Small Cap Fund
Overall Morningstar™ rating out of 630
Small Growth funds as of 1-31-2014 (derived from a weighted average of the fund's three-, five-, and ten-year risk adjusted return measure, if applicable).
- Market capitalization under $2.5 billion at time of purchase
- Not benchmark-driven
- Purchase stocks when negatively affected by short-term events and/or underappreciated
This Fund employs the same strategy as other Buffalo growth equity funds, based on the identification of long-term, measurable secular growth trends (e.g., demographics, global market growth, increasing bandwidth). The Fund's managers identify companies that they believe should benefit from these trends, which we feel may have potential revenue growth in excess of GDP. Companies are screened using in-depth, in-house research to identify those which we feel are attractively valued, demonstrate strong management, have little or no debt, free cash flow, scalable business models, and competitive advantage. Our buy/sell discipline is based on valuation targets derived using our proprietary scoring methodology.
John Bichelmeyer, CFA
Kent Gasaway, CFA
Robert Male, CFA
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ (based on a Morningstar Risk Adjusted Return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Buffalo Small Cap Fund received 4 stars among 630 for the three-year, 3 stars among 553 for the five-year, and 4 stars among 370 Small Growth funds for the ten-year period ending 1/31/2014.
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