High Yield Fund

by unclesloft | May 19, 1995 | Funds, High Yield, High Yield - single, Income Funds, Income Group

High Yield Fund

Quick Facts

	Investor	Institutional
Ticker:	BUFHX	BUIHX
Daily Pricing:
As of 4/24/2024
NAV:	$10.59	$10.58
$ Change:	$0.00	$0.00
% Change:	0.00%	0.00%
YTD:	2.58%	2.63%
Inception Date:	5/19/1995	7/1/2019
Expense Ratio:	1.03%	0.87%
Total Net Assets:	$447.54 Million (3/31/24)
Morningstar Category:	High Yield Bond
Benchmark Index:	ICE BofA U.S. High Yield
Dividend Distribution:	Monthly
Related Material: Fund Fact Sheet Q1 2024 PM Commentary Q4 2023 Portfolio Manager Q&A

Fund Objective & Investment Process

The investment objective of the Buffalo High Yield Fund is primarily current income, with long-term growth of capital as a secondary objective. The High Yield Fund normally invests at least 80% of its net assets in higher-yielding, higher-risk debt securities rated below investment grade by the major rating agencies (or in similar unrated securities), commonly known as “junk bonds”. Debt securities can include fixed and floating rate bonds as well as bank debt and convertible debt securities.

While the Fund maintains flexibility to invest in bonds of varying maturities, the Fund generally holds bonds with intermediate-term maturities. With respect to the remaining 20% of the Fund’s net assets, the Fund may invest in investment grade debt securities, U.S. Treasury Securities (typically with maturities of 60 days or less), money market funds, and equity investments, including dividend paying stocks and convertible preferred stocks.
▼

Our team brings many years of credit research experience to the bond market. We are proud to have provided our shareholders with what we believe is a conservative approach to investing in high yield bonds since 1995.

Jeff Sitzmann, Portfolio Manager

Morningstar Rating

Overall Morningstar Rating™ of BUFHX based on risk-adjusted returns among 606 High Yield Bond funds as of 3/31/24.

Performance (%)

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO HIGH YIELD FUND - Investor	2.72	2.72	12.07	3.98	5.92	4.76	7.75	5.74	6.75
BUFFALO HIGH YIELD FUND - Institutional	2.76	2.76	12.24	4.13	6.06	4.90	7.91	5.89	6.91
ICE BofA U.S. High Yield Index	1.52	1.52	11.12	2.25	4.06	4.38	8.79	6.44	6.63
Lipper High Yield Bond Funds Index	1.82	1.82	10.69	2.30	3.99	3.93	8.08	5.59	5.56

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO HIGH YIELD FUND - Investor	2.72	2.72	12.07	3.98	5.92	4.76	7.75	5.74	6.75
BUFFALO HIGH YIELD FUND - Institutional	2.76	2.76	12.24	4.13	6.06	4.90	7.91	5.89	6.91
ICE BofA U.S. High Yield Index	1.52	1.52	11.12	2.25	4.06	4.38	8.79	6.44	6.63
Lipper High Yield Bond Funds Index	1.82	1.82	10.69	2.30	3.99	3.93	8.08	5.59	5.56

	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
BUFFALO HIGH YIELD FUND - Investor	9.40	1.96	1.80	6.65	5.98	-2.26	12.32	9.27	5.53	-5.53
BUFFALO HIGH YIELD FUND - Institutional	9.56	2.11	1.95	6.81	6.14	-2.12	12.40	9.43	5.69	-5.39
ICE BofAML U.S. High Yield Index	7.42	2.50	-4.64	17.49	7.48	-2.26	14.41	6.17	5.36	-11.17

For performance prior to 7/1/19 (Inception Date of Institutional Class), performance of the Investor Class shares is used and includes expenses not applicable and lower than those of Investor Class shares.Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower of higher than the performance quoted and can be obtained here. Performance is annualized for periods greater than 1 year. Each Morningstar category average represents a universe of funds with similar objectives.

3 Year Risk Metrics

BUFHX vs ICE BofA U.S. High Yield Index (As of 3/31/24)
Upside Capture	67.86
Downside Capture	50.49
Alpha	2.54
Beta	0.61
Sharpe Ratio	0.24

Hypothetical Growth of $10,000

This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the Inception Date. Assumes reinvestment of dividends and capital gains. This chart does not imply future performance.

Distributions

2024 Projected Distribution Dates:

Record 5/17/2024 Payable 5/20/2024

Record 6/17/2024 Payable 6/18/2024

Record 7/17/2024 Payable 7/18/2024

Record 8/19/2024 Payable 8/20/2024

Record 9/17/2024 Payable 9/18/2024

Record 10/17/2024 Payable 10/18/2024

Record 11/18/2024 Payable 11/19/2024

Record 12/4/2024 Payable 12/5/2024 Cap Gains (if any)

Record 12/17/2024 Payable 12/18/2024

Record Date	Payable Date	Distribution NAV	Net Investment Income	Short-Term Capital Gains	Long-Term Capital Gains	Distribution Total
4/17/2024	4/18/2024	$10.54 (Inv) $10.53 (Inst)	0.03574674 0.03705502	- -	- -	0.03574674 0.03705502
3/18/2024	3/19/2024	$10.57 (Inv) $10.56 (Inst)	0.05863558 0.05979454	- -	- -	0.05863558 0.05979454
2/20/2024	2/21/2024	$10.53 (Inv) $10.52 (Inst)	0.07077710 0.07208359	- -	- -	0.07077710 0.07208359
1/17/2024	1/18/2024	$10.52 (Inv) $10.51 (Inst)	0.05439384 0.05564364	- -	- -	0.05439384 0.05564364

For historical distributions, click here.

Portfolio

Portfolio Characteristics

(As of 3/31/24)
# of Holdings	142
3-Yr Annualized Turnover Ratio	32.55%
Average Duration	2.49 years
Average Maturity	4.27 years
30-day SEC Yield	6.97%

Top 10 Holdings

Name of Holding	Maturity Date	% of Net Assets
Uniti Group Lp 10.5%	15-Feb-2028	2.85
Northern Oil And Gas, Inc. 8.125%	01-Mar-2028	2.35
Geo Group Inc Term Loan	23-Mar-2027	2.29
Directv Financing Llc Term Loan	02-Aug-2027	2.25
Consensus Cloud Solutions, Inc. 6.0%	15-Oct-2026	1.82
KDC/One Development Corporation, Inc. Term Loan	03-Aug-2028	1.77
Amenal Pharmaceuticals Term Loan	5/4/2028	1.76
Energy Transfer, L.p. 7.125% Perp	Perpetual	1.73
Genesis Enery 8.875%	4/15/2030	1.71
Vista Outdoor 4.500%	3/15/2029	1.69
TOP 10 HOLDINGS TOTAL		20.02%

As of 12/31/23. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

View Full Holdings

Asset Allocation

Percentages of Total Assets as of 3/31/24. Allocation percentages may not equal 100% due to rounding.

Sector Weighting

As of 3/31/24. Security weightings are subject to change and are not recommendations to buy or sell any securities. Sector Allocation may not equal 100% due to rounding.

Duration

Duration Breakout (%)*
10+ Years	0.00
7-10 Years	0.00
5-7 Years	0.82
3-5 Years	26.70
1-3 Years	31.73
0-1 Years	12.44

*Excludes Bank Loans and Converts.

Credit Quality

Quality Breakout (%)
Baa	1.40
Ba	23.89
B	64.91
Caa	7.42
Unassigned	2.38

All ratings are as of 3/31/24. Moody’s is the rating source for the Quality Breakout Table. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO), such as Moody’s or Standard & Poor’s. The firm evaluates the of credit worthiness of an issuer with respect to debt obligations, including specific securities, money market instruments, or other bonds. Ratings are measured on a scale that generally ranges from Aaa (highest grade) to C (lowest grade); ratings are subject to change without notice. Unassigned rating indicates that the debtor was not rated by an NRSRO and should not be interpreted as indicating low quality.

Management

Paul Dlugosch, CFA
Portfolio Manager

26 Years of Experience

View full bio

Jeff Sitzmann, CFA
Portfolio Manager

36 Years of Experience

View full bio

Jeff Deardorff, CFA
Portfolio Manager

26 Years of Experience

View full bio

Commentary

Q4 2023 Commentary

PERFORMANCE COMMENTARY

(As of 12/31/23) —

The Buffalo High Yield Fund produced a total return of 4.78% for the quarter, a result
that trailed the ICE BofA US High Yield Index return of 7.08%.

The U.S. high yield asset class posted its fifth consecutive quarter of positive returns
as economic data signaled resiliency and the Federal Reserve softened its hawkish
rhetoric prompting speculation that interest rate cuts may come sooner than
previously expected. The high yield index posted a loss of 1.24% in October before
surging 8.24% in November and December as 10-year Treasury Yields sank. The
significant downward pressure on treasury yields in the last two months of the year
pushed the yield to worst for high yield down to 7.82% by the end of the quarter,
marking a low point for 2023. For reference, the record low yield to worst of 4.22%
occurred in July 2021. Leveraged loans ended the quarter with a yield of 8.60%, which
was 140 basis points (bps) tighter than the previous quarter driven by moderating
inflation and resilient growth.

According to JP Morgan, high yield funds saw quarterly cash inflows of $5.3 billion
compared to roughly $3.5 billion of outflows during the preceding quarter. For
calendar year 2023, high yield fund outflows totaled -$7.9 billion compared to -$14.5
billion in 2022.

There were 65 high yield bonds issued during the quarter totaling $42.1 billion, slightly
higher than the $39.2 billion in new issues for the third quarter. The energy sector
accounted for nearly 25% of total new issuance, followed by financials and industrials
which each accounted for about 10% of the volume.

BB and CCC rated bonds outperformed single-B rated issues during the quarter (CCC
= 7.03%, B = 6.86%, BB = 7.15%) as investors focused on higher duration (BB issues)
and higher risk/reward (CCC issues) in anticipation of more aggressive interest rate
cuts. According to data from JP Morgan, the Retail, Housing, and Broadcasting sectors
were the best performers with returns of 9.36%, 8.65% and 8.55%, respectively. Retail
and Housing were the two worst performing sectors in the prior quarter, but investors
expect both to perform well in a declining rate environment. There were no negative
performing sectors during the quarter, but Metals/Minerals and Transportation were
the worst performing sectors delivering returns of 4.06% and 4.16%, respectively.

The U.S. high yield market’s spread to worst for the period was 377bps, 43bps
tighter than the preceding quarter, according to data from JP Morgan, and 185bps
tighter than its 20-year historical average of 562bps. The yield to worst for the high
yield market at quarter end was 7.82%, matching the 20-year average of 7.82%, and
significantly below the yield of 8.97% from the third quarter. Leveraged loan yields
tightened as well from 541bps in the prior period to 500bps.

Top Contributors
The top three contributors to performance for the quarter were Vista Outdoor 4.5%
corporate bonds, Uniti 10.5% corporate bonds, and Energy Transfer 7.125% corporate
bonds. Vista Outdoor bonds benefited from the announcement that Vista would be
acquired by Czechoslovak Group and the bonds will be repaid once the acquisition
is finalized. The 10.5% coupon and annuity-like cash flows attracted investors to the
Uniti bonds during the quarter and are now trading over par. The Energy Transfer
bonds rallied nearly 10 points during the quarter as investors were drawn to its near
investment grade quality and longer duration characteristics which should benefit the
bonds in a declining interest rate environment.

Top Detractors
The Array Technologies 1% convertible bonds, the iHeart Communication 8.375%
corporate bonds and the Mastec 6.625% corporate bonds were the worst performers
during the quarter. Array convertible bonds were negatively impacted by the 24%
decline in the underlying common stock price driven by unexpected project delays.
iHeart bonds declined after giving disappointing guidance and general concern over
the health of the radio industry as competitor Audacy filed for bankruptcy. The Mastec
bonds suffered from project delays, similar to Array’s, compounded by some illiquidity
volatility given there is only $78 million outstanding of the issue.

OUTLOOK

(As of 12/31/23) —

We are focused first and foremost on the Federal Reserve’s balancing act between
taming inflation while avoiding a recession, lingering supply chain disruptions, and the
geopolitical uncertainty caused by the conflicts in Ukraine and the Middle East. We are
managing the fund cautiously yet actively, focusing on higher-quality, non-investment
grade issuers with defensive business models and manageable credit metrics. We
will continue to deploy cash in opportunities that we believe offer the most appealing
risk/reward tradeoff with a bias toward shorter durations and less levered credits
relative to industry average. Additionally, we believe bank loans offer a more defensive
position as they provide senior positioning in the capital structure and less interest
rate sensitivity due to their floating rate structures. Finally, we continue to look for
opportunities in convertible bonds and preferred stocks. We ended the quarter with
135 positions, up slightly from the previous quarter’s level of 132 (excluding cash).

The opinions expressed are those of the Portfolio Manager(s) and are subject to change, are not guaranteed and should not be considered recommendations to buy or sell any security. Earnings growth is not representative of the fund’s future performance.

Literature

Buffalo High Yield Fund Documents	Last Updated
Fact Sheet	3/31/24
Quarterly Commentary	12/31/23
Full Fund Holdings	6/30/23
Prospectus	7/28/23
Statement of Additional Information	7/28/23
Annual Report	3/31/23
Semi-Annual Report	9/30/22
Tax Guide - 2023	1/8/24

General Account Forms	Investor Class	Institutional Class	Both
New Account Application
New Account Application - Entity
Change or Add Account Details
Cost Basis Method Election
Power of Attorney
Individual Retirement Account (IRA) Forms
IRA Account Application
IRA Beneficiary Addition / Change
IRA Required Minimum Distribution (RMD)
IRA / Qualified Plan Distribution Request
IRA Transfer
Coverdell Education Savings Accounts (ESA) Forms
Coverdell ESA Application
Coverdell ESA Distribution Request
Coverdell ESA Transfer
Retirement Information
Retirement Savings Options for Individuals



Fundamental Approach

We get to know the companies we invest in and learn how they run their business.



Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.



Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.



Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

The Morningstar Rating™ 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 Rating™ 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 Rating™ 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 High Yield Fund (BUFHX) received 5 stars among 606 for the 3-year, 5 stars among 575 for the 5-year, and 5 stars among 432 High Yield Bond funds for the 10-year period ending 3/31/24.

Bond ratings are grades given to bonds that indicates their credit quality as determined by a private independent rating service such as [Standard & Poor’s or Moody’s, etc.]. The firm evaluates a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion. Ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. Not Rated category includes holdings that are not rated by any rating agencies.

International Fund

by unclesloft | Sep 28, 2007 | Featured, Funds, International, International - single, International Equity Funds

International Fund

Quick Facts

	Investor	Institutional
Ticker:	BUFIX	BUIIX
Daily Pricing:
As of 4/24/2024
NAV:	$21.45	$21.47
$ Change:	$-0.07	$-0.07
% Change:	-0.33%	-0.32%
YTD:	1.37%	1.42%
Inception Date:	9/28/2007	7/1/2019
Expense Ratio:	1.04%	0.89%
Total Net Assets:	$1.08 Billion (3/31/24)
Morningstar Category:	Foreign Large Cap Growth
Benchmark Index:	FTSE All World Ex-US
Related Material: Fund Fact Sheet Q1 2024 PM Commentary Q4 2023 Portfolio Manager Q&A

Fund Objective & Investment Philosophy

The investment objective of the Buffalo International Fund is long-term growth of capital. The International Fund invests primarily in equity securities of established companies that are economically tied to various countries throughout the world (excluding the U.S.).

For purposes of the International Fund’s investments, “foreign securities” means those securities issued by companies:

Organized under the laws of, or with a principal office in, a country other than the U.S. and issue securities for which the principal trading market is in a country other than the U.S.; or
That derive at least 50% of their revenues or profits from goods produced or sold, investments made, or services provided in a country other than the U.S., or have at least 50% of their assets in a country other than the U.S.
Under normal circumstances, the International Fund does not expect its investments in emerging markets to exceed 35% of its net assets.

In selecting securities for the International Fund, the Fund managers use a bottom-up approach in choosing investments, seeking companies expected to experience growth based on the identification of long-term, measurable industry, technological, global or other trends. Companies are screened using in-depth, in-house research to identify those which the Fund managers believe have favorable attributes, including: attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages.

In making portfolio selections the Fund managers will also consider the economic, political and market conditions of the various countries in which the Fund may invest.

Morningstar Ratings

Overall Morningstar Rating™ of BUFIX based on risk-adjusted returns among 383 Foreign Large Growth funds as of 3/31/24

PM Insights

International Equities — The New Market Leaders?

Access Report >>

The Case for Investing Internationally

Access Report >>

When it comes to investing internationally, we believe our approach to stock selection is distinct. We are focused on finding good companies and aren’t constrained by benchmark alignment to countries or industries.

Our approach is based on finding companies with sound business models, exposure to long-term secular growth trends, and attractive risk/return growth and valuation characteristics, which we can own for the long-term.

Nicole Kornitzer, Portfolio Manager

Performance (%)

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	Since Inception
BUFFALO INTERNATIONAL FUND - Investor	5.43	5.43	10.89	4.10	9.59	7.64	5.79
BUFFALO INTERNATIONAL FUND - Institutional	5.48	5.48	11.08	4.24	9.76	7.80	5.95
FTSE All World Ex-US Index	4.54	4.54	13.99	2.55	6.70	4.95	3.20
Lipper International Fund Index	5.86	5.86	14.72	3.08	7.61	5.11	3.34

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	Since Inception
BUFFALO INTERNATIONAL FUND - Investor	5.43	5.43	10.89	4.10	9.59	7.64	5.79
BUFFALO INTERNATIONAL FUND - Institutional	5.48	5.48	11.08	4.24	9.76	7.80	5.95
FTSE All World Ex-US Index	4.54	4.54	13.99	2.55	6.70	4.95	3.20
Lipper International Fund Index	5.86	5.86	14.72	3.08	7.61	5.11	3.34

	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
BUFFALO INTERNATIONAL FUND - Investor	19.29	-2.04	-0.45	3.19	29.33	-8.85	28.02	19.10	18.21	-21.79
BUFFALO INTERNATIONAL FUND - Institutional	19.46	-1.89	-0.30	3.34	29.53	-8.71	28.20	19.24	18.42	-21.65
FTSE All World Ex-US Index	15.62	-3.04	-4.46	5.12	27.47	-13.87	22.20	11.52	8.66	-15.22
Morningstar Global Markets ex-US Index	15.71	-3.62	-3.65	5.45	27.37	-14.17	21.57	11.17	8.41	-16.15

3 Year Risk Metrics

BUFIX vs FTSE All World Ex-US Index (As of 3/31/24)
Upside Capture	128.29
Downside Capture	109.78
Alpha	1.60
Beta	1.11
Sharpe Ratio	0.07

Hypothetical Growth of $10,000

Portfolio

Portfolio Characteristics

(As of 3/31/24)
# of Holdings	82
Median Market Cap	$44.45 B
Weighted Average Market Cap	$106.20 B
3-Yr Annualized Turnover Ratio	7.35%
Active Share	89.53%

Market Capitalization

As of 3/31/24. Market Cap percentages may not equal 100% due to rounding.

Top 10 Holdings

Name of Holding	Ticker	Country	Sector	% of Net Assets
Linde plc	LIN	Sw	Materials	2.07
Schneider Electric SE	SU FP	France	Industrials	2.02
Renesas Electronics Corporation	6723 JP	Japan	Information Technology	1.93
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR	TSM	Taiwan	Information Technology	1.76
Novo Nordisk A/S Sponsored ADR Class B	NVO	Denmark	Health Care	1.70
BayCurrent Consulting, Inc.	6532 JP	Japan	Industrials	1.65
MercadoLibre, Inc.	MELI	Argentina	Consumer Discretionary	1.64
Siemens Aktiengesellschaft	SIE GR	Germany	Industrials	1.64
Ashtead Group plc	AHT LN	United Kingdom	Financials	1.59
GFL Envisonmental	GFL	Canada	Industrials	1.59
TOP 10 HOLDINGS TOTAL				17.59%

As of 12/31/23. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

View Full Holdings

Sector Weighting

As of 3/31/24. Security weightings are subject to change and are not recommendations to buy or sell any securities. Sector Allocation may not equal 100% due to rounding.

Countries

TOP 10 COUNTRIES	% of Portfolio Net Assets
France	18.31%
Germany	13.04%
Switzerland	11.81%
United Kingdom	11.59%
Japan	10.02%
Ireland	8.31%
Canada	5.35%
Netherlands	4.43%
Denmark	3.02%
Sweden	2.68%
TOP 10 TOTAL	88.56%

As of 3/31/24

MARKET CLASSIFICATION
Emerging Markets:	7.66%
Developed Markets:	92.34%

As of 3/31/24

Management

Nicole Kornitzer, CFA
Portfolio Manager

23 Years of Experience

View full bio

Pat Srinivas
International Equity Research Analyst

17 Years of Experience

View full bio

Frank Deibold
Research Analyst

12 Years of Experience

View full bio

Commentary

Q4 2023 Commentary

PERFORMANCE COMMENTARY

(As of 12/31/23) —

The Buffalo International Fund posted a return of 11.16% for the quarter, outperforming the
broad prospectus index, FTSE All-World ex-US index, which posted a return of 9.75%. The
Buffalo International Fund’s outperformance was mostly due to stock selection, which was
partially offset by a cash position that weighed on performance during the market rally.

Top Contributors

Top contributors in the period included Shin-Etsu Chemical Company, Adyen NV,
and IMCD N.V. Shin-Etsu is a Japanese chemical company that manufactures PVC for
construction and silicon wafers for semiconductors. Management’s positive comments
about both PVC pricing and silicon wafer demand supported the company’s share price
during the quarter. The company should benefit from increasing demand for large silicon
wafers, partially due to generative AI, and supply constraints in the industry. Adyen, a
global payment solutions provider headquartered in the Netherlands, reassured investors
after reporting disappointing results in the prior quarter. The company reported growth that rebounded from the prior period, issued more appropriate mid-term guidance, and responded to several investor concerns. We believe Adyen has the most compelling payment solutions platform for global companies. Finally, IMCD, a specialty chemical distributor, saw its stock rise after a third quarter report delivering better margins than expected. Previous quarters had been challenged due to customer destocking, but management commentary and similar statements from peers seemed to suggest a potential bottom in the industry.

Top Detractors

Top detractors in the quarter were Li Ning, Julius Baer Gruppe AG, and Aon Plc. Li Ning, one of the largest sportswear brands in China, reported disappointing third-quarter results, partially due to a clamp-down on cross-selling among distributors, but also due to the weak consumer sentiment in China and heightened competition among brands in a promotional environment. We remain on the sidelines in terms of an investment with the company given the difficult backdrop, despite favorable long-term trends that should underpin sales of sporting goods in China. Second, Julius Baer, the third-largest private bank in Switzerland, revealed that it had financed the now troubled real estate developer, Ren Benko, up to $500 million in Swiss Francs and has taken a write-down of $82 million Swiss Francs thus
far. The stock price dropped on fear that the write-downs will increase. We continue to hold Julius Baer with the expectation that the stock should recover once it becomes clear that this situation is a one-off event and that the associated risk is manageable. Management does not have a history of poor risk making decisions and the balance sheet is strong enough to absorb further potential write-offs. Over the medium-term the company should benefit from trends in increased wealth and demand for global wealth managers. Finally, Aon, a global reinsurance broker, announced the acquisition of NFP, a middle market insurance broker, for what appears to be a high valuation. The company will take a near-term hit to earnings and cash flows, as the deal will be accretive starting only in 2027. While we think the company
has some work to do in terms of proving the value creation potential of the deal, we give management the benefit of the doubt given their track record in creating value for shareholders. Over the long term the acquisition should boost free cash flow to this historically strong generator of free cash. Aon’s business model remains attractive, and we remain optimistic about the company’s ability to bring value through its data analytics when competing in the middle-market segment.

OUTLOOK

(As of 12/31/23) —

We are cautiously optimistic about the prospects for international equity markets in 2024. While we could witness slower global economic growth, inflation should continue to recede, and we expect interest rates to decline in much of the world sometime during the year (perhaps not as quickly as markets might hope). If the United States avoids a recession it should help to prop up the global economy. Across the Atlantic, European economies are clearly weakening, data suggests waning consumer and business confidence, but the continent might be able to avoid a deep recession, given strength in the labor market, positive real wage growth, and healthy consumer savings. In Asia, we continue to be optimistic about the future in Japan. An end to deflation and the new focus on corporate governance and corporate value improvements through the Tokyo Stock Exchange’s 2023 policy initiative bode well for positive economic growth and stock performance.

Overall significant risks remain that could weigh on international equity markets. Geopolitical tensions and several political elections around the world are top of mind. Further disruptions to supply chains and additional inflation shocks have been a recent market concern. China is clearly a concerning piece in the global economy, as recent data shows further deflation, steeper declines in the housing market and weaker consumption. Strong government stimulus is necessary to turn things around but is still nowhere to be found. The weakness in China continues to weigh on many of our portfolio companies, though they are adapting to a less optimistic future and expectations are being reset. On balance, while we acknowledge there are still risks to the global outlook, we believe there is potential for greater optimism
later in the year that could overshadow the lingering negatives as interest rates begin to recede.

Whatever the future brings, we will continue to look for opportunities over the short term to invest with a long-term view. We pay attention to the valuation of the companies in our portfolio and will seek out opportunities during periods of market weakness using volatility to buy high quality growth companies at attractive valuations. Our strategy remains unchanged, focus on companies that can benefit from long term secular growth trends and seek quality companies that have sound, sustainable business models, competitive advantages, that generate consistent free cash flow and strong returns on their investments. We especially like proven management teams that are focused on creating value for shareholders. We believe that by continuing our disciplined strategy we should be able to post attractive risk-adjusted returns over the long term.

International Fund News

Kiplinger: Top-Performing Mutual Funds Copy

May 16, 2022

Kiplinger recognized the Buffalo Flexible Income and International Funds as “Top-Performing Mutual Funds” in their recent fund analysis.

Buffalo Funds named to IBD Best Mutual Funds 2022

Apr 21, 2022

BUFIX and BUFHX were named to the Investor’s Business Daily Best Mutual Funds 2022 list in the International Stock Fund and U.S. Taxable Bond Funds categories, respectively.

Kiplinger: Top-Performing Mutual Funds

Apr 18, 2022

Kiplinger recognized the Buffalo Flexible Income and International Funds as “Top-Performing Mutual Funds” in their recent fund analysis.

Kiplinger: Top-Performing Mutual Funds

Mar 10, 2022

Kiplinger recognized the Buffalo Flexible Income and International Funds as “Top-Performing Mutual Funds” in their recent fund analysis.

Recent Recognition

Investor’s Business Daily “Best Mutual Funds List” – April 21, 2022
Kiplinger’s “Top Performing Mutual Funds” – April 18, 2022
Kiplinger’s “Top Performing Mutual Funds” – March 10, 2022
Kiplinger’s “Top Performing Mutual Funds” – January 24, 2022
Kiplinger’s “Top Performing Mutual Funds” – December 21, 2021
Kiplinger’s “Top Performing Mutual Funds” – November 18, 2021
Kiplinger’s “Top Performing Mutual Funds” – August 18, 2021
Investor’s Business Daily “Best Mutual Funds List” – March 22, 2021
Investor’s Business Daily “Best Mutual Funds List” – March 23, 2020
Citywire “Top 20 Female Portfolio Managers in the U.S.” – December 20, 2019
Kiplinger Top-Performing Mutual Fund (5 Years) – November 15, 2019
US News & World Reports – Best Mutual Funds – August 15, 2019
Zacks “4 Non-U.S. Mutual Funds to Buy Now” – July 3, 2019
Zacks “3 Non-U.S. Mutual Funds Worth Taking a Look” – May 3, 2019
Morningstar 5-star Overall Rating – March 31, 2019 – out of 373 Foreign Large Growth funds*
Morningstar 5-star Overall Rating – December 31, 2018 – out of 364 Foreign Large Growth funds*
Zacks “Consider These Non-U.S. Mutual Funds for Excellent Returns” – October 25, 2018
Morningstar 5-star Overall Rating – September 30, 2018 – out of 347 Foreign Large Growth funds*
Citywire “Winning Women – Top 20 Female Portfolio Managers in the U.S.” – August 31, 2018
Citywire “International Stars to Watch” – August 10, 2018
Morningstar 5-star Overall Rating – September 30, 2017 – out of 325 Foreign Large Growth funds*
Zacks “Four #1 Non-U.S. Mutual Funds” – September 22, 2017
Citywire “Alpha Female 2017 – The Top Female Fund Managers in 7 Major Markets” – August 8, 2017
Zacks “3 Strong Buy Non-U.S. Mutual Funds” – June 7, 2017

*Overall Morningstar Rating derived from a weighted average of the fund’s 3-, 5-, and 10-year risk adjusted return.

Literature

Buffalo International Fund Documents	Last Updated
Fact Sheet	3/31/24
Quarterly Q&A	12/31/23
Full Fund Holdings	6/30/23
Prospectus	7/28/23
Statement of Additional Information	7/28/23
Annual Report	3/31/23
Semi-Annual Report	9/30/22
Tax Guide - 2023	1/8/24

General Account Forms	Investor Class	Institutional Class	Both
New Account Application
New Account Application - Entity
Change or Add Account Details
Cost Basis Method Election
Power of Attorney
Individual Retirement Account (IRA) Forms
IRA Account Application
IRA Beneficiary Addition / Change
IRA Required Minimum Distribution (RMD)
IRA / Qualified Plan Distribution Request
IRA Transfer
Coverdell Education Savings Accounts (ESA) Forms
Coverdell ESA Application
Coverdell ESA Distribution Request
Coverdell ESA Transfer
Retirement Information
Retirement Savings Options for Individuals



Fundamental Approach

We get to know the companies we invest in and learn how they run their business.



Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.



Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.



Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

Morningstar Rating™

The Morningstar Rating™ 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 Morningstar Rating does not include any adjustment for sales loads. 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 Rating™ 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 Rating™ 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.

©2022 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.

The Buffalo International Fund (BUFIX) received 4 stars among 383 for the 3-year, 4 stars among 327 for the 5-year, and 4 stars among 223 Foreign Large Growth funds for the 10-year period ending 3/31/24. Other share classes may have different performance characteristics based on risk-adjusted returns.

Large Cap Fund

by unclesloft | May 19, 1995 | Domestic Equity Funds, Featured, Funds, Large Cap, Large Cap - single

Large Cap Fund

Quick Facts

	Investor	Institutional
Ticker:	BUFEX	BUIEX
Daily Pricing:
As of 4/24/2024
NAV:	$47.31	$47.60
$ Change:	$-0.03	$-0.04
% Change:	-0.06%	-0.08%
YTD:	9.06%	9.10%
Inception Date:	5/19/1995	7/1/2019
Expense Ratio:	0.95%	0.80%
Total Net Assets:	$129.52 Million (3/31/24)
Morningstar Category:	Large Cap Growth
Benchmark Index:	Russell 1000 Growth
Related Material: Fund Fact Sheet Q1 2024 PM Commentary Q4 2023

Fund Objective & Investment Philosophy

The investment objective of the Buffalo Large Cap Fund is long-term growth of capital. The Fund normally invests in equity securities, consisting of common stocks, preferred stocks, convertible securities, warrants and rights of large capitalization (“large-cap”) companies. The Fund considers a company to be a large-cap company if, at time of purchase by the Fund, it has a market capitalization greater than or equal to the lesser of (1) $10 billion, or (2) the median market capitalization of the Russell 1000 Growth Index. The median market capitalization of the Russell 1000 Growth Index changes due to market conditions and also changes with the composition of the Index.

Companies are screened using in-depth, in-house research to identify those which the managers believe have favorable attributes, including attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages.

We don’t manage to our benchmark so we don’t have too much concentration in any one single trend. We also manage based on valuation, trimming positions when they approach their potential upside and adding to them as they get closer to the potential downside.

Ken Laudan, Portfolio Manager

Morningstar Ratings

Overall Morningstar Rating™ of BUFEX based on risk-adjusted returns among 1,111 Large Growth funds as of 3/31/24.

Performance (%)

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO LARGE CAP FUND - Investor	12.56	12.56	39.04	11.28	15.85	14.35	16.31	10.50	10.73
BUFFALO LARGE CAP FUND - Institutional	12.61	12.61	39.19	11.43	16.02	14.52	16.48	10.66	10.90
Russell 1000 Growth Index	11.41	11.41	39.00	12.50	18.52	15.98	17.85	11.85	10.87
Lipper Large Cap Growth Fund Index	13.14	13.14	41.07	9.58	16.31	14.30	16.28	10.56	9.67

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO LARGE CAP FUND - Investor	12.56	12.56	39.04	11.28	15.85	14.35	16.31	10.50	10.73
BUFFALO LARGE CAP FUND - Institutional	12.61	12.61	39.19	11.43	16.02	14.52	16.48	10.66	10.90
Russell 1000 Growth Index	11.41	11.41	39.00	12.50	18.52	15.98	17.85	11.85	10.87
Lipper Large Cap Growth Fund Index	13.14	13.14	41.07	9.58	16.31	14.30	16.28	10.56	9.67

	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
BUFFALO LARGE CAP FUND - Investor	32.76	12.76	7.15	6.90	24.86	-1.63	31.77	28.08	26.08	-28.61
BUFFALO LARGE CAP FUND - Institutional	32.96	12.92	7.31	7.06	25.05	-1.48	31.98	28.28	26.27	-28.51
Russell 1000 Growth Index	33.48	13.05	5.67	7.08	30.21	-1.51	36.39	38.49	27.60	-29.14
Morningstar U.S. Large Growth Index	32.46	14.38	7.71	1.79	31.15	2.94	33.81	38.86	21.47	-40.36

3 Year Risk Metrics

BUFEX vs Russell 1000 Growth Index (As of 3/31/24)
Upside Capture	85.85
Downside Capture	93.90
Alpha	-0.22
Beta	0.91
Sharpe Ratio	0.45

Hypothetical Growth of $10,000

This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the Fund’s inception date. Assumes reinvestment of dividends and capital gains. This chart does not imply future performance.

Portfolio

Portfolio Characteristics

(As of 3/31/24)
# of Holdings	81
Median Market Cap	$107.71 B
Weighted Average Market Cap	$1114.48 B
3-Yr Annualized Turnover Ratio	54.81%
% of Holdings with Free Cash Flow	95.06%
Active Share	39.04%

Top 10 Holdings

Name of Holding	Ticker	Sector	% of Net Assets
Microsoft Corporation	MSFT	Information Technology	11.39
Apple Inc.	AAPL	Information Technology	8.95
Amazon.com, Inc.	AMZN	Consumer Discretionary	5.98
Alphabet Inc. Class A	GOOGL	Communication Services	5.75
NVIDIA Corporation	NVDA	Information Technology	4.46
Visa Inc. Class A	V	Financials	2.60
Meta Platforms Inc Class A	META	Communication Services	2.46
Costco Wholesale Corporation	COST	Consumer Staples	2.00
Eli Lilly and Company	LLY	Health Care	1.47
UnitedHealth Group Incorporated	UNH	Health Care	1.34
TOP 10 HOLDINGS TOTAL			46.40%

As of 12/31/23. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

View Full Holdings

Sector Weighting

As of 3/31/24. Security weightings are subject to change and are not recommendations to buy or sell any securities. Sector Allocation may not equal 100% due to rounding.

Market Capitalization

As of 3/31/24. Market Cap percentages may not equal 100% due to rounding.

Management

Ken Laudan
Portfolio Manager

30 Years of Experience

View full bio

Commentary

Q4 2023 Commentary

PERFORMANCE COMMENTARY

(As of 12/31/23) —

The Buffalo Large Cap Fund produced a return of 13.54% in the quarter versus the
Russell 1000 Growth Index return of 14.16%. As mentioned above, the broad large
cap market S&P 500 Index advanced 11.69%. While the portfolio performed well on an
absolute return basis, the slight benchmark relative underperformance was due to cash
drag during the rapid market advance, a decline in the energy company Schlumberger
(SLB) and from the pharmaceutical company Sanofi (SNY). Shares of Schlumberger
dropped by more than 10%, and shares of Sanofi fell by a little more than 7%.
For calendar year 2023, the Buffalo Large Cap Fund produced a total return of 40.39%
versus the Russell 1000 Growth Index gain of 42.68% and 26.29% for the S&P 500
Index. It’s worth noting once again that the fund remained underweight to many
of the Russell 1000 Growth’s high growth, high volatility constituents such as Tesla,
which advanced about +105% in 2023. The fund also remains capped on individual
position weightings for Apple (AAPL) and Alphabet (GOOGL) owing to SEC requirements
regarding diversified investment funds. Apple finished the year representing 12% of the
Russell 1000 Growth Index weight and Alphabet represented 6.5% of the index weight.
Shares of Alphabet climbed 48% in 2023 and Apple advanced more than 58%.

Top Contributors
Top contributors to fund results for the quarter were Microsoft, Amazon, and Apple.
Microsoft rebounded strongly from relative underperformance in the previous quarter
and posted a return of more than 19%. Share price appreciation was driven by
better-than-expected quarterly results as revenue growth of 12% materially exceeded
expectations of 8%. Furthermore, forward guidance was raised primarily due to Azure
(public cloud) growth that is expected to accelerate sequentially owing to increased
demand from large enterprise customers including some AI related workloads…a
key metric investors are watching as we go forward in 2024. Microsoft remained
well-positioned as one of the top long term generative AI beneficiaries. The company
is now launching their gen AI feature with Office 365 (O365 cloud version) to over 200
million monthly active users at a price point of $30 per user per month. This launch will
be watched with some interest by the investment community to get a sense for what
sort of initial interest will be shown by enterprises engaging with AI tools.

A big driver for shares of Amazon’s stock in the most recent quarter (+19.5%) was
the strong financial performance and margin expansion within the core eCommerce
(internet retail) business for Amazon. Financial performance within eComm had
deteriorated materially over the last three years (post Covid) as the company spent
nearly $100 billion building out its delivery and logistics network to facilitate a broad
next-day/same-day delivery service. The company has finally started to grow into this
massive building and logistics expansion and should continue to show strong sequential
improvement in operating margins that could exceed 11% by 2027, more than double
the pre-Covid operating margins of 5%. Moreover, Amazon possesses one of the
highest earnings per share (EPS) growth rates of all the mega cap companies, nearing
30% a year through 2027.

Shares of Apple gained 12.6% in the fourth quarter and the company remained an
important and large weighting of the Buffalo Large Cap Fund at 9% of total assets.
Notwithstanding the large absolute position in Apple, the portfolio is still well below the
benchmark weighting of 12%. While there remain concerns surrounding iPhone sales in
China, and other markets globally, several investment research reports published in the
fourth quarter speculated that Apple may be a stealth AI beneficiary by enabling AI “at the
edge”. At the edge refers to using AI models to generate content directly on your lap top
computer or iPhone (via high powered processing chips in the devices) avoiding the need
to access the cloud for AI workloads. Think about Apple having an AI specific app store
where one can download powerful new applications that provide potentially more privacy
and security than accessing AI tools and apps via a public cloud vendor such as Amazon
or Microsoft. This AI at the edge epiphany, seemed to generate renewed enthusiasm for
Apple’s shares in the period.

Top Detractors
Top detractors from fund results in the quarter were Schlumberger, Sanofi, and
Aon. Schlumberger declined by more than 10% owing to across-the-board weakness
in commodities and oil specifically. The company is a key beneficiary of increased
exploration and production as the world has had a decade of under-investment in oil
and gas. Moreover, the Russian invasion into Ukraine shifted the focus from energy
transition to energy security…a trend unlikely to reverse over the long term.
We continue to like Schlumberger for three primary reasons:

1. Key products for include drill bits, drilling fluids, well construction equipment, wireline
testing (computer on stick) used for sampling quality of reservoirs or quality of the
wells and a whole array of sub-sea and sub-surface products such as well heads,
fluid injection systems and communication equipment.

2. The company also benefits from its growing technological and cloud-based digital
offerings that energy producers are demanding to help drive increased efficiency
and productivity while providing a more efficient climate impact. Higher margins
(38%) by provided by workflow automation, new decision driven insights from its proprietary data of seismic and geological interpretation of reservoirs, which is a $6 billion business or 21% of total annual revenues.

3. The company has a great balance sheet, industry leading margins (26% EBITDA), a
dominant market position, with a thrust to a greener footprint, which all coalesce to
make Schlumberger an interesting investment opportunity, in our view.

Sanofi (SNY) declined more than 7% owing to increased investment spend in research
and development (R&D) to accelerate their business model transformation to one
focusing more on novel biologic molecules. This increased R&D lowered the projected
earnings growth for 2024. We expect the company’s reset earnings growth rate of 8%
coupled with a dividend yield of nearly 3% to commence in 2025. We continue to like
the company longer term given its’ ongoing shift to more durable and differentiated
biologic compounds such as Beyfortus, a novel vaccine for RSV, and Altuvilo, a new
treatment for hemophilia Factor VIII. We believe that both compounds have multi-billion
drug revenue potential. We also see a growing runway for the company’s leading drug,
Dupixent given positive data for use in COPF, which is a large new market opportunity
for this best-in-class franchise.

Finally, shares of Aon pulled back by 10% in the period despite quarterly revenue
and EPS exceeding expectations with no change in the guidance parameters. There
were, however, some mixed results below the headline numbers such as slower than
expected growth within the key commercial risk segment that came in 100 basis points
below the 5% growth expectation, well below what peers are generating. The company
also announced a large acquisition of NFP, a privately held but leading middle market
property and casualty insurance broker. The middle market is where AON had a
product offering gap and NFP should help close that. NFP does provide some potential
integration and execution risk and the transaction will not be accretive until 2027,
so the acquisition represents a bit of balanced risk/reward for AON. Consequently,
we continued to reduce our investment weight in the company despite believing it is
attractively positioned longer term.

OUTLOOK

(As of 12/31/23) —

As always, our goal in managing the fund is to produce better than benchmark riskadjusted returns while also generating more consistent, less volatile returns over the
long term. We appreciate your continued confidence in our investment strategy and
approach. It’s one that has historically demonstrated an attractive track record of growth
through various market challenges and opportunities.

Literature

Buffalo Large Cap Fund Documents	Last Updated
Fact Sheet	3/31/24
Quarterly Commentary	12/31/23
Full Fund Holdings	6/30/23
Prospectus	7/28/23
Statement of Additional Information	7/28/23
Annual Report	3/31/23
Semi-Annual Report	9/30/22
Tax Guide - 2023	1/8/24

General Account Forms	Investor Class	Institutional Class	Both
New Account Application
New Account Application - Entity
Change or Add Account Details
Cost Basis Method Election
Power of Attorney
Individual Retirement Account (IRA) Forms
IRA Account Application
IRA Beneficiary Addition / Change
IRA Required Minimum Distribution (RMD)
IRA / Qualified Plan Distribution Request
IRA Transfer
Coverdell Education Savings Accounts (ESA) Forms
Coverdell ESA Application
Coverdell ESA Distribution Request
Coverdell ESA Transfer
Retirement Information
Retirement Savings Options for Individuals



Fundamental Approach

We get to know the companies we invest in and learn how they run their business.



Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.



Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.



Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

Morningstar Rating™

The Morningstar Rating™ 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 Morningstar Rating does not include any adjustment for sales loads. 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 Rating™ 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 Rating™ 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 Large Cap Fund received 4 stars among 1,111 for the 3-year, 4 stars among 1,037 for the 5-year, and 4 stars among 807 Large Growth funds for the 10-year period ending 3/31/24. Other share classes may have different performance characteristics.

Mid Cap Fund

by unclesloft | Dec 17, 2001 | Domestic Equity Funds, Domestic Equity Group, Funds, Mid Cap, Mid Cap - single

Mid Cap Fund

Quick Facts

	Investor	Institutional
Ticker:	BUFMX	BUIMX
Daily Pricing:
As of 4/24/2024
NAV:	$15.93	$16.06
$ Change:	$0.06	$0.06
% Change:	0.38%	0.37%
YTD:	-2.09%	-2.07%
Inception Date:	12/17/2001	7/1/2019
Expense Ratio:	1.03%	0.88%
Total Net Assets:	$157.09 Million (3/31/24)
Morningstar Category:	Mid Cap Growth
Benchmark Index:	Russell Midcap Growth
Related Material: Fund Fact Sheet Q1 2024 PM Commentary Q4 2023

Fund Objective & Investment Strategy

The investment objective of the Buffalo Mid Cap Fund is long-term growth of capital. The Fund normally invests at least 80% of its net assets in equity securities, consisting of common stocks, preferred stocks, convertible preferred stocks, warrants and rights of medium capitalization (“mid-cap”) companies. The Fund defines mid-cap companies as those companies that, at the time of purchase, have market capitalizations within the range of the Russell Midcap Growth Index.

The Fund managers seek to identify companies for the Mid Cap Fund’s portfolio that are expected to experience growth based on the identification of long-term, measurable secular trends, and which, as a result, the managers believe may have potential revenue growth in excess of the gross domestic product growth rate. Companies are screened using in-depth, in-house research to identify those which the managers believe have favorable attributes, including attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages.

Our focus has always been on investing in secular growth companies we believe are attractively-priced with strong balance sheets. We remain convinced the inefficiencies inherent in the small and mid-cap market spectrum, in addition to where we are in the economic cycle, are best suited for disciplined, active management of the portfolio.

Josh West, Portfolio Manager

Morningstar Ratings

Overall Morningstar Rating™ of BUFMX based on risk-adjusted returns among 520 Mid-Cap Growth funds as of 3/31/24.

Performance (%)

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO MID CAP FUND - Investor	6.02	6.02	23.74	2.12	11.40	8.98	12.85	8.64	8.78
BUFFALO MID CAP FUND - Institutional	6.04	6.04	23.85	2.27	11.56	9.13	13.02	8.80	8.94
Russell Midcap Growth Index	9.50	9.50	26.28	4.62	11.82	11.35	15.64	10.41	9.77
Lipper Mid Cap Growth Index	8.34	8.34	21.20	0.33	9.50	9.78	13.94	9.50	8.61

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO MID CAP FUND - Investor	6.02	6.02	23.74	2.12	11.40	8.98	12.85	8.64	8.78
BUFFALO MID CAP FUND - Institutional	6.04	6.04	23.85	2.27	11.56	9.13	13.02	8.80	8.94
Russell Midcap Growth Index	9.50	9.50	26.28	4.62	11.82	11.35	15.64	10.41	9.77
Lipper Mid Cap Growth Index	8.34	8.34	21.20	0.33	9.50	9.78	13.94	9.50	8.61

	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
BUFFALO MID CAP FUND - Investor	29.25	5.85	-0.52	5.93	13.66	-7.30	37.98	34.18	14.61	-27.80
BUFFALO MID CAP FUND - Institutional	29.45	6.00	-0.37	6.08	13.82	-7.16	38.16	34.42	14.73	-27.69
Russell Midcap Growth Index	35.74	11.90	-0.20	7.33	25.27	-4.75	35.47	35.59	12.73	-26.72
Morningstar U.S. Mid Growth Index	34.07	9.77	-0.71	6.46	25.67	-3.16	36.01	46.17	14.97	-32.37

3 Year Risk Metrics

BUFMX vs Russell Midcap Growth Index (As of 3/31/24)
Upside Capture	87.93
Downside Capture	99.55
Alpha	-2.01
Beta	0.90
Sharpe Ratio	-0.03

Hypothetical Growth of $10,000

Portfolio

Portfolio Characteristics

(As of 3/31/24)
# of Holdings	56
Median Market Cap	$16.96 B
Weighted Average Market Cap	$31.91 B
3-Yr Annualized Turnover Ratio	19.50%
% of Holdings with Free Cash Flow	92.86%
Active Share	83.76%

Top 10 Holdings

Name of Holding	Ticker	Sector	% of Net Assets
MSCI Inc. Class A	MSCI	Financials	4.06
Gartner, Inc.	IT	Information Technology	3.89
CBRE Group, Inc. Class A	CBRE	Real Estate	3.49
IQVIA Holdings Inc	IQV	Health Care	3.16
CrowdStrike Holdings, Inc. Class A	CRWD	Information Technology	3.08
Verisk Analytics Inc	VRSK	Industrials	3.02
CoStar Group, Inc.	CSGP	Industrials	3.00
Copart, Inc.	CPRT	Industrials	2.73
AMETEK, Inc.	AME	Industrials	2.54
Veeva Systems Inc Class A	VEEV	Health Care	2.53
TOP 10 HOLDINGS TOTAL			31.49%

As of 12/31/23. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

View Full Holdings

Sector Weighting

As of 3/31/24. Security weightings are subject to change and are not recommendations to buy or sell any securities. Sector Allocation may not equal 100% due to rounding.

Market Capitalization

As of 3/31/24. Market Cap percentages may not equal 100% due to rounding.

Management

Josh West, CFA
Portfolio Manager

18 Years of Experience

View full bio

Doug Cartwright, CFA
Portfolio Manager

17 Years of Experience

View full bio

Commentary

Q4 2023 Commentary

PERFORMANCE COMMENTARY

(As of 12/31/23) —

2023 concluded with capital markets moving higher in the final quarter of the year. The
S&P 500 Index gained 11.69% and the Bloomberg Aggregate Bond Index advanced
6.82%. A big pivot in expectations for the Federal Reserve’s monetary policy drove the
market advance during the period, as investors now anticipate a decline in interest
rates for 2024. The yield of the U.S. Treasury 10-year note finished the quarter at
3.88%, a significant drop from its peak of nearly 5% in mid-October.

Recapping broad-based index results, the Russell 3000 Index gained 12.07% during
the period. Growth stocks outperformed value stocks as the Russell 3000 Growth
Index advanced 14.09% compared to a gain of 9.83% for the Russell 3000 Value Index.
In typical “risk-on” fashion, relative performance improved going down in market
capitalization (size) during the quarter as small caps advanced more than large caps.
Larger cap stocks produced a return of 11.96%, as measured by the Russell 1000
Index, compared to the smaller cap Russell 2000 Index return of 14.03%. The even
smaller market cap Russell Microcap Index rallied 16.06% in the quarter.

The stock market recorded impressive gains for 2023 with the S&P 500 Index
advancing 26.29%. However, it was a “narrow” market as the “magnificent seven”
technology and artificial intelligence (AI) stocks accounted for approximate 80% of the
S&P 500’s gains in 2023, versus a broad market advance where hundreds of stocks
propel the index higher. In terms of economic sectors, technology, communication
services, and consumer discretionary stocks were the brightest spots while the utilities
and energy sectors declined in 2023.

The Buffalo Mid Cap Fund gained 14.22% in the fourth quarter compared to the
Russell Midcap Growth Index return of 14.55%. Strong stock selection in the
industrials, real estate, and information technology sectors mostly offset the drag from
poor selection in health care, consumer, and finance. Our small cash position was also
a modest drag on performance in the market rally.

Top Contributors
Gartner was the top contributor to fund results in the quarter. The company
provides research and advisory services, mainly on technology related topics, to
corporate clients. The stock advanced over 30% after reporting a beat and raise
quarter, highlighted by stabilizing tech vendor spending and salesforce productivity
improvements. While artificial intelligence is the current hot topic, we expect Gartner
will continue to benefit from the increasing ubiquity and complexity of IT in all types
of businesses.

Shares of cybersecurity firm Crowdstrike Holdings were up over 50% in the quarter.
Investors were surprised by Crowdstrike’s net new annual recurring revenue growth
of 13%, compared to previous estimates of 6%. Investors were also pleased with
the company’s improving win rates and expansion into cloud security and identity
protection. Crowdstrike should be well positioned to benefit from increasing spend
on endpoint security and cloud workload protection for years to come.

CBRE Group is the leading global provider of commercial real estate (CRE) services.
Its shares benefited from the pullback in interest rates seen in the quarter. Higher
interest rates have been a headwind to commercial real estate transactions. Also,
CBRE and some others in the industry made comments about seeing some green
shoots in capital markets activity. Looking through the cycles, CBRE should continue to
benefit from firms outsourcing CRE functions, consolidation of CRE spend with fewer
global providers, and increasing investor ownership in the CRE asset class.

Top Detractors
Kinsale Capital Group is a property and casualty insurer, focusing on excess
and surplus (E&S) lines. Gross premiums written grew 34% in the quarter, which
disappointed investors who had become accustomed to growth in the 40%s and 50%s.
While the business will inevitably show signs of cyclicality, the company’s technology
platform and focus on small E&S policies will allow Kinsale to continue growing at an
attractive rate without sacrificing on underwriting margins.

On Semiconductor, a supplier of semiconductors and sensors focused on automotive
and industrial markets, was a drag on performance in the quarter. The company
lowered guidance for silicon carbide revenue, citing weakness in demand from one top
electric vehicle customer. We continue to expect electric vehicles to become a larger
percentage of cars on the road over time, and On Semiconductor should benefit from
that trend.

OUTLOOK

(As of 12/31/23) —

In the first quarter of 2023, investors were concerned that the Federal Reserve would
push the economy into recession with their rapid interest rate increases. In the second
quarter, investors became convinced that the Federal Reserve would be able to tame
inflation without killing economic expansion, also known as a “soft landing”. In the third
quarter, investors returned to fretting over a possible or probable recession again. In
the fourth quarter, the Federal Reserve signaled a more dovish position and a likely peak
in interest rates for this cycle. Investors cheered that outlook, and the prevailing view is
again for the economy to have a soft landing. We highlight this mainly to point out how
fickle the financial markets are and how quickly the prevailing view can change.

We do not know if there will be a recession this year, next year, or the year after, but
we remain focused on investing in businesses that will be larger and more profitable
many years from now and have the financial strength to weather a recession whenever
one occurs. Regardless of what happens with the economy or broader equity
markets, we will strive to maximize risk-adjusted returns in the portfolio by investing
in attractively valued businesses with solid growth opportunities, durable competitive
advantages, scalable business models, and exceptional management teams.

Thank you for your continued support.

Literature

BUFMX Documents	Last Updated
Fact Sheet	3/31/24
Quarterly Commentary	12/31/23
Full Fund Holdings	6/30/23
Prospectus	7/28/23
Statement of Additional Information	7/28/23
Annual Report	3/31/23
Semi-Annual Report	9/30/22
Tax Guide - 2023	1/8/24

General Account Forms	Investor Class	Institutional Class	Both
New Account Application
New Account Application - Entity
Change or Add Account Details
Cost Basis Method Election
Power of Attorney
Individual Retirement Account (IRA) Forms
IRA Account Application
IRA Beneficiary Addition / Change
IRA Required Minimum Distribution (RMD)
IRA / Qualified Plan Distribution Request
IRA Transfer
Coverdell Education Savings Accounts (ESA) Forms
Coverdell ESA Application
Coverdell ESA Distribution Request
Coverdell ESA Transfer
Retirement Information
Retirement Savings Options for Individuals



Fundamental Approach

We get to know the companies we invest in and learn how they run their business.



Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.



Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.



Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

Morningstar Rating™

The Morningstar Rating™ 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 Morningstar Rating does not include any adjustment for sales loads. 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 Rating™ 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 Rating™ 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 Mid Cap Fund (BUFMX) received 3 stars among 520 for the 3-year, 4 stars among 489 for the 5-year, and 3 stars among 393 Mid-Cap Growth funds for the 10-year period ending 3/31/24. Other share classes may have different performance characteristics.

Small Cap Fund

by unclesloft | Apr 14, 1998 | Domestic Equity Funds, Domestic Equity Group, Funds, Small Cap, Small Cap - single

Small Cap Fund

Quick Facts

	Investor	Institutional
Ticker:	BUFSX	BUISX
Daily Pricing:
As of 4/24/2024
NAV:	$13.83	$13.93
$ Change:	$-0.06	$-0.06
% Change:	-0.43%	-0.43%
YTD:	-2.05%	-2.04%
Inception Date:	4/14/1998	7/1/2019
Expense Ratio:	0.99%	0.87%
Total Net Assets:	$705.85 Million (3/31/24)
Morningstar Category:	Small Cap Growth
Benchmark Index:	Russell 2000 Growth
Related Material: Fund Fact Sheet Q1 2024 PM Commentary Q4 2023 Portfolio Manager Q&A

FINDING PREMIER GROWTH COMPANIES

Portfolio Manager Bob Male discusses the foundation for the Buffalo Small Cap Fund investment strategy – finding companies that are rapidly growing and can benefit from long term trends.

An actively-managed portfolio of smaller-capitalization, rapidly-growing companies that can benefit from positive, long-term trends remains an excellent way to exploit an inefficient market.

Bob Male, Portfolio Manager

Listen to the Portfolio Managers discuss their Investment Philosophy

Morningstar Rating

Overall Morningstar Rating™ of BUFSX based on risk-adjusted returns among 552 Small Growth funds as of 3/31/24.

Investment Style

Fund Objective & Investment Philosophy

The investment objective of the Buffalo Small Cap Fund is long-term growth of capital. The Small Cap Fund normally invests at least 80% of its net assets in equity securities, consisting of common stocks, preferred stocks, convertible preferred stocks, warrants and rights of small capitalization (“small-cap”) companies. The Small Cap Fund defines small-cap companies as those that, at the time of purchase, have market capitalizations within the range of the Russell 2000 Growth Index.

The Fund managers seek to identify companies for the Fund’s portfolio that are expected to experience growth based on the identification of long-term, measurable secular trends, and which, as a result, the managers believe may have potential revenue growth in excess of the gross domestic product growth rate. Companies are screened using in-depth, in-house research to identify those which the managers believe have attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages.

Recent Recognition

Kiplinger Top-Performing Mutual Fund (3 Years) – January 24, 2022
Kiplinger Top-Performing Mutual Fund (3 Years, 20 Years) – November 18, 2021
Kiplinger Top-Performing Mutual Fund (20 Years) – October 20, 2021
Kiplinger Top-Performing Mutual Fund (20 Years) – September 21, 2021
Kiplinger Top-Performing Mutual Fund (20 Years) – August 18, 2021
Kiplinger Top-Performing Mutual Fund (3 Years, 5 Years, 10 Years, 20 Years) – July 28, 2021
Kiplinger Top-Performing Mutual Fund (3 Years, 5 Years, 20 Years) – June 17, 2021
Kiplinger Top-Performing Mutual Fund (3 Years, 20 Years) – May 13, 2021
Kiplinger Top-Performing Mutual Fund (3 Years, 20 Years) – April 22, 2021
Kiplinger Top-Performing Mutual Fund (1 Year, 20 Years) – March 23, 2021
Investor’s Business Daily 2021 Best Mutual Funds Award Winner – March 22, 2021
Kiplinger Top-Performing Mutual Fund (1 Year, 20 Years) – February 23, 2021
Kiplinger Top-Performing Mutual Fund (1 Year, 20 Years) – January 19, 2021

BARRON'S

“Profile of Small Cap PM Bob Male”

September 29, 2021

KANSAS CITY BUSINESS JOURNAL

“What’s Driving Buffalo Small Cap Fund’s Huge Growth?”

May 20, 2021

BARRON'S

Barron’s Live “What to Watch in the Markets”

April 19, 2021

FINANCIAL ADVISOR MAGAZINE

“This Small-Cap Fund Is Performing Big”

March 9, 2021

Performance (%)

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO SMALL CAP FUND - Investor	4.32	4.32	3.88	-8.76	9.22	8.34	12.35	8.59	11.12
BUFFALO SMALL CAP FUND - Institutional	4.36	4.36	4.07	-8.63	9.37	8.49	12.51	8.75	11.29
Russell 2000 Growth Index	7.58	7.58	20.35	-2.68	7.38	7.89	13.39	8.38	6.36
Lipper Small Cap Growth Fund Index	7.75	7.75	19.70	-0.20	9.47	9.40	13.96	8.62	7.53

As of 3/31/24	3 MO	YTD	1 YR	3 YR	5 YR	10 YR	15 YR	20 YR	Since Inception
BUFFALO SMALL CAP FUND - Investor	4.32	4.32	3.88	-8.76	9.22	8.34	12.35	8.59	11.12
BUFFALO SMALL CAP FUND - Institutional	4.36	4.36	4.07	-8.63	9.37	8.49	12.51	8.75	11.29
Russell 2000 Growth Index	7.58	7.58	20.35	-2.68	7.38	7.89	13.39	8.38	6.36
Lipper Small Cap Growth Fund Index	7.75	7.75	19.70	-0.20	9.47	9.40	13.96	8.62	7.53

Year	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
BUFFALO SMALL CAP FUND - Investor	44.15	-6.55	-4.46	6.22	27.07	-5.78	40.97	66.36	4.85	-30.01
BUFFALO SMALL CAP FUND - Institutional	44.36	-6.41	-4.32	6.37	27.26	-5.64	41.17	66.60	4.97	-29.88
Russell 2000 Growth Index	43.30	5.60	-1.38	11.32	22.17	-9.31	28.48	34.63	2.83	-26.36
Morningstar U.S. Small Growth Index	41.86	2.46	-0.18	9.61	23.77	-5.67	27.60	43.52	-1.00	-33.31

3 Year Risk Metrics

BUFSX vs Russell 2000 Growth Index (As of 3/31/24)
Upside Capture	86.05
Downside Capture	106.31
Alpha	-5.97
Beta	1.02
Sharpe Ratio	-0.49

Hypothetical Growth of $10,000

Portfolio

Portfolio Characteristics

(As of 3/31/24)
# of Holdings	72
Median Market Cap	$3.24 B
Weighted Average Market Cap	$4.50 B
3-Yr Annualized Turnover Ratio	43.99%
% of Holdings with Free Cash Flow	70.83%
Active Share	91.41%

Top 10 Holdings

Name of Holding	Ticker	Sector	% of Net Assets
DoubleVerify Holdings, Inc.	DV	Information Technology	2.86
Summit Materials, Inc. Class A	SUM	Materials	2.54
PGT Innovations, Inc.	PGTI	Industrials	2.50
Hamilton Lane Incorporated Class A	HLNE	Financials	2.46
Endava Plc Sponsored ADR Class A	DAVA	Information Technology	2.27
ICF International, Inc.	ICFI	Industrials	2.24
MGP Ingredients, Inc.	MGPI	Consumer Staples	2.21
AZEK Co., Inc. Class A	AZEK	Industrials	2.11
Calix, Inc.	CALX	Information Technology	2.05
Shift4 Payments, Inc. Class A	FOUR	Financials	2.04
TOP 10 HOLDINGS TOTAL			23.26%

As of 12/31/23. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

View Full Holdings

Sector Weighting

As of 3/31/24. Security weightings are subject to change and are not recommendations to buy or sell any securities. Sector Allocation may not equal 100% due to rounding.

Market Capitalization

As of 3/31/24. Market Cap percentages may not equal 100% due to rounding.

Management

Bob Male, CFA
Portfolio Manager

37 Years of Experience

View full bio

Craig Richard, CFA
Portfolio Manager

21 Years of Experience

View full bio

Commentary

Q4 2023 Commentary

PERFORMANCE COMMENTARY

(As of 12/31/23) —

The Buffalo Small Cap Fund produced a return of 7.79% for the quarter, a result
that trailed the Russell 2000 Growth Index return of 12.75%. Weak stock selection
within the Health Care sector which represented 20.4% of the index weighting was
responsible for most of the relative underperformance. Helping offset a portion
of underperformance was positive stock selection within both the Financials and
Materials sectors.

Top Contributors
The fund’s largest contributors to performance for the quarter was PGT Innovations
and DoubleVerify. PGT Innovations is a leading manufacturer of residential impact
resistant windows and doors. The company entered into an agreement to be acquired
by Masonite International Corp causing the shares to move higher on the proposed
announced acquisition. DoubleVerify provides digital advertisers with measurement
and analytics services to ensure advertisers reach their intended audience in the right
setting. The company reported strong earnings with results ahead of expectations led
by growth in brand suitability solutions (ensuring advertisements appear alongside
non-controversial content) while also beginning to gain more traction in international
markets. We are confident in the long-term fundamentals of the company and the stock
remains one of the fund’s largest investment holdings.

Top Detractors
The fund’s largest detractors from performance in the quarter were Establishment
Labs and Chart Industries. Establishment Labs is a medical device company focused
on bringing safer breast implants to the breast augmentation and reconstruction
marketplaces. A softer consumer spending outlook in many of the company’s
international geographies caused a pause in growth and resulted in disappointing results
for the second half of 2023. We remain optimistic on the long-term growth opportunity
for the company as it is on the cusp of entering both the U.S. and Chinese markets which
should effectively double its current market opportunity. Meanwhile, Chart Industries,
which manufactures highly engineered equipment for the industrial gas, energy, and biomedical industries reported third quarter results that missed expectations due to
supply chain issues and customer delays. However, orders and backlog were strong in
the quarter and guidance for 2024 was positive. Additionally, assets sales announced
in the quarter came in ahead of schedule. We remain positive about the long-term
fundamentals of the company and believe the stock is attractively valued at current levels.

OUTLOOK

(As of 12/31/23) —

While the employment environment remains strong, excess household savings
accumulated during the pandemic are being exhausted. In the fourth quarter, the
Fed signaled a more dovish position and paused its aggressive interest rate hikes
as inflation began to moderate and approached its 2% target. As a result, small cap
stocks experienced a sharp rebound in the fourth quarter with the Russell 2000
Growth Index advancing 12.75% and the Russell Microcap Index surging 16.06% with
lower market cap stocks and non-earners as the biggest drivers of performance.
As the economy slows and the Fed moves from a position of raising interest rates to
lowering rates and halts quantitative tightening, we are becoming increasingly more
positive on the outlook for small cap stocks. Valuation levels of small caps relative
to large caps remain at historically attractive levels. Additionally, the performance
gap between small cap stocks and large cap stocks remains wide relative to
historical levels, and we believe this performance gap will compress. This creates an
environment ripe for investment in small cap companies that demonstrate durable
growth. We continue to seek high quality companies that meet our investment
criteria including strong management teams, consistent free cash flow generation,
scalable business models, and sustainable competitive advantages. We believe that
such companies are well-positioned to weather economic headwinds and deliver
sustainable returns with manageable levels of risk. During the fourth quarter we added
three new investments to the fund, exited seven positions, and ended the year with 72
holdings. Thank you for your continued trust and interest in the fund.

Literature

Buffalo Small Cap Fund Documents	Last Updated
Fact Sheet	3/31/24
Quarterly Commentary	12/31/23
Full Fund Holdings	6/30/23
Prospectus	7/28/23
Statement of Additional Information	7/28/23
Annual Report	3/31/23
Semi-Annual Report	9/30/22
Tax Guide - 2023	1/8/24

General Account Forms	Investor Class	Institutional Class	Both
New Account Application
New Account Application - Entity
Change or Add Account Details
Cost Basis Method Election
Power of Attorney
Individual Retirement Account (IRA) Forms
IRA Account Application
IRA Beneficiary Addition / Change
IRA Required Minimum Distribution (RMD)
IRA / Qualified Plan Distribution Request
IRA Transfer
Coverdell Education Savings Accounts (ESA) Forms
Coverdell ESA Application
Coverdell ESA Distribution Request
Coverdell ESA Transfer
Retirement Information
Retirement Savings Options for Individuals



Fundamental Approach

We get to know the companies we invest in and learn how they run their business.



Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.



Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.



Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

The Buffalo Small Cap Fund (BUFSX) received 2 stars among 552 for the 3-year, 3 stars among 520 for the 5-year, and 2 stars among 400 Small Growth funds for the 10-year period ending 3/31/24, based on risk-adjusted returns.

Diversification does not assure a profit, nor does it protect against a loss in a declining market.

Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Both actively and passively managed mutual funds generally have daily liquidity. There are no guarantees regarding the performance of actively and passively managed mutual funds. Actively managed mutual funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.