Small Cap Fund

Small Cap Fund

Quick Facts
InvestorInstitutional
Ticker:BUFSXBUISX
Inception Date:4/14/19987/1/2019
Expense Ratio:1.02%0.87%
Total Net Assets:$1.13 Billion  (3/31/21)
Category:Small Cap Growth
Benchmark:Morningstar U.S. Small Growth
Related Material:
   Fund Fact Sheet Q1 2021
   PM Commentary Q1 2021
   Summary Prospectus
For a full transcript of this video, click here.
Finding Premier Growth Companies

Portfolio Managers Jamie Cuellar and Bob Male discuss the foundation for the Buffalo Small Cap Fund investment strategy — finding companies that are rapidly growing and can benefit from long term trends.

“I think what really differentiates us is our process, where we combine the top-down work of looking at trends provided with the bottoms-up fundamental research we do on each company.”
  ~ Jamie Cuellar, CFA

Morningstar Rating

       

Overall Morningstar Rating™ of BUFSX based on risk-adjusted returns among 582 Small Growth funds as of 5/31/21.

Investment Style
Fund Objective & Investment Strategy

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

The Fund managers seek to identify companies for the Small 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 attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages.

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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, Co-Portfolio Manager

Recent Recognition
ESG Integration

Management of the Buffalo Small Cap Fund integrates ESG (Environmental, Social, and Governance) related factors into the investment decision making process. ESG-related factors material to the risk and return of investments are explicitly considered, alongside traditional financial factors, when making investment decisions.

Learn More About ESG Integration

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Performance (%)

As of 5/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
(4/14/98)
BUFFALO SMALL CAP FUND - Investor-2.958.9366.4728.7927.4116.1812.5312.4814.03
BUFFALO SMALL CAP FUND - Institutional-2.909.0066.7228.9827.6016.3612.7012.6414.20
  Morningstar U.S. Small Growth Index-5.98-1.5541.1315.8418.0513.0010.698.557.48
  Lipper Small Cap Growth Fund Index0.466.5051.1918.2519.9913.4210.538.868.59
  Morningstar Small Growth Category-0.258.9456.5818.4819.8613.3710.879.908.87
As of 3/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
(4/14/98)
BUFFALO SMALL CAP FUND - Investor6.296.29120.7831.9127.4516.0111.7313.1714.02
BUFFALO SMALL CAP FUND - Institutional6.326.32121.1432.1027.6316.1811.9013.3414.19
  Morningstar U.S. Small Growth Index-0.42-0.4281.9218.4819.4313.3610.259.477.59
  Lipper Small Cap Growth Fund Index4.834.8389.9620.1720.4913.479.979.488.58
  Morningstar Small Growth Category6.936.9395.9720.4920.4613.4310.3310.548.86
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
BUFSX vs Morningstar U.S. Small Growth Index (As of 3/31/21)
Upside Capture151.93
Downside Capture99.16
Alpha9.89
Beta1.11
Sharpe Ratio1.12
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.

Portfolio

Portfolio Characteristics
(As of 3/31/21) 
 
# of Holdings80
Median Market Cap$3.11 B
Weighted Average Market Cap$3.51 B
3-Yr Annualized Turnover Ratio57.67%
% of Holdings with Free Cash Flow60.76%
Active Share87.71%
Top 10 Holdings
Name of HoldingTickerSector% of Net
Assets
NateraNTRAHealth Care2.98%
CareDxCDNAHealth Care2.38%
Kornit DigitalKRNTIndustrials1.93%
Penn National GamingPENNConsumer Discretionary1.90%
BandwidthBANDTechnology1.85%
UpworkUPWKIndustrials1.84%
Halozyme TherapeuticsHALOHealth Care1.84%
LovesacLOVEConsumer Discretionary1.83%
Air Transport Services GroupATSGIndustrials1.74%
Guess?GESConsumer Discretionary1.73%
TOP 10 HOLDINGS TOTAL20.02%
As of 12/31/20. 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.
Sector Weighting
As of 3/31/21. 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 3/31/21. Market Cap percentages may not equal 100% due to rounding.

Management

Jamie Cuellar, CFA
Portfolio Manager

29 Years of Experience

 View full bio

Bob Male, CFA
Portfolio Manager

35 Years of Experience

 View full bio

Commentary

CAPITAL MARKET OVERVIEW

(As of 3/31/21) — Equity markets continued to move higher in the 1st quarter of 2021, with the S&P 500 Index returning 6.17%. The period was marked by outperformance of value stocks as the market rotation that began in the last quarter of 2020 became even more pronounced. The vaccination rollout, combined with prospects for more fiscal stimulus, bolstered optimism towards companies that could benefit from the economy reopening. Additionally, an 80+ basis point move higher in the 10-Year U.S. Treasury yield during the quarter left sentiment towards growth stocks relatively more subdued.

The broad market Russell 3000 Index advanced 6.35% in the quarter. Value outperformed growth for the second straight quarter, with the Russell 3000 Value Index up 11.89% compared to the Russell 3000 Growth Index returning 1.19%. Relative performance was inversely-correlated with market cap size in the quarter, with the Russell Micro Cap Index up 23.89%, the small cap Russell 2000 Index up 12.70%, the Russell Midcap Index up 8.14%, and the large cap Russell 1000 Index returning 5.91%. The more cyclically-sensitive Energy, Financial, and Industrial sectors performed best in the quarter. Consumer Staples, Information Technology, and Utilities were the bottom three performing sectors. All sectors produced positive returns.

PERFORMANCE COMMENTARY

(As of 3/31/21) — It was a tough period for small cap growth as the rotation into value continued across the market cap spectrum. The Russell 2000 Index experienced the best returns from the more cyclical Energy, Industrials, Materials, and Consumer Discretionary sectors, with negative returns posted in traditional growth havens Health Care and Information Technology.

Despite the rotation into value, the Buffalo Small Cap Fund (BUFSX) gained 6.29% during the quarter, outperforming the Morningstar U.S. Small Growth Index’s decline of 0.42%. Stock selection in Health Care drove the majority of the outperformance due to better relative performance in biotechnology, pharmaceuticals, and life sciences tools. The success in Health Care was fairly broad based as four of the Fund’s top 10 contributors were Health Care positions. Technology, Industrials, and Consumer Discretionary were also solid relative contributors and offset slight underperformance in Financials. As usual, stock selection drove outperformance with minimal sector allocation impact. Mergers and acquisitions were also a source of upside as the Fund held shares of Genmark Diagnostics, which received a buyout offer from Roche during the quarter.

TOP CONTRIBUTORS

Cambium Networks was the largest relative performer during the quarter. The maker of wireless access solutions for communications networks continued to show solid growth, as the spending environment for their solutions remained robust due to recent spectrum auctions and new product introductions by the company. We continue to be excited about the outlook for communications equipment spending, especially in fixed wireless access, due to greatly improved technology and a superior cost profile especially for rural customers where fiber is less economical.

Ligand Pharmaceuticals was also a large contributor during the quarter. This producer of drug delivery and discovery platforms for biotech and pharma customers has been a multi-year holding for the Fund, and we had recently been perplexed by the stock’s rising short interest and poor performance despite continued solid execution and increasing estimates. As it turns out, Ligand was one of the stocks targeted by troubled hedge fund, Melvin Capital, in addition to other stocks like GameStop, iRobot, and Bed Bath & Beyond. As GameStop shares went higher as a result of a large short squeeze and word of Melvin’s other short positions got out, Ligand also rose on a short squeeze and settled at around $150 a share from its prior levels in the $80-100 range. We continue to believe the company’s OmniAb antibody discovery platform is not being valued correctly by the market and should see excellent growth over the next few years.

TOP DETRACTORS

Array Technologies was the largest underperformer this quarter. The producer of solar tracker systems that optimize the efficiency of solar panels for utilities modulated its expectations for international markets, largely due to a lingering impact from COVID, as entry into some markets remains difficult. We continue to believe there is a sizable opportunity for the company to further penetrate international markets with their differentiated product in a high growth industry and therefore remain positive on the shares.

OUTLOOK

(As of 3/31/21) — The outlook for the Fund remains generally positive, as robust monetary and fiscal stimulus provides an inviting backdrop for investors. While a quick rise in interest rates has given some pause on growth stocks and facilitated a catchup trade for value stocks, we do not believe the prospect of a low single digit yield on a 10-year government bond is going to provide a suitable enough return for investors to begin to abandon equities. 2021 should continue to benefit from a recovering economy with above average gross domestic product (GDP) growth, but as we return to pre-COVID levels, we believe economic growth likely gets stymied, as higher federal debt levels and higher taxes eventually slow the economy, which may again command premium multiples on companies that can grow faster than the market. While there is also chatter about increases in inflation ruining the party, we believe we are still a ways away from seeing enough inflation sustaining at a level that gets the Federal Reserve concerned enough to take action on interest rates. Meanwhile, COVID variants and the durability of responses to vaccinations remain a wildcard, but the rapid dissemination of vaccines by the new administration is definitely a positive for economic recovery and a return to normalcy. Higher tax rates will be required to pay for the additional fiscal stimulus and could take a small bite out of earnings growth, but we do not believe there is enough political capital or will to raise taxes high enough to choke the market.

We continue to believe that we are in the early stages of a small cap outperformance cycle, beginning with the market lows in March 2020, as small caps have historically outperformed coming out of recessionary periods and periods of market dislocation. The past 7 small cap leadership cycles have averaged 6 years in length and have driven significant outperformance relative to large caps, according to data from Jefferies.

We continue to follow our discipline of selling stocks that have become too large in market cap (generally in the $10-12 billion range) and trimming or selling positions where we feel the downside risk greatly exceeds our upside opportunity. Over the past few quarters, we have increased portfolio holdings in cyclical growth companies, a move that helped our relative performance during the market rotation to value and cyclicals. In March, we witnessed an acceleration in the move to value at the expense of growth and are starting to see more compelling valuations in high secular growth companies that had previously become rather expensive. We also are starting to see some attractive valuations in companies that were perceived to be COVID beneficiaries but have recently sold off on fears of tough comparisons over the next few quarters. As usual, we continue to look for ways to optimize the portfolio, and we remain engaged with evaluating new companies. We appreciate your continued support as shareholders.

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

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 Small Cap Fund (BUFSX) received 5 stars among 582 for the 3-year, 5 stars among 506 for the 5-year, and 4 stars among 385 Small Growth funds for the 10-year period ending 5/31/21.

In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average, and the top 10% High. Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated. ©2021 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 Morningstar Style Box™ reveals a fund’s investment strategy by showing its investment style and market capitalization based on the fund’s portfolio holdings.

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.

“Money Life Market Call” with Buffalo Small Cap Fund PM Jamie Cuellar

“Money Life Market Call” with Buffalo Small Cap Fund PM Jamie Cuellar

Media Coverage

“Money Life Market Call” with Buffalo Small Cap Fund PM Jamie Cuellar

Overview

Buffalo Funds Small Cap co-portfolio manager Jamie Cuellar, CFA, recently appeared on the “Money Life with Chuck Jaffe” podcast.

During the call, Jamie goes in-depth on small-cap investing and provides an overview of his investment methodology. He also covers the current state of investing in small-cap technology and healthcare companies. Jamie also provides thoughts on the following companies:

  • ADTRAN (NASDAQ: ADTN)
  • Everi Holdings (NYSE: EVRI)
  • Castle Biosciences (NASDAQ: CSTL)
  • Expedia (NASDAQ: EXPE)
  • Vail Resorts (NYSE: MTN)
  • GoDaddy (NYSE: GDDY)
  • MasTec (NYSE: MTZ)

A lot of times we do see some growth names that get oversold, companies that we like a lot, and it gives us a good opportunity to buy those names at better prices or even buy some of those names that we missed on the way up.
~ Jamie Cuellar, CFA, Co-Portfolio Manager, Buffalo Small Cap Fund

MORE ABOUT JAMIE


Jamie Cuellar, CFA
Portfolio Manager
29 Years of Experience
 View full bio

As of 4/30/211 YR3 YR5 YR10 YRSince Inception
(4/14/98)
20192020
BUFFALO SMALL CAP FUND - Investor96.0233.6928.9016.3614.2540.9766.36
BUFFALO SMALL CAP FUND - Institutional96.4233.8929.0916.5414.4241.1766.60
Morningstar U.S. Small Growth Index63.2519.9019.7913.357.7127.6043.52

Expense ratio for BUFSX and BUISX is 1.02% and 0.87% respectively. Inception date for BUFSX and BUISX is 4/14/98 and 7/1/19 respectively. For Institutional Class performance prior to 7/1/19, performance of the Investor Class shares is used and includes expenses not applicable and lower than those of Investor Class shares. Average annual total return represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate and redemption value may be more or less than original cost. Fund performance current to the most recent month-end may be lower or higher than the performance quoted and can be found here. Standardized quarter-end performance can be obtained here.

Opinions expressed are those of the author or Funds as of 5/14/21 and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. A full listing of the Buffalo Small Cap Fund portfolio holdings can be found here. Past performance does not guarantee future results.

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 3-, 5-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% 3-year rating for 36-59 months of total returns, 60% 5-year rating/40% 3-year rating for 60-119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-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 3-year period actually has the greatest impact because it is included in all 3 rating periods. The Buffalo Small Cap Fund (BUFSX) received 5 stars among 576 for the Overall, 4 stars among 576 for the 3-year, 4 stars among 503 for the 5-year, and 4 stars among 379 Small Growth funds for the 10-year period ending 3/31/21. © 2021 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.

EBITDA stands for earnings before interest, taxes, depreciation and amortization. EBITDA is one indicator of a company’s financial performance and is used as a proxy for a company’s current operating profitability. Cashflow is a measure of the cash produced by the firm in a given period on behalf of equity holders. The true measure of the value of a firm’s equity is considered to be the present value of all free cash flows.

As of 12/31/20 Buffalo Small Cap Fund top 10 equity holdings were Natera 2.98%, CareDx 2.38%, Kornit Digital 1.93%, Penn National Gaming 1.90%, Bandwidth 1.85%, Upwork 1.84%, Halozyme Therapeutics 1.84%, Lovesac 1.83%, Air Transport Services Group 1.74%, Guess? 1.73%. 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.

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Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

Kiplinger: Top-Performing Mutual Funds

Media Coverage

Kiplinger: Top-Performing Mutual Funds

Overview

Kiplinger recognized the Buffalo Small Cap and Early Stage Growth Funds as “Top-Performing Mutual Funds” in their recent fund analysis for the period ending April 30, 2021.

The Buffalo Small Cap Fund (BUFSX) ranked #4 in the Small-Company Stock Funds category for the 20-year annualized return and #10 for 3-year annualized returns, based on Morningstar’s universe of 25,000+ funds. (BUFSX was not ranked in the top 10 for the 1-, 5-, or 10-year time periods)

The Buffalo Early Stage Growth Fund (BUFOX) ranked #8 in the Small-Company Stock Funds category for the 10-year annualized return. (BUFOX was not ranked in the top 10 for the 1-, 3-, 5-, or 20-year time periods)

Management Teams:

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 funds may be lower of higher than the performance quoted. Quarter-end performance can be obtained here and month-end performance can be obtained here.
Small Cap Fund

Small Cap Fund

Total Assets $1.13 Billion  (3/31/21)
Expense Ratio 1.02% / 0.87%
Benchmark Morningstar U.S. Small Growth

Early Stage Growth Fund

Early Stage Growth Fund

Total Assets $131.77 Million  (3/31/21)
Expense Ratio 1.51% / 1.37%
Benchmark Morningstar U.S. Small Growth

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Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

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Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

Barron’s Live “What to Watch in the Markets” Podcast with Buffalo Small Cap Fund PM Jamie Cuellar

Barron’s Live “What to Watch in the Markets” Podcast with Buffalo Small Cap Fund PM Jamie Cuellar

Media Coverage

Barron’s Live “What to Watch in the Markets” Podcast with Buffalo Small Cap Fund PM Jamie Cuellar

Overview

Buffalo Small Cap Fund co-portfolio manager Jamie Cuellar recently appeared on the Barron’s Live “What to Watch in the Markets” podcast.

During the segment, Jamie discusses where we are at in the small cap cycle, including valuation factors, and highlights several macroeconomic trends core to the Buffalo Funds investment philosophy — increasing demand for communications bandwidth and the rise of diagnostic and precision medicine. In the context of the discussion, Jamie also highlights several small cap companies taking advantage of these trends:

  • ADTRAN (NASDAQ: ADTN)
  • Bandwidth (NASDAQ: BAND)
  • Tenable (NASDAQ: TENB)
  • Castle Biosciences (NASDAQ: CSTL)

I think we’re very early in a multi-year cyclical upturn in communication spending, which is going to be great for communications equipment, optical systems and components, wireless equipment, and even communication semiconductors.

~ Jamie Cuellar, Co-Portfolio Manager, Buffalo Small Cap Fund

MORE ABOUT JAMIE


Jamie Cuellar
Portfolio Manager
29 Years of Experience
 View full bio

Opinions expressed are those of the author or Funds as of 4/19/21 and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. A full listing of the Buffalo Small Cap Fund portfolio holdings can be found here. Past performance does not guarantee future results. Earnings growth is not representative of the Fund’s future performance. GDP is Gross Domestic Product. Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability. Free cash flow is a measure of the cash produced by the firm in a given period on behalf of equity holders. The true measure of the value of a firm’s equity is considered to be the present value of all free cash flows. RFP means “request for proposal”. EBITDA means “earnings before interest, taxes, depreciation and amortization”. Fund holdings are subject to change and are not recommendations to buy or sell any securities. Cryptocurrency (notably bitcoin), often referred to as “virtual currency” or “digital currency”, operates as a decentralized peer-to-peer financial exchange and value storage that is used like money. Cryptocurrency operates without control authority or banks and is not backed by any government. Even indirectly, cryptocurrencies may experience very high volatility. Cryptocurrency is not a legal tender. Federal, state or foreign governments may restrict the use and exchange of cryptocurrency and regulation in the U.S. is still developing. Cryptocurrency exchanges may stop operating or shut down due to fraud, technical glitches, hackers, or malware.

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Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

Kiplinger: Top-Performing Mutual Funds

Media Coverage

Kiplinger: Top-Performing Mutual Funds

Overview

Kiplinger recognized the Buffalo Small Cap and Early Stage Growth Funds as “Top-Performing Mutual Funds” in their recent fund analysis for the period ending March 31, 2021.

The Buffalo Small Cap Fund (BUFSX) ranked #5 in the Small-Company Stock Funds category for the 20-year annualized return and #10 for 3-year annualized returns, based on Morningstar’s universe of 25,000+ funds. (BUFSX was not ranked in the top 10 for the 1-, 5-, or 10-year time periods)

The Buffalo Early Stage Growth Fund (BUFOX) ranked #7 in the Small-Company Stock Funds category for the 10-year annualized return. (BUFOX was not ranked in the top 10 for the 1-, 3-, 5-, or 20-year time periods)

Management Teams:

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 funds may be lower of higher than the performance quoted. Quarter-end performance can be obtained here and month-end performance can be obtained here.
Small Cap Fund

Small Cap Fund

Total Assets $1.13 Billion  (3/31/21)
Expense Ratio 1.02% / 0.87%
Benchmark Morningstar U.S. Small Growth

Early Stage Growth Fund

Early Stage Growth Fund

Total Assets $131.77 Million  (3/31/21)
Expense Ratio 1.51% / 1.37%
Benchmark Morningstar U.S. Small Growth

Sign Up for Automatic Updates

Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

Kiplinger: Top-Performing Mutual Funds

Media Coverage

Kiplinger: Top-Performing Mutual Funds

Overview

Kiplinger recognized the Buffalo Small Cap and Early Stage Growth Funds as “Top-Performing Mutual Funds” in their recent fund analysis for the period ending February 28, 2021.

The Buffalo Small Cap Fund (BUFSX) ranked #4 in the Small-Company Stock Funds category for the 20-year annualized return and #7 for 1-year annualized return, based on Morningstar’s universe of 25,000+ funds. (BUFSX was not ranked in the top 10 for the 3-, 5-, or 10-year time periods)

The Buffalo Early Stage Growth Fund (BUFOX) ranked #7 in the Small-Company Stock Funds category for the 10-year annualized return. (BUFOX was not ranked in the top 10 for the 1-, 3-, 5-, or 20-year time periods)

Management Teams:

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 funds may be lower of higher than the performance quoted. Quarter-end performance can be obtained here and month-end performance can be obtained here.
Small Cap Fund

Small Cap Fund

Total Assets $1.13 Billion  (3/31/21)
Expense Ratio 1.02% / 0.87%
Benchmark Morningstar U.S. Small Growth

Early Stage Growth Fund

Early Stage Growth Fund

Total Assets $131.77 Million  (3/31/21)
Expense Ratio 1.51% / 1.37%
Benchmark Morningstar U.S. Small Growth

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