Discovery Fund

Overall Morningstar™ rating out of 583
Mid-Cap Growth funds as of 2-28-2017 (derived from a weighted average of the fund's three-, five-, and ten-year risk adjusted return measure, if applicable).


  • Invests in companies which create value through the commercial application of innovative products, services, or intellectual property
  • Purchase stocks when negatively affected by short-term events and/or underappreciated
  • Not benchmark-driven


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.

Investment Team

Clay Brethour  

Clay Brethour, CFA

Portfolio Manager

  • Investment professional since 1992
  • President, Buffalo Mutual Funds
  • Joined KCM in 2000
  • Prior experience - Security Benefit Group and Dain Rauscher Wessels
  • B.S. - Kansas State University
Dave Carlsen  

Dave Carlsen, CFA

Portfolio Manager

  • Investment professional since 1992
  • Joined KCM in 2004
  • Prior experience - Strong Capital Management, Inc. and Northern Capital Management, Inc.
  • B.S. - University of Wisconsin - Madison
Elizabeth Jones  

Elizabeth Jones, M.D., CFA

Portfolio Manager

  • Investment professional since 2002
  • Practicing M.D. from 1992-2001
  • Joined KCM in 2003
  • Prior experience - Bank of America Capital Management
  • B.S. - Georgetown University
  • M.D. - Vanderbilt University
  • M.B.A. - Arizona State University


The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product 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. The Overall Morningstar RatingTM for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar RatingTM metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Buffalo Discovery Fund received 4 stars among 583 for the three-year, 4 stars among 507 for the five-year, and 5 stars among 370 Mid-Cap Growth funds for the ten-year period ending 2/28/2017.

©2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.