Buffalo Flexible Allocation Fund Institutional Class (BUIBX)

Overview

The company operates as an investment fund focusing on providing its investors with exposure to early-stage growth companies. It strategically allocates its assets to equity securities, which include common stocks, preferred stocks, convertible securities, warrants, and rights. Specifically, the fund commits at least 80% of its net assets, along with any borrowings intended for investment purposes, to these equity securities. This focus on early-stage growth companies is central to the fund's investment philosophy, aiming to capitalize on the potential high-growth opportunities these companies may offer.

Beyond its primary investment in domestic securities, the fund also diversifies its portfolio through foreign investments. Up to 20% of its net assets can be allocated to both sponsored and unsponsored ADRs (American Depositary Receipts) and equity securities of foreign companies. These foreign investments must be traded on U.S. stock exchanges, allowing the fund to maintain a broad exposure to both domestic and international early-stage growth opportunities within the regulatory framework and market dynamics of the U.S. financial markets.

Products and Services

• Equity Securities of Early Stage Growth Companies

  The fund invests primarily in equity securities of early-stage growth companies. These investments include common stocks, which represent ownership shares in companies; preferred stocks, which offer dividends and priority over common stock in asset liquidation; convertible securities that can be converted into a predetermined number of common stock; warrants, giving the holder the right to purchase company stock at a specific price until expiration; and rights, similar to warrants, but often with a short duration. This diverse range of equity securities is selected with the aim of fostering growth and delivering value to investors by tapping into the potential of early-phase companies.

• Domestic Securities Investment

  The majority of the fund's investments are in domestic securities. This focus ensures a significant portion of the portfolio is dedicated to companies within the United States, benefiting from the robust economic environment, regulatory framework, and transparency of the U.S. financial markets. By investing in domestic equity securities, the fund aims to leverage the stability and growth potential of the U.S. market.

• Foreign Investments through ADRs and Equity Securities

  Complementing its domestic investments, the fund allocates up to 20% of its net assets in foreign investments. These include sponsored or unsponsored ADRs, which are a way to invest in non-U.S. companies while securities are traded on U.S. stock exchanges. Additionally, the fund invests in equity securities of foreign companies directly traded on U.S. exchanges. This strategy exposes the fund to global growth opportunities, diversifying its investment portfolio and potentially enhancing returns through exposure to international markets.