BUFFALO(R)
Funds
Balanced Fund
Equity Fund
High Yield Fund
Small Cap Fund
USA Global Fund
SEMIANNUAL REPORT
September 30, 2000
MESSAGE
To Our Shareholders
Once again, the Buffalo Funds have provided outstanding performance, with each
of the Funds beating its peer group year-to-date as of September 30, 2000 (see
performance chart on page 4). While past performance is no guarantee of future
results, within each Fund's investment objective the portfolio managers focus
their research on the investment's quality and value rather than whether a
purchase fits a certain category, class or rating, and this strategy has been
well-rewarded.
Another result of the careful management of the Funds has been their tax
efficiency. Careful portfolio management means that portfolio securities are
sold when it is appropriate to do so for investment reasons, but we are also
very sensitive to the tax ramifications of those sales. We have been very
fortunate, and while it will be a difficult year to avoid making capital gains
distributions, we are taking proactive steps to minimize the tax consequences of
the gains we have experienced. Information about distributions is available on
our web site at www.buffalofunds.com, and is updated throughout the year.
As of September 30, the Buffalo Funds included about 12,100 accounts, totaling
$202 million in assets under management. Please see the Portfolio Management
Review immediately following this letter, which contains information on the
investment approach used by investment counsel, Kornitzer Capital Management,
Inc., along with commentary on the markets and the performance of the Funds.
Should you have any comments or questions concerning your investments, please
contact us at 1-800-49-BUFFALO or visit our web site. Thank you for your
continued confidence and support.
Sincerely,
/s/Stephen S. Soden
Stephen S. Soden
President
Portfolio Management Review
We want to thank all of our shareholders for their continued support of the
Buffalo Funds and Kornitzer Capital Management Inc. We are pleased to report
continued strong results. In May of this year the Buffalo Equity, USA Global and
High Yield Funds all celebrated their five-year anniversaries with favorable
performance since inception relative to their comparable indices. We continue to
vigilantly adhere to our investment discipline through the extreme stock market
volatility and precarious macroeconomic environment. Our conviction level has
increased, as we focus on longer-term trends and invest accordingly. We are
enthusiastic about the continued performance of the Buffalo Funds and believe
the future for equity securities looks bright.
With all the Buffalo Funds, our strategy is to remain focused on the longer-term
trends, which we believe allows us to more easily separate information from
noise. As we identify trends that are developing with a high degree of
certainty, we believe we can be much more prescient, enabling us to invest
opportunistically. For example, we view the recent stock market volatility,
especially in the technology sector, as an opportunity to add to existing
positions and add new securities to the portfolios. In addition to our focus on
long-term trends, we pay close attention to valuation and use patience to buy
securities with favorable risk/reward characteristics. According to the Buffalo
Funds' performance numbers, the strategy is working, but we refuse to be
overcome with hubris and believe a continual reevaluation of every security in
the portfolios is required. We will not allow ourselves to become complacent.
Our strategy of continual security evaluation and diversification has benefited
the Buffalo Funds through the increased stock market volatility. As a result of
higher short-term interest rates, orchestrated by the Federal Reserve Chairman
Alan Greenspan, and a surge in oil prices, the economy is beginning to
decelerate. Unfortunately the above-mentioned factors have also put pressure on
corporate earnings, especially in the technology sector. The technology-heavy
Nasdaq Composite Index is down approximately 9.7% year-to-date and about 19.7%
since the end of March. From its high registered on March 10, the Nasdaq
Composite Index is down a whopping 27%. In these volatile markets our
diversification efforts have paid off handsomely and insulated the Buffalo Funds
from the sell-off in high P/E stocks. Year-to-date the Buffalo Balanced Fund,
Equity Fund, High Yield Fund, Small Cap Fund and USA Global Fund are up 9.1%,
19.7%, 5.0%, 35.2% and 11.3% (price change and reinvested distributions),
respectively, all outperforming their appropriate indices.
Although the near-term stock market volatility can be challenging, we view it as
a bump in the road, and we are using it as an opportunity to buy well-managed,
financially strong companies at depressed valuation levels. Peering through all
the near-term noise, we believe the long-term future is very bright. Although
the economy is decelerating, we view this as a positive, as it is much more
likely that the Federal Open Market Committee (FOMC) will hold short-term rates
steady or begin a process of lowering rates. Regarding oil, we believe if oil
production is maintained at its current pace, oil prices will eventually begin
to fall. Lower oil prices along with stable to lower short-term interest rates
bode well for the stock market. Furthermore, a tight labor market and rising
labor costs have caused inflation fears, but productivity growth, which has
increased at an estimated 4%, has kept inflation in check. Going forward, we
believe productivity gains have become more secular as a result of continued
investment in technology, which we see as very positive for the overall economy
and stock market.
We look forward to reviewing all the Funds with you in future letters. All of us
on the KCM research team thank you for your confidence in our management of the
Buffalo Funds. As fellow shareholders we are fully committed to your financial
success in the future.
Sincerely,
/s/John C. Kornitzer
John C. Kornitzer
President
/s/Kent W. Gasaway
Kent W. Gasaway
Sr. Vice President
/s/Tom W. Laming
Tom W. Laming
Sr. Vice President
<TABLE>
<CAPTION>
Investment Results -- Total Return
Nine Months One Year Five Years
Ended Ended Ended Since
9/30/00 9/30/00 9/30/00 Inception*
<S> <C> <C> <C> <C>
BUFFALO BALANCED FUND 9.08% 15.31% 9.55% 9.95%
Lipper Balanced Fund Index 3.76% 11.11% 13.08% 13.62%
BUFFALO EQUITY FUND 19.69% 34.08% 21.08% 22.90%
Lipper Multi-Cap Core Fund Index 4.58% 21.84% 18.91% 20.09%
BUFFALO HIGH YIELD FUND 5.01% 5.73% 7.10% 8.44%
Lipper High Yield Bond Fund Index -2.68% -0.06% 6.01% 6.38%
BUFFALO SMALL CAP FUND 35.19% 60.84% n/a 25.84%
Lipper Small-Cap Core Fund Index 11.60% 32.76% 14.00% 5.98%
BUFFALO USA GLOBAL FUND 11.34% 34.93% 22.56% 22.64%
Lipper Capital Appreciation Fund Index 0.09% 26.16% 18.74% 20.43%
Lipper Global Fund Index -3.25% 19.18% 14.72% 15.14%
</TABLE>
*Buffalo Balanced Fund (8/12/94), Buffalo Equity Fund (5/19/95),
Buffalo High Yield Fund (5/19/95), Buffalo Small Cap Fund (4/14/98),
Buffalo USA Global Fund (5/19/95).
Performance data contained in this report is for past periods only. Past
performance is not predictive of future performance. Investment return and share
value will fluctuate, and redemption value may be more or less than original
cost.
<TABLE>
<CAPTION>
Buffalo
Balanced Fund
SCHEDULE OF INVESTMENTS
September 30, 2000 (unaudited)
<S> <C> <C>
SHARES COMPANY MARKET VALUE
COMMON STOCKS-- 65.53%
CONSUMER CYCLICAL-- 14.51%
50,000 Argosy Gaming Co.* $ 906,250
5,000 Barnes & Noble, Inc.* 98,438
26,000 Carnival Corp. 640,250
27,000 Elcor Corp. 391,500
20,000 Ethan Allen Interiors, Inc. 566,250
12,500 Ford Motor Co. 316,406
20,000 ServiceMaster (The) Co. 197,500
32,000 Strayer Education, Inc. 700,000
3,816,594
CONSUMER STAPLES-- 1.45%
5,000 McDonald's Corp. 150,938
5,000 PepsiCo, Inc. 230,000
380,938
ENERGY -- 2.72%
97,000 Frontier Oil Corp.* 715,375
FINANCIAL-- 13.82%
14,000 American Express Co. 850,500
1,000 Amvescap 110,875
8,500 Bank of America Corp. 445,187
7,500 Fleet Boston Financial Corp. 292,500
6,000 PNC Bank Corp. 390,000
31,000 Stilwell Financial, Inc. 1,348,500
5,000 Washington Mutual, Inc. 199,062
3,636,624
HEALTH CARE-- 9.33%
5,000 Abbott Laboratories 237,812
3,500 American Home Products Corp. 197,969
5,000 Bristol Myers Squibb 285,625
4,000 Johnson & Johnson 375,750
12,000 Merck & Company, Inc. 893,250
10,000 Shering-Plough Corp. 465,000
2,455,406
TECHNOLOGY-- 17.83%
5,500 Analog Devices, Inc.* 454,094
5,000 Applied Materials, Inc.* 296,562
25,000 Atmel Corp.* 379,688
9,500 Cisco Systems, Inc.* 524,875
15,000 Compaq Computer Corp. 413,700
12,000 Intel Corp. 498,750
7,000 Micron Technology, Inc. 322,000
6,000 Microsoft Corp.* 361,500
13,000 Motorola, Inc. 367,250
5,500 National Semiconductor Corp.* 221,375
8,500 Scientific-Atlanta, Inc. 540,813
6,500 Wind River Systems, Inc.* 311,594
4,692,201
SHARES
OR FACE
AMOUNT COMPANY AND DESCRIPTION MARKET VALUE
TRANSPORTATION & SERVICES-- 4.37%
15,000 FEDEX Corp.* 665,100
20,000 Southwest Airlines Co. 485,000
1,150,100
UTILITIES-- 1.50%
4,500 Enron Corp. 394,312
TOTAL COMMON STOCKS 17,241,550
(Cost $14,012,615)
CONVERTIBLE PREFERRED STOCKS-- 5.07%
69,400 ICO Holdings, Inc. 832,800
23,000 Lomak Petroleum, Inc.* 500,250
TOTAL CONVERTIBLE PREFERRED STOCKS 1,333,050
(Cost $1,879,996)
CORPORATE BONDS-- 21.20%
$ 100,000 Adelphia Communications Corp., 9.875% due 3-1-07 94,500
470,000 Argosy Gaming Co., 10.75% due 6-1-09 494,087
665,000 Callon Petroleum Co., 10.125% due 9-15-02 641,725
320,000 Fairchild Semiconductor Corp., 10.125% due 3-15-07 321,600
640,000 Frontier Oil Corp., 9.125% due 2-15-06 579,200
200,000 HS Resources, Inc., 9.875% due 12-1-03 202,000
200,000 Interface, Inc., 9.50% due 11-15-05 192,000
360,000 Key Energy Group, Inc., 14.00% due 1-15-09 411,300
50,000 Mandalay Resort Group, 6.75% due 7-15-03 47,000
50,000 Mandalay Resort Group, 10.25% due 8-1-07 51,813
100,000 Mastec, Inc., 7.75% due 2-1-08 95,500
100,000 McDermott International, 9.375% due 3-15-02 85,694
200,000 MGM Grand, Inc., 9.75% due 6-1-07 208,000
50,000 Park Place Entertainment Corp., 8.875% due 9-15-08 49,750
330,000 Republic Group, Inc., 9.50% due 7-15-08 332,063
100,000 Rogers Communications, Inc., 9.125% due 1-15-06 100,500
100,000 Swift Energy, 10.25% due 8-1-09 103,250
100,000 Triton Energy Ltd. Co., 9.25% due 4-15-05 102,125
1,190,000 United Refining Co., 10.75% due 6-15-07 791,350
25,000 Williams Communication, 10.875% due 10-1-09 23,000
800,000 Wiser Oil Co., 9.50% due 5-15-07 652,000
TOTAL CORPORATE BONDS 5,578,457
(Cost $5,980,398)
CONVERTIBLE CORPORATE BONDS-- 6.79%
$ 1,099,000 Allwaste, Inc., 7.25% due 6-1-14 $ 87,920
1,192,000 Exide Corp., 2.90% due 12-15-05 560,240
1,365,000 HMT Technology Corp., 5.75% due 1-15-04 580,125
1,115,000 Intevac, Inc., 6.50% due 3-1-04 558,894
TOTAL CONVERTIBLE CORPORATE BONDS 1,787,179
(Cost $3,825,810)
TOTAL INVESTMENTS-- 98.59% 25,940,236
(Cost $25,698,819)
Other assets less liabilities-- 1.41% 371,170
TOTAL NET ASSETS-- 100.00% $ 26,311,406
</TABLE>
The identified cost of investments owned at September 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized appreciation for federal income tax purposes was $241,417, which
is comprised of unrealized appreciation of $4,180,566 and unrealized
depreciation of $3,939,149.
*Non-income producing security
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
Buffalo
Equity Fund
SCHEDULE OF INVESTMENTS
September 30, 2000 (unaudited)
<S> <C> <C>
SHARES COMPANY MARKET VALUE
COMMON STOCKS-- 97.28%
CAPITAL GOODS-- 2.86%
20,900 Tyco International Ltd. $ 1,084,187
CONSUMER CYCLICAL-- 14.65%
9,700 Apollo Group, Inc.* 386,788
46,700 Barnes & Noble, Inc.* 919,406
56,600 Carnival Corp. 1,393,775
6,500 DeVry, Inc.* 244,562
21,250 Elcor Corp. 308,125
36,550 Ethan Allen Interiors, Inc. 1,034,822
16,500 Fairfield Communities, Inc.* 167,063
14,000 ITT Educational Services, Inc.* 379,750
72,400 ServiceMaster (The) Co. 714,950
5,549,241
CONSUMER STAPLES-- 9.44%
22,000 McDonald's Corp. 664,125
30,200 PepsiCo, Inc. 1,389,200
41,100 Sara Lee Corp. 834,844
26,000 Viad Corp. 690,625
3,578,794
ENERGY -- 2.15%
13,600 Royal Dutch Petroleum Co. 815,150
FINANCIAL-- 18.30%
19,200 Allstate Corp. 667,200
28,000 American Express Co. 1,701,000
19,200 Bank of America Corp. 1,005,600
27,000 Fleet Boston Financial Corp. 1,053,000
7,500 Northern Trust Corp. 666,562
18,900 PNC Bank Corp. 1,228,500
11,400 Wilmington Trust Corp. 611,325
6,933,187
HEALTH CARE-- 12.75%
30,400 Abbott Laboratories 1,445,900
10,500 Johnson & Johnson 986,344
17,100 Merck & Company, Inc. 1,272,881
24,200 Schering-Plough Corp. 1,125,300
4,830,425
SHARES
OR FACE
AMOUNT COMPANY AND DESCRIPTION MARKET VALUE
TECHNOLOGY-- 25.77%
13,600 Analog Devices* $ 1,122,850
68,000 Atmel Corp.* 1,032,750
31,200 Cisco Systems, Inc.* 1,723,800
32,700 Diebold, Inc. 868,594
16,900 Microsoft Corp.* 1,018,225
20,600 Scientific-Atlanta, Inc. 1,310,675
30,500 Sungard Data System, Inc.* 1,305,781
28,800 Wind River Systems, Inc.* 1,380,600
9,763,275
TRANSPORTATION & SERVICES-- 6.71%
28,700 FEDEX Corp.* 1,272,558
52,425 Southwest Airlines Co. 1,271,306
2,543,864
UTILITIES-- 4.65%
20,100 Enron Corp. 1,761,263
TOTAL COMMON STOCKS 36,859,386
(Cost $26,659,326)
REPURCHASE AGREEMENT-- 2.77%
$ 1,050,000 UMB Bank, n.a., 5.95% due 10-2-00
(Collateralized by U.S. Treasury Notes,
6.125% due 12-31-01 with a value of $1,092,653) 1,050,000
(Cost $1,050,000)
TOTAL INVESTMENTS-- 100.05% 37,909,386
(Cost $27,709,326)
Other assets less liabilities-- (0.05%) (20,214)
TOTAL NET ASSETS-- 100.00% $ 37,889,172
</TABLE>
The identified cost of investments owned at September 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized appreciation for federal income tax purposes was $10,200,060,
which is comprised of unrealized appreciation of $11,197,825 and unrealized
depreciation of $997,765.
*Non-income producing security
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
Buffalo
High Yield Fund
SCHEDULE OF INVESTMENTS
September 30, 2000 (unaudited)
<S> <C> <C>
SHARES
OR FACE
AMOUNT COMPANY AND DESCRIPTION MARKET VALUE
COMMON STOCKS-- 3.52%
25,641 Key Energy Group, Inc.* $ 251,603
13,326 Micron Technology, Inc. 612,996
34,548 Purina Mills, Inc.* 336,843
46,096 Southern Mineral Corp. 152,693
TOTAL COMMON STOCKS 1,354,135
(Cost $1,962,380)
CONVERTIBLE PREFERRED STOCKS-- 12.11%
26,550 Bethlehem Steel Corp. 325,238
77,800 ICO Holdings, Inc. 933,600
35,175 Kmart Financing I 1,094,822
14,870 Lomak Financing Trust 323,422
38,000 Tesoro Petroleum Corp. 399,000
35,600 TXI Capital Trust I 1,092,475
10,000 Unocal Corp. 483,750
TOTAL CONVERTIBLE PREFERRED STOCKS 4,652,307
(Cost $6,916,821)
CORPORATE BONDS-- 57.15%
$ 250,000 Adelphia Communications Corp., 9.875% due 3-1-07 236,250
995,000 Argosy Gaming, 10.75% due 6-1-09 1,045,994
300,000 Bio-Rad Laboratories, 11.625% due 2-15-07 315,750
1,510,000 Callon Petroleum Co., 10.125% due 9-15-02 1,457,150
750,000 Cherokee International, 10.50% due 5-1-09 693,750
470,000 Exide Corp., 10.00% due 4-15-05 359,550
610,000 Fairchild Semiconductor Corp., 10.125% due 3-15-07 613,050
250,000 Fairchild Semiconductor Corp., 10.375% due 10-1-07 254,062
2,000,000 Frontier Oil Corp., 9.125% due 2-15-06 1,809,000
655,000 Giant Industries, Inc., 9.75% due 11-15-03 650,088
765,000 HS Resources, Inc., 9.875% due 12-1-03 772,650
840,000 ICO Holdings, Inc., 10.375% due 6-1-07 814,800
300,000 Interface, Inc., 9.50% due 11-15-05 288,000
100,000 Interface, Inc., 7.30% due 4-1-08 86,500
485,000 Key Energy Group, Inc., 14.00% due 1-15-09 554,112
96,000 Kmart Corp., 9.78% due 1-5-20 91,944
975,000 King Pharmacy, Inc., 10.75% due 2-15-09 1,033,500
550,000 Luigino's, Inc., 10.00% due 2-1-06 437,250
50,000 Mandalay Resort Group, 6.75% due 7-15-03 47,000
350,000 Mandalay Resort Group, 10.25% due 8-01-07 362,688
100,000 Mandalay Resort Group, 9.50% due 8-1-08 102,500
200,000 Mastec, Inc., 7.75% due 2-1-08 191,000
250,000 McDermott International, 9.375% due 3-15-02 214,236
375,000 MGM Grand, Inc., 9.75% due 6-1-07 390,000
335,000 Packaging Corp. of America, 9.625% due 4-1-09 340,863
250,000 Park Place Entertainment, 8.875% due 9-15-08 248,750
950,000 Pilgrim's Pride Corp., 10.875% due 8-1-03 959,500
685,000 Plains Resources, Inc., 10.25% due 3-15-06 698,700
1,325,000 Republic Group, Inc., 9.50% due 7-15-08 1,333,281
250,000 Rogers Communications, Inc., 9.125% due 1-15-06 251,250
500,000 Royal Carribean Cruises Ltd., 7.50% due 10-15-27 399,710
1,300,000 Specialty Retailers, Inc., 9.00% due 7-15-07 16,250
100,000 Swift Energy Co., 10.25% due 8-1-09 103,250
975,000 Telecommunications Techniques Co. LLC, 9.75% due 5-15-08 921,375
250,000 Triton Energy Ltd. Co., 9.25% due 4-15-05 255,312
1,880,000 United Refining Co., 10.75% due 6-15-07 1,250,200
500,000 Warner Chilcott Laboratories, 12.625% due 2-15-08 517,500
200,000 Williams Communication, 11.70% due 8-1-08 192,000
300,000 Williams Communication, 11.875% due 11-1-10 286,500
1,675,000 Wiser Oil Co., 9.50% due 5-15-07 1,365,125
TOTAL CORPORATE BONDS 21,960,390
(Cost $23,492,514)
CONVERTIBLE CORPORATE BONDS-- 22.45%
1,076,000 Allwaste, Inc., 7.25% due 6-1-14 86,080
1,250,000 Exide Corp., 2.90% due 12-15-05 587,500
3,430,000 HMT Technology Corp., 5.75% due 1-15-04 1,410,250
2,555,000 Intevac, Inc., 6.50% due 3-1-04 1,280,694
1,250,000 Key Energy Group, Inc., 5.00% due 9-15-04 1,031,250
2,540,000 Lomak Petroleum, Inc., 6.00% due 2-1-07 1,733,550
796,000 Moran Energy, Inc., 8.75% due 1-15-08 716,400
400,000 OHM Corp., 8.00% due 10-1-06 344,500
200,000 Southern Mineral Corp., 6.875% due 10-1-07 70,000
1,090,000 Sunrise Assisted Living, Inc., 5.50% due 6-15-02 976,912
1,500,000 Western Digital Corp., zero cpn. due 2-18-18 391,875
TOTAL CONVERTIBLE CORPORATE BONDS 8,629,011
(Cost $13,146,632)
TOTAL INVESTMENTS-- 95.23% 36,595,843
(Cost $45,518,347)
Other assets less liabilities-- 4.77% 1,832,490
TOTAL NET ASSETS-- 100.00% $ 38,428,333
</TABLE>
The identified cost of investments owned at September 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized depreciation for federal income tax purposes was $8,922,504,
which is comprised of unrealized appreciation of $1,015,276 and unrealized
depreciation of $9,937,780.
*Non-income producing security
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
Buffalo
Small Cap Fund
SCHEDULE OF INVESTMENTS
September 30, 2000 (unaudited)
<S> <C> <C>
SHARES COMPANY MARKET VALUE
COMMON STOCKS-- 91.95%
BASIC MATERIALS-- 1.88%
27,500 Texas Industries, Inc. $ 876,562
CONSUMER CYCLICAL-- 34.78%
30,000 AHL Services, Inc.* 258,750
22,000 Apollo Group, Inc.* 448,250
125,000 Argosy Gaming Co.* 2,265,625
29,300 Brunswick Corp. 534,725
64,000 Coachmen Industries, Inc. 668,000
65,700 Education Management Corp.* 1,769,794
157,500 Edutrek International Cl. A* 403,594
60,000 Elcor Corp. 870,000
37,400 Ethan Allen Interiors, Inc. 1,058,888
87,500 First Service Corp.* 1,137,500
45,000 Harrahs Entertainment, Inc.* 1,237,500
55,400 Hollinger International, Inc. Cl. A 927,950
27,900 Interface, Inc. Cl. A 222,328
59,200 ITT Educational Services, Inc.* 1,605,800
9,200 Liz Claiborne, Inc. 354,200
50,000 Royal Caribbean Cruises Ltd. 1,287,000
53,500 Strayer Education, Inc. 1,170,312
16,220,216
CONSUMER STAPLES-- 1.27%
46,600 Dial Corp. 541,725
12,500 Stamps.com. Inc.* 48,047
589,772
ENERGY -- 4.62%
24,100 Callon Petroleum Co.* 381,081
120,500 Frontier Oil Corp.* 888,688
30,000 ICO Holdings, Inc. 60,000
75,000 McDermott International, Inc. 825,000
2,154,769
FINANCIAL-- 10.06%
13,500 Everest Reinsurance Holdings, Inc. 668,250
12,700 H & R Block, Inc. 470,694
26,500 Compass Bancshares, Inc. 516,750
10,200 Gabelli Asset Management* 306,000
22,600 Heller Financial, Inc. Cl. A 645,513
12,000 Stancorp Financial Group 513,000
14,400 Susquehanna Bancshares, Inc. 219,600
11,500 Waddell & Reed Financial, Inc. Cl. A 356,500
5,000 Waddell & Reed Financial, Inc. Cl. B 155,000
15,700 Wilmington Trust Corp. 841,912
4,693,219
HEALTH CARE-- 16.41%
30,000 Galen Holdings* 1,447,500
17,200 Human Genome Sciences, Inc.* 2,977,750
50,500 King Pharmaceuticals, Inc.* 1,688,594
6,300 PE Corp-Celera Genomics Group* 627,637
57,100 Quintiles Transnational Corp.* 910,031
7,651,512
TECHNOLOGY-- 21.17%
11,500 Advent Software, Inc.* 803,563
15,965 Applied Materials, Inc.* 946,924
23,500 Applied Science & Technology* 346,625
52,800 Atmel Corp.* 801,900
58,500 Cadence Design System, Inc.* 1,502,719
13,000 Ciena Corp.* 1,596,563
25,000 Copper Mountain Networks, Inc.* 937,500
25,400 Diebold, Inc. 674,687
314,900 HMT Technology Corp.* 1,092,309
33,900 Meta Group, Inc.* 419,512
18,700 National Semiconductor Corp.* 752,675
9,874,977
TRANSPORTATION-- 1.76%
40,900 Midwest Express Holdings* 823,113
TOTAL COMMON STOCKS 42,884,140
(Cost $31,857,287)
FACE
AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT-- 8.96%
$ 4,180,000 UMB Bank, n.a., 5.95% due 10-2-00
(Collateralized by U.S. Treasury Notes,
5.50% due 12-31-00 with a value of $4,296,629) $ 4,180,000
(Cost $4,180,000)
TOTAL INVESTMENTS-- 100.91% 47,064,140
(Cost $36,037,287)
Other assets less liabilities-- (0.91%) (426,825)
TOTAL NET ASSETS-- 100.00% $ 46,637,315
</TABLE>
The identified cost of investments owned at September 30, 2000, was the same for
federal income tax and book purposes.
Net unrealized appreciation for federal income tax purposes was $11,026,852,
which is comprised of unrealized appreciation of $13,719,749 and unrealized
depreciation of $2,692,897.
*Non-income producing security
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
Buffalo
USA Global Fund
SCHEDULE OF INVESTMENTS
September 30, 2000 (unaudited)
<S> <C> <C>
SHARES COMPANY MARKET VALUE
COMMON STOCKS-- 95.43%
BASIC MATERIALS-- 3.71%
28,100 Praxair, Inc. $ 1,050,237
27,800 Sigma-Aldrich Corp. 917,400
1,967,637
CAPITAL GOODS-- 3.85%
19,450 Boeing Co. 1,225,350
23,700 Teleflex, Inc. 814,688
2,040,038
CONSUMER CYCLICAL-- 6.94%
106,900 Interface, Inc. Cl. A 851,859
32,500 Korn/Ferry International* 1,228,906
77,700 Lear Corp.* 1,597,706
3,678,471
CONSUMER STAPLES-- 20.20%
25,200 Bestfoods, Inc. 1,833,300
28,100 Coca-Cola Co. 1,549,013
37,700 Gillette Co. 1,163,987
55,600 McDonald's Corp. 1,678,425
21,300 Procter & Gamble Co. 1,427,100
83,500 Sara Lee Corp. 1,696,094
18,200 Wrigley, (Wm.) Jr. Co. 1,362,725
10,710,644
FINANCIAL-- 8.38%
32,600 AFLAC, Inc. 2,088,438
24,600 American International Group, Inc. 2,353,912
4,442,350
HEALTH CARE-- 16.04%
32,000 American Home Products Corp. 1,810,000
33,200 Bristol-Myers Squibb Co. 1,896,550
19,400 Johnson & Johnson 1,822,387
64,500 Quintiles Transnational Corp.* 1,027,969
41,900 Schering-Plough Corp. 1,948,350
8,505,256
TECHNOLOGY-- 36.31%
19,100 Analog Devices, Inc.* 1,576,944
47,001 Applied Materials, Inc.* 2,787,747
42,400 Applied Science & Technology, Inc.* 625,400
75,500 Cadence Design System* 1,939,406
50,000 Cisco Systems, Inc.* 2,762,500
39,500 Citrix Systems, Inc.* 792,469
29,900 Dallas Semiconductor 982,963
33,000 Intel Corp. 1,371,562
114,600 Intevac, Inc.* 601,650
30,600 Micron Technology, Inc. 1,407,600
22,900 Microsoft Corp.* 1,379,725
28,600 Motorola, Inc. 807,950
47,600 National Semiconductor Corp.* 1,915,900
50,200 Western Digital Corp.* 294,925
19,246,741
TOTAL COMMON STOCKS 50,591,137
(Cost $39,157,386)
FACE
AMOUNT DESCRIPTION MARKET VALUE
REPURCHASE AGREEMENT-- 4.61%
$2,445,000 UMB Bank, n.a., 5.95% due 10-2-00
(Collateralized by U.S. Treasury Notes,
5.50% due 12-31-00 with a value of $2,513,411) 2,445,000
(Cost $2,445,000)
TOTAL INVESTMENTS-- 100.04% 53,036,137
(Cost $41,602,386)
Other assets less liabilities-- (0.04%) (24,484)
TOTAL NET ASSETS-- 100.00% $ 53,011,653
</TABLE>
The identified cost of investments owned at September 30, 2000, was the same for
federal income tax and book purposes. Net unrealized appreciation for federal
income tax purposes was $11,433,751, which is comprised of unrealized
appreciation of $14,472,577 and unrealized depreciation of $3,038,826.
*Non-income producing security
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS
AND LIABILITIES
September 30, 2000 (unaudited)
(In Thousands Except Per Share Data)
USA
BALANCED EQUITY HIGH YIELD SMALL CAP GLOBAL
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments at cost $ 25,699 $ 27,709 $ 45,518 $ 36,037 $ 41,602
Investments at value $ 25,940 $ 37,909 $ 36,596 $ 47,064 $ 53,036
Cash -- -- 266 5 153
Receivables:
Investments sold 210 -- 817 71 --
Dividends 37 31 68 25 23
Interest 179 -- 713 1 1
Fund shares sold -- 8 -- 8 8
Total assets 26,366 37,948 38,460 47,174 53,221
LIABILITIES AND NET ASSETS:
Cash overdraft 33 28 -- -- --
Payables:
Management fees 22 31 32 36 44
Investments purchased -- -- -- 501 165
Total liabilities 55 59 32 537 209
NET ASSETS $ 26,311 $ 37,88 $ 38,42 $ 46,637 $ 53,012
NET ASSETS CONSIST OF:
Capital (capital stock and
paid-in capital) $ 27,460 $ 23,798 $ 50,485 $ 30,958 $ 36,194
Accumulated undistributed net
investment income 33 16 203 (18) (6)
Accumulated undistributed
net realized gain (loss)
from investment transactions (1,423) 3,875 (3,338) 4,670 5,390
Net unrealized appreciation
(depreciation) of investments 241 10,200 (8,922) 11,027 11,434
NET ASSETS APPLICABLE TO
OUTSTANDING SHARES $ 26,311 $ 37,889 $ 38,428 $ 46,637 $ 53,012
Capital shares, $1.00 par value:
Authorized 10,000 10,000 10,000 10,000 10,000
Outstanding 2,752 1,649 3,818 2,703 2,222
NET ASSET VALUE PER SHARE $ 9.56 $ 22.97 $ 10.06 $ 17.25 $ 23.85
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
STATEMENTS
OF OPERATIONS
Six Months Ended September 30, 2000 (unaudited)
(In Thousands)
USA
BALANCED EQUITY HIGH YIELD SMALL CAP GLOBAL
FUND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 179 $ 188 $ 340 $ 106 $ 182
Interest 500 34 1,799 88 87
Foreign tax withheld -- (3) -- -- --
679 219 2,139 194 269
EXPENSES:
Management fees 138 174 202 196 262
Registration fees 14 13 14 16 13
152 187 216 212 275
Net investment income (loss) 527 32 1,923 (18) (6)
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from
investment transactions (2,228) 1,217 (3,240) 1,394 (33)
Net unrealized appreciation
(depreciation) during
the period on investments 1,678 502 2,753 3,397 (2,631)
Net gain (loss) on investments (550) 1,719 (487) 4,791 (2,664)
Net increase (decrease) in net assets
resulting from operations $ (23) $ 1,751 $ 1,436 $ 4,773 $ (2,670)
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES
IN NET ASSETS
(In Thousands)
Balanced Fund
Six months ended
September 30,
2000 Year Ended
(unaudited) March 31, 2000
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ 527 $ 2,051
Net realized gain (loss) from investment transactions (2,228) 1,173
Net unrealized appreciation (depreciation) during
the period on investments 1,678 1,991
Net increase (decrease) in net assets resulting
from operations (23) 5,215
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (833) (1,690)
Net realized gain from investment transactions -- --
Total distributions to shareholders (833) (1,690)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 1,068 2,085
Reinvested distributions 785 1,455
1,853 3,540
Shares repurchased (3,930) (18,187)
Net increase (decrease) from capital share transactions (2,077) (14,647)
Net increase (decrease) in net assets (2,933) (11,122)
Net assets:
Beginning of period 29,244 40,366
End of period $ 26,311 $ 29,244
Undistributed net investment income at end of period $ 33 $ 339
*Fund share transactions:
Shares sold 110 225
Reinvested distributions 81 161
191 386
Shares repurchased (405) (1,970)
Net increase (decrease) in fund shares (214) (1,584)
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES
IN NET ASSETS
(In Thousands)
Equity Fund High Yield Fund
Six Months Ended Six Months Ended
September 30, September 30,
2000 Year Ended 2000 Year Ended
(unaudited) March 31, 2000 (unaudited) March 31, 2000
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 32 $ 11 $ 1,923 $ 4,807
Net realized gain (loss) from
investment transactions 1,217 4,375 (3,240) 277
Net unrealized appreciation
(depreciation) during the
period on investments 502 4,103 2,753 (2,570)
Net increase (decrease) in net
assets resulting from operations 1,751 8,489 1,436 2,514
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (16) (16) (2,035) (4,958)
Net realized gain from
investment transactions -- (400) -- --
Total distributions to shareholders (16) (416) (2,035) (4,958)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 5,250 9,496 2,017 8,625
Reinvested distributions 16 411 1,661 4,306
5,266 9,907 3,678 12,931
Shares repurchased (2,774) (15,905) (8,426) (24,765)
Net increase (decrease) from
capital share transactions 2,492 (5,998) (4,748) (11,834)
Net increase (decrease)
in net assets 4,227 2,075 (5,347) (14,278)
Net assets:
Beginning of period 33,662 31,587 43,775 58,053
End of period $ 37,889 $ 33,662 $ 38,428 $ 43,775
Undistributed net investment
income at end of period $ 16 $ -- $ 203 $ 315
*Fund share transactions:
Shares sold 238 506 199 844
Reinvested distributions 1 22 166 369
239 528 365 1,213
Shares repurchased (127) (855) (836) (2,330)
Net increase (decrease)
in fund shares 112 (327) (471) (1,11)
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES
IN NET ASSETS
(In Thousands)
Small Cap Fund USA Global Fund
Six Months Ended Six Months Ended
September 30, September 30,
2000 Year Ended 2000 Year Ended
(unaudited) March 31, 2000 (unaudited) March 31, 2000
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (18) $ (58) $ (6) $ (66)
Net realized gain (loss) from
investment transactions 1,394 3,810 (33) 11,525
Net unrealized appreciation
(depreciation) during the
period on investments 3,397 7,228 (2,631) 8,081
Net increase (decrease) in
net assets resulting from
operations 4,773 10,980 (2,670) 19,540
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income -- -- -- (32)
Net realized gain from
investment transactions -- (376) -- (1,793)
Total distributions to
shareholders -- (376) -- (1,825)
CAPITAL SHARE TRANSACTIONS:*
Shares sold 11,765 16,457 9,717 14,147
Reinvested distributions -- 354 -- 1,764
11,765 16,811 9,717 15,911
Shares repurchased (4,508) (6,036) (6,119) (16,827)
Net increase (decrease) from
capital share transactions 7,257 10,775 3,598 (916)
Net increase (decrease)
in net assets 12,030 21,379 928 16,799
Net assets:
Beginning of period 34,607 13,228 52,084 35,285
End of period $ 46,637 $ 34,607 $ 53,012 $ 52,084
Undistributed net investment
income at end of period $ (18) $ -- $ (6) $ --
*Fund share transactions:
Shares sold 739 1,300 392 675
Reinvested distributions -- 29 -- 86
739 1,329 392 761
Shares repurchased
(286) (472) (253) (847)
Net increase (decrease)
in fund shares 453 857 139 (86)
</TABLE>
See accompanying Notes to Financial Statements.
NOTES TO FINANCIAL
STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES:
The Funds are registered under the Investment Company Act of 1940, as amended,
as diversified open-end management investment companies. The following is a
summary of significant accounting policies consistently followed by the Funds in
the preparation of their financial statements.
A. Investment Valuation -- Corporate stocks, bonds and options traded on a
national securities exchange or national market are valued at the latest sales
price thereof, or if no sale was reported on that date, the mean between the
closing bid and asked price is used.
Securities which are traded over-the-counter are priced at the mean between the
latest bid and asked price. Securities not currently traded are valued at fair
value as determined in good faith by the Board of Directors. 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 and State Taxes -- The Funds complied with the requirements of the
Internal Revenue Code applicable to regulated investment companies and
therefore, no provision for federal or state tax is required. The Buffalo
Balanced, Equity, High Yield, Small Cap and USA Global Funds designate $0,
$1,600,799, $0, $0 and $4,470,133, respectively as long-term capital gain
dividends. The Buffalo High Yield Fund has an accumulated net realized loss on
sales of investments for federal income tax purposes of $98,388, which expires
in 2007.
C. Options -- In order to produce incremental earnings and protect gains, the
Funds may write covered call options on portfolio securities. When a Fund writes
an option, an amount equal to the premium received is reflected as an asset and
an equivalent liability. The amount of the liability is subsequently marked to
market to reflect the current market value of the option written. If an option
which a Fund has written either expires on its stipulated expiration date or if
a Fund enters into a closing purchase transaction, the Fund realizes a gain (or
loss if the cost of a closing purchase transaction exceeds the premium received
when the option was written) without regard to any unrealized gain or loss on
the underlying security and the liability related to such option is
extinguished. If a call option which the Fund has written is exercised, the Fund
realizes a capital gain or loss from the sale of the underlying security and the
proceeds from such sale are increased by the premium originally received. The
primary risks associated with the use of options are an imperfect correlation
between the change in market value of the securities held by the Fund and the
price of the option, the possibility of an illiquid market, and the inability of
the counterparty to meet the terms of the contract. There were no outstanding
written covered call options as of September 30, 2000 or any transactions during
the period then ended.
D. 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 and includes accretion of market discounts. Premiums on debt
securities are not amortized. Realized gains and losses from investment
transactions and unrealized appreciation and depreciation of investments are
reported on the identified cost basis.
E. 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 amounts related to redemptions of shares as a part of the
deduction for dividends paid for income tax purposes and deferral of post
October and wash sale losses.
F. 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. MANAGEMENT FEES:
Management fees are paid to Jones & Babson, 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 and the cost of qualifying the Funds'
shares for sale in any jurisdiction. Certain officers and/or directors of the
Funds are also officers and/or directors of Jones & Babson, Inc.
<TABLE>
<CAPTION>
3. INVESTMENT TRANSACTIONS:
Investment transactions for the period ended September 30, 2000, (excluding
maturities of short-term commercial notes and repurchase agreements) were as
follows:
<S> <C>
Balanced Fund
Purchases $ 7,363,587
Proceeds from sales 9,901,648
Equity Fund
Purchases $ 6,994,172
Proceeds from sales 5,091,565
High Yield Fund
Purchases $ 8,383,955
Proceeds from sales 13,115,204
Small Cap Fund
Purchases $ 15,152,267
Proceeds from sales 7,560,771
USA Global Fund
Purchases $ 8,810,119
Proceeds from sales 3,370,961
</TABLE>
This report has been prepared for the information of the Shareholders of the
Buffalo 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 Jones & Babson, Inc.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Condensed data for a share of capital stock outstanding throughout the period.
Balanced Fund
For the six month
period ended
September 30,
2000 YEARS ENDED March 31,
(unaudited) 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.86 $8.87 $11.50 $10.57 $10.70 $10.06
Income from investment operations:
Net investment income (0.55) 0.57 0.66 0.65 0.72 0.65
Net gains (losses) on
securities (both realized
and unrealized) (0.20) 0.87 (1.86) 1.84 0.69 1.07
Total from investment operations (0.75) 1.44 (1.20) 2.49 1.41 1.72
Less distributions:
Dividends from net
investment income 0.45 (0.45) (0.66) (0.65) (0.71) (0.68)
Distributions from capital gains -- -- (0.64) (0.91) (0.83) (0.40)
Distribution in excess
of capital gains -- -- (0.13) -- -- --
Total distributions 0.45 (0.45) (1.43) (1.56) (1.54) (1.08)
Net asset value, end of period $9.56 $9.86 $8.87 $11.50 $10.57 $10.70
Total return* (0.01%) 16.78% (10.49%) 24.76% 13.22% 17.87%
Ratios/Supplemental Data
Net assets, end of period
(in millions) $26 $29 $40 $55 $44 $50
Ratio of expenses to
average net assets** 1.10% 1.05% 1.04% 1.04% 1.05% 1.11%
Ratio of net investment income
to average net assets** 3.82% 5.82% 6.19% 5.61% 6.20% 6.27%
Portfolio turnover rate 27% 33% 57% 61% 56% 61%
</TABLE>
*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.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Condensed data for a share of capital stock outstanding throughout the period.
Equity Fund
For the
For the six month period from
period ended May 19, 1995
September 30, (inception)
2000 YEARS ENDED March 31, to March 31,
(unaudited) 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $21.91 $16.95 $16.94 $13.93 $12.36 $10.14
Income from investment operations:
Net investment income (0.02) 0.01 0.04 0.08 0.15 0.21
Net gains (losses) on
securities (both realized
and unrealized) 1.05 5.21 0.40 4.85 2.51 2.72
Total from investment operations 1.03 5.22 0.44 4.93 2.66 2.93
Less distributions:
Dividends from net
investment income 0.03 (0.01) (0.05) (0.10) (0.10) (0.20)
Distributions from capital gains -- (0.25) (0.38) (1.82) (0.99) (0.51)
Distribution in excess
of capital gains -- -- -- -- -- --
Total distributions 0.03 (0.26) (0.43) (1.92) (1.09) (0.71)
Net asset value, end of period $22.97 $21.91 $16.95 $16.94 $13.93 $12.36
Total return* 4.89% 31.07% 2.73% 36.97% 21.23% 29.11%
Ratios/Supplemental Data
Net assets, end of period
(in millions) $38 $34 $32 $35 $20 $5
Ratio of expenses to
average net assets** 1.07% 1.05% 1.06% 1.09% 1.16% 1.06%
Ratio of net investment income
to average net assets** 0.18% 0.04% 0.27% 0.56% 1.35% 2.55%
Portfolio turnover rate 15% 27% 83% 93% 123% 63%
</TABLE>
*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.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Condensed data for a share of capital stock outstanding throughout the period.
High Yield Fund
For the
For the six month period from
period ended May 19, 1995
September 30, (inception)
2000 YEARS ENDED March 31, to March 31,
(unaudited) 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.21 $10.74 $12.83 $11.73 $11.15 $10.14
Income from investment operations:
Net investment income (0.77) 1.05 0.93 0.79 0.82 0.53
Net gains (losses) on
securities (both realized
and unrealized) (0.13) (0.54) (2.18) 1.35 0.71 1.14
Total from investment operations (0.90) 0.51 (1.25) 2.14 1.53 1.67
Less distributions:
Dividends from net
investment income 0.75 (1.04) (0.76) (0.80) (0.80) (0.53)
Distributions from capital gains -- -- (0.08) (0.24) (0.15) (0.13)
Total distributions 0.75 (1.04) (0.84) (1.04) (0.95) (0.66)
Net asset value, end of period $10.06 $10.21 $10.74 $12.83 $11.73 $11.15
Total return* 3.72% 4.83% (9.92%) 18.63% 14.02% 16.67%
Ratios/Supplemental Data
Net assets, end of period (in millions) $38 $44 $58 $71 $20 $7
Ratio of expenses to
average net assets** 1.07% 1.04% 1.05% 1.03% 1.13% 1.03%
Ratio of net investment income
to average net assets** 9.52% 9.05% 7.76% 6.43% 7.63% 7.40%
Portfolio turnover rate 22% 16% 30% 24% 39% 25%
</TABLE>
*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.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Condensed data for a share of capital stock outstanding throughout the period.
Small Cap Fund
For the
For the six month period from
period ended April 14, 1998
September 30, Year Ended (inception)
2000 March 31, to March 31,
(unaudited) 2000 1999
<S> <C> <C> <C>
Net asset value, beginning of period $15.38 $9.49 $10.00
Income from investment operations:
Net investment income (0.01) (0.03) 0.04
Net gains (losses) on
securities (both realized
and unrealized) 1.88 6.13 (0.51)
Total from investment operations 1.87 6.10 (0.47)
Less distributions:
Dividends from net
investment income -- -- (0.04)
Distributions from capital gains -- (0.21) --
Total distributions -- (0.21) (0.04)
Net asset value, end of period $17.25 $15.38 $9.49
Total return* 12.16% 64.87% (4.69%)
Ratios/Supplemental Data
Net assets, end of period (in millions) $47 $35 $13
Ratio of expenses to
average net assets** 1.08% 1.12% 1.02%
Ratio of net investment income
to average net assets** (0.09%) (0.27%) 0.59%
Portfolio turnover rate 19% 42% 34%
</TABLE>
*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.
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Condensed data for a share of capital stock outstanding throughout the period.
USA Global Fund
For the
For the six month period from
period ended May 19, 1995
September 30, (inception)
2000 YEARS ENDED March 31, to March 31,
(unaudited) 2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $25.01 $16.27 $17.29 $14.10 $11.36 $10.14
Income from investment operations:
Net investment income -- (0.03) 0.06 0.07 0.08 0.15
Net gains (losses) on
securities (both realized
and unrealized) (1.16) 9.71 (0.51) 4.20 3.32 1.61
Total from investment operations (1.16) 9.68 (0.45) 4.27 3.40 1.76
Less distributions:
Dividends from net
investment income -- (0.02) (0.06) (0.06) (0.05) (0.15)
Distributions from capital gains -- (0.92) (0.51) (1.02) (0.61) (0.39)
Total distributions -- (0.94) (0.57) (1.08) (0.66) (0.54)
Net asset value, end of period $23.85 $25.01 $16.27 $17.29 $14.10 $11.36
Total return* (4.64%) 60.72% (2.52%) 31.33% 29.87% 17.49%
Ratios/Supplemental Data
Net assets, end of period (in millions) $53 $52 $35 $45 $27 $5
Ratio of expenses to
average net assets** 1.05% 1.04% 1.05% 1.09% 1.13% 1.06%
Ratio of net investment income
to average net assets** (0.02%) (0.16%) 0.34% 0.47% 0.79% 1.94%
Portfolio turnover rate 6% 35% 42% 64% 88% 123%
</TABLE>
*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.
Buffalo Mutual Funds
Balanced Fund
Equity Fund
High Yield Fund
Small Cap Fund
USA Global Fund
Buffalo Funds
Jones & Babson Distributors
A member of the Generali Group
1-800-49-BUFFALO
(1-800-492-8332)
www.buffalofunds.com
Buffalo Funds
P.O. Box 419757
Kansas City, MO 64141-6757