808,011 | 972,543 | 255,780 | 407,085 | ||||||||||
Registration fees | 15,624 | 13,677 | 11,194 | 11,757 | ||||||||||
Other | 2,858 | 3,785 | 1,425 | 1,443 | ||||||||||
Total expenses | 826,493 | 990,005 | 268,399 | 420,285 | ||||||||||
Net investment income (loss) | 2,287,280 | 5,472,645 | (7,865 | ) | (282,234 | ) | ||||||||
NET REALIZED AND UNREALIZED | ||||||||||||||
GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||
Net realized gain (loss) from: | ||||||||||||||
Investment transactions of unaffiliated issuers | 5,932,978 | 445,687 | (43,346 | ) | 2,010,999 | |||||||||
Investment transactions of affiliated issuers (Note 7) | — | — | — | — | ||||||||||
Net unrealized appreciation (depreciation) during the period on investments | (195,826 | ) | (3,981,469 | ) | 1,657,062 | (6,531,271 | ) | |||||||
Net realized and unrealized gain (loss) on investments | 5,737,152 | (3,535,782 | ) | 1,613,716 | (4,520,272 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | $ | 8,024,432 | $ | 1,936,863 | $ | 1,605,851 | $ | (4,802,506 | ) | |||||
The accompanying notes are an integral part of these financial statements.
44 |
BUFFALO MID CAP FUND | BUFFALO SCIENCE & TECHNOLOGY FUND | BUFFALO SMALL CAP FUND | BUFFALO USA GLOBAL FUND | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INVESTMENT INCOME: | ||||||||||||||
Interest | $ | 375,181 | $ | 112,504 | $ | 758,025 | $ | 29,808 | ||||||
Dividends: | ||||||||||||||
Dividends from securities of unaffiliated issuers | 908,301 | 238,563 | 3,435,237 | 370,898 | ||||||||||
Dividends from securities of affiliated issuers (Note 7) | — | — | — | — | ||||||||||
Foreign tax withheld | — | (2,567 | ) | — | — | |||||||||
Total investment income | 1,283,482 | 348,500 | 4,193,262 | 400,706 | ||||||||||
EXPENSES: | ||||||||||||||
Management fees | 1,738,549 | 555,527 | 9,606,212 | 342,797 | ||||||||||
Registration fees | 21,779 | 13,011 | 22,852 | 11,650 | ||||||||||
Other | 5,273 | 2,122 | 29,678 | 1,721 | ||||||||||
Total expenses | 1,765,601 | 570,660 | 9,658,742 | 356,168 | ||||||||||
Net investment income (loss) | (482,119 | ) | (222,160 | ) | (5,465,480 | ) | 44,538 | |||||||
NET REALIZED AND UNREALIZED | ||||||||||||||
GAIN (LOSS) ON INVESTMENTS: | ||||||||||||||
Net realized gain (loss) from: | ||||||||||||||
Investment transactions of unaffiliated issuers | 8,375,935 | 1,299,212 | 56,328,892 | 1,765,994 | ||||||||||
Investment transactions of affiliated issuers (Note 7) | — | — | — | — | ||||||||||
Net unrealized appreciation (depreciation) during the period on investments | (30,140,920 | ) | (3,701,309 | ) | (185,893,539 | ) | (1,063,117 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (21,764,985 | ) | (2,402,097 | ) | (129,564,647 | ) | 702,877 | |||||||
Net increase (decrease) in net assets resulting from operations | $ | (22,247,104 | ) | $ | (2,624,257 | ) | $ | (135,030,127 | ) | $ | 747,415 | |||
45 |
STATEMENTS OF CHANGES IN NET ASSETS |
BUFFALO BALANCED FUND | BUFFALO HIGH YIELD FUND | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | |||||||||||
OPERATIONS: | ||||||||||||||
Net investment income (loss) | $ | 2,287,280 | $ | 4,263,735 | $ | 5,472,645 | $ | 12,725,230 | ||||||
Net realized gain (loss) from investment transactions | 5,932,978 | (1,281,957 | ) | 445,687 | (2,383,005 | ) | ||||||||
Net unrealized appreciation/depreciation during the period on investments | (195,826 | ) | 12,657,152 | (3,981,469 | ) | 5,251,555 | ||||||||
Net increase (decrease) in net assets resulting from operations | 8,024,432 | 15,638,930 | 1,936,863 | 15,593,780 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||
Net investment income | (2,270,678 | ) | (4,218,831 | ) | (5,677,453 | ) | (14,184,363 | ) | ||||||
Net realized gain from investment transactions | — | — | — | — | ||||||||||
Total distributions to shareholders | (2,270,678 | ) | (4,218,831 | ) | (5,677,453 | ) | (14,184,363 | ) | ||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||
Shares sold | 74,256,639 | 33,310,666 | 8,993,455 | 16,197,942 | ||||||||||
Reinvested distributions | 1,569,689 | 2,398,981 | 4,189,517 | 10,209,287 | ||||||||||
75,826,328 | 35,709,647 | 13,182,972 | 26,407,229 | |||||||||||
Redemptions | (71,863,419 | ) | (39,951,183 | ) | (40,679,309 | ) | (121,009,530 | ) | ||||||
Redemption fees (Note 5) | 13,233 | 8,409 | 12,476 | 23,770 | ||||||||||
Shares repurchased | (71,850,186 | ) | (39,942,774 | ) | (40,666,833 | ) | (120,985,760 | ) | ||||||
Net increase (decrease) from capital share transactions | 3,976,142 | (4,233,127 | ) | (27,483,861 | ) | (94,578,531 | ) | |||||||
Total increase (decrease) in net assets | 9,729,896 | 7,186,972 | (31,224,451 | ) | (93,169,114 | ) | ||||||||
NET ASSETS: | ||||||||||||||
Beginning of period | 150,228,427 | 143,041,455 | 211,576,559 | 304,745,673 | ||||||||||
End of period | $ | 159,958,323 | $ | 150,228,427 | $ | 180,352,108 | $ | 211,576,559 | ||||||
Accumulated net investment income (loss) at end of period | $ | 109,321 | $ | 92,719 | $ | (938,858 | ) | $ | (734,050 | ) | ||||
Fund share transactions: | ||||||||||||||
Shares sold | 6,686,800 | 3,230,465 | 815,161 | 1,457,177 | ||||||||||
Reinvested distributions | 144,821 | 230,014 | 384,004 | 922,787 | ||||||||||
6,831,621 | 3,460,479 | 1,199,165 | 2,379,964 | |||||||||||
Shares repurchased | (6,489,645 | ) | (3,861,569 | ) | (3,701,727 | ) | (10,902,915 | ) | ||||||
Net increase (decrease) in fund shares | 341,976 | (401,090 | ) | (2,502,562 | ) | (8,522,951 | ) | |||||||
The accompanying notes are an integral part of these financial statements.
46 |
BUFFALO LARGE CAP FUND | BUFFALO MICRO CAP FUND | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | |||||||||||
OPERATIONS: | ||||||||||||||
Net investment income (loss) | $ | (7,865 | ) | $ | 94,079 | $ | (282,234 | ) | $ | (528,900 | ) | |||
Net realized gain (loss) from investment transactions | (43,346 | ) | 2,909,932 | 2,010,999 | 2,327,975 | |||||||||
Net unrealized appreciation/depreciation during the period on investments | 1,657,062 | 2,477,898 | (6,531,271 | ) | 10,430,092 | |||||||||
Net increase (decrease) in net assets resulting from operations | 1,605,851 | 5,481,909 | (4,802,506 | ) | 12,229,167 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||
Net investment income | (43,455 | ) | (389,126 | ) | — | — | ||||||||
Net realized gain from investment transactions | — | — | — | (220,674 | ) | |||||||||
Total distributions to shareholders | (43,455 | ) | (389,126 | ) | — | (220,674 | ) | |||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||
Shares sold | 4,294,032 | 7,101,566 | 4,249,907 | 17,447,502 | ||||||||||
Reinvested distributions | 42,790 | 383,451 | — | 216,691 | ||||||||||
4,336,822 | 7,485,017 | 4,249,907 | 17,664,193 | |||||||||||
Redemptions | (7,860,569 | ) | (14,630,006 | ) | (6,546,552 | ) | (7,817,054 | ) | ||||||
Redemption fees (Note 5) | 966 | 1,401 | 3,663 | 7,780 | ||||||||||
Shares repurchased | (7,859,603 | ) | (14,628,605 | ) | (6,542,889 | ) | (7,809,274 | ) | ||||||
Net increase (decrease) from capital share transactions | (3,522,781 | ) | (7,143,588 | ) | (2,292,982 | ) | 9,854,919 | |||||||
Total increase (decrease) in net assets | (1,960,385 | ) | (2,050,805 | ) | (7,095,488 | ) | 21,863,412 | |||||||
NET ASSETS: | ||||||||||||||
Beginning of period | 54,247,852 | 56,298,657 | 61,190,344 | 39,326,932 | ||||||||||
End of period | $ | 52,287,467 | $ | 54,247,852 | $ | 54,094,856 | $ | 61,190,344 | ||||||
Accumulated net investment income (loss) at end of period | $ | (26,799 | ) | $ | 24,521 | $ | (282,234 | ) | $ | — | ||||
Fund share transactions: | ||||||||||||||
Shares sold | 220,367 | 387,736 | 332,120 | 1,456,976 | ||||||||||
Reinvested distributions | 2,327 | 21,057 | — | 17,835 | ||||||||||
222,694 | 408,793 | 332,120 | 1,474,811 | |||||||||||
Shares repurchased | (409,160 | ) | (779,812 | ) | (532,131 | ) | (638,931 | ) | ||||||
Net increase (decrease) in fund shares | (186,466 | ) | (371,019 | ) | (200,011 | ) | 835,880 | |||||||
47 |
STATEMENTS OF CHANGES IN NET ASSETS (Continued) |
BUFFALO MID CAP FUND | BUFFALO SCIENCE & TECHNOLOGY FUND | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | |||||||||||
OPERATIONS: | ||||||||||||||
Net investment income (loss) | $ | (482,119 | ) | $ | (484,268 | ) | $ | (222,160 | ) | $ | (322,960 | ) | ||
Net realized gain from investment transactions | 8,375,935 | 3,843,545 | 1,299,212 | 4,892,216 | ||||||||||
Net unrealized appreciation/depreciation during the period on investments | (30,140,920 | ) | 49,583,826 | (3,701,309 | ) | 16,132,661 | ||||||||
Net increase (decrease) in net assets resulting from operations | (22,247,104 | ) | 52,943,103 | (2,624,257 | ) | 20,701,917 | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||
Net investment income | — | — | — | — | ||||||||||
Net realized gain from investment transactions | — | (4,046,261 | ) | (4,140,141 | ) | (318,796 | ) | |||||||
Total distributions to shareholders | — | (4,046,261 | ) | (4,140,141 | ) | (318,796 | ) | |||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||
Shares sold | 112,241,211 | 167,730,423 | 33,675,224 | 55,153,549 | ||||||||||
Reinvested distributions | — | 3,962,223 | 4,110,379 | 316,948 | ||||||||||
112,241,211 | 171,692,646 | 37,785,603 | 55,470,497 | |||||||||||
Redemptions | (81,022,885 | ) | (47,276,634 | ) | (26,307,416 | ) | (27,228,376 | ) | ||||||
Redemption fees (Note 5) | 29,795 | 13,943 | 12,452 | 16,300 | ||||||||||
Shares repurchased | (80,993,090 | ) | (47,262,691 | ) | (26,294,964 | ) | (27,212,076 | ) | ||||||
Net increase (decrease) from capital share transactions | 31,248,121 | 124,429,955 | 11,490,639 | 28,258,421 | ||||||||||
Total increase (decrease) in net assets | 9,001,017 | 173,326,797 | 4,726,241 | 48,641,542 | ||||||||||
NET ASSETS: | ||||||||||||||
Beginning of period | 344,206,400 | 170,879,603 | 111,331,499 | 62,689,957 | ||||||||||
End of period | $ | 353,207,417 | $ | 344,206,400 | $ | 116,057,740 | $ | 111,331,499 | ||||||
Accumulated net investment income (loss) at end of period | $ | (482,119 | ) | $ | — | $ | (222,160 | ) | $ | — | ||||
Fund share transactions: | ||||||||||||||
Shares sold | 7,775,122 | 11,766,729 | 2,623,108 | 4,510,858 | ||||||||||
Reinvested distributions | — | 276,113 | 350,715 | 25,581 | ||||||||||
7,775,122 | 12,042,842 | 2,973,823 | 4,536,439 | |||||||||||
Shares repurchased | (5,752,426 | ) | (3,398,331 | ) | (2,109,002 | ) | (2,239,708 | ) | ||||||
Net increase (decrease) in fund shares | 2,022,696 | 8,644,511 | 864,821 | 2,296,731 | ||||||||||
The accompanying notes are an integral part of these financial statements.
48 |
BUFFALO SMALL CAP FUND | BUFFALO USA GLOBAL FUND | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | |||||||||||
OPERATIONS: | ||||||||||||||
Net investment income (loss) | $ | (5,465,480 | ) | $ | (8,125,377 | ) | $ | 44,538 | $ | 175,332 | ||||
Net realized gain from investment transactions | 56,328,892 | 150,999,095 | 1,765,994 | 1,138,137 | ||||||||||
Net unrealized appreciation/depreciation during the period on investments | (185,893,539 | ) | 249,951,329 | (1,063,117 | ) | 8,613,849 | ||||||||
Net increase (decrease) in net assets resulting from operations | (135,030,127 | ) | 392,825,047 | 747,415 | 9,927,318 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||
Net investment income | — | — | (87,449 | ) | (261,971 | ) | ||||||||
Net realized gain from investment transactions | — | (206,466,742 | ) | — | — | |||||||||
Total distributions to shareholders | — | (206,466,742 | ) | (87,449 | ) | (261,971 | ) | |||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||
Shares sold | 202,968,139 | 384,727,706 | 4,121,778 | 8,205,574 | ||||||||||
Reinvested distributions | — | 199,907,371 | 85,282 | 256,036 | ||||||||||
202,968,139 | 584,635,077 | 4,207,060 | 8,461,610 | |||||||||||
Redemptions | (278,362,260 | ) | (500,812,102 | ) | (9,975,321 | ) | (18,996,105 | ) | ||||||
Redemption fees (Note 5) | 110,766 | 144,628 | 1,327 | 4,649 | ||||||||||
Shares repurchased | (278,251,494 | ) | (500,667,474 | ) | (9,973,994 | ) | (18,991,456 | ) | ||||||
Net increase (decrease) from capital share transactions | (75,283,355 | ) | 83,967,603 | (5,766,934 | ) | (10,529,846 | ) | |||||||
Total increase (decrease) in net assets | (210,313,482 | ) | 270,325,908 | (5,106,968 | ) | (864,499 | ) | |||||||
NET ASSETS: | ||||||||||||||
Beginning of period | 2,116,173,328 | 1,845,847,420 | 73,112,506 | 73,977,005 | ||||||||||
End of period | $ | 1,905,859,846 | $ | 2,116,173,328 | $ | 68,005,538 | $ | 73,112,506 | ||||||
Accumulated net investment income (loss) at end of period | $ | (5,465,480 | ) | $ | — | $ | 13,575 | $ | 56,486 | |||||
Fund share transactions: | ||||||||||||||
Shares sold | 7,735,915 | 14,061,641 | 195,263 | 408,755 | ||||||||||
Reinvested distributions | — | 7,839,505 | 4,259 | 12,883 | ||||||||||
7,735,915 | 21,901,146 | 199,522 | 421,638 | |||||||||||
Shares repurchased | (10,665,882 | ) | (18,378,706 | ) | (477,756 | ) | (934,449 | ) | ||||||
Net increase (decrease) in fund shares | (2,929,967 | ) | 3,522,440 | (278,234 | ) | (512,811 | ) | |||||||
49 |
FINANCIAL HIGHLIGHTS |
BUFFALO BALANCED FUND | ||||||||||||||||||||
Condensed data for a share of capital | SIX MONTHS ENDED SEPTEMBER 30, 2006 | YEARS ENDED MARCH 31, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
stock outstanding throughout the period. | (UNAUDITED) | 2006 | 2005 | 2004 | 2003 | 2002(1) | ||||||||||||||
Net asset value, beginning of period | $ | 10.79 | $ | 9.98 | $ | 9.38 | $ | 7.27 | $ | 9.27 | $ | 8.97 | ||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income | 0.15 | 0.30 | 0.29 | 0.29 | 0.20 | 0.33 | ||||||||||||||
Net gains (losses) on securities | ||||||||||||||||||||
(both realized and unrealized) | 0.42 | 0.81 | 0.62 | 2.12 | (1.99 | ) | 0.23 | |||||||||||||
Total from investment operations | 0.57 | 1.11 | 0.91 | 2.41 | (1.79 | ) | 0.56 | |||||||||||||
Less dividends from net investment income | (0.15 | ) | (0.30 | ) | (0.31 | ) | (0.30 | ) | (0.21 | ) | (0.26 | ) | ||||||||
Paid-in capital from redemption fees (Note 5) | — | (2) | — | (2) | — | (2) | — | — | — | |||||||||||
Net asset value, end of period | $ | 11.21 | $ | 10.79 | $ | 9.98 | $ | 9.38 | $ | 7.27 | $ | 9.27 | ||||||||
Total return* | 5.33 | % | 11.23 | % | 9.75 | % | 33.50 | % | (19.32 | %) | 6.48 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 159,958 | $ | 150,228 | $ | 143,041 | $ | 77,275 | $ | 18,050 | $ | 22,869 | ||||||||
Ratio of expenses to average net assets** | 1.02 | % | 1.03 | % | 1.03 | % | 1.05 | % | 1.10 | % | 1.08 | % | ||||||||
Ratio of net investment income | ||||||||||||||||||||
to average net assets** | 2.83 | % | 2.89 | % | 3.13 | % | 3.47 | % | 2.60 | % | 2.71 | % | ||||||||
Portfolio turnover rate* | 16 | % | 18 | % | 30 | % | 32 | % | 45 | % | 12 | % |
* | Not annualized for periods of less than one full year. |
** | Annualized for periods less than one full year. |
(1) | As required, effective April 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on debt securities. The effect of this change for the period ended March 31, 2002 was to decrease net investment income per share by less than 1/2 of a cent, increase net realized and unrealized gains and losses per share by less than 1/2 of a cent, and the ratio of net investment income to average net assets per share was unchanged. |
(2) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
50 |
FINANCIAL HIGHLIGHTS |
BUFFALO HIGH YIELD FUND | ||||||||||||||||||||
Condensed data for a share of capital | SIX MONTHS ENDED SEPTEMBER 30, 2006 | YEARS ENDED MARCH 31, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
stock outstanding throughout the period. | (UNAUDITED) | 2006 | 2005 | 2004 | 2003 | 2002(1) | ||||||||||||||
Net asset value, beginning of period | $ | 11.22 | $ | 11.13 | $ | 11.24 | $ | 9.86 | $ | 9.87 | $ | 10.24 | ||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income | 0.31 | 0.58 | 0.42 | 0.43 | 0.55 | 0.73 | ||||||||||||||
Net gains (losses) on securities | ||||||||||||||||||||
(both realized and unrealized) | (0.17 | ) | 0.16 | (0.09 | ) | 1.37 | 0.01 | (0.34 | ) | |||||||||||
Total from investment operations | 0.14 | 0.74 | 0.33 | 1.80 | 0.56 | 0.39 | ||||||||||||||
Less dividends from net investment income | (0.33 | ) | (0.65 | ) | (0.44 | ) | (0.43 | ) | (0.57 | ) | (0.76 | ) | ||||||||
Paid-in capital from redemption fees (Note 5) | — | (2) | — | (2) | — | (2) | 0.01 | — | — | |||||||||||
Net asset value, end of period | $ | 11.03 | $ | 11.22 | $ | 11.13 | $ | 11.24 | $ | 9.86 | $ | 9.87 | ||||||||
Total return* | 1.29 | % | 6.82 | % | 2.96 | % | 18.56 | % | 5.95 | % | 3.95 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 180,352 | $ | 211,577 | $ | 304,746 | $ | 324,123 | $ | 143,008 | $ | 69,857 | ||||||||
Ratio of expenses to average net assets** | 1.02 | % | 1.02 | % | 1.02 | % | 1.03 | % | 1.03 | % | 1.04 | % | ||||||||
Ratio of net investment income | ||||||||||||||||||||
to average net assets** | 5.63 | % | 5.03 | % | 3.71 | % | 3.89 | % | 6.24 | % | 7.63 | % | ||||||||
Portfolio turnover rate* | 3 | % | 28 | % | 45 | % | 51 | % | 33 | % | 36 | % |
* | Not annualized for periods of less than one full year. |
** | Annualized for periods less than one full year. |
(1) | As required, effective April 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premiums on debt securities. The effect of this change for the period ended March 31, 2002 was to decrease net investment income per share by less than 1/2 of a cent, increase net realized and unrealized gains and losses per share by less than 1/2 of a cent, and decrease the ratio of net investment income to average net assets from 7.73% to 7.63%. |
(2) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
51 |
FINANCIAL HIGHLIGHTS |
BUFFALO LARGE CAP FUND | ||||||||||||||||||||
Condensed data for a share of capital | SIX MONTHS ENDED SEPTEMBER 30, 2006 | YEARS ENDED MARCH 31, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
stock outstanding throughout the period. | (UNAUDITED) | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
Net asset value, beginning of period | $ | 19.45 | $ | 17.81 | $ | 17.57 | $ | 12.57 | $ | 18.14 | $ | 17.99 | ||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income (loss) | — | 0.03 | 0.12 | 0.01 | 0.03 | (0.03 | ) | |||||||||||||
Net gains (losses) on securities | ||||||||||||||||||||
(both realized and unrealized) | 0.66 | 1.73 | 0.15 | 5.02 | (5.60 | ) | 0.39 | |||||||||||||
Total from investment operations | 0.66 | 1.76 | 0.27 | 5.03 | (5.57 | ) | 0.36 | |||||||||||||
Less distributions: | ||||||||||||||||||||
Dividends from net investment income | (0.02 | ) | (0.12 | ) | (0.03 | ) | (0.03 | ) | — | (0.01 | ) | |||||||||
Distributions from capital gains | — | — | — | — | — | (0.20 | ) | |||||||||||||
Total distributions | (0.02 | ) | (0.12 | ) | (0.03 | ) | (0.03 | ) | — | (0.21 | ) | |||||||||
Paid-in capital from redemption fees (Note 5) | — | (1) | — | (1) | — | (1) | — | — | — | |||||||||||
Net asset value, end of period | $ | 20.09 | $ | 19.45 | $ | 17.81 | $ | 17.57 | $ | 12.57 | $ | 18.14 | ||||||||
Total return* | 3.38 | % | 9.95 | % | 1.52 | % | 40.05 | % | (30.71 | %) | 2.06 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 52,287 | $ | 54,248 | $ | 56,299 | $ | 57,657 | $ | 35,664 | $ | 53,708 | ||||||||
Ratio of expenses to average net assets** | 1.05 | % | 1.04 | % | 1.05 | % | 1.04 | % | 1.06 | % | 1.06 | % | ||||||||
Ratio of net investment income (loss) | ||||||||||||||||||||
to average net assets** | (0.03 | %) | 0.16 | % | 0.64 | % | 0.10 | % | 0.21 | % | (0.17 | %) | ||||||||
Portfolio turnover rate* | 10 | % | 40 | % | 17 | % | 41 | % | 16 | % | 7 | % |
* | Not annualized for periods of less than one full year. |
** | Annualized for periods less than one full year. |
(1) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
52 |
FINANCIAL HIGHLIGHTS |
BUFFALO MICRO CAP FUND | |||||||||||
Condensed data for a share of capital stock outstanding throughout the period. | SIX MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED) | YEAR ENDED MARCH 31, 2006 | FOR THE PERIOD FROM MAY 21, 2004 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, 2005 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Net asset value, beginning of period | $ | 13.48 | $ | 10.62 | $ | 10.00 | |||||
Income from investment operations: | |||||||||||
Net investment loss | (0.07 | ) | (0.12 | ) | (0.07 | ) | |||||
Net gains (losses) on securities (both realized and unrealized) | (0.94 | ) | 3.03 | 0.66 | |||||||
Total from investment operations | (1.01 | ) | 2.91 | 0.59 | |||||||
Less distributions from capital gains | — | (0.05 | ) | — | |||||||
Paid-in capital from redemption fees (Note 5) | — | (1) | — | (1) | 0.03 | ||||||
Net asset value, end of period | $ | 12.47 | $ | 13.48 | $ | 10.62 | |||||
Total return* | (7.49 | %) | 27.48 | % | 6.20 | % | |||||
Ratios/Supplemental Data | |||||||||||
Net assets, end of period (in thousands) | $ | 54,095 | $ | 61,190 | $ | 39,327 | |||||
Ratio of expenses to average net assets** | 1.50 | % | 1.51 | % | 1.58 | % | |||||
Ratio of net investment loss to average net assets** | (1.01 | %) | (1.09 | %) | (1.14 | %) | |||||
Portfolio turnover rate* | 21 | % | 50 | % | 28 | % |
* | Not annualized for periods less than one full year. |
** | Annualized for periods less than one full year. |
(1) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
53 |
FINANCIAL HIGHLIGHTS |
BUFFALO MID CAP FUND | ||||||||||||||||||||
Condensed data for a share of capital | SIX MONTHS ENDED SEPTEMBER 30, 2006 | YEARS ENDED MARCH 31, | FOR THE PERIOD FROM DECEMBER 17, 2001 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
stock outstanding throughout the period. | (UNAUDITED) | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
Net asset value, beginning of period | $ | 15.46 | $ | 12.54 | $ | 12.43 | $ | 7.54 | $ | 10.12 | $ | 10.00 | ||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment loss | (0.02 | ) | (0.02 | ) | (0.04 | ) | (0.04 | ) | (0.04 | ) | (0.01 | ) | ||||||||
Net gains (losses) on securities | ||||||||||||||||||||
(both realized and unrealized) | (0.90 | ) | 3.17 | 0.31 | 4.93 | (2.54 | ) | 0.13 | ||||||||||||
Total from investment operations | (0.92 | ) | 3.15 | 0.27 | 4.89 | (2.58 | ) | 0.12 | ||||||||||||
Less distributions from capital gains | — | (0.23 | ) | (0.16 | ) | — | — | — | ||||||||||||
Paid-in capital from | ||||||||||||||||||||
redemption fees (Note 5) | — | (1) | — | (1) | — | (1) | — | — | — | |||||||||||
Net asset value, end of period | $ | 14.54 | $ | 15.46 | $ | 12.54 | $ | 12.43 | $ | 7.54 | $ | 10.12 | ||||||||
Total return* | (5.95 | %) | 25.21 | % | 2.15 | % | 64.85 | % | (25.49 | %) | 1.20 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 353,207 | $ | 344,206 | $ | 170,880 | $ | 112,070 | $ | 39,193 | $ | 31,755 | ||||||||
Ratio of expenses to average net assets** | 1.02 | % | 1.02 | % | 1.03 | % | 1.03 | % | 1.10 | % | 1.16 | % | ||||||||
Ratio of net investment loss | ||||||||||||||||||||
to average net assets** | (0.28 | %) | (0.21 | %) | (0.39 | %) | (0.48 | %) | (0.59 | %) | (0.71 | %) | ||||||||
Portfolio turnover rate* | 13 | % | 19 | % | 21 | % | 24 | % | 8 | % | 3 | % |
* | Not annualized for periods less than one full year. |
** | Annualized for periods less than one full year. |
(1) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
54 |
FINANCIAL HIGHLIGHTS |
BUFFALO SCIENCE & TECHNOLOGY FUND | ||||||||||||||||||||
Condensed data for a share of capital | SIX MONTHS ENDED SEPTEMBER 30, 2006 | YEARS ENDED MARCH 31, | FOR THE PERIOD FROM APRIL 16, 2001 (COMMENCEMENT OF OPERATIONS) TO MARCH 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
stock outstanding throughout the period. | (UNAUDITED) | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
Net asset value, beginning of period | $ | 13.68 | $ | 10.73 | $ | 11.04 | $ | 6.01 | $ | 10.18 | $ | 10.00 | ||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment loss | (0.03 | ) | (0.04 | ) | (0.02 | ) | (0.04 | ) | (0.05 | ) | (0.05 | ) | ||||||||
Net gains (losses) on securities | ||||||||||||||||||||
(both realized and unrealized) | (0.29 | ) | 3.04 | (0.29 | ) | 5.07 | (4.12 | ) | 0.23 | |||||||||||
Total from investment operations | (0.32 | ) | 3.00 | (0.31 | ) | 5.03 | (4.17 | ) | 0.18 | |||||||||||
Less distributions from capital gains | (0.47 | ) | (0.05 | ) | — | — | — | — | ||||||||||||
Paid-in capital from | ||||||||||||||||||||
redemption fees (Note 5) | — | (1) | — | (1) | — | (1) | — | — | — | |||||||||||
Net asset value, end of period | $ | 12.89 | $ | 13.68 | $ | 10.73 | $ | 11.04 | $ | 6.01 | $ | 10.18 | ||||||||
Total return* | (1.98 | %) | 27.96 | % | (2.81 | %) | 83.69 | % | (40.96 | %) | 1.80 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 116,058 | $ | 111,331 | $ | 62,690 | $ | 34,924 | $ | 14,537 | $ | 18,512 | ||||||||
Ratio of expenses to average net assets** | 1.03 | % | 1.03 | % | 1.05 | % | 1.03 | % | 1.23 | % | 1.17 | % | ||||||||
Ratio of net investment loss | ||||||||||||||||||||
to average net assets** | (0.40 | %) | (0.40 | %) | (0.24 | %) | (0.55 | %) | (0.73 | %) | (0.77 | %) | ||||||||
Portfolio turnover rate* | 22 | % | 46 | % | 25 | % | 38 | % | 26 | % | 4 | % |
* | Not annualized for periods less than one full year. |
** | Annualized for periods less than one full year. |
(1) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
55 |
FINANCIAL HIGHLIGHTS |
BUFFALO SMALL CAP FUND | ||||||||||||||||||||
Condensed data for a share of capital | SIX MONTHS ENDED SEPTEMBER 30, 2006 | YEARS ENDED MARCH 31, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
stock outstanding throughout the period. | (UNAUDITED) | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
Net asset value, beginning of period | $ | 28.71 | $ | 26.30 | $ | 25.70 | $ | 13.79 | $ | 21.08 | $ | 14.97 | ||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment loss | (0.08 | ) | (0.11 | ) | (0.07 | ) | (0.10 | ) | (0.10 | ) | (0.03 | ) | ||||||||
Net gains (losses) on securities | ||||||||||||||||||||
(both realized and unrealized) | (1.70 | ) | 5.63 | 1.56 | 12.21 | (7.16 | ) | 6.17 | ||||||||||||
Total from investment operations | (1.78 | ) | 5.52 | 1.49 | 12.11 | (7.26 | ) | 6.14 | ||||||||||||
Less distributions: | ||||||||||||||||||||
Dividends from net investment income | — | — | (0.02 | ) | — | — | — | |||||||||||||
Distributions from capital gains | — | (3.11 | ) | (0.87 | ) | (0.20 | ) | (0.03 | ) | (0.03 | ) | |||||||||
Total distributions | — | (3.11 | ) | (0.89 | ) | (0.20 | ) | (0.03 | ) | (0.03 | ) | |||||||||
Paid-in capital from redemption fees (Note 5) | — | (1) | — | (1) | — | (1) | — | — | — | |||||||||||
Net asset value, end of period | $ | 26.93 | $ | 28.71 | $ | 26.30 | $ | 25.70 | $ | 13.79 | $ | 21.08 | ||||||||
Total return* | (6.20 | %) | 22.46 | % | 5.75 | % | 88.07 | % | (34.49 | %) | 41.04 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,905,860 | $ | 2,116,173 | $ | 1,845,847 | $ | 1,704,869 | $ | 685,634 | $ | 1,285,143 | ||||||||
Ratio of expenses to average net assets** | 1.01 | % | 1.01 | % | 1.01 | % | 1.01 | % | 1.02 | % | 1.01 | % | ||||||||
Ratio of net investment loss | ||||||||||||||||||||
to average net assets** | (0.57 | %) | (0.42 | %) | (0.28 | %) | (0.53 | %) | (0.55 | %) | (0.44 | %) | ||||||||
Portfolio turnover rate* | 8 | % | 27 | % | 35 | % | 22 | % | 24 | % | 6 | % |
* | Not annualized for periods of less than one full year. |
** | Annualized for periods less than one full year. |
(1) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
56 |
FINANCIAL HIGHLIGHTS |
BUFFALO USA GLOBAL FUND | ||||||||||||||||||||
Condensed data for a share of capital | SIX MONTHS ENDED SEPTEMBER 30, 2006 | YEARS ENDED MARCH 31, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
stock outstanding throughout the period. | (UNAUDITED) | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
Net asset value, beginning of period | $ | 21.39 | $ | 18.82 | $ | 19.18 | $ | 13.04 | $ | 18.84 | $ | 17.48 | ||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.02 | 0.05 | 0.12 | 0.02 | (0.01 | ) | (0.06 | ) | ||||||||||||
Net gains (losses) on securities | ||||||||||||||||||||
(both realized and unrealized) | 0.28 | 2.59 | (0.37 | ) | 6.12 | (5.79 | ) | 1.42 | ||||||||||||
Total from investment operations | 0.30 | 2.64 | (0.25 | ) | 6.14 | (5.80 | ) | 1.36 | ||||||||||||
Less dividends from net investment income | (0.03 | ) | (0.07 | ) | (0.11 | ) | — | — | — | |||||||||||
Paid-in capital from redemption fees (Note 5) | — | (1) | — | (1) | — | (1) | — | — | — | |||||||||||
Net asset value, end of period | $ | 21.66 | $ | 21.39 | $ | 18.82 | $ | 19.18 | $ | 13.04 | $ | 18.84 | ||||||||
Total return* | 1.40 | % | 14.05 | % | (1.30 | %) | 47.11 | % | (30.79 | %) | 7.78 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 68,006 | $ | 73,113 | $ | 73,977 | $ | 79,192 | $ | 60,735 | $ | 72,579 | ||||||||
Ratio of expenses to average net assets** | 1.04 | % | 1.04 | % | 1.04 | % | 1.03 | % | 1.04 | % | 1.05 | % | ||||||||
Ratio of net investment income (loss) | ||||||||||||||||||||
to average net assets** | 0.13 | % | 0.23 | % | 0.67 | % | 0.14 | % | (0.10 | %) | (0.39 | %) | ||||||||
Portfolio turnover rate* | 5 | % | 11 | % | 33 | % | 21 | % | 7 | % | 6 | % |
* | Not annualized for periods of less than one full year. |
** | Annualized for periods less than one full year. |
(1) | Less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
57 |
NOTES TO FINANCIAL STATEMENTS |
September 30, 2006 (unaudited) |
1. SIGNIFICANT ACCOUNTING POLICIES:
The Buffalo Balanced Fund, Inc., Buffalo High Yield Fund, Inc., Buffalo Large Cap Fund, Inc., Buffalo Funds (comprised of the Buffalo Micro Cap Fund, Buffalo Mid Cap Fund and Buffalo Science & Technology Fund), Buffalo Small Cap Fund, Inc. and Buffalo USA Global Fund, Inc. (the “Funds”) are registered under the Investment Company Act of 1940, as amended, as diversified open-end management investment companies. The shares of the Buffalo Funds are issued in multiple series, with each series, in effect, representing a separate Fund. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.
A. INVESTMENT VALUATION — Corporate stocks and bonds 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. 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 closing bid price on such day.
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 Boards of Directors/Trustees (the “Board”). If events occur that will affect the value of a Fund’s portfolio securities before the NAV has been calculated, 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 a 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 the disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased or sold. As of September 30, 2006, the Buffalo Balanced Fund and Buffalo High Yield Fund held fair valued securities with market values of $249,517 and $361,781, respectively or 0.16% and 0.20% of total net assets, respectively.
Debt securities with remaining maturities of 60 days or less are normally valued at amortized cost, unless the Board determines that amortized cost does not represent fair value.
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 to make the requisite distributions of income and capital gains to its shareholders sufficient to relieve it from all or substantially all federal income taxes. Therefore, no federal income tax provision has been provided.
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. 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. These differences are primarily due to differing treatments for premium amortization on debt securities and deferral of post October and wash sale losses.
E. USE OF ESTIMATES — The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. INDEMNIFICATIONS — Under the Funds’ organizational documents, officers and directors/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.
58 |
G. RECENT ACCOUNTING PRONOUNCEMENTS — On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined.
In September 2006, the Financial Accounting Standards Board (FASB) released FASB Statement No. 157 “Fair Value Measurements” (FAS 157). FAS 157 establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), clarifies the definition of fair value within that framework, and expands disclosure requirements about the use of fair value measurements Adoption of FAS 157 is required for fiscal years beginning after November 15, 2007. At this time, the Funds are evaluating the implications of FAS 157, and its impact on the financial statements has not yet been determined.
2. FEDERAL TAX MATTERS:
The tax character of distributions paid during the periods ended September 30, 2006 and March 31, 2006 were as follows:
PERIOD ENDED SEPTEMBER 30, 2006 | YEAR ENDED MARCH 31, 2006 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ORDINARY INCOME | LONG-TERM CAPITAL GAINS | RETURN OF CAPITAL | ORDINARY INCOME | LONG-TERM CAPITAL GAINS | RETURN OF CAPITAL | |||||||||||||||
Buffalo Balanced Fund | $ | 2,270,678 | $ | — | $ | — | $ | 4,218,831 | $ | — | $ | — | ||||||||
Buffalo High Yield Fund | 5,677,453 | — | — | 14,184,363 | — | — | ||||||||||||||
Buffalo Large Cap Fund | 43,455 | — | — | 389,126 | — | — | ||||||||||||||
Buffalo Micro Cap Fund | — | — | — | 220,651 | 23 | — | ||||||||||||||
Buffalo Mid Cap Fund | — | — | — | 1,297,965 | 2,748,296 | — | ||||||||||||||
Buffalo Science & Technology Fund | 238,773 | 3,901,368 | — | — | 318,796 | — | ||||||||||||||
Buffalo Small Cap Fund | — | — | — | 11,390,003 | 195,076,739 | — | ||||||||||||||
Buffalo USA Global Fund | 87,449 | — | — | 261,971 | — | — |
The tax characteristics of the distributions paid for the six months ended September 30, 2006 are estimated based on current period results and may differ from their ultimate classification once the Funds have completed their tax year ending March 31, 2007.
As of March 31, 2006, the components of accumulated earnings on a tax basis were as follows:
BUFFALO BALANCED FUND | BUFFALO HIGH YIELD FUND | BUFFALO LARGE CAP FUND | BUFFALO MICRO CAP FUND | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost of Investments(a) | $ | 124,730,142 | $ | 196,714,862 | $ | 46,489,482 | $ | 49,484,069 | ||||||
Gross unrealized appreciation | 26,887,057 | 15,553,103 | 9,918,607 | 13,364,716 | ||||||||||
Gross unrealized depreciation | (2,349,664 | ) | (3,773,377 | ) | (2,061,409 | ) | (1,745,896 | ) | ||||||
Net unrealized appreciation | $ | 24,537,393 | $ | 11,779,726 | $ | 7,857,198 | $ | 11,618,820 | ||||||
Undistributed ordinary income | 124,976 | 513,717 | 24,521 | — | ||||||||||
Undistributed long-term capital gain | — | — | — | 1,891,456 | ||||||||||
Total distributable earnings | $ | 124,976 | $ | 513,717 | $ | 24,521 | $ | 1,891,456 | ||||||
Other accumulated losses | (8,024,710 | ) | (2,663,249 | ) | (389,320 | ) | — | |||||||
Total accumulated earnings | $ | 16,637,659 | $ | 9,630,194 | $ | 7,492,399 | $ | 13,510,276 | ||||||
(a) | Represents cost for federal income tax purposes and differs from the cost for financial reporting purposes. |
59 |
NOTES TO FINANCIAL STATEMENTS (Continued) |
BUFFALO MID CAP FUND | BUFFALO SCIENCE & TECHNOLOGY FUND | BUFFALO SMALL CAP FUND | BUFFALO USA GLOBAL FUND | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost of Investments(a) | $ | 273,588,368 | $ | 91,668,136 | $ | 1,552,913,914 | $ | 54,389,659 | ||||||
Gross unrealized appreciation | 73,892,721 | 22,603,478 | 611,827,823 | 19,983,810 | ||||||||||
Gross unrealized depreciation | (4,651,713 | ) | (2,378,409 | ) | (41,804,592 | ) | (1,156,714 | ) | ||||||
Net unrealized appreciation | $ | 69,241,008 | $ | 20,225,069 | $ | 570,023,231 | $ | 18,827,096 | ||||||
Undistributed ordinary income | 58,754 | 238,846 | — | 56,486 | ||||||||||
Undistributed long-term capital gain | 721,413 | 3,901,374 | 75,352,890 | — | ||||||||||
Total distributable earnings | $ | 780,167 | $ | 4,140,220 | $ | 75,352,890 | $ | 56,486 | ||||||
Other accumulated losses | — | — | — | (24,117 | ) | |||||||||
Total accumulated earnings | $ | 70,021,175 | $ | 24,365,289 | $ | 645,376,121 | $ | 18,859,465 | ||||||
(a) | Represents cost for federal income tax purposes and differs from the cost for financial reporting purposes. |
As of March 31, 2006, the accumulated net realized loss on sales of investments and losses deferred for federal income tax purposes which are available to offset future taxable gains are as follows:
CAPITAL LOSS CARRYOVER | EXPIRES | |||||||
---|---|---|---|---|---|---|---|---|
Buffalo Balanced Fund | $ | 2,546,950 | 2007 | |||||
2,192,010 | 2009 | |||||||
226,010 | 2011 | |||||||
601,388 | 2012 | |||||||
29,360 | 2013 | |||||||
1,081,859 | 2014 | |||||||
Buffalo High Yield Fund | 114,829 | 2011 | ||||||
1,156,011 | 2014 | |||||||
Buffalo Large Cap Fund | 389,320 | 2012 | ||||||
Buffalo USA Global Fund | 24,117 | 2011 |
The Buffalo Balanced Fund and Buffalo High Yield Fund incurred a loss for tax purposes from November 1, 2005 to March 31, 2006 in the amounts of $1,347,133 and $1,392,409, respectively. As permitted by tax regulations, the Funds elected to defer and treat the loss as arising in the fiscal year ended March 31, 2007.
For the fiscal year ended March 31, 2006, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from net investment income designated as qualified dividend income for each Fund were as follows (unaudited):
Buffalo Balanced Fund | 43 | % | |||
Buffalo High Yield Fund | 7 | % | |||
Buffalo Large Cap Fund | 100 | % | |||
Buffalo Micro Cap Fund | 13 | % | |||
Buffalo Mid Cap Fund | 39 | % | |||
Buffalo Small Cap Fund | 25 | % | |||
Buffalo USA Global Fund | 100 | % |
For corporate shareholders, the percentage of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended March 31, 2006 were as follows (unaudited):
Buffalo Balanced Fund | 40 | % | |||
Buffalo High Yield Fund | 5 | % | |||
Buffalo Large Cap Fund | 100 | % | |||
Buffalo Micro Cap Fund | 12 | % | |||
Buffalo Mid Cap Fund | 30 | % | |||
Buffalo Small Cap Fund | 22 | % | |||
Buffalo USA Global Fund | 100 | % |
60 |
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each Fund for the fiscal year ended March 31, 2006 were as follows (unaudited):
Buffalo Balanced Fund | 63 | % | |||
Buffalo High Yield Fund | 88 | % | |||
Buffalo Large Cap Fund | 2 | % | |||
Buffalo Micro Cap Fund | 8 | % | |||
Buffalo Mid Cap Fund | 4 | % | |||
Buffalo Small Cap Fund | 4 | % | |||
Buffalo USA Global Fund | 3 | % |
The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each Fund for the fiscal year ended March 31, 2006 were as follows (unaudited):
Buffalo Micro Cap Fund | 100 | % | |||
Buffalo Mid Cap Fund | 100 | % | |||
Buffalo Small Cap Fund | 100 | % |
3. TRANSACTIONS WITH AFFILIATES:
Management fees are paid to Kornitzer Capital Management, Inc. at the rate of 1.00% per annum of the average daily net asset values of the Funds or series, except for the Buffalo Micro Cap Fund, which has a management fee rate of 1.45%. The management fees are for services, which include administration and all other operating expenses of the Funds, except the cost of acquiring and disposing of portfolio securities, taxes, if any, imposed directly on the Funds or series and their shares, insurance, certain director expenses and the cost of qualifying the Funds’ or series’ shares for sale in any jurisdiction. Certain officers and a director/trustee of the Funds are also officers and/or directors of Kornitzer Capital Management, Inc.
A director/trustee of the Funds is affiliated with U.S. Bancorp Fund Services, LLC and U.S. Bank, N.A., which provide accounting, administration, transfer agency and custodian services to the Funds.
4. AGGREGATE COMPENSATION TO DIRECTORS/TRUSTEES:
The Buffalo Funds do not directly compensate any of their directors or trustees. U.S. Bancorp Fund Services, LLC pays director/trustee fees to non-interested Board members from its share of the management fee that it receives from Kornitzer Capital Management, Inc. The aggregate compensation paid to the Funds’ non-interested directors/trustees for their service on the Funds’ Boards for the fiscal year ended March 31, 2006 was $49,600. Interested directors/trustees who are affiliated with either the advisor or the Funds’ service providers do not receive any compensation from the Funds, but are compensated directly by the advisor or service provider in connection with their employment with those entities.
5. REDEMPTION FEE:
Shares of the Buffalo Balanced Fund, Buffalo Large Cap Fund, Buffalo Mid Cap Fund, Buffalo Science & Technology Fund and Buffalo USA Global Fund sold or exchanged within 60 days of their purchase and shares of the Buffalo High Yield Fund, Buffalo Micro Cap Fund and Buffalo Small Cap Fund sold or exchanged within 180 days of their purchase are subject to a redemption fee of 2.00% of the value of the shares sold or exchanged. The Fund will employ the “first in, first out” method to calculate the two-month or six-month holding period. The redemption fee is retained by the Funds and will help pay transaction and tax costs that long-term investors may bear when the Funds realize capital gains as a result of selling securities to meet investor redemptions.
61 |
NOTES TO FINANCIAL STATEMENTS (Continued) |
6. INVESTMENT TRANSACTIONS:
The aggregate purchases and sales of securities, excluding short-term investments and U.S. government securities, for the Funds for the six months ended September 30, 2006, were as follows:
BUFFALO BALANCED FUND | BUFFALO HIGH YIELD FUND | BUFFALO LARGE CAP FUND | BUFFALO MICRO CAP FUND | BUFFALO MID CAP FUND | BUFFALO SCIENCE & TECHNOLOGY FUND | BUFFALO SMALL CAP FUND | BUFFALO USA GLOBAL FUND | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Purchases | $ | 30,924,920 | $ | 4,740,944 | $ | 4,963,040 | $ | 11,173,784 | $ | 94,386,321 | $ | 31,677,927 | $ | 153,114,103 | $ | 3,229,970 | ||||||||||
Proceeds from Sales | $ | 23,447,949 | $ | 29,786,435 | $ | 8,581,166 | $ | 11,958,967 | $ | 44,000,801 | $ | 23,756,483 | $ | 230,272,004 | $ | 11,462,172 |
There were no purchases or sales of long-term U.S. government securities for any Funds during the six months ended September 30, 2006.
7. OTHER 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. The aggregate market value of all securities of affiliated companies held in the Buffalo Small Cap Fund as of September 30, 2006 amounted to $215,365,609 representing 11.30% of net assets. There were no affiliated companies held in any other Funds. Transactions in the Buffalo Small Cap Fund during the six months ended September 30, 2006 in which the issuer was an “affiliated person” are as follows:
CABOT MICRO- ELECTRONICS CORP. | DOLBY LABORATORIES, INC. - CLASS A | HEIDRICK & STRUGGLES INTERNATIONAL, INC. | MANHATTAN ASSOCIATES, INC. | WMS INDUSTRIES, INC. | TOTAL | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
March 31, 2006 | ||||||||||||||||||||
Balance | ||||||||||||||||||||
Shares | 1,069,000 | 1,592,275 | 1,111,500 | 1,500,500 | 1,889,750 | |||||||||||||||
Cost | $ | 34,941,668 | $ | 25,334,723 | $ | 35,632,678 | $ | 31,699,269 | $ | 41,113,886 | $ | 168,722,224 | ||||||||
Gross Additions | ||||||||||||||||||||
Shares | 150,800 | 262,000 | 135,600 | — | 242,600 | |||||||||||||||
Cost | $ | 4,640,835 | $ | 4,812,477 | $ | 4,246,816 | $ | — | $ | 7,214,336 | $ | 20,914,464 | ||||||||
Gross Deductions | ||||||||||||||||||||
Shares | — | — | — | — | — | — | ||||||||||||||
Cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
September 30, 2006 | ||||||||||||||||||||
Balance | ||||||||||||||||||||
Shares | 1,219,800 | 1,854,275 | 1,247,100 | 1,500,500 | 2,132,350 | |||||||||||||||
Cost | $ | 39,582,503 | $ | 30,147,200 | $ | 39,879,494 | $ | 31,699,269 | $ | 48,328,222 | $ | 189,636,688 | ||||||||
Realized gain | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
* | As a result of the Buffalo Small Cap Fund’s beneficial ownership of the common stock of these companies, regulators require that the Fund state that it may be deemed an affiliate of the respective issuer. The Fund disclaims that the “affiliated persons” are affiliates of the Distributor, Advisor, Funds or any other client of the Advisor. |
The Buffalo Funds have adopted proxy voting polices and procedures that delegate to Kornitzer Capital Management, Inc., the Funds’ investment adviser, 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 twelve-month period ended June 30, 2006 (as filed with the SEC on Form N-PX) are available without charge, upon request, by calling the Funds toll free at 1-800-49-BUFFALO or by accessing the SEC’s website at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the SEC four times each fiscal year at quarter-ends. The Funds file the Schedule of Portfolio Holdings with the SEC on Form N-CSR (second and fourth quarters) and on Form N-Q (first and third quarters). Shareholders may view the Funds’ Forms N-CSR and N-Q on the SEC’s website at www.sec.gov. Forms N-CSR and N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the SEC’s Public Reference Room may be obtained by calling 1-202-551-8090 (direct) or 1-800-SEC-0330 (general SEC number).
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63 |
BUFFALO FUNDS |
Balanced Fund High Yield Fund Large Cap Fund Micro Cap Fund Mid Cap Fund Science & Technology Fund Small Cap Fund USA Global Fund |
1-800-49-BUFFALO (1-800-492-8332) www.buffalofunds.com |
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of 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.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchases.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) | The registrant’s Principal Executive Officer and Principal Financial Officer has reviewed the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) as of a date within 90 days of the filing of this report as required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on his review, the Principal Executive Officer and Principal Financial Officer has concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to him by others within the registrant and by the registrant’s service providers. |
(b) | There were no changes in the registrant's internal controls over financial reporting that occurred during the registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, registrant's internal control over financial reporting. |
Item 12. Exhibits.
(a) | (1) | Any code of ethics or amendment thereto, that is subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable. |
(2) | Certifications pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002 are filed herewith. |
(3) | Not applicable. |
(b) | Certifications required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Buffalo High Yield Fund, Inc. | |
By (Signature and Title) | /s/ Kent W. Gasaway Kent W. Gasaway, President and Treasurer | |
Date | 12/06/2006 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Kent W. Gasaway Kent W. Gasaway, President and Treasurer | |
Date | 12/06/2006 |