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BUFFALO SCIENCE AND TECHNOLOGY FUND

Recommended as a niche

BY ANDREW LECKEY | Tribune Media Services

May 4, 2008

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What do you think of Buffalo Science and Technology Fund?

B.R., via e-mail

It differs from many technology funds because it holds a lot of health-care stocks. It also won't pay a high price for its holdings, has low turnover and is less volatile than its peers.

The $'-million Buffalo Science & Technology Fund (BUFTX) is down 9 percent in the past 12 months to rank in the bottom 20 percent of technology funds. Its three-year annualized return of 9 percent places it below the midpoint of its peers.

"I recommend this fund, but as a niche fund, since the typical investor doesn't really need a tech fund because they get the exposure elsewhere," said Miriam Sjoblom, analyst with Morningstar Inc. "If you do have a tech fund, it should be a small part of your portfolio, and you should make sure you have a long-time horizon."

The portfolio management team consists of Clay Brethour, who specializes in medical devices and services; Elizabeth Jones, who tracks health care, and Dave Carlsen, who has extensive experience in technology investing.

Although its health-care holdings improve overall results when tech is down, they hold it back when tech makes explosive gains.

Technology hardware and health care each represent about one-third of the fund's portfolio. Largest stock holdings are Jabil Circuit, Pharmaceutical Product Development, Red Hat, Wyeth and MKS Instruments.

This "no-load" (no sales charge) fund requires a $2,500 minimum initial investment and has an annual expense ratio of 1.03 percent.

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