UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08900
Buffalo Large Cap Fund, Inc.
(Exact name of registrant as specified in charter)
5420 West 61st Place
Shawnee Mission, KS 66205
(Address of principal executive offices) (Zip code)
Kent W. Gasaway
5420 West 61st Place
Shawnee Mission, KS 66205
(Name and address of agent for service)
(913) 384-1513
Registrant's telephone number, including area code
Date of fiscal year end: March 31, 2004
Date of reporting period: September 30, 2003
ITEM 1. REPORT TO STOCKHOLDERS.
- -------------------------------
* * * * * * * * * * * * * * * * * * * * * * * * * * BUFFALO
FUNDS(R)
Balanced Fund
High Yield Fund
Large Cap Fund
Mid Cap Fund
Science &
Technology Fund
Small Cap Fund
USA Global Fund
* * * * * * * * * * * *
SEMIANNUAL REPORT
September 30, 2003
MESSAGE
TO OUR SHAREHOLDERS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Our adherence to buying beneficiaries of long-term global, industry and
demographic trends continues to prove itself. It is the first screen we use,
before layering on fundamental company analysis and strict adherence to our
valuation models. Please see the Portfolio Managers' Letter for more details on
this proprietary process.
We have watched with dismay the investigations of some mutual funds and
their alleged trading abuses. The Buffalo Funds do not allow short-term market
timing or late trading. Period. Either would have a negative effect on our
investment process and could harm shareholders. Our Funds are invested for the
long term, and we pursue shareholders who also invest for the long term. Our
trading practices and restrictions are listed in our Prospectus and Statement of
Additional Information, both available at www.buffalofunds.com.
We have closed the Buffalo Small Cap Fund to new broker-dealer accounts in
an effort to keep cash inflows from affecting our existing shareholders.
Existing shareholders at broker-dealers can continue to add money to their
accounts, and the Fund remains open to direct retail shareholders and 401k
plans. For the rest of our Funds it's business as usual at our call center
(1-800-49-BUFFALO).
In August, one of our portfolio managers, Tom Laming, left our firm to
start his own company. We wish him success. We're glad and vindicated that we
have operated with a team management concept for our equity funds, and have felt
the benefits directly. We will continue to team-manage the Funds with the help
of our talented and growing staff of research analysts. We plan to replace Tom
and add additional portfolio management and research professionals in the coming
months, and have found that there is no shortage of candidates with expertise,
education, and experience. We expect there will be announcements before
year-end.
As fellow shareholders, we remain committed to the time-tested principles
of investing for the long-term, maintaining the highest level of integrity and
performing detailed fundamental company analysis.
We thank you for trusting your investments with us.
Sincerely,
/s/ Kent W. Gasaway
Kent Gasaway
President
Buffalo Funds
PORTFOLIO MANAGEMENT REVIEW
The entire Fund family continues to benefit from our unique management
process. Before we invest money for the Funds, we take a look at the big
picture. We identify fundamental trends within various industries that we are
confident will play out over the next three to five years. These trends must be
well defined and measurable. Only then do we start to identify individual
companies that will benefit from the continuation of these trends. Finally, a
valuation and business model analysis of each company is performed. This
includes fundamental analysis which focuses on firms that we believe can sustain
or grow their profit margins, have a solid management team, and have the
financial strength to weather difficult economic environments. We believe the
end result for our Funds is a diversified group of companies that grow faster
than GDP over time and have reasonable relative valuations.
BUFFALO SMALL CAP FUND saw strong performance in our technology, consumer,
financial and pharmaceuticals holdings. Several holdings were added based on our
long-term trend analysis. New investments based on our demographic research
included American Medical Systems (surgical products for urologists and
gynecologists), J. Jill (women's clothing - average customer is 49 years old),
Rent-A-Center (favorable demographics of customer base) and United Natural Foods
(trend toward healthier eating in older age group).
BUFFALO MID CAP FUND'S heaviest sector weightings also produced the top
performers this period. Technology and consumer discretionary sectors were
positive contributors within the mid-cap markets, but stock selection within the
sectors helped the Fund outperform its benchmarks. Technology is anticipating
the benefit of improving capital expenditures. With an improving economy,
corporate money should begin to flow into new information technology and the
updating of aging computer systems. Consumer related performers were all tied to
the demographic trends we have identified; Chicos and Talbots (women's clothing
retailers catering to baby-boomers), Winnebago and Harley Davidson (fitting into
both leisure and aging trends), and Mohawk (benefiting from carpet replacement
and increasing new home purchases) were outstanding contributors to performance.
BUFFALO LARGE CAP FUND benefited from our sector weightings and the stock
selections within those sectors. Both the technology and financial sectors
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
2
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
reached cyclical bottoms and continue toward recovery, at least within targeted
industries. ADP was added at attractive valuations as part of our investment in
the trend toward outsourcing. Sysco (food distributor) was purchased based on
demographics, targeting the age groups we see eating out more often. We sold
Texas Instruments, and have trimmed other technology holdings based on
valuations. Sales were also made of some smaller companies that were not in line
with our large cap investment objective. Most were holdovers from when the Fund
was called Buffalo Equity Fund (prior to February 2002) and took a broader
market cap approach. The companies were held until they were appropriately
valued for sale; those that were not fully valued may still be seen in the
Buffalo Small or Mid Cap Funds.
Early in the period, the strong performance of our SCIENCE & TECHNOLOGY
FUND was driven by our heavy weighting in semiconductor holdings. We watched the
industry closely with the concern that stock prices might be getting too far
ahead of the actual businesses. As a precaution, the portfolio was actively
managed to reduce the technology weighting and to increase the healthcare
influence in the Fund. We added a number of small cap companies that are either
benefiting from increasing pharmaceutical research and development, or are
benefactors of the medical needs of an aging population. New additions to the
healthcare holdings include Axcan Pharma (develops, manufactures, markets and
distributes gastrointestinal (GI) products), Biomet (designs, manufactures and
markets orthopedic products), Covance (a provider of product development
services to the pharmaceutical, biotechnology and medical device industries),
Galen Holdings (pharma-ceutical company focused on women's healthcare,
dermatology and urology), Inamed (principal product lines: breast aesthetics for
use in plastic and reconstructive surgery; facial aesthetics, and obesity
intervention), King Pharmaceutical (manufactures, markets and sells branded
prescription pharmaceutical products), Medicis Pharmaceutical (pharmaceutical
company focused on dermatology), Mentor Corp (products for plastic and
reconstructive surgery, surgical urology and for clinical and consumer
healthcare) and Pharmaceutical Product Development (drug discovery and
development services to pharmaceutical and biotechnology companies).
In the BALANCED FUND we are keeping the bond/equity mix at approximately
50/50%, with our stocks paying dividends in the 2 - 3% range. We look for
companies that have been able to increase their dividends at least every other
year for the past 15 years. We are continuing to buy on dips, but will not chase
a company if yields are too low. Because of the dividend emphasis, our equity
holdings tend to be larger and "blue chip". We are not managing to a specific
industry or sector mix; but are looking for individual companies that can
provide income with upside potential. In the bond allocation, we hold
shorter-term convertibles and high-yield bonds, which should help buffer the
Fund against a future rise in interest rates. We're keeping cash low, staying
invested to provide a current yield in the range of 4.5 - 5%.
The stocks we had been holding in the HIGH YIELD FUND portfolio were good
contributors to the Fund's performance, and we sold them into the second quarter
rally. Selling the equities increased our cash position, but we're being very
selective, only buying high yield bonds that we consider to be higher quality
special situations. In general we believe the market is poised for high quality
bonds, particularly Treasury bonds, to increase in yield. We are continuing to
research bonds, have an extensive buy list, and are prepared to spend our cash
when appropriate. Our interest is in securing this year's performance, and
positioning the Fund for next year. As numbers on the economy come in, we are
convinced that rates will be rising soon.
The USA GLOBAL FUND continues to perform favorably thanks to strong
individual stock performance and the trend toward a weaker dollar. The dollar's
collapse, which started early in 2002 has had a positive impact on sales and
earnings for virtually every holding in this Fund, primarily from the
translation of foreign earnings into U.S. dollars. The Fund should continue to
benefit from the stock selections that are generated through our unique
investment objective of investing only in U.S. companies with a high component
of overseas sales.
We thank you for your continued investments.
Sincerely,
/s/ John C. Kornitzer /s/ Kent W. Gasaway
John C. Kornitzer Kent W. Gasaway
President Sr. Vice President
/s/ Robert Male
Robert Male
Sr. Vice President
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
3
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
INVESTMENT RESULTS - TOTAL RETURN
- -------------------------------------------------------------------------------------
AVERAGE ANNUAL
-------------------------------
SIX ONE FIVE
MONTHS YEAR YEARS
ENDED ENDED ENDED SINCE
9/30/03 9/30/03 9/30/03 INCEPTION*
- -------------------------------------------------------------------------------------
Buffalo Balanced Fund. . . . . . . . . . . 18.98% 26.56% 3.16% 6.30%
S&P 500 Index. . . . . . . . . . . . . . . 18.45% 24.40% 1.00% 10.68%
S&P 500 Index and Merrill Lynch U.S.
Domestic Master Index Weighted Average** 12.03% 16.83% 3.26% 9.59%
Lipper Balanced Funds Index. . . . . . . . 13.19% 17.19% 3.62% 8.33%
Buffalo High Yield Fund. . . . . . . . . . 11.69% 20.82% 7.12% 8.88%
Merrill Lynch High Yield Master Index. . . 12.45% 28.22% 4.87% 6.78%
Lipper High Yield Bond Funds Index . . . . 12.29% 26.51% 2.36% 4.88%
Buffalo Large Cap Fund . . . . . . . . . . 26.90% 34.50% 4.99% 10.67%
S&P 500 Index. . . . . . . . . . . . . . . 18.45% 24.40% 1.00% 9.88%
Lipper Multi-Cap Core Funds Index. . . . . 21.07% 24.77% 2.83% 8.94%
Lipper Capital Appreciation Funds Index. . 20.51% 25.35% 2.23% 7.28%
Buffalo Mid Cap Fund . . . . . . . . . . . 31.17% 38.32% N/A -0.62%
S&P Midcap 400 Index . . . . . . . . . . . 25.38% 26.81% N/A 2.68%
Russell Midcap Index . . . . . . . . . . . 25.87% 32.63% N/A 3.14%
Lipper Mid-Cap Core Funds Index. . . . . . 25.58% 28.76% N/A 1.21%
Buffalo Science & Technology Fund. . . . . 46.92% 72.80% N/A -4.94%
S&P 500 Index. . . . . . . . . . . . . . . 18.45% 24.40% N/A -5.15%
Lipper Science & Technology Funds Index. . 35.16% 56.30% N/A -13.26%
Buffalo Small Cap Fund . . . . . . . . . . 44.89% 42.11% 22.29% 16.39%
S&P Smallcap 600 Index . . . . . . . . . . 28.36% 26.86% 10.20% 3.63%
Russell 2000 Index . . . . . . . . . . . . 34.63% 36.50% 7.46% 1.44%
Lipper Small-Cap Core Funds Index. . . . . 29.36% 29.79% 9.77% 2.98%
Buffalo USA Global Fund. . . . . . . . . . 24.87% 29.12% 6.87% 10.73%
S&P 500 Index. . . . . . . . . . . . . . . 18.45% 24.40% 1.00% 9.88%
Lipper Capital Appreciation Funds Index. . 20.51% 25.35% 2.23% 7.28%
Lipper Global Funds Index. . . . . . . . . 23.82% 22.61% 2.57% 5.96%
<FN>
- -------------------------------------------------------------------------------------
*Buffalo Balanced Fund (8/12/94), Buffalo High Yield Fund (5/19/95), Buffalo Large
Cap Fund (5/19/95), Buffalo Mid Cap Fund (12/17/01), Buffalo Science & Technology
Fund (4/16/01), Buffalo Small Cap Fund (4/14/98), Buffalo USA Global Fund (5/19/95).
**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 U.S. Domestic Master Index.
For complete Fund performance information, please see the enclosed updates. Past
performance does not guarantee future results. The investment return and principal
investment will fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
The Fund returns shown do not reflect the deduction of taxes that a shareholder would
pay on Fund distributions or the redemption of Fund 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.
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 U.S. Domestic Master Index is a capitalization weighted aggregation of
outstanding U.S. treasury, agency and supranational, mortgage pass-through, and
investment grade corporate bonds meeting specified criteria. The Lipper Balanced
Funds Index is an unmanaged, net asset value weighted index of the 30 largest
balanced mutual funds. The Merrill Lynch High Yield Master Index is an unmanaged
index comprised of over 1,200 high yield bonds representative of the high yield bond
market as a whole. 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
Lipper Multi-Cap Core Funds Index is an equally weighted performance index of the 30
largest qualifying funds that invest in a variety of market capitalization ranges.
The Lipper Capital Appreciation Funds Index is an equally weighted performance index
of the 30 largest qualifying funds in the investment objective. 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 Russell Midcap Index measures the
performance of the 800 smallest companies in the Russell 1000 Index, which represent
approximately 26% of the total market capitalization of the Russell 1000 Index. The
index has a total market range of approximately $1.3 billion to $10.8 billion. The
Lipper Mid-Cap Core Funds Index is an unmanaged, equally weighted performance index
of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Mid-Cap
classification. The 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 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 Russell 2000 Index consists of the smallest 2,000 securities in
the Russell 3000 Index, representing approximately 10% of the Russell 3000 total
market capitalization. The Lipper Small-Cap Core 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 Lipper Global Funds Index is an
equally weighted performance index of the 30 largest qualifying funds in the
investment objective (to invest at least 25% of its portfolio in securities traded
outside of the United States).
The above mentioned indices are unmanaged and are not available for investment.
References to specific securities should not be construed as recommendations by the
Funds or their Advisor.
Must be preceded or accompanied by a current prospectus.
Quasar Distributors, LLC, distributor. 11/03
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
4
BUFFALO
BALANCED FUND
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
MARKET
SHARES VALUE
- --------------------------------------------------------------
COMMON STOCKS - 44.48%
CONSUMER DISCRETIONARY - 2.19%
10,325 Ameristar Casinos, Inc.* . . . . . . $ 258,538
20,000 Argosy Gaming Co.* . . . . . . . . . 488,000
- --------------------------------------------------------------
746,538
CONSUMER STAPLES - 3.24%
20,000 ConAgra Foods, Inc.. . . . . . . . . 424,800
10,000 H.J. Heinz Co. . . . . . . . . . . . 342,800
10,000 Kellogg Co.. . . . . . . . . . . . . 333,500
- --------------------------------------------------------------
1,101,100
ENERGY - 11.91%
5,000 Amerada Hess Corp. . . . . . . . . . 250,500
10,000 Anadarko Petroleum Corp. . . . . . . 417,600
15,000 BP PLC . . . . . . . . . . . . . . . 631,500
10,000 ChevronTexaco Corp.. . . . . . . . . 714,500
11,742 Eagle Geophysical, Inc.(f)*. . . . . 12
10,000 Exxon Mobil Corp.. . . . . . . . . . 366,000
4,500 Frontier Oil Corp. . . . . . . . . . 66,150
20,000 Kerr-McGee Corp. . . . . . . . . . . 892,800
25,000 Marathon Oil Corp. . . . . . . . . . 712,500
- --------------------------------------------------------------
4,051,562
FINANCIALS - 10.51%
15,000 The Allstate Corp. . . . . . . . . . 547,950
5,000 FleetBoston Financial Corp.. . . . . 150,750
10,000 J.P. Morgan Chase & Co.. . . . . . . 343,300
10,000 KeyCorp. . . . . . . . . . . . . . . 255,700
5,000 Lincoln National Corp. . . . . . . . 176,900
10,000 Marshall & Ilsley Corp.. . . . . . . 315,200
5,000 Northern Trust Corp. . . . . . . . . 212,200
10,000 PNC Financial Services Group . . . . 475,800
5,000 Union Planters Corp. . . . . . . . . 158,200
15,000 U.S. Bancorp . . . . . . . . . . . . 359,850
3,000 Washington Mutual, Inc.. . . . . . . 118,110
15,000 Wilmington Trust Corp. . . . . . . . 461,400
- --------------------------------------------------------------
3,575,360
HEALTH CARE - 9.62%
15,000 Abbott Laboratories. . . . . . . . . 638,250
20,000 Bristol-Myers Squibb Co. . . . . . . 513,200
4,400 First Horizon Pharmaceutical Corp.*. 28,160
10,000 Johnson & Johnson. . . . . . . . . . 495,200
15,000 Merck & Co. Inc. . . . . . . . . . . 759,300
10,000 Pfizer Inc.. . . . . . . . . . . . . 303,800
20,000 Schering-Plough Corp.. . . . . . . . 304,800
5,000 Wyeth. . . . . . . . . . . . . . . . 230,500
- --------------------------------------------------------------
3,273,210
INDUSTRIALS - 4.00%
5,000 Lockheed Martin Corp.. . . . . . . . 230,750
5,000 Northrop Grumman Corp. . . . . . . . 431,100
25,000 The ServiceMaster Co.. . . . . . . . 256,500
25,000 Southwest Airlines Co. . . . . . . . 442,500
- --------------------------------------------------------------
1,360,850
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
5
BUFFALO
BALANCED FUND (Continued)
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- -------------------------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 3.01%
10,000 Intel Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 275,100
20,000 Microsoft Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 555,800
5,000 Pitney Bowes Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 191,600
- -------------------------------------------------------------------------------------------------
1,022,500
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,131,120
- -------------------------------------------------------------------------------------------------
(COST $15,318,171)
CONVERTIBLE PREFERRED STOCKS - 2.65%
10,335 Fleetwood Capital Trust*. . . . . . . . . . . . . . . . . . . . . . 320,385
53,400 ICO Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581,793
- -------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS . . . . . . . . . . . . . . . . . . . . . . . . 902,178
- -------------------------------------------------------------------------------------------------
(COST $1,148,685)
CORPORATE BONDS - 23.81%
$500,000 Aaipharma, Inc., 11.00% due 4-1-10. . . . . . . . . . . . . . . . . 560,000
250,000 Alpharma, Inc., 8.625% due 5-1-11(r). . . . . . . . . . . . . . . . 252,500
105,000 Argosy Gaming Co., 10.75% due 6-1-09. . . . . . . . . . . . . . . . 115,631
1,000,000 Callon Petroleum Co., 10.25% due 9-15-04. . . . . . . . . . . . . . 1,000,000
500,000 Charter Communications Holdings Capital Corp., 11.125% due 1-15-11. 411,250
55,000 Circus Circus, 7.625% due 7-15-13 . . . . . . . . . . . . . . . . . 56,925
100,000 Elizabeth Arden, Inc., 11.75% due 2-1-11. . . . . . . . . . . . . . 114,500
100,000 Frontier Oil Corp., 11.75% due 11-15-09 . . . . . . . . . . . . . . 113,500
75,000 Ingles Markets, Inc., 8.875% due 12-1-11. . . . . . . . . . . . . . 76,125
25,000 John Q Hamons Hotel, 8.875% due 5-15-12 . . . . . . . . . . . . . . 27,188
750,000 Mikohn Gaming Corp., 11.875% due 8-15-08. . . . . . . . . . . . . . 780,000
100,000 Nash Finch Co., 8.50% due 5-1-08. . . . . . . . . . . . . . . . . . 95,000
25,644 Philip Services, Inc., 6.00% due 4-15-10(f)*. . . . . . . . . . . . -
500,000 Pilgrim's Pride Corp., 9.625% due 9-15-11 . . . . . . . . . . . . . 542,500
420,000 Swift Energy Co., 10.25% due 8-1-09 . . . . . . . . . . . . . . . . 456,750
10,000 Swift Energy Co., 9.375% due 5-1-12 . . . . . . . . . . . . . . . . 10,850
1,250,000 Tesoro Petroleum Corp., 9.625% due 4-1-12 . . . . . . . . . . . . . 1,250,000
750,000 Texas Industries, Inc., 10.25% due 6-15-11(r) . . . . . . . . . . . 825,000
500,000 United Refining Co., 10.75% due 6-15-07 . . . . . . . . . . . . . . 407,500
50,000 WCI Communities, Inc., 10.625% due 2-15-11. . . . . . . . . . . . . 55,000
1,000,000 Wiser Oil Co., 9.50% due 5-15-07. . . . . . . . . . . . . . . . . . 950,000
- -------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,100,219
- -------------------------------------------------------------------------------------------------
(COST $7,726,523)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
6
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- -------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS - 17.07%
$650,000 Affymetrix, Inc., 5.00% due 10-1-06 . . . . . . . $ 646,750
150,000 Axcan Pharma, Inc., 4.25% due 4-15-08 . . . . . . 178,125
1,000,000 Barnes & Noble, Inc., 5.25% due 3-15-09 . . . . . 1,031,250
250,000 Conexant Systems, Inc., 4.00% due 2-1-07. . . . . 213,437
1,000,000 EDO Corp., 5.25% due 4-15-07. . . . . . . . . . . 1,030,000
1,000,000 ICN Pharmaceuticals, Inc., 6.50% due 7-15-08. . . 953,750
505,000 Intevac, Inc., 6.50% due 3-1-09 . . . . . . . . . 730,988
1,000,000 Ivax Corp., 5.50% due 5-15-07 . . . . . . . . . . 1,025,000
775,805 Philip Services, Inc., zero cpn. due 4-15-20(f)*. 8
- -------------------------------------------------------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS. . . . . . . . . . . . . . . . 5,809,308
- -------------------------------------------------------------------------------
(COST $6,398,444)
SHORT-TERM INVESTMENTS - 10.45%
INVESTMENT COMPANY - 1.61%
547,593 SEI Daily Income Treasury II Fund, 0.42%. . . . . 547,593
- -------------------------------------------------------------------------------
U.S. TREASURY - 8.84%
$3,006,000 U.S. Treasury Bill, 0.85% due 10-2-03. . . . . . . . 3,005,928
- -------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS . . . . . . . . . . . . . . . . . . 3,553,521
- -------------------------------------------------------------------------------
(COST $3,553,521)
TOTAL INVESTMENTS - 98.46% . . . . . . . . . . . . . . . . . . . 33,496,346
(COST $34,145,344)
Other Assets, less Liabilities - 1.54% . . . . . . . . . . . . . 524,981
-------------
TOTAL NET ASSETS - 100.00% . . . . . . . . . . . . . . . . . . . $ 34,021,327
=============
For federal income tax purposes, the identified cost of investments owned at
September 30, 2003 was $34,150,821.
Net unrealized depreciation for federal income tax purposes was $654,475, which
is comprised of unrealized appreciation of $2,313,746 and unrealized
depreciation of $2,968,221.
(f) Fair valued security. The total value of these securities amounted to
$20 (0.00% of net assets) at September 30, 2003.
(r) 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 $1,077,500 (3.17% of net assets) at September 30, 2003.
*Non-income producing security
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
7
BUFFALO
HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** * * * * * * * * * *
FACE AMOUNT MARKET VALUE
- ----------------------------------------------------------------------------------------------------
CORPORATE BONDS - 38.76%
CONSUMER DISCRETIONARY - 18.84%
$1,780,000 Ameristar Casinos, Inc., 10.75% due 2-15-09 . . . . . . . . . . . . $ 2,033,650
100,000 Argosy Gaming Co., 9.00% due 9-1-11 . . . . . . . . . . . . . . . . 109,250
2,250,000 Central Garden & Pet Co., 9.125% due 2-1-13 . . . . . . . . . . . . 2,463,750
1,185,000 Charter Communications Holdings, LLC, 8.625% due 4-1-09 . . . . . . 912,450
255,000 Charter Communications Holdings Capital Corp., 11.125% due 1-15-11. 209,737
1,265,000 Circus Circus, 7.625% due 7-15-13 . . . . . . . . . . . . . . . . . 1,309,275
250,000 Elizabeth Arden, Inc., 11.75% due 2-1-11. . . . . . . . . . . . . . 286,250
470,000 Exide Corp., 10.00% due 4-15-05(d)(i)*. . . . . . . . . . . . . . . 11,750
2,880,000 Ford Motor Co., 7.45% due 7-16-31 . . . . . . . . . . . . . . . . . 2,663,424
2,635,000 French Fragrance, Inc., 10.375% due 5-15-07 . . . . . . . . . . . . 2,735,412
2,800,000 General Motors Acceptance Corp., 8.00% due 11-1-31. . . . . . . . . 2,884,258
215,000 Hines Nurseries, Inc., 10.25% due 10-1-11(r). . . . . . . . . . . . 225,750
1,085,000 HMH Properties, Inc., 8.45% due 12-1-08 . . . . . . . . . . . . . . 1,135,181
2,185,000 Host Marriott LP, 9.25% due 10-1-07 . . . . . . . . . . . . . . . . 2,395,306
2,014,000 Isle of Capri Casinos, Inc., 8.75% due 4-15-09. . . . . . . . . . . 2,144,910
395,000 John Q Hamons Hotel, 8.875% due 5-15-12 . . . . . . . . . . . . . . 429,562
460,000 Mandalay Resort Group, 10.25% due 8-1-07. . . . . . . . . . . . . . 531,300
100,000 MGM MIRAGE, 8.375% due 2-1-11 . . . . . . . . . . . . . . . . . . . 110,500
2,700,000 Mikohn Gaming Corp., 11.875% due 8-15-08. . . . . . . . . . . . . . 2,808,000
220,000 Park Place Entertainment Corp., 8.875% due 9-15-08. . . . . . . . . 244,200
495,000 Park Place Entertainment Corp., 8.125% due 5-15-11. . . . . . . . . 535,838
2,695,000 Penn National Gaming, Inc., 8.875% due 3-15-10. . . . . . . . . . . 2,913,969
1,770,000 Phillips Van-Heusen Corp., 7.75% due 11-15-23 . . . . . . . . . . . 1,743,450
3,930,000 Royal Caribbean Cruises Ltd., 7.50% due 10-15-27. . . . . . . . . . 3,576,300
845,000 Toys R Us, 8.75% due 9-1-21 . . . . . . . . . . . . . . . . . . . . 934,295
78,000 Wal-Mart Stores, 8.75% due 12-29-06 . . . . . . . . . . . . . . . . 78,501
3,160,000 WCI Communities, Inc., 10.625% due 2-15-11. . . . . . . . . . . . . 3,476,000
- ----------------------------------------------------------------------------------------------------
38,902,268
CONSUMER STAPLES - 2.63%
1,400,000 Ingles Markets, Inc., 8.875% due 12-1-11. . . . . . . . . . . . . . 1,421,000
1,840,000 Nash Finch Co., 8.50% due 5-1-08. . . . . . . . . . . . . . . . . . 1,748,000
2,085,000 Pilgrim's Pride Corp., 9.625% due 9-15-11 . . . . . . . . . . . . . 2,262,225
- ----------------------------------------------------------------------------------------------------
5,431,225
ENERGY - 8.30%
1,185,000 Callon Petroleum Co., 10.125% due 7-31-04 . . . . . . . . . . . . . 1,185,000
250,000 Callon Petroleum Co., 10.25% due 9-15-04. . . . . . . . . . . . . . 250,000
1,930,000 Frontier Oil Corp., 11.75% due 11-15-09 . . . . . . . . . . . . . . 2,190,550
875,000 Frontier Oil Escrow Corp., 8.00% due 4-15-13(r) . . . . . . . . . . 892,500
2,200,000 Premcor Refining Group Inc., 9.25% due 2-1-10 . . . . . . . . . . . 2,409,000
450,000 Premcor Refining Group Inc., 9.50% due 2-1-13 . . . . . . . . . . . 497,250
2,530,000 Premcor Refining Group Inc., 7.50% due 6-15-15. . . . . . . . . . . 2,536,325
300,000 Swift Energy Co., 9.375% due 5-1-12 . . . . . . . . . . . . . . . . 325,500
3,900,000 Tesoro Petroleum Corp., 9.625% due 4-1-12 . . . . . . . . . . . . . 3,900,000
1,755,000 United Refining Co., 10.75% due 6-15-07 . . . . . . . . . . . . . . 1,430,325
1,600,000 Wiser Oil Co., 9.50% due 5-15-07. . . . . . . . . . . . . . . . . . 1,520,000
- ----------------------------------------------------------------------------------------------------
17,136,450
HEALTH CARE - 3.91%
1,480,000 Aaipharma, Inc., 11.00% due 4-1-10. . . . . . . . . . . . . . . . . 1,657,600
4,040,000 Alpharma, Inc., 8.625% due 5-1-11(r). . . . . . . . . . . . . . . . 4,080,400
1,450,000 Bausch & Lomb, Inc., 7.125% due 8-1-28. . . . . . . . . . . . . . . 1,442,750
430,000 Fisher Scientific International, 8.00% due 9-1-13(r). . . . . . . . 456,875
400,000 Stewart Enterprises, 10.75% due 7-1-08. . . . . . . . . . . . . . . 450,000
- ----------------------------------------------------------------------------------------------------
8,087,625
8
FACE AMOUNT MARKET VALUE
- ----------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.95%
$1,300,000 Allied Waste North America, 9.25% due 9-1-12. . . . . . . . . . . . $ 1,443,000
2,065,000 Mail-Well I, Inc., 9.625% due 3-15-12 . . . . . . . . . . . . . . . 2,250,850
1,265,000 Mobile Mini, Inc., 9.50% due 7-1-13(r). . . . . . . . . . . . . . . 1,359,875
25,106 Philip Services, Inc., 6.00% due 4-15-10(f)*. . . . . . . . . . . . -
185,000 Rayovac Corp., 8.50% due 10-1-13. . . . . . . . . . . . . . . . . . 191,475
715,000 Titan Corp., 8.00% due 5-15-11(r) . . . . . . . . . . . . . . . . . 840,125
- ----------------------------------------------------------------------------------------------------
6,085,325
MATERIALS - 2.13%
4,000,000 Texas Industries, Inc., 10.25% due 6-15-11(r) . . . . . . . . . . . 4,400,000
- ----------------------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,042,893
- ----------------------------------------------------------------------------------------------------
(COST $75,774,783)
CONVERTIBLE CORPORATE BONDS - 23.36%
CONSUMER DISCRETIONARY - 6.43%
5,115,000 Barnes & Noble, Inc., 5.25% due 3-15-09 . . . . . . . . . . . . . . 5,274,844
2,175,000 Best Buy, 2.25% due 1-15-22 . . . . . . . . . . . . . . . . . . . . 2,272,875
1,250,000 Exide Corp., 2.90% due 12-15-05(d)(i)(r)* . . . . . . . . . . . . . 7,025
1,585,000 School Specialty, Inc., 6.00% due 8-1-08. . . . . . . . . . . . . . 1,690,006
3,140,000 WMS Industries, 2.75% due 7-15-10(r). . . . . . . . . . . . . . . . 4,038,825
- ----------------------------------------------------------------------------------------------------
13,283,575
CONSUMER STAPLES - 0.84%
1,300,000 Performance Food Group Co., 5.50% due 10-16-08. . . . . . . . . . . 1,733,875
- ----------------------------------------------------------------------------------------------------
FINANCIALS - 1.93%
3,985,000 NCO Group, Inc., 4.75% due 4-15-06. . . . . . . . . . . . . . . . . 3,985,000
- ----------------------------------------------------------------------------------------------------
HEALTH CARE - 7.46%
3,680,000 Affymetrix, Inc., 5.00% due 10-1-06 . . . . . . . . . . . . . . . . 3,661,600
1,745,000 Axcan Pharmaceutical, Inc., 4.25% due 4-15-08(r). . . . . . . . . . 2,072,187
1,000,000 Human Genome Sciences, Inc., 3.75% due 3-15-07. . . . . . . . . . . 866,250
3,570,000 ICN Pharmaceuticals, Inc., 6.50% due 7-15-08. . . . . . . . . . . . 3,404,887
4,025,000 Ivax Corp., 5.50% due 5-15-07 . . . . . . . . . . . . . . . . . . . 4,125,625
1,273,000 Medicis Pharmaceutical, 1.50% due 6-4-33. . . . . . . . . . . . . . 1,268,226
- ----------------------------------------------------------------------------------------------------
15,398,775
INDUSTRIALS - 0.08%
161,000 Moran Energy, Inc., 8.75% due 1-15-08 . . . . . . . . . . . . . . . 154,359
759,568 Philip Services, Inc., zero cpn. due 4-15-20(f)*. . . . . . . . . . 8
- ----------------------------------------------------------------------------------------------------
154,367
INFORMATION TECHNOLOGY - 6.62%
445,000 Adaptec, Inc., 3.00% due 3-5-07(r). . . . . . . . . . . . . . . . . 408,844
1,800,000 Analog Devices, Inc., 4.75% due 10-1-05 . . . . . . . . . . . . . . 1,840,500
400,000 Analog Devices, Inc., 4.75% due 10-1-05(r). . . . . . . . . . . . . 409,000
3,985,000 Bisys Group, Inc., 4.00% due 3-15-06. . . . . . . . . . . . . . . . 3,845,525
1,100,000 Conexant Systems, Inc., 4.00% due 2-1-07. . . . . . . . . . . . . . 939,125
1,230,000 Intevac, Inc., 6.50% due 3-1-09 . . . . . . . . . . . . . . . . . . 1,780,425
2,550,000 Lam Research Corp., 4.00% due 6-1-06. . . . . . . . . . . . . . . . 2,483,063
470,000 Lam Research Corp., 4.00% due 6-1-06(r) . . . . . . . . . . . . . . 457,663
1,725,000 Wind River Systems, Inc., 3.75% due 12-15-06(r) . . . . . . . . . . 1,511,531
- ----------------------------------------------------------------------------------------------------
13,675,676
TOTAL CONVERTIBLE CORPORATE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . 48,231,268
- ----------------------------------------------------------------------------------------------------
(COST $45,911,232)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** * * * * * * * * * *
9
BUFFALO
HIGH YIELD FUND (Continued)
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- ------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES - 3.66%
U.S. Treasury Notes - 3.66%
$1,500,000 2.75% due 10-31-03. . . . . . . . $ 1,502,637
1,500,000 3.00% due 11-30-03. . . . . . . . 1,505,450
1,500,000 3.00% due 1-31-04 . . . . . . . . 1,510,314
1,500,000 3.00% due 2-29-04 . . . . . . . . 1,512,774
1,500,000 3.375% due 4-30-04. . . . . . . . 1,520,919
- ------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES. . . . . . . . . . 7,552,094
- ------------------------------------------------------------------
(COST $7,506,917)
COMMON STOCKS - 2.49%
22,500 Ameren Corp.. . . . . . . . . . . 965,475
40,105 Bristol-Myers Squibb Co.. . . . . 1,029,094
17,025 Eagle Geophysical, Inc.(f)* . . . 17
27,710 The Empire District Electric Co.. 609,620
165,000 The ServiceMaster Co. . . . . . . 1,692,900
40,110 W.P. Stewart & Co., Ltd . . . . . 838,299
- ------------------------------------------------------------------
TOTAL COMMON STOCKS . . . . . . . . . . . . . . . . 5,135,405
- ------------------------------------------------------------------
(COST $4,663,151)
CONVERTIBLE PREFERRED STOCKS - 2.72%
81,100 Carriage Services Capital Trust*. 2,017,362
17,074 Fleetwood Capital Trust*. . . . . 529,294
76,200 ICO Inc.* . . . . . . . . . . . . 830,199
63,400 TXI Capital Trust I*. . . . . . . 2,250,700
- ------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS. . . . . . . . . 5,627,555
- ------------------------------------------------------------------
(COST $6,009,695)
NON - CONVERTIBLE PREFERRED STOCK - 0.03%
7,250 Adelphia Communications Corp.* . . . . 59,812
- ------------------------------------------------------------------
(COST $719,125)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
10
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- -------------------------------------------------------------------------
SHORT - TERM INVESTMENTS - 26.25%
INVESTMENT COMPANY - 3.78%
7,798,823 SEI Daily Income Treasury II Fund, 0.42% $ 7,798,823
- -------------------------------------------------------------------------
U.S. TREASURIES - 22.47%
$1,035,000 U.S. Treasury Bill, 0.789% due 10-23-03. 1,034,507
35,341,000 U.S. Treasury Bill, 0.85% due 10-2-03. . 35,340,156
2,000,000 U.S. Treasury Bill, 0.86% due 10-9-03. . 1,999,649
6,000,000 U.S. Treasury Bill, 0.87% due 10-16-03 . 5,998,042
2,037,000 U.S. Treasury Bill, 1.10% due 10-30-03 . 2,035,786
- -------------------------------------------------------------------------
46,408,140
TOTAL SHORT-TERM INVESTMENTS . . . . . . . . . . . . . . . 54,206,963
- -------------------------------------------------------------------------
(COST $54,206,963)
TOTAL INVESTMENTS - 97.27% . . . . . . . . . . . . . . . . 200,855,990
(COST $194,791,866)
Other Assets, less Liabilities - 2.73% . . . . . . . . . . 5,630,475
-------------
TOTAL NET ASSETS - 100.00% . . . . . . . . . . . . . . . . $ 206,486,465
=============
For federal income tax purposes, the identified cost of investments owned at
September 30, 2003 was $194,796,504.
Net unrealized appreciation for federal income tax purposes was $6,059,486,
which is comprised of unrealized appreciation of $11,128,405 and unrealized
depreciation of $5,068,919.
(d) Security is in default at September 30, 2003.
(f)Fair valued security. The total value of these securities amounted to $25
(0.00% of net assets) at September 30, 2003.
(i)Security considered illiquid under guidelines established by the Boards of
Directors/Trustees.
(r)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 $21,160,600 (10.25% of net assets) at September 30, 2003.
*Non-income producing security
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
11
BUFFALO
LARGE CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES MARKET VALUE
- -------------------------------------------------------------------
COMMON STOCKS - 88.73%
CONSUMER DISCRETIONARY - 15.44%
54,000 Barnes & Noble, Inc.*. . . . . . . . . $ 1,372,140
52,800 Carnival Corp. . . . . . . . . . . . . 1,736,592
32,000 Marriott International, Inc., Class A. 1,376,960
66,600 McDonald's Corp. . . . . . . . . . . . 1,567,764
36,800 Walgreen Co. . . . . . . . . . . . . . 1,127,552
- -------------------------------------------------------------------
7,181,008
CONSUMER STAPLES - 7.03%
35,700 H.J. Heinz Co. . . . . . . . . . . . . 1,223,796
24,100 PepsiCo, Inc.. . . . . . . . . . . . . 1,104,503
28,700 Sysco Corp.. . . . . . . . . . . . . . 938,777
- -------------------------------------------------------------------
3,267,076
FINANCIALS - 17.81%
51,200 American Express Co. . . . . . . . . . 2,307,072
35,000 The Bank of New York Co., Inc. . . . . 1,018,850
13,000 The Goldman Sachs Group, Inc.. . . . . 1,090,700
27,700 Morgan Stanley . . . . . . . . . . . . 1,397,742
32,500 Northern Trust Corp. . . . . . . . . . 1,379,300
22,900 PNC Financial Services Group . . . . . 1,089,582
- -------------------------------------------------------------------
8,283,246
HEALTH CARE - 11.29%
32,900 Abbott Laboratories. . . . . . . . . . 1,399,895
23,400 Johnson & Johnson. . . . . . . . . . . 1,158,768
32,600 Merck & Co. Inc. . . . . . . . . . . . 1,650,212
68,400 Schering-Plough Corp.. . . . . . . . . 1,042,416
- -------------------------------------------------------------------
5,251,291
INDUSTRIALS - 8.27%
19,000 FedEx Corp.. . . . . . . . . . . . . . 1,224,170
86,300 The ServiceMaster Co.. . . . . . . . . 885,438
98,087 Southwest Airlines Co. . . . . . . . . 1,736,140
- -------------------------------------------------------------------
3,845,748
INFORMATION TECHNOLOGY - 28.89%
45,500 Altera Corp.*. . . . . . . . . . . . . 859,950
18,500 Analog Devices, Inc.*. . . . . . . . . 703,370
47,400 Applied Materials, Inc.* . . . . . . . 859,836
41,000 Automatic Data Processing, Inc.. . . . 1,469,850
121,600 CIENA Corp.* . . . . . . . . . . . . . 718,656
50,100 Cisco Systems, Inc.* . . . . . . . . . 978,954
82,800 Concord EFS, Inc.* . . . . . . . . . . 1,131,876
26,700 Intel Corp.. . . . . . . . . . . . . . 734,517
43,700 Microsoft Corp.. . . . . . . . . . . . 1,214,423
86,600 Nokia Corp., ADR . . . . . . . . . . . 1,350,960
52,000 Scientific-Atlanta, Inc. . . . . . . . 1,619,800
68,200 SunGard Data Systems Inc.* . . . . . . 1,794,342
- -------------------------------------------------------------------
13,436,534
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . . . 41,264,903
- -------------------------------------------------------------------
(COST $39,293,626)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
12
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- ------------------------------------------------------------------------
SHORT - TERM INVESTMENTS - 10.87%
INVESTMENT COMPANY - 3.13%
1,453,941 SEI Daily Income Treasury II Fund, 0.42% $ 1,453,941
- ------------------------------------------------------------------------
U.S. TREASURY - 7.74%
$3,600,000 U.S. Treasury Bill, 0.87% due 10-16-03. 3,598,800
- ------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS. . . . . . . . . . . . . . . 5,052,741
- ------------------------------------------------------------------------
(COST $5,052,741)
TOTAL INVESTMENTS - 99.60%. . . . . . . . . . . . . . . . 46,317,644
(COST $44,346,367)
Other Assets, less Liabilities - 0.40%. . . . . . . . . . 186,204
-------------
TOTAL NET ASSETS - 100.00%. . . . . . . . . . . . . . . . $ 46,503,848
=============
For federal income tax purposes, the identified cost of investments owned at
September 30, 2003 was $44,566,861.
Net unrealized appreciation for federal income tax purposes was $1,750,783,
which is comprised of unrealized appreciation of $6,767,597 and unrealized
depreciation of $5,016,814.
*Non-income producing security
ADR - American Depository Receipt
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
13
BUFFALO
MID CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES MARKET VALUE
- ---------------------------------------------------------------------
COMMON STOCKS - 87.27%
CONSUMER DISCRETIONARY - 30.50%
56,300 Abercrombie & Fitch Co.* . . . . . . . . $ 1,560,073
12,984 Carnival Corp. . . . . . . . . . . . . . 427,044
22,733 Carnival PLC, ADR. . . . . . . . . . . . 723,812
32,000 Chico's FAS, Inc.* . . . . . . . . . . . 980,480
56,450 CVS Corp.. . . . . . . . . . . . . . . . 1,753,337
59,100 DeVry, Inc.* . . . . . . . . . . . . . . 1,398,306
44,625 Fairmont Hotels & Resorts Inc. . . . . . 1,149,094
72,500 Furniture Brands International, Inc.*. . 1,747,250
11,150 Harley-Davidson, Inc.. . . . . . . . . . 537,430
34,575 Harrah's Entertainment, Inc. . . . . . . 1,455,953
61,000 International Game Technology. . . . . . 1,717,150
17,775 MGM MIRAGE*. . . . . . . . . . . . . . . 649,676
4,500 Mohawk Industries, Inc.* . . . . . . . . 320,940
44,600 Talbots, Inc.. . . . . . . . . . . . . . 1,554,310
25,125 Tiffany & Co.. . . . . . . . . . . . . . 937,916
76,050 WCI Communities, Inc.* . . . . . . . . . 1,254,825
13,800 Weight Watchers International, Inc.* . . 574,080
30,100 Winnebago Industries, Inc. . . . . . . . 1,341,858
- ---------------------------------------------------------------------
20,083,534
FINANCIALS - 15.52%
45,475 A.G. Edwards, Inc. . . . . . . . . . . . 1,746,695
23,125 H&R Block, Inc.. . . . . . . . . . . . . 997,844
48,900 Janus Capital Group Inc. . . . . . . . . 683,133
22,600 Legg Mason, Inc. . . . . . . . . . . . . 1,631,720
47,600 Mellon Financial Corp. . . . . . . . . . 1,434,664
38,975 Neuberger Berman Inc.. . . . . . . . . . 1,631,883
33,350 Principal Financial Group, Inc.. . . . . 1,033,516
44,900 Waddell & Reed Financial, Inc., Class A. 1,058,293
- ---------------------------------------------------------------------
10,217,748
HEALTH CARE - 7.15%
37,100 Biomet, Inc. . . . . . . . . . . . . . . 1,246,931
46,850 Human Genome Sciences, Inc.* . . . . . . 639,971
85,075 King Pharmaceuticals, Inc.*. . . . . . . 1,288,886
36,800 Watson Pharmaceuticals, Inc.*. . . . . . 1,534,192
- ---------------------------------------------------------------------
4,709,980
INFORMATION TECHNOLOGY - 32.61%
415,000 Atmel Corp.* . . . . . . . . . . . . . . 1,664,150
89,725 The BISYS Group, Inc.* . . . . . . . . . 1,179,884
120,550 Cadence Design Systems, Inc.*. . . . . . 1,615,370
19,000 ChoicePoint Inc.*. . . . . . . . . . . . 636,500
110,100 Citrix Systems, Inc.*. . . . . . . . . . 2,431,008
25,175 Diebold, Inc.. . . . . . . . . . . . . . 1,275,114
9,175 Electronic Arts Inc.*. . . . . . . . . . 846,210
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
14
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- ----------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 32.61% (Continued)
117,500 Fairchild Semiconductor International, Inc.* . $ 1,948,150
23,800 Fiserv, Inc.*. . . . . . . . . . . . . . . . . 862,274
60,050 Jabil Circuit, Inc.* . . . . . . . . . . . . . 1,564,303
17,200 Linear Technology Corp.. . . . . . . . . . . . 615,932
78,100 Micrel, Inc.*. . . . . . . . . . . . . . . . . 952,039
82,000 National Semiconductor Corp.*. . . . . . . . . 2,647,780
44,250 Novellus Systems, Inc.*. . . . . . . . . . . . 1,493,438
63,400 Waters Corp.*. . . . . . . . . . . . . . . . . 1,739,062
- ----------------------------------------------------------------------------
21,471,214
MATERIALS - 1.49%
18,850 Sigma-Aldrich Corp.. . . . . . . . . . . . . . 979,069
- ----------------------------------------------------------------------------
TOTAL COMMON STOCKS . . . . . . . . . . . . . . . . . . . . . 57,461,545
- ----------------------------------------------------------------------------
(COST $53,188,171)
SHORT - TERM INVESTMENTS - 12.66%
INVESTMENT COMPANY - 2.03%
1,336,018 SEI Daily Income Treasury II Fund, 0.42% . . . 1,336,018
- ----------------------------------------------------------------------------
U.S. TREASURIES - 10.63%
$5,000,000 U.S. Treasury Bill, 0.85% due 10-2-03. . . . . 4,999,880
2,000,000 U.S. Treasury Bill, 0.87% due 10-16-03 . . . . 1,999,342
- ----------------------------------------------------------------------------
6,999,222
TOTAL SHORT-TERM INVESTMENTS. . . . . . . . . . . . . . . . . 8,335,240
- ----------------------------------------------------------------------------
(COST $8,335,240)
TOTAL INVESTMENTS - 99.93%. . . . . . . . . . . . . . . . . . 65,796,785
(COST $61,523,411)
Other Assets, less Liabilities - 0.07%. . . . . . . . . . . . 45,026
-------------
TOTAL NET ASSETS - 100.00%. . . . . . . . . . . . . . . . . . $ 65,841,811
=============
The identified cost of investments owned at September 30, 2003 was the same for
federal income tax and financial statement purposes.
Net unrealized appreciation of $4,273,374, is comprised of unrealized
appreciation of $9,976,624 and unrealized depreciation of $5,703,250.
*Non-income producing security
ADR - American Depository Receipt
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
15
BUFFALO SCIENCE &
TECHNOLOGY FUND
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES MARKET VALUE
- --------------------------------------------------------------------------
COMMON STOCKS - 89.35%
HEALTH CARE - 22.93%
9,000 Affymetrix, Inc.* . . . . . . . . . . . . . . $ 188,910
8,000 Applera Corp.-Celera Genomics Group*. . . . . 93,520
26,600 Axcan Pharma Inc.*. . . . . . . . . . . . . . 363,356
3,900 Biomet, Inc.. . . . . . . . . . . . . . . . . 131,079
19,400 Bristol-Myers Squibb Co.. . . . . . . . . . . 497,804
15,800 Cambrex Corp. . . . . . . . . . . . . . . . . 358,660
21,600 Covance Inc.* . . . . . . . . . . . . . . . . 483,408
6,300 Fisher Scientific International Inc.* . . . . 250,047
5,800 Galen Holdings PLC, ADR . . . . . . . . . . . 263,900
21,750 Human Genome Sciences, Inc.*. . . . . . . . . 297,105
1,700 INAMED Corp.* . . . . . . . . . . . . . . . . 124,865
31,700 King Pharmaceuticals, Inc.* . . . . . . . . . 480,255
4,300 Medicis Pharmaceutical Corp., Class A . . . . 251,980
21,500 Mentor Corp.. . . . . . . . . . . . . . . . . 490,200
8,650 Merck & Co. Inc.. . . . . . . . . . . . . . . 437,863
18,000 Pharmaceutical Product Development, Inc.* . . 431,820
31,700 Schering-Plough Corp. . . . . . . . . . . . . 483,108
- --------------------------------------------------------------------------
5,627,880
INFORMATION TECHNOLOGY - 66.42%
67,200 Adaptec, Inc.*. . . . . . . . . . . . . . . . 508,032
37,100 Advent Software, Inc.*. . . . . . . . . . . . 596,939
20,100 Agilent Technologies, Inc.* . . . . . . . . . 444,411
28,050 Altera Corp.* . . . . . . . . . . . . . . . . 530,145
14,600 Analog Devices, Inc.* . . . . . . . . . . . . 555,092
20,600 Applera Corp. - Applied Biosystems Group. . . 459,586
29,000 Applied Materials, Inc.*. . . . . . . . . . . 526,060
82,600 Atmel Corp.*. . . . . . . . . . . . . . . . . 331,226
46,850 Cadence Design Systems, Inc.* . . . . . . . . 627,790
53,200 CIENA Corp.*. . . . . . . . . . . . . . . . . 314,412
30,900 Cisco Systems, Inc.*. . . . . . . . . . . . . 603,786
19,800 Citrix Systems, Inc.* . . . . . . . . . . . . 437,184
10,550 Dell Inc.*. . . . . . . . . . . . . . . . . . 352,264
11,200 Diebold, Inc. . . . . . . . . . . . . . . . . 567,280
37,100 Fairchild Semiconductor International, Inc.*. 615,118
21,950 Intel Corp. . . . . . . . . . . . . . . . . . 603,845
22,100 Jabil Circuit, Inc.*. . . . . . . . . . . . . 575,705
25,350 Lam Research Corp.* . . . . . . . . . . . . . 561,503
5,600 Linear Technology Corp. . . . . . . . . . . . 200,536
6,150 Maxim Integrated Products, Inc. . . . . . . . 242,925
28,750 Micron Technology, Inc.*. . . . . . . . . . . 385,825
21,500 Microsoft Corp. . . . . . . . . . . . . . . . 597,485
19,700 MKS Instruments, Inc.*. . . . . . . . . . . . 426,702
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
16
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- ----------------------------------------------------------------------
INFORMATION TECHNOLOGY - 66.42% (Continued)
11,100 National Instruments Corp. . . . . . . . $ 446,775
22,800 National Semiconductor Corp.*. . . . . . 736,212
27,900 Nokia Corp., ADR . . . . . . . . . . . . 435,240
6,100 Novellus Systems, Inc.*. . . . . . . . . 205,875
39,900 Plexus Corp.*. . . . . . . . . . . . . . 620,046
10,400 SanDisk Corp.* . . . . . . . . . . . . . 662,896
25,100 Scientific-Atlanta, Inc. . . . . . . . . 781,865
17,700 SunGard Data Systems Inc.* . . . . . . . 465,687
21,200 Waters Corp.*. . . . . . . . . . . . . . 581,516
52,900 Wind River Systems, Inc.*. . . . . . . . 301,001
- ----------------------------------------------------------------------
16,300,964
TOTAL COMMON STOCKS. . . . . . . . . . . . . . . . . . 21,928,844
- ----------------------------------------------------------------------
(COST $21,983,157)
SHORT - TERM INVESTMENTS - 11.17%
INVESTMENT COMPANY - 3.08%
756,748 SEI Daily Income Treasury II Fund, 0.42% 756,748
- ----------------------------------------------------------------------
U.S. TREASURIES - 8.09%
$485,000 U.S. Treasury Bill, 0.789% due 10-23-03. 484,769
1,500,000 U.S. Treasury Bill, 0.87% due 10-16-03 . 1,499,506
- ----------------------------------------------------------------------
1,984,275
TOTAL SHORT-TERM INVESTMENTS . . . . . . . . . . . . . 2,741,023
- ----------------------------------------------------------------------
(COST $2,741,023)
TOTAL INVESTMENTS - 100.52%. . . . . . . . . . . . . . 24,669,867
(COST $24,724,180)
Liabilities, less Other Assets - (0.52)% . . . . . . . (127,949)
--------------
TOTAL NET ASSETS - 100.00% . . . . . . . . . . . . . . $ 24,541,918
==============
For federal income tax purposes, the identified cost of investments owned at
September 30, 2003 was $24,784,851.
Net unrealized depreciation for federal income tax purposes was $114,984, which
is comprised of unrealized appreciation of $3,823,075 and unrealized
depreciation of $3,938,059.
*Non-income producing security
ADR - American Depository Receipt
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
17
BUFFALO
SMALL CAP FUND
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES MARKET VALUE
- ------------------------------------------------------------------------
COMMON STOCKS - 84.54%
CONSUMER DISCRETIONARY - 37.33%
587,200 Abercrombie & Fitch Co.* . . . . . . . . $ 16,271,312
1,097,068 American Eagle Outfitters, Inc.* . . . . 16,302,430
1,354,293 Ameristar Casinos, Inc.* . . . . . . . . 33,911,497
1,194,850 Argosy Gaming Co.* . . . . . . . . . . . 29,154,340
1,135,500 Borders Group, Inc.* . . . . . . . . . . 21,483,660
374,550 Bright Horizons Family Solutions, Inc.*. 14,963,273
803,200 Brunswick Corp.. . . . . . . . . . . . . 20,626,176
617,063 Coachmen Industries, Inc.. . . . . . . . 7,225,808
1,167,700 DeVry, Inc.* . . . . . . . . . . . . . . 27,627,782
104,650 Education Management Corp.*. . . . . . . 6,035,165
958,150 Ethan Allen Interiors Inc. . . . . . . . 34,493,400
624,900 FirstService Corp.*. . . . . . . . . . . 11,354,433
756,800 Gentex Corp. . . . . . . . . . . . . . . 26,366,912
1,040,400 Isle of Capri Casinos, Inc.* . . . . . . 20,610,324
158,490 ITT Educational Services, Inc.*. . . . . 7,594,841
1,168,390 J. Jill Group Inc.*. . . . . . . . . . . 13,436,485
1,268,800 Monaco Coach Corp.*. . . . . . . . . . . 20,998,640
996,750 Orient-Express Hotel Ltd., Class A*. . . 15,549,300
1,094,530 Penn National Gaming, Inc.*. . . . . . . 23,335,380
664,287 Rent-A-Center, Inc.* . . . . . . . . . . 21,456,470
1,363,100 Royal Caribbean Cruises Ltd. . . . . . . 38,316,741
508,938 Tweeter Home Entertainment Group, Inc.*. 3,908,644
870,050 Ultimate Electronics, Inc.*. . . . . . . 8,256,774
743,850 WCI Communities, Inc.* . . . . . . . . . 12,273,525
842,550 WMS Industries Inc.* . . . . . . . . . . 19,092,183
439,550 Zale Corp.*. . . . . . . . . . . . . . . 19,520,415
- ------------------------------------------------------------------------
490,165,910
CONSUMER STAPLES - 2.29%
434,100 Performance Food Group Co.*. . . . . . . 17,672,211
371,889 United Natural Foods, Inc.*. . . . . . . 12,342,996
- ------------------------------------------------------------------------
30,015,207
FINANCIALS - 8.11%
431,050 A.G. Edwards, Inc. . . . . . . . . . . . 16,556,630
544,000 Boston Private Financial Holdings, Inc.. 12,816,640
317,850 Gabelli Asset Management Inc., Class A*. 11,334,531
97,900 Legg Mason, Inc. . . . . . . . . . . . . 7,068,380
971,050 The Phoenix Companies, Inc.. . . . . . . 11,215,627
473,250 Raymond James Financial, Inc.. . . . . . 17,202,637
485,600 Waddell & Reed Financial, Inc., Class A. 11,445,592
334,850 Wilmington Trust Corp. . . . . . . . . . 10,299,986
407,450 W.P. Stewart & Co., Ltd. . . . . . . . . 8,515,705
- ------------------------------------------------------------------------
106,455,728
HEALTH CARE - 21.31%
315,200 Affymetrix, Inc.*. . . . . . . . . . . . 6,616,048
657,780 American Medical Systems Holdings, Inc.* 14,273,826
969,000 Axcan Pharma Inc.* . . . . . . . . . . . 13,236,540
1,107,150 Cambrex Corp . . . . . . . . . . . . . . 25,132,305
1,233,050 Covance Inc.*. . . . . . . . . . . . . . 27,595,659
1,131,550 First Horizon Pharmaceutical Corp.*. . . 7,241,920
330,700 Fisher Scientific International Inc.*. . 13,125,483
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
18
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES OR
FACE AMOUNT MARKET VALUE
- ------------------------------------------------------------------------------
HEALTH CARE - 21.31% (Continued)
1,080,069 Galen Holdings PLC, ADR . . . . . . . . . . . $ 49,143,140
413,084 INAMED Corp.* . . . . . . . . . . . . . . . . 30,341,020
370,350 Medicis Pharmaceutical Corp., Class A . . . . 21,702,510
1,471,150 Mentor Corp.. . . . . . . . . . . . . . . . . 33,542,220
1,577,053 Pharmaceutical Product Development, Inc.* . . 37,833,501
- ------------------------------------------------------------------------------
279,784,172
INFORMATION TECHNOLOGY - 15.50%
1,928,250 Adaptec, Inc.*. . . . . . . . . . . . . . . . 14,577,570
1,158,673 Advent Software, Inc.*. . . . . . . . . . . . 18,643,049
1,944,250 Fairchild Semiconductor International, Inc.*. 32,235,665
1,035,200 Lam Research Corp.* . . . . . . . . . . . . . 22,929,680
539,900 Micrel, Inc.* . . . . . . . . . . . . . . . . 6,581,381
1,107,193 MKS Instruments, Inc.*. . . . . . . . . . . . 23,981,800
352,800 National Instruments Corp.. . . . . . . . . . 14,200,200
1,589,422 Plexus Corp.* . . . . . . . . . . . . . . . . 24,699,618
529,000 SanDisk Corp.*. . . . . . . . . . . . . . . . 33,718,460
2,103,317 Wind River Systems, Inc.* . . . . . . . . . . 11,967,874
- ------------------------------------------------------------------------------
203,535,297
TOTAL COMMON STOCKS . . . . . . . . . . . . . . . . . . . . . 1,109,956,314
- ------------------------------------------------------------------------------
(COST $1,054,539,195)
SHORT - TERM INVESTMENTS - 17.82%
INVESTMENT COMPANY - 0.28%
3,657,265 SEI Daily Income Treasury II Fund, 0.42%. . 3,657,265
- ------------------------------------------------------------------------------
U.S. TREASURIES - 17.54%
$32,095,000 U.S. Treasury Bill, 0.789% due 10-23-03 . . 32,079,702
162,000,000 U.S. Treasury Bill, 0.85% due 10-2-03 . . . 161,996,130
36,272,000 U.S. Treasury Bill, 0.87% due 10-16-03. . . 36,259,766
- ------------------------------------------------------------------------------
230,335,598
TOTAL SHORT-TERM INVESTMENTS. . . . . . . . . . . . . . . . . 233,992,863
- ------------------------------------------------------------------------------
(COST $233,992,863)
TOTAL INVESTMENTS - 102.36% . . . . . . . . . . . . . . . . . 1,343,949,177
(COST $1,288,532,058)
Liabilities, less Other Assets - (2.36)%. . . . . . . . . . . (31,067,720)
---------------
TOTAL NET ASSETS - 100.00%. . . . . . . . . . . . . . . . . . $1,312,881,457
===============
For federal income tax purposes, the identified cost of investments owned at
September 30, 2003 was $1,290,593,108.
Net unrealized appreciation for federal income tax purposes was $53,356,069,
which is comprised of unrealized appreciation of $193,064,081 and unrealized
depreciation of $139,708,012.
*Non-income producing security
ADR - American Depository Receipt
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
19
BUFFALO
USA GLOBAL FUND
SCHEDULE OF INVESTMENTS
September 30, 2003 (unaudited)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES MARKET VALUE
- ----------------------------------------------------------------------
COMMON STOCKS - 95.95%
CONSUMER DISCRETIONARY - 9.46%
41,900 The Coca-Cola Co. . . . . . . . . . . . . $ 1,800,024
110,700 McDonald's Corp.. . . . . . . . . . . . . 2,605,878
46,900 Wm. Wrigley Jr. Co. . . . . . . . . . . . 2,593,570
- ----------------------------------------------------------------------
6,999,472
CONSUMER STAPLES - 8.56%
26,900 Colgate-Palmolive Co. . . . . . . . . . . 1,503,441
45,200 The Gillette Co.. . . . . . . . . . . . . 1,445,496
39,100 Kimberly-Clark Corp.. . . . . . . . . . . 2,006,612
75,100 Sara Lee Corp.. . . . . . . . . . . . . . 1,378,836
- ----------------------------------------------------------------------
6,334,385
FINANCIALS - 6.85%
82,000 AFLAC INC.. . . . . . . . . . . . . . . . 2,648,600
41,900 American International Group, Inc.. . . . 2,417,630
- ----------------------------------------------------------------------
5,066,230
HEALTH CARE - 17.47%
84,600 Bristol-Myers Squibb Co.. . . . . . . . . 2,170,836
43,600 Johnson & Johnson . . . . . . . . . . . . 2,159,072
35,900 Mentor Corp.. . . . . . . . . . . . . . . 818,520
66,700 Pfizer Inc. . . . . . . . . . . . . . . . 2,026,346
107,400 Schering-Plough Corp. . . . . . . . . . . 1,636,776
57,300 Wyeth . . . . . . . . . . . . . . . . . . 2,641,530
26,730 Zimmer Holdings, Inc.*. . . . . . . . . . 1,472,823
- ----------------------------------------------------------------------
12,925,903
INDUSTRIALS - 7.92%
16,100 Johnson Controls, Inc.. . . . . . . . . . 1,523,060
47,800 Lear Corp.* . . . . . . . . . . . . . . . 2,516,192
42,000 Teleflex Inc. . . . . . . . . . . . . . . 1,824,060
- ----------------------------------------------------------------------
5,863,312
INFORMATION TECHNOLOGY - 43.11%
163,900 Adaptec, Inc.*. . . . . . . . . . . . . . 1,239,084
104,500 Agilent Technologies, Inc.* . . . . . . . 2,310,495
44,800 Analog Devices, Inc.* . . . . . . . . . . 1,703,296
68,300 Applera Corp. - Applied Biosystems Group. 1,523,773
138,102 Applied Materials, Inc.*. . . . . . . . . 2,505,170
146,900 Cadence Design Systems, Inc.* . . . . . . 1,968,460
113,900 Cisco Systems, Inc.*. . . . . . . . . . . 2,225,606
76,600 Citrix Systems, Inc.* . . . . . . . . . . 1,691,328
102,900 Intel Corp. . . . . . . . . . . . . . . . 2,830,779
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
20
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SHARES MARKET VALUE
- ------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 43.11% (Continued)
40,434 Maxim Integrated Products, Inc. . . . . . . $ 1,597,143
99,500 Micron Technology, Inc.*. . . . . . . . . . 1,335,290
102,000 Microsoft Corp. . . . . . . . . . . . . . . 2,834,580
72,102 MKS Instruments, Inc.*. . . . . . . . . . . 1,561,729
100,300 Motorola, Inc.. . . . . . . . . . . . . . . 1,200,591
25,900 National Instruments Corp.. . . . . . . . . 1,042,475
56,200 National Semiconductor Corp.* . . . . . . . 1,814,698
91,500 Waters Corp.* . . . . . . . . . . . . . . . 2,509,845
- ------------------------------------------------------------------------
31,894,342
MATERIALS - 2.58%
36,700 Sigma-Aldrich Corp. . . . . . . . . . . . . 1,906,198
- ------------------------------------------------------------------------
TOTAL COMMON STOCKS . . . . . . . . . . . . . . . . . . . 70,989,842
- ------------------------------------------------------------------------
(COST $68,223,522)
SHORT - TERM INVESTMENT - 3.41%
INVESTMENT COMPANY - 3.41%
2,518,847 SEI Daily Income Treasury II Fund, 0.42% . . 2,518,847
- ------------------------------------------------------------------------
(COST $2,518,847)
TOTAL INVESTMENTS - 99.36%. . . . . . . . . . . . . . . . 73,508,689
- ------------------------------------------------------------------------
(COST $70,742,369)
Other Assets, less Liabilities - 0.64%. . . . . . . . . . 474,693
-------------
TOTAL NET ASSETS - 100.00%. . . . . . . . . . . . . . . . $ 73,983,382
=============
For federal income tax purposes, the identified cost of investments owned at
September 30, 2003 was $71,027,509.
Net unrealized appreciation for federal income tax purposes was $2,481,180,
which is comprised of unrealized appreciation of $12,995,614 and unrealized
depreciation of $10,514,434.
*Non-income producing security
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
21
STATEMENTS OF ASSETS
AND LIABILITIES
September 30, 2003 (unaudited)
(In Thousands Except Per Share Data)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO BUFFALO BUFFALO BUFFALO BUFFALO BUFFALO
BUFFALO HIGH LARGE MID SCIENCE & SMALL USA
BALANCED YIELD CAP CAP TECHNOLOGY CAP GLOBAL
FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------
ASSETS:
Investments at cost . . . . . . $ 34,145 $194,792 $ 44,346 $ 61,523 $ 24,724 $1,288,532 $70,742
========== ========= ========= =========== ============ =========== ========
Investments at value. . . . . . $ 33,496 $200,856 $ 46,318 $ 65,797 $ 24,670 $1,343,949 $73,509
Cash. . . . . . . . . . . . . . - 5 - - - - -
Receivables:
Investments sold. . . . . . . 63 1,167 - - - - -
Dividends . . . . . . . . . . 27 - 36 26 7 543 49
Interest. . . . . . . . . . . 340 2,767 - 1 1 3 -
Fund shares sold. . . . . . . 146 2,002 221 290 135 1,987 559
Other assets. . . . . . . . . . 11 12 5 2 1 24 6
---------- --------- --------- ----------- ------------ ----------- --------
Total assets. . . . . . . . 34,083 206,809 46,580 66,116 24,814 1,346,506 74,123
---------- --------- --------- ----------- ------------ ----------- --------
LIABILITIES:
Payables:
Investments purchased . . . . - - - 135 248 23,726 -
Fund shares purchased . . . . 34 159 37 80 2 8,769 77
Management fees . . . . . . . 28 163 39 55 21 1,125 63
Accrued expenses. . . . . . . - 1 - 4 1 5 -
---------- --------- --------- ----------- ------------ ----------- --------
Total liabilities . . . . . 62 323 76 274 272 33,625 140
---------- --------- --------- ----------- ------------ ----------- --------
NET ASSETS. . . . . . . . . . . . $ 34,021 $206,486 $ 46,504 $ 65,842 $ 24,542 $1,312,881 $73,983
========== ========= ========= =========== ============ =========== ========
NET ASSETS CONSIST OF:
Capital (capital stock and
paid-in capital). . . . . . . $ 41,241 $205,892 $ 49,896 $ 62,928 $ 26,125 $1,252,148 $76,115
Undistributed net investment
income (loss) . . . . . . . . (38) 159 (3) (145) (68) (2,930) (31)
Undistributed net realized
gain (loss) from investment
transactions. . . . . . . . . (6,533) (5,629) (5,361) (1,215) (1,461) 8,246 (4,868)
Net unrealized appreciation
(depreciation) of
investments . . . . . . . . . (649) 6,064 1,972 4,274 (54) 55,417 2,767
---------- --------- --------- ----------- ------------ ----------- --------
NET ASSETS APPLICABLE
TO OUTSTANDING SHARES . . . . . . $ 34,021 $206,486 $ 46,504 $ 65,842 $ 24,542 $1,312,881 $73,983
========== ========= ========= =========== ============ =========== ========
Capital shares, $1.00 par value:
Authorized. . . . . . . . . . . 10,000 25,000 10,000 Unlimited Unlimited 100,000 10,000
========== ========= ========= =========== ============ =========== ========
Outstanding . . . . . . . . . . 4,004 19,182 2,921 6,660 2,780 65,716 4,545
========== ========= ========= =========== ============ =========== ========
NET ASSET VALUE PER SHARE . . . . $ 8.50 $ 10.76 $ 15.92 $ 9.89 $ 8.83 $ 19.98 $ 16.28
========== ========= ========= =========== ============ =========== ========
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
22
STATEMENTS
OF OPERATIONS
Six Months Ended September 30, 2003 (unaudited)
(In Thousands)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO BUFFALO BUFFALO BUFFALO BUFFALO BUFFALO
BUFFALO HIGH LARGE MID SCIENCE & SMALL USA
BALANCED YIELD CAP CAP TECHNOLOGY CAP GLOBAL
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest. . . . . . . . . . . . $ 422 $ 4,916 $ 6 $ 20 $ 3 $ 471 $ 3
Dividends . . . . . . . . . . . 198 455 228 132 40 1,931 353
Foreign tax withheld. . . . . . (1) - (4) - (1) (12) -
---------- -------- --------- --------- ------------ ----------- --------
Total investment income . . . 619 5,371 230 152 42 2,390 356
---------- -------- --------- --------- ------------ ----------- --------
EXPENSES:
Management fees . . . . . . . . 141 892 217 286 103 5,279 359
Registration fees . . . . . . . 8 29 13 10 6 27 14
Other . . . . . . . . . . . . . 1 3 1 1 1 14 1
---------- -------- --------- --------- ------------ ----------- --------
Total expenses. . . . . . . . 150 924 231 297 110 5,320 374
---------- -------- --------- --------- ------------ ----------- --------
Net investment income (loss). 469 4,447 (1) (145) (68) (2,930) (18)
---------- -------- --------- --------- ------------ ----------- --------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss)
from investment transactions. 627 3,893 (1,449) (121) 390 54,118 242
Net unrealized appreciation
during the period on
investments . . . . . . . . . 3,080 9,936 11,067 14,053 6,738 285,305 14,851
---------- -------- --------- --------- ------------ ----------- --------
Net realized and unrealized
gain on investments . . . . 3,707 13,829 9,618 13,932 7,128 339,423 15,093
---------- -------- --------- --------- ------------ ----------- --------
Net increase in net assets
resulting from operations . $ 4,176 $ 18,276 $ 9,617 $ 13,787 $ 7,060 $ 336,493 $15,075
========== ======== ========= ========= ============ =========== ========
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
23
STATEMENTS OF CHANGES
IN NET ASSETS
(In Thousands)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO BUFFALO BUFFALO
BALANCED FUND HIGH YIELD FUND LARGE CAP FUND
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
September 30, Ended September 30, Ended September 30, Ended
2003 March 31, 2003 March 31, 2003 March 31,
(Unaudited) 2003 (Unaudited) 2003 (Unaudited) 2003
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) . . . $ 469 $ 484 $ 4,447 $ 6,063 $ (1) $ 86
Net realized gain (loss) from
investment transactions . . . . 627 (2,183) 3,893 (1,826) (1,449) (1,132)
Net unrealized appreciation
(depreciation) during the
period on investments . . . . . . 3,080 (2,699) 9,936 2,488 11,067 (16,065)
--------------- ------------ --------------- ------------ --------------- -----------
Net increase (decrease) in net
assets resulting from operations 4,176 (4,398) 18,276 6,725 9,617 (17,111)
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income . . . . . . . (527) (510) (4,428) (6,125) (88) -
Net realized gain from
investment transactions . . . . . - - - - - -
--------------- ------------ --------------- ------------ --------------- -----------
Total distributions
to shareholders . . . . . . . . (527) (510) (4,428) (6,125) (88) -
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . 14,128 3,553 75,146 90,761 6,555 12,995
Reinvested distributions . . . . . 467 481 3,704 4,911 86 -
--------------- ------------ --------------- ------------ --------------- -----------
14,595 4,034 78,850 95,672 6,641 12,995
Shares repurchased . . . . . . . . (2,273) (3,945) (29,220) (23,121) (5,330) (13,928)
--------------- ------------ --------------- ------------ --------------- -----------
Net increase (decrease) from
capital share transactions . . 12,322 89 49,630 72,551 1,311 (933)
--------------- ------------ --------------- ------------ --------------- -----------
Total increase
(decrease) in net assets . . 15,971 (4,819) 63,478 73,151 10,840 (18,044)
NET ASSETS:
Beginning of period . . . . . . . . 18,050 22,869 143,008 69,857 35,664 53,708
--------------- ------------ --------------- ------------ --------------- -----------
End of period . . . . . . . . . . . $ 34,021 $ 18,050 $ 206,486 $ 143,008 $ 46,504 $ 35,664
=============== ============ =============== ============ =============== ===========
Undistributed net investment
income (loss) at end of period . $ (38) $ 29 $ 159 $ 67 $ (3) $ 86
=============== ============ =============== ============ =============== ===========
Fund share transactions:
Shares sold . . . . . . . . . . . . 1,746 460 7,112 9,303 423 895
Reinvested distributions . . . . . 55 65 345 509 6 -
--------------- ------------ --------------- ------------ --------------- -----------
1,801 525 7,457 9,812 429 895
Shares repurchased . . . . . . . . (279) (510) (2,774) (2,393) (346) (1,017)
--------------- ------------ --------------- ------------ --------------- -----------
Net increase (decrease)
in fund shares . . . . . . . . 1,522 15 4,683 7,419 83 (122)
=============== ============ =============== ============ =============== ===========
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
24
STATEMENTS OF CHANGES
IN NET ASSETS
(In Thousands)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO BUFFALO BUFFALO
MID CAP FUND SCIENCE & TECHNOLOGY FUND SMALL CAP FUND
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
September 30, Ended September 30, Ended September 30, Ended
2003 March 31, 2003 March 31, 2003 March 31,
(Unaudited) 2003 (Unaudited) 2003 (Unaudited) 2003
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss). . . . $ (145) $ (225) $ (68) $ (111) $ (2,930) $ (4,870)
Net realized gain (loss) from
investment transactions . . . . . (121) (667) 390 (1,540) 54,118 (45,826)
Net unrealized appreciation
(depreciation)during the
period on investments . . . . . . 14,053 (10,927) 6,738 (6,864) 285,305 (375,671)
--------------- ------------ --------------- ------------ --------------- ------------
Net increase (decrease) in net
assets resulting from operations 13,787 (11,819) 7,060 (8,515) 336,493 (426,367)
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income . . . . . . . - - - - - -
Net realized gain from
investment transactions . . . . . - - - - - (1,487)
--------------- ------------ --------------- ------------ --------------- ------------
Total distributions to
shareholders. . . . . . . . . . - - - - - (1,487)
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . 19,080 39,237 6,003 8,750 484,687 547,895
Reinvested distributions. . . . . . - - - - - 1,450
--------------- ------------ --------------- ------------ --------------- ------------
19,080 39,237 6,003 8,750 484,687 549,345
Shares repurchased. . . . . . . . . (6,218) (19,980) (3,058) (4,210) (193,933) (721,000)
--------------- ------------ --------------- ------------ --------------- ------------
Net increase (decrease) from
capital share transactions. . . 12,862 19,257 2,945 4,540 290,754 (171,655)
--------------- ------------ --------------- ------------ --------------- ------------
Total increase (decrease)
in net assets . . . . . . . . . 26,649 7,438 10,005 (3,975) 627,247 (599,509)
NET ASSETS:
Beginning of period . . . . . . . . 39,193 31,755 14,537 18,512 685,634 1,285,143
--------------- ------------ --------------- ------------ --------------- ------------
End of period . . . . . . . . . . . $ 65,842 $ 39,193 $ 24,542 $ 14,537 $ 1,312,881 $ 685,634
=============== ============ =============== ============ =============== ============
Undistributed net investment
income (loss) at end of period. . $ (145) $ - $ (68) $ - $ (2,930) $ -
=============== ============ =============== ============ =============== ============
Fund share transactions:
Shares sold . . . . . . . . . . . . 2,112 4,591 727 1,238 26,849 32,721
Reinvested distributions. . . . . . - - - - - 80
--------------- ------------ --------------- ------------ --------------- ------------
2,112 4,591 727 1,238 26,849 32,801
Shares repurchased. . . . . . . . . (653) (2,527) (364) (640) (10,864) (44,029)
--------------- ------------ --------------- ------------ --------------- ------------
Net increase (decrease) in
fund shares . . . . . . . . . . 1,459 2,064 363 598 15,985 (11,228)
=============== ============ =============== ============ =============== ============
BUFFALO
USA GLOBAL FUND
Six Months
Ended Year
September 30, Ended
2003 March 31,
(Unaudited) 2003
- -------------------------------------------------------------------
OPERATIONS:
Net investment income (loss). . . . $ (18) $ (63)
Net realized gain (loss) from
investment transactions . . . . . 242 (2,723)
Net unrealized appreciation
(depreciation)during the
period on investments . . . . . . 14,851 (21,138)
--------------- -----------
Net increase (decrease) in net
assets resulting from operations 15,075 (23,924)
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income . . . . . . . (13) -
Net realized gain from
investment transactions . . . . . - -
--------------- -----------
Total distributions to
shareholders. . . . . . . . . . (13) -
CAPITAL SHARE TRANSACTIONS:
Shares sold . . . . . . . . . . . . 13,592 32,480
Reinvested distributions. . . . . . 12 -
--------------- -----------
13,604 32,480
Shares repurchased. . . . . . . . . (15,418) (20,400)
--------------- -----------
Net increase (decrease) from
capital share transactions. . . (1,814) 12,080
--------------- -----------
Total increase (decrease)
in net assets . . . . . . . . 13,248 (11,844)
NET ASSETS:
Beginning of period . . . . . . . . 60,735 72,579
--------------- -----------
End of period . . . . . . . . . . . $ 73,983 $ 60,735
=============== ===========
Undistributed net investment
income (loss) at end of period. . $ (31) $ -
=============== ===========
Fund share transactions:
Shares sold . . . . . . . . . . . . 893 2,191
Reinvested distributions. . . . . . 1 -
--------------- -----------
894 2,191
Shares repurchased. . . . . . . . . (1,005) (1,388)
--------------- -----------
Net increase (decrease) in
fund shares . . . . . . . . . . (111) 803
=============== ===========
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
25
NOTES TO FINANCIAL
STATEMENTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
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 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 constantly 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, or if no sale was reported on that
date, the mean between the most recent quoted bid and asked price is used.
All equity securities that are traded using NASDAQ are valued using the NASDAQ
Official Closing Price ("NOCP"). Securities not currently traded are valued at
fair value as determined in good faith by the Boards of Directors/Trustees, or
their designated committee. As of September 30, 2003, the Buffalo Balanced Fund
and Buffalo High Yield Fund held fair valued securities with market values of
$20 and $25, respectively or 0.00% and 0.00% of total net assets, respectively.
Securities with maturities of 60 days or less when acquired or subsequently
within 60 days of maturity are valued at amortized cost, which approximates
market value.
B. Federal Income Taxes - Each Fund intends to comply with the requirement of
Subchapter M of the Internal Revenue Code necessary to qualify as regulated
investment companies 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. Dividend income
is recorded on the ex-dividend date. Interest income is recognized on the
accrual basis. Realized gains and losses from investment transactions and
unrealized appreciation and depreciation of investments 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 accounting principles generally accepted in
the United States. 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
accounting principles generally accepted in the United States 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.
2. FEDERAL TAX MATTERS:
The tax character of distributions paid during the periods ended September 30,
2003 and March 31, 2003, were identical to those distributions reported in the
Statements of Changes in Net Assets, except as follows:
MARCH 31, 2003
-----------------------------------------------
CAPITAL RETURN
FUND ORDINARY GAIN OF CAPITAL TOTAL*
- -----------------------------------------------------------
Balanced . $ 527,773 - - $ 527,773
High Yield 6,184,954 - - 6,184,954
Small Cap. - $1,469,739 $ 17,010 1,486,749
* Total distributions paid differ from the Statements of Changes in Net Assets
due primarily to the use of equalization debits for tax purposes.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
26
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
As of March 31, 2003, the components of accumulated earnings (deficit) on a tax
basis were identical to those reported in the Statements of Assets and
Liabilities, except as follows:
- --------------------------------------------------------------------------------------
BALANCED HIGH YIELD LARGE CAP
FUND FUND FUND
- --------------------------------------------------------------------------------------
Undistributed ordinary income . . . . . . $ 82,560 $ 235,531 $ 85,659
Undistributed long-term capital gains . . - - -
------------- ------------- -------------
Accumulated earnings. . . . . . . . . . . 82,560 235,531 85,659
Accumulated capital and other losses* . . (7,154,796) (9,517,389) (3,691,267)
Unrealized appreciation (depreciation)**. (3,798,439) (4,079,749) (9,315,461)
------------- ------------- -------------
Total accumulated earnings (deficit). . . $(10,870,675) $(13,361,607) $(12,921,069)
============= ============= =============
- --------------------------------------------------------------------------------------
SCIENCE & USA
TECHNOLOGY SMALL CAP GLOBAL
FUND FUND FUND
- --------------------------------------------------------------------------------------
Undistributed ordinary income . . . . . . $ - $ - $ -
Undistributed long-term capital gains . . - - -
------------- ------------- -------------
Accumulated earnings. . . . . . . . . . . - - -
Accumulated capital and other losses* . . (1,790,061) (43,811,588) (4,734,388)
Unrealized appreciation (depreciation)**. (6,852,417) (231,949,005) (12,459,158)
------------- ------------- -------------
Total accumulated earnings (deficit). . . $(8,642,478) $(275,760,593) $(17,193,546)
============= ============= =============
* The Funds had net capital loss carryovers and deferred post-October losses
as identified elsewhere in the Notes. In addition, they also had deferrals
of wash sale losses and timing differences related to amortization of bond
premiums.
** The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of wash sale
losses and the differences between book and tax amortization of bond
premiums.
As of March 31, 2003, 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
FUND CARRYOVER EXPIRES
- --------------------------------------------
Balanced . . . . . . $ 2,546,950 2007
2,192,010 2009
225,304 2011
High Yield . . . . . 98,388 2007
4,212,790 2009
555,120 2010
4,031,733 2011
Large Cap. . . . . . 757,457 2010
2,333,606 2011
Mid Cap. . . . . . . 1,094,108 2011
Science & Technology 1,091,938 2011
Small Cap. . . . . . 33,821,772 2011
USA Global . . . . . 86,855 2009
828,653 2010
3,755,016 2011
Certain Funds incurred a loss for tax purposes from November 1, 2002 to March
31, 2003. As permitted by tax regulations, the Funds intend to elect to defer
and treat these losses as arising in the fiscal year ended March 31, 2004. The
following Funds had deferred losses:
FUND
- --------------------------------
Balanced . . . . . . $2,190,532
High Yield . . . . . 619,358
Large Cap. . . . . . 600,204
Science & Technology 698,923
Small Cap. . . . . . 9,989,816
USA Global . . . . . 63,864
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
27
3. TRANSACTIONS WITH AFFILIATES:
Management fees are paid to Kornitzer Capital Management, Inc. at the rate of 1%
per annum of the average daily net asset values of the Funds for services which
include administration, and all other operating expenses of the Funds except the
cost of acquiring and disposing of portfolio securities, the taxes, if any,
imposed directly on the Funds and its shares, insurance, certain director
expenses and the cost of qualifying the Funds' shares for sale in any
jurisdiction. Certain officers and/or directors/trustees 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. An officer of the Funds is
affiliated with Quasar Distributors, LLC, which provides distribution services
for the Funds.
4. REDEMPTION FEE:
Effective December 31, 2001, if shares of the Buffalo High Yield Fund are sold
or exchanged within 180 days of their purchase, a redemption fee of 2% of the
value of the shares sold or exchanged will be assessed. The redemption fee does
not apply to shares purchased through reinvested distributions (dividends and
capital gains). The redemption fee is retained by the Fund and will help pay
transaction and tax costs that long-term investors may bear when the Fund
realizes capital gains as a result of selling securities to meet investor
redemptions.
5. INVESTMENT TRANSACTIONS:
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the period ended September 30, 2003, were as
follows:
Balanced Fund
Purchases . . . . . . . $ 15,905,618
Proceeds from sales . . 7,223,154
High Yield Fund
Purchases . . . . . . . $ 53,118,285
Proceeds from sales . . 43,362,850
Large Cap Fund
Purchases . . . . . . . $ 6,984,539
Proceeds from sales . . 10,442,651
Mid Cap Fund
Purchases . . . . . . . $ 5,895,147
Proceeds from sales . . 354,546
Science & Technology Fund
Purchases . . . . . . . $ 5,428,635
Proceeds from sales . . 4,420,346
Small Cap Fund
Purchases . . . . . . . $272,120,859
Proceeds from sales . . 154,433,906
USA Global Fund
Purchases . . . . . . . $ 2,865,183
Proceeds from sales . . 6,106,354
There were no purchases or sales of long-term U.S. govern-ment securities during
the period ended September 30, 2003.
This report has been prepared for the information of the Shareholders of the
Funds, and is not to be construed as an offering of the shares of the Funds.
Shares of the Funds are offered only by the Prospectus, a copy of which may be
obtained from Buffalo Funds c/o U.S. Bancorp Fund Services, LLC,
1-800-49-BUFFALO or at www.buffalofunds.com (11/03).
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
28
FINANCIAL HIGHLIGHTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO BALANCED FUND
For The
Six Months Ended
Condensed data for a share of capital September 30, 2003 Years Ended March 31,
stock outstanding throughout the period. (Unaudited) 2003 2002(a) 2001 2000 1999
- -------------------------------------------- -------------------- --------- --------- --------- --------- ---------
Net asset value, beginning of period . . . . $ 7.27 $ 9.27 $ 8.97 $ 9.86 $ 8.87 $ 11.50
-------------------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income . . . . . . . . . 0.13 0.20 0.33 0.35 0.57 0.66
Net gains (losses) on securities
(both realized and unrealized) . . . . 1.25 (1.99) 0.23 (0.79) 0.87 (1.86)
-------------------- --------- --------- --------- --------- ---------
Total from investment operations . . . . . 1.38 (1.79) 0.56 (0.44) 1.44 (1.20)
-------------------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income . . (0.15) (0.21) (0.26) (0.45) (0.45) (0.66)
Distributions from capital gains . . . . - - - - - (0.64)
Distribution in excess of capital gains - - - - - (0.13)
-------------------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.15) (0.21) (0.26) (0.45) (0.45) (1.43)
-------------------- --------- --------- --------- --------- ---------
Net asset value, end of period . . . . . . . $ 8.50 $ 7.27 $ 9.27 $ 8.97 $ 9.86 $ 8.87
==================== ========= ========= ========= ========= =========
Total return* 18.98% (19.32%) 6.48% (4.58%) 16.78% (10.49%)
==================== ========= ========= ========= ========= =========
Ratios/Supplemental Data
Net assets, end of period (in millions) . . $ 34 $ 18 $ 23 $ 28 $ 29 $ 40
Ratio of expenses to average net assets** . 1.06% 1.10% 1.08% 1.06% 1.05% 1.04%
Ratio of net investment income
to average net assets** . . . . . . . . . 3.34% 2.60% 2.71% 3.72% 5.82% 6.19%
Portfolio turnover rate . . . . . . . . . . 31% 45% 12% 68% 33% 57%
<FN>
*Total return not annualized for periods less than one full year.
**Annualized for periods less than one full year.
(a)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. Per share, ratios and supplemental
data for periods prior to April 1, 2001 have not been restated to reflect this
change in presentation.
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
29
FINANCIAL HIGHLIGHTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO HIGH YIELD FUND
For The
Six Months Ended
Condensed data for a share of capital September 30, 2003 Years Ended March 31,
stock outstanding throughout the period. (Unaudited) 2003 2002(a) 2001 2000 1999
- -------------------------------------------- -------------------- --------- --------- --------- --------- ---------
Net asset value, beginning of period . . . . $ 9.86 $ 9.87 $ 10.24 $ 10.21 $ 10.74 $ 12.83
-------------------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income . . . . . . . . . 0.25 0.55 0.73 1.05 1.05 0.93
Net gains (losses) on securities
(both realized and unrealized) . . . . . 0.90 0.01 (0.34) 0.02 (0.54) (2.18)
-------------------- --------- --------- --------- --------- ---------
Total from investment operations . . . . . 1.15 0.56 0.39 1.07 0.51 (1.25)
-------------------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income . . (0.25) (0.57) (0.76) (1.04) (1.04) (0.76)
Distributions from capital gains . . . . - - - - - (0.08)
-------------------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.25) (0.57) (0.76) (1.04) (1.04) (0.84)
-------------------- --------- --------- --------- --------- ---------
Net asset value, end of period . . . . . . . $ 10.76 $ 9.86 $ 9.87 $ 10.24 $ 10.21 $ 10.74
==================== ========= ========= ========= ========= =========
Total return* . . . . . . . . . . . . . . . 11.69% 5.95% 3.95% 11.16% 4.83% (9.92%)
==================== ========= ========= ========= ========= =========
Ratios/Supplemental Data
Net assets, end of period (in millions) . . $ 206 $ 143 $ 70 $ 42 $ 44 $ 58
Ratio of expenses to average net assets** . 1.04% 1.03% 1.04% 1.04% 1.04% 1.05%
Ratio of net investment income
to average net assets** . . . . . . . . . 4.98% 6.24% 7.63% 10.30% 9.05% 7.76%
Portfolio turnover rate . . . . . . . . . . 30% 33% 36% 54% 16% 30%
<FN>
*Total return not annualized for periods less than one full year.
**Annualized for periods less than one full year.
(a)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%. Per share, ratios and
supplemental data for periods prior to April 1, 2001 have not been restated to
reflect this change in presentation.
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
30
FINANCIAL HIGHLIGHTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO LARGE CAP FUND
For The
Six Months Ended
Condensed data for a share of capital September 30, 2003 Years Ended March 31,
stock outstanding throughout the period. (Unaudited) 2003 2002 2001 2000 1999
- -------------------------------------------- -------------------- --------- --------- --------- --------- ---------
Net asset value, beginning of period . . . . $ 12.57 $ 18.14 $ 17.99 $ 21.91 $ 16.95 $ 16.94
-------------------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss) . . . . . . - 0.03 (0.03) 0.04 0.01 0.04
Net gains (losses) on securities
(both realized and unrealized) . . . . . 3.38 (5.60) 0.39 (1.98) 5.21 0.40
-------------------- --------- --------- --------- --------- ---------
Total from investment operations . . . . . 3.38 (5.57) 0.36 (1.94) 5.22 0.44
-------------------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income . . (0.03) - (0.01) (0.03) (0.01) (0.05)
Distributions from capital gains . . . . - - (0.20) (1.95) (0.25) (0.38)
-------------------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . (0.03) - (0.21) (1.98) (0.26) (0.43)
-------------------- --------- --------- --------- --------- ---------
Net asset value, end of period . . . . . . . $ 15.92 $ 12.57 $ 18.14 $ 17.99 $ 21.91 $ 16.95
==================== ========= ========= ========= ========= =========
Total return* . . . . . . . . . . . . . . . 26.90% (30.71%) 2.06% (9.86%) 31.07% 2.73%
==================== ========= ========= ========= ========= =========
Ratios/Supplemental Data
Net assets, end of period (in millions) . . $ 47 $ 36 $ 54 $ 43 $ 34 $ 32
Ratio of expenses to average net assets** . 1.06% 1.06% 1.06% 1.04% 1.05% 1.06%
Ratio of net investment income (loss)
to average net assets** . . . . . . . . . (0.01%) 0.21% (0.17%) 0.17% 0.04% 0.27%
Portfolio turnover rate . . . . . . . . . . 17% 16% 7% 27% 27% 83%
<FN>
*Total return not annualized for periods less than one full year.
**Annualized for periods less than one full year.
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
31
FINANCIAL HIGHLIGHTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO MID CAP FUND
For The Six Months For The Period From
Ended December 17, 2001
Condensed data for a share of capital September 30, 2003 Year Ended (Inception) to
stock outstanding throughout the period. (Unaudited) March 31, 2003 March 31, 2002
- -------------------------------------------- -------------------- ---------------- ---------------------
Net asset value, beginning of period . . . . $ 7.54 $ 10.12 $ 10.00
-------------------- ---------------- ---------------------
Income from investment operations:
Net investment loss . . . . . . . . . . (0.02) (0.04) (0.01)
Net gains (losses) on securities
(both realized and unrealized) . . . . 2.37 (2.54) 0.13
-------------------- ---------------- ---------------------
Total from investment operations . . . . . 2.35 (2.58) 0.12
-------------------- ---------------- ---------------------
Less distributions:
Dividends from net investment income . . - - -
Distributions from capital gains . . . . - - -
-------------------- ---------------- ---------------------
Total distributions . . . . . . . . . . . - - -
-------------------- ---------------- ---------------------
Net asset value, end of period . . . . . . . $ 9.89 $ 7.54 $ 10.12
==================== ================ =====================
Total return* . . . . . . . . . . . . . . . 31.17% (25.49%) 1.20%
==================== ================ =====================
Ratios/Supplemental Data
Net assets, end of period (in millions) . . $ 66 $ 39 $ 32
Ratio of expenses to average net assets** . 1.04% 1.10% 1.16%
Ratio of net investment loss to average
net assets** . . . . . . . . . . . . . . . (0.51%) (0.59%) (0.71%)
Portfolio turnover rate . . . . . . . . . . 1% 8% 3%
<FN>
*Total return not annualized for periods less than one full year.
**Annualized for periods less than one full year.
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
32
FINANCIAL HIGHLIGHTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO SCIENCE & TECHNOLOGY FUND
For The
Six Months For The Period From
Ended April 16, 2001
Condensed data for a share of capital September 30, 2003 Year Ended (Inception) to
stock outstanding throughout the period. (Unaudited) March 31, 2003 March 31, 2002
- -------------------------------------------- -------------------- ---------------- ---------------------
Net asset value, beginning of period . . . . $ 6.01 $ 10.18 $ 10.00
-------------------- ---------------- ---------------------
Income from investment operations:
Net investment loss . . . . . . . . . . (0.02) (0.05) (0.05)
Net gains (losses) on securities
(both realized and unrealized) . . . . 2.84 (4.12) 0.23
-------------------- ---------------- ---------------------
Total from investment operations . . . . . 2.82 (4.17) 0.18
-------------------- ---------------- ---------------------
Less distributions:
Dividends from net investment income . . - - -
Distributions from capital gains . . . . - - -
-------------------- ---------------- ---------------------
Total distributions . . . . . . . . . . . - - -
-------------------- ---------------- ---------------------
Net asset value, end of period . . . . . . . $ 8.83 $ 6.01 $ 10.18
==================== ================ =====================
Total return* . . . . . . . . . . . . . . . 46.92% (40.96%) 1.80%
==================== ================ =====================
Ratios/Supplemental Data
Net assets, end of period (in millions) . . $ 25 $ 15 $ 19
Ratio of expenses to average net assets** . 1.06% 1.23% 1.17%
Ratio of net investment loss to average
net assets** . . . . . . . . . . . . . . . (0.66%) (0.73%) (0.77%)
Portfolio turnover rate . . . . . . . . . . 23% 26% 4%
<FN>
*Total return not annualized for periods less than one full year.
**Annualized for periods less than one full year.
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
33
FINANCIAL HIGHLIGHTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO SMALL CAP FUND
FOR THE
For The PERIOD FROM
Six Months Ended APRIL 14, 1998
Condensed data for a share of capital September 30, 2003 Years Ended March 31, (INCEPTION) TO
stock outstanding throughout the period. (Unaudited) 2003 2002 2001 2000 MARCH 31, 1999
- ------------------------------------------ -------------------- --------- -------- -------- -------- ----------------
Net asset value, beginning of period . . . $ 13.79 $ 21.08 $ 14.97 $ 15.38 $ 9.49 $ 10.00
-------------------- --------- -------- -------- -------- ----------------
Income from investment operations:
Net investment income (loss) . . . . . (0.04) (0.10) (0.03) (0.01) (0.03) 0.04
Net gains (losses) on securities
(both realized and unrealized) . . . . 6.23 (7.16) 6.17 1.27 6.13 (0.51)
-------------------- --------- -------- -------- -------- ----------------
Total from investment operations . . . . 6.19 (7.26) 6.14 1.26 6.10 (0.47)
-------------------- --------- -------- -------- -------- ----------------
Less distributions:
Dividends from net investment income . - - - - - (0.04)
Distributions from capital gains . . . - (0.03) (0.03) (1.67) (0.21) -
-------------------- --------- -------- -------- -------- ----------------
Total distributions . . . . . . . . . . - (0.03) (0.03) (1.67) (0.21) (0.04)
-------------------- --------- -------- -------- -------- ----------------
Net asset value, end of period . . . . . . $ 19.98 $ 13.79 $ 21.08 $ 14.97 $ 15.38 $ 9.49
==================== ========= ======== ======== ======== ================
Total return* . . . . . . . . . . . . . . 44.89% (34.49%) 41.04% 8.95% 64.87% (4.69%)
==================== ========= ======== ======== ======== ================
Ratios/Supplemental Data
Net assets, end of period (in millions) . $ 1,313 $ 686 $ 1,285 $ 53 $ 35 $ 13
Ratio of expenses to average net assets** 1.01% 1.02% 1.01% 1.04% 1.12% 1.02%
Ratio of net investment income (loss)
to average net assets** . . . . . . . . (0.56%) (0.55%) (0.44%) (0.12%) (0.27%) 0.59%
Portfolio turnover rate . . . . . . . . . 17% 24% 6% 31% 42% 34%
<FN>
*Total return not annualized for periods less than one full year.
**Annualized for periods less than one full year.
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
34
FINANCIAL HIGHLIGHTS
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
BUFFALO USA GLOBAL FUND
For The Six Months
Ended
Condensed data for a share of capital September 30, 2003 Years Ended March 31,
stock outstanding throughout the period. (Unaudited) 2003 2002 2001 2000 1999
- -------------------------------------------- -------------------- --------- --------- --------- --------- ---------
Net asset value, beginning of period . . . . $ 13.04 $ 18.84 $ 17.48 $ 25.01 $ 16.27 $ 17.29
-------------------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss) . . . . . . - (a) (0.01) (0.06) (0.01) (0.03) 0.06
Net gains (losses) on securities
(both realized and unrealized) . . . . . 3.24 (5.79) 1.42 (4.67) 9.71 (0.51)
-------------------- --------- --------- --------- --------- ---------
Total from investment operations . . . . . 3.24 (5.80) 1.36 (4.68) 9.68 (0.45)
-------------------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income . . - - - - (0.02) (0.06)
Distributions from capital gains . . . . - - - (2.85) (0.92) (0.51)
-------------------- --------- --------- --------- --------- ---------
Total distributions . . . . . . . . . . . - - - (2.85) (0.94) (0.57)
-------------------- --------- --------- --------- --------- ---------
Net asset value, end of period . . . . . . . $ 16.28 $ 13.04 $ 18.84 $ 17.48 $ 25.01 $ 16.27
==================== ========= ========= ========= ========= =========
Total return* . . . . . . . . . . . . . . . 24.87% (30.79%) 7.78% (19.80%) 60.72% (2.52%)
==================== ========= ========= ========= ========= =========
Ratios/Supplemental Data
Net assets, end of period (in millions) . . $ 74 $ 61 $ 73 $ 49 $ 52 $ 35
Ratio of expenses to average net assets** . 1.04% 1.04% 1.05% 1.03% 1.04% 1.05%
Ratio of net investment income
to average net assets** . . . . . . . . . (0.05%) (0.10%) (0.39%) (0.05%) (0.16%) 0.34%
Portfolio turnover rate . . . . . . . . . . 4% 7% 6% 17% 35% 42%
<FN>
*Total return not annualized for periods less than one full year.
**Annualized for periods less than one full year.
(a)Net investment loss is less than $(0.01).
See accompanying Notes to Financial Statements.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
35
BUFFALO FUNDS
Balanced Fund
High Yield Fund
Large Cap Fund
Mid Cap Fund
Science & Technology Fund
Small Cap Fund
USA Global Fund
* * * * * * * * * * * * * *
[GRAPHIC OMMITTED]
BUFFALO(R)
FUNDS
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. [RESERVED]
- ------------------
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
- -------------------------------------------------------------------------
MANAGEMENT INVESTMENT COMPANIES.
- --------------------------------
Not applicable to open-end investment companies.
ITEM 8. [RESERVED]
- ------------------
ITEM 9. CONTROLS AND PROCEDURES.
- --------------------------------
(a) Based on the evaluation of the registrant's disclosure controls and
procedures, as defined in Rule 30a-3(c) under the Investment Company Act of
1940 (the "Disclosure Controls") as of a date within 90 days of the filing
date (the "Filing Date") of this Form N-CSR (the "Report"), the
registrant's President and Treasurer has determined that the Disclosure
Controls are effectively designed to ensure that information required to be
disclosed by the registrant in the Report is recorded, processed,
summarized and reported by the Filing Date and are designed to ensure that
information required to be disclosed in the Report is accumulated and
communicated to the registrant's management, including the registrant's
President and Treasurer, as appropriate to allow timely decisions regarding
required disclosure.
(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during
the Registrant's last fiscal half-year that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
1
ITEM 10. EXHIBITS.
- ------------------
(a)(1) Any code of ethics or amendment thereto. Not applicable until annual
filing.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act
of 1940. Filed herewith.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940. Furnished herewith.
2
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 Large Cap Fund, Inc.
By (Signature and Title) /s/ Kent W. Gasaway
----------------------------------------------
Kent W. Gasaway, President and Treasurer
Date December 5, 2003
----------------
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 December 5, 2003
----------------
3