(PUB) Investing 2015
March 2015
Morningstar FundInvestor
5
Data through February 28, 2015 Buffalo Mid Cap
Ticker
Status Yield Total Assets
Mstar Category Mid-Cap Growth
BUFMX Open
0.0% $568 mil
Morningstar Analyst Rating 02-02-15
Investment Style Equity Stock %
Historical Profile Return Risk Rating Average Average Neutral
95% 99% 90% 92% 95% 99% 98% 99%
ˇ
Manager Change Partial Manager Change
14.0 18.0 22.8
Morningstar Pillars Process Performance
Growth of $10,000
¶ ¶ ¶ ∞ ∞
Positive Neutral Neutral Neutral Positive
Investment Values of Fund Investment Values of S&P 500
10.0
People Parent Price
7.0
Performance Quartile (within Category) History
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 02-15
Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨
12.92 16.60
14.48 13.83
15.01
15.29
9.14
13.60 48.80 22.34
16.91 24.34 9.28 -2.04 0.00 24.34 0.00 0.00 1.02 -0.43 54
15.60 -5.83 -7.94 -4.18 0.00 -5.83 0.00 0.32 1.02 -0.23 64
16.97 13.93 -2.07 -1.88
18.78 29.25 -3.14 -6.49
17.45 5.85 -7.84 -6.05 0.00 5.85 0.00 2.42 1.01 -0.20 66
18.51 6.07 3.50 -4.26 0.00 6.07
NAV
5.68
-39.43 9.97
Total Return %
5.72 1.12 0.00
-10.11 8.92
4.48 -1.46 0.00
-2.43 4.89 0.00
+/-S&P 500 +/-Russ MG
1.73 0.00
-4.98 0.00 5.68 0.00 0.29 1.02 -0.21 74
2.51 0.00
0.08
0.00
Income Return % Capital Return %
16.60
13.83
-39.43 9.97
48.80
13.85
29.25
25
19
74
20
16
53
90
16
Total Rtn % Rank Cat
Pillar Spectrum Positive ∞
0.00 0.16 1.03 -0.48
0.00 0.22 1.03 -0.39
0.00 1.22 1.02 -0.32
0.00 0.18 1.01 -0.23
0.00 0.00 1.02 -0.26
0.01 0.79 1.01 -0.34
0.00 3.08 1.01 0.07
0.00 0.00 . . . 568
Income $
§ Negative
¶ Neutral
Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil
Performance 02-28-15 1st Qtr 2nd Qtr
3rd Qtr
4th Qtr
Total
24
21
19
21
34
17
12
21
31
31
45
2010 2011 2012 2013 2014
9.49 -10.01 12.46 12.21 24.34 2.01 3.59 -19.08 10.13 -5.83 15.06 -7.97 2.60 4.85 13.93 5.72 4.85 8.77 7.21 29.25 2.61 3.68 -4.20 3.86 5.85
167
269
375
473
197
399
727
670
612
622
562
Portfolio Analysis 12-31-14 Share change since 09-14 Total Stocks:52 Sector
Rating and Risk Time Load-Adj
PE Tot Ret% % Assets
Morningstar
Morningstar Risk vs Cat
Morningstar Risk-Adj Rating
Period Return % Rtn vs Cat
CME Group Inc Class A Acuity Brands Inc
Finan Svs 28.6 Technology 37.5 Hlth care 44.8 Cnsmr Def 39.8 Cnsmr Cyc 23.5 Finan Svs 27.9 Cnsmr Cyc 26.2 Technology 30.6
3.16 3.00 2.97 2.83 2.81 2.57 2.56 2.53
. . . . . . . .
1 Yr 3 Yr 5 Yr
7.85
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500 6.38 4.07
MG
Cat
$10,000
14.37 13.91
Avg -Avg Avg
+Avg
Hospira Inc
3 Mo 6 Mo 1 Yr
-6.24
15 10,638 63 10,580 60 10,785 64 14,960 84 19,178
Avg Avg
Boston Beer Co Inc Class Lions Gate Entertainment The Whitewave Foods Comp Affiliated Managers Grou Williams-Sonoma Inc Harman International Ind
5.80 -0.32 -13.44 7.85 -7.66 -17.70 14.37 -3.63 -12.29
10 Yr Incept
8.94 8.73
Cnsmr Def 51.8 17.03 2.60
3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg
Other Measures
Standard Index
Best Fit Index S&P 500 Mstar Mid Growth TR
13.91 -2.27 8.94 0.95
-5.00 1.66
51 23,544 . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
Alpha
-3.7 1.05
-1.7 0.98
Life Time Fitness Inc
Cnsmr Cyc 19.7 2.08 2.43
Beta
Genesee & Wyoming Inc Cl Under Armour Inc Class A
Industrl
22.5 14.66 2.42
R-Squared
65
84
Cnsmr Cyc 81.3
2.40
.
3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)
11.63 12.19
68 78 44
2.40 1.51 0.96
75 68 45
Standard Deviation
12.35 14.37
Equinix Inc
Technology
-1.13 2.34
. 21.1
Moody’s Corporation
Industrl
2.31 2.27 2.18
Mean
. . .
Perrigo Co PLC BorgWarner Inc
Hlth care 60.2 Cnsmr Cyc 21.5
7.89
Sharpe Ratio
1.15
Potential Capital Gain Exposure: 35% of assets
Akamai Technologies Inc Kansas City Southern Inc
Technology 37.7 10.40 2.15
Morningstar’s Take by David Kathman, CFA 02-02-15 Buffalo Mid Cap is undergoing a manager shift after another tough year. On Jan. 17, 2015, advisor Kornitzer Capital Management announced several management changes in the Buffalo funds. Kent Gasaway, who has comanaged this fund with Bob Male since its 2001 inception, is stepping away to focus on Buffalo Small Cap BUFSX, the firm’s struggling $3 billion flagship fund. (The firm also hired Jamie Cuellar, formerly of the PineBridge funds, as new comanager of Small Cap.) Male’s new comanager here is Dave Carlsen, who has comanaged Buffalo Growth BUFGX and Buffalo Discovery BUFTX for the past decade. These management shifts aren’t likely to result in dramatic changes for this fund. Carlsen says he plans to bring more valuation discipline to the portfolio and to take a more tactical approach, though it remains to be seen exactly what that will mean in practice. Buffalo Discovery has put up strong results over the decade that Calsen has helped manage it, though it was a technology sector fund until 2012, so those
Industrl
25.4
2.12
.
LKQ Corp
Cnsmr Cyc 19.7 -12.61 2.04
results are only partially relevant. These moves come on the heels of a five-year stretch of mediocre to poor relative returns, which have been all the more disappointing given the strong results the fund posted in its early years. To some extent, this recent weakness has resulted from the managers’ unwillingness to own the riskiest, lowest-quality mid-cap growth stocks during a period when risk has mostly been rewarded by the market. There have been some missteps, such as 2011’s bad bet on for-profit education stocks and energy-related stocks that got hit in 2014 by falling oil prices. The fund shouldn’t be judged too harshly for the past five years, especially given that the same strategy led to mostly stellar returns in the fund’s first eight years of existence. But Male is the only one of the managers responsible for that performance who is still on the fund, after the retirement of Grant Sarris in 2013 and now Gasaway’s shift. That fact creates enough uncertainty to drop the fund’s Morningstar Analyst Rating to Neutral from Bronze.
MSC Industrial Direct Co
Industrl
19.3
1.95
.
Current Investment Style
Sector Weightings
% of Stocks
Rel S&P 500 High
3 Year Low
Market Cap % Giant 0.0 Large 11.2 Mid 72.5 Small 14.7 Micro 1.6 Avg $mil: 6,901
Value Blnd Growth
Large Mid Small
Cyclical 40.90 BasicMat 1.69 CnsmrCyc29.02 FinanSvs 10.19 Real Est 0.00 Sensitive 43.12 CommSrvs 0.00 Energy 2.25 Industrl 19.45 Technlgy 21.42 Defensive15.99 CnsmrDef 5.49 Hlthcare 10.50 Utilities 0.00
. .
h r t y u j i o p a k s d f
3 2
. 29 21 . 13 9 . . .
. . .
7 2 5 1
Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures
Rel Category
24.17 3.30 2.62 17.51 0.65 15.36 12.51 11.55 8.65 13.69
1.24 1.20 1.55 1.75 0.73 1.08 1.28 1.50 0.64 0.53
. 21 18 . 27 21
. .
5 1
. 12 8 . . .
% Rel Category
Composition - Net
Cash 1.2 Stocks 98.8 Bonds 0.0 Other 0.0 Foreign 6.0
Address:
Buffalo Funds Milwaukee, WI 53201 800-492-8332 www.buffalofunds.com
Minimum Purchase: Min Auto Inv Plan:
$2500 $100
Add: $100 IRA: $250
Add: $100
Profitability
% Rel Category
Sales Fees:
No-load, 2.00%R
Return on Equity Return on Assets Net Margin
17.76 8.18 11.59
1.04 1.11 1.14
Web Address: Inception: Advisor: Subadvisor: NTF Plans:
Management Fee:
1.00%
(% of Stock)
12-17-01
Actual Fees:
Mgt:1.00% Dist: .
Kornitzer Capital Management Inc
Expense Projections: Income Distribution:
3Yr:$322
5Yr:$558 10Yr:$1236
None
Semi-Annually
Fidelity Retail-NTF, CommonWealth NTF
Mutual Funds ß ®
© 2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.
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