Small Cap Fund

Small Cap Fund

Quick Facts
InvestorInstitutional
Ticker:BUFSXBUISX
Inception Date:4/14/19987/1/2019
Expense Ratio:1.01%0.86%
Total Net Assets:$527.80 Million  (7/1/19)
Category:Small Cap Growth
Benchmark:Morningstar U.S. Small Growth
Related Material:
   Fund Fact Sheet Q2 2019
   PM Commentary Q2 2019
   Summary Prospectus

For a full transcript of this video, click here.

Finding Premier Growth Companies

Portfolio Managers Jamie Cuellar and Bob Male discuss how their approach to finding companies, that are rapidly growing and benefit from long term trends, is the foundation for the Buffalo Small Cap Fund investment strategy.

“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 583 Small Growth funds as of 6/30/19.

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 — companies, at the time of purchase, with 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.

|

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

Featured Articles & Reports

Performance (%)

As of 6/30/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
(4/14/98)
BUFFALO SMALL CAP FUND - Investor6.4429.685.3019.669.0012.538.8511.77
BUFFALO SMALL CAP FUND - Institutional6.4829.775.4619.849.1712.709.0111.93
  Morningstar U.S. Small Growth Index2.4722.383.4715.789.5014.849.096.23
  Russell 2000 Growth Index2.7520.36-0.4914.698.6314.418.906.18
  Lipper Small Cap Growth Fund Index5.1825.096.9517.6610.3314.698.717.24
  Morningstar Small Growth Category4.1221.823.2216.129.1814.478.977.44
As of 6/30/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
(4/14/98)
BUFFALO SMALL CAP FUND - Investor6.4429.685.3019.669.0012.538.8511.77
BUFFALO SMALL CAP FUND - Institutional6.4829.775.4619.849.1712.709.0111.93
  Morningstar U.S. Small Growth Index2.4722.383.4715.789.5014.849.096.23
  Russell 2000 Growth Index2.7520.36-0.4914.698.6314.418.906.18
  Lipper Small Cap Growth Fund Index5.1825.096.9517.6610.3314.698.717.24
  Morningstar Small Growth Category4.1221.823.2216.129.1814.478.977.44

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.

As of July 27, 2018 the Morningstar U.S. Small Growth Index has replaced the Russell 2000 Growth Index as the Fund’s primary benchmark. The Advisor believes that the new index is more appropriate given the Fund’s holdings.

3 Year Risk Metrics
BUFSX vs Morningstar U.S. Small Growth Index (As of 6/30/19)
Upside Capture119.37
Downside Capture106.18
Alpha1.95
Beta1.11
Sharpe Ratio0.93
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 6/30/19) 
 
# of Holdings78
Median Market Cap$2.26 B
Weighted Average Market Cap$2.99 B
3-Yr Annualized Turnover Ratio47.61%
% of Holdings with Free Cash Flow63.64%
% of Holdings with No Net Debt50.65%
Active Share89.84%
Top 10 Holdings
Name of HoldingTickerSector% of Net
Assets
PaylocityPCTYTechnology2.61%
MimecastMIMETechnology2.27%
BandwidthBANDTechnology2.27%
Kornit DigitalKRNTIndustrials2.22%
Lumentum HoldingsLITETechnology2.14%
PROS HoldingsPROTechnology2.13%
Monolithic Power SystemsMPWRTechnology2.11%
Bio TechneTECHHealth Care2.10%
8x8EGHTCommunications2.02%
CatalentCTLTHealth Care1.99%
TOP 10 HOLDINGS TOTAL21.86%
As of 3/31/19. 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 6/30/19. 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 6/30/19. Market Cap percentages may not equal 100% due to rounding.

Management

Jamie Cuellar, CFA
Portfolio Manager

27 Years of Experience

 View full bio

Bob Male, CFA
Portfolio Manager

33 Years of Experience

 View full bio

Alex Hancock, CFA
Portfolio Manager

21 Years of Experience

 View full bio

Commentary

CAPITAL MARKET OVERVIEW

(As of 3/31/19) — Equity markets rebounded sharply to start 2019. The widely followed S&P 500 Index returned 13.65% in the 1st quarter, its best quarterly performance in 10 years. The market advance can be largely attributed to the Federal Reserve’s decision to put quarterly short term interest rate hikes on hold and end its balance sheet runoff. Additionally, prospects for a trade agreement between the U.S. and China appeared to improve, and the U.S. Government reopened after its longest shut down in history.

The Russell 3000 Index advanced 14.04% in the 1st quarter. Growth outperformed value, with the Russell 3000 Growth Index returning 16.18% compared to a return of 11.93% for the Russell 3000 Value. By size, midcaps led the way this quarter with the Russell Midcap Index returning 16.54%, followed by a return of 14.58% for the small cap Russell 2000 Index and 14.00% for the large cap Russell 1000 Index. Technology, Real Estate, and Industrials were the best performing sectors, while Health Care and Financials were relative underperformers.

Small cap stocks rebounded from the deep selloff in the 4th quarter of 2018 as recession fears lessened over the past three months and investors scooped up oversold stocks. Energy, Technology, and Real Estate led the move higher as oil prices rose and 4th quarter earnings and 2019 outlooks for most technology companies were better than expected. All sectors of the small cap index rose during the period, though Financials and Industrials were notable laggards as were the more defensive sectors like Consumer Staples, Telecom Services, and Utilities.

PERFORMANCE COMMENTARY

(As of 3/31/19) — The Buffalo Small Cap Fund (the “Fund”) gained 21.83% during the quarter, comparing favorably to the Morningstar U.S. Small Cap Growth Index’s (the “Index”) gain of 19.43%. Technology and Telecom led returns, providing about 345 basis points of relative outperformance while Health Care and Consumer Staples were also meaningful contributors. Real Estate was the largest detractor from performance, as the Fund’s investments in the sector failed to keep pace with the Index’s almost 24% gain for the sector. Overall, stock selection drove the Fund’s outperformance for the period, while the sector allocation impact was a detractor from relative performance.

TOP CONTRIBUTORS
Paylocity was the largest contributor to performance, as the stock enjoyed a 50% gain in the quarter. The company has proven to be an extremely consistent provider of outsourced payroll and human capital software to small and medium-sized businesses, growing revenues between 23% and 28% for the past 9 quarters. The stock also got a boost during the quarter as a mid-market competitor, Ultimate Software, received an offer to be taken private.

The next largest positive contributor was Bandwidth, Inc. The company provides telecom services and software to enterprises, many of whom are involved in high growth areas such as voice assistants and unified communications as a service (UCaaS). After coming public with a fairly small market cap in late 2017, Bandwidth continued to attract more attention from Wall Street as it grows in size and is reminiscent of the success of peer companies, such as Twilio.

TOP DETRACTORS
Inogen was the largest detractor from performance during the period. However, as a newer investment in the Fund, its smaller weighting limited the negative impact. We initiated a position last quarter after the stock corrected to a more attractive valuation, by our analysis. On their 4th quarter earnings call, Inogen admitted to seeing some weakness from a home medical equipment customer, which further reduced investor sentiment for the company’s shares. We continue to own this stock as we believe the company is an industry leader in portable oxygen concentrators, and increased investments made last year in their direct-to-consumer sales force will accelerate growth and improve investor enthusiasm for the stock.

OUTLOOK

(As of 3/31/19) — To date, we are pleased with the start of the year. While large gains in a short period of time can cause investor angst, we note that small caps would still require another 12% increase to reclaim the previous high watermark made in early September 2018. Meanwhile, market fundamentals remain mostly positive. U.S. investors appear to have resigned themselves to slower economic growth expectations. However, we feel that the economy could accelerate if the Trump administration concludes the trade war with China, which seems likely to happen this summer. In Europe certain regions are showing signs of slowing, however most U.S. companies are not yet claiming that the continent has taken a leg down in economic activity. This is clearly an area to watch.

In the U.S., the Federal Reserve has moved to a more neutral position regarding monetary policy and is doing a much better job communicating its intentions relative to last year. Growth investing remains in favor compared to value investing, as slower economic activity means investors should continue to place a premium on faster growing companies that require less of an economic tailwind to excel. Furthermore, the market has historically performed well in the 3rd year of a presidential cycle.

As always, we remain steadfast to our process of identifying investment opportunities in smaller, faster-growing companies with the potential to benefit from long term trends, which are trading at attractive valuations, by our analysis. We appreciate your continued support and confidence in our investment capabilities over the long term.

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 4 stars among 583 for the 3-year, 3 stars among 515 for the 5-year, and 1 stars among 393 Small Growth funds for the 10-year period ending 6/30/19.

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. ©2019 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.

How a Small-Cap Fund Manager is Handling a Ruthless Period in the Stock Market

How a Small-Cap Fund Manager is Handling a Ruthless Period in the Stock Market

Media Coverage

Overview

Buffalo Small Cap Fund co-portfolio manager Jamie Cuellar, CFA, was recently interviewed by Barron’s about the recent market downturn for small-company stocks. In the article, he describes the team’s approach to picking premier growth stocks based on in-depth analysis of company fundamentals and highlights the BUFSX team’s long-term investment philosophy that focuses less on short-term market movements.

If anything, you’ve just got some better valuations for ideas you may have missed out on in the first place or something you’re really excited about. ~ Jamie Cuellar, CFA, Co-Portfolio Manager, Buffalo Small Cap Fund

In the interview, Jamie reviewed his career path to the Buffalo Funds and the changes he and his co-managers put in place for the portfolio to help improve the Fund’s investment strategy and valuation discipline.

The article also identifies several small-cap stocks in the BUFSX portfolio which illustrate the Fund’s investment process in action:

  • Twilio – TWLO
  • HealthEquity – HQY
  • PROS Holdings – PRO

CLICK HERE to access the Barron’s article.

Diversification does not assure a profit, nor does it protect against a loss in a declining market. Past performance does not guarantee future results. Earnings growth is not representative of the fund’s future performance.

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice. References to other mutual funds should not to be considered an offer to buy or sell these securities. A complete list of the Fund’s holdings can be found here. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Annualized Performance (%)

(as of 11/16/18)1 YR3 YR5 YR10 YR
Buffalo Small Cap Fund9.6012.755.5014.78
Russell 2000 Price Return Index2.739.736.4812.84
Russell 2000 Total Return Index4.0611.267.9314.41

The Buffalo Small Cap Fund expense ratio is 1.01%. The Barron’s article references Russell 2000 Price Return Index performance as of 11/16/18, instead of the commonly-used Russell 2000 Total Return Index. The price return is the rate of return on an investment portfolio, where the return measure takes into account only the capital appreciation of the portfolio, while the income generated by the assets in the portfolio, in the form of interest and dividends, is ignored. This contrasts with the total return, which does take into account the income generated in the portfolio.

Where the article references the “Buffalo Small Cap has out run the Russell 2000 by an average of two percentage points a year over the past decade,” the percentage difference between the Russell 2000 Price Return Index as of 11/16/18 (the date the article uses as a reference point for returns) was actually 1.68%. However, the 10-year outperformance of the Fund vs the Russell 2000 Price Return Index, averaged out across every day in 2018 up to 11/16/18, is 2.19%.

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 found here; quarter-end performance can be found here. Performance is annualized for periods greater than 1 year.

BUFSX Portfolio Managers – Jamie Cuellar, Alex Hancock, Bob Male

HIGHLIGHT

Jamie Cuellar, BUFSX co-portfolio manager, discusses his team’s trend-spotting and portfolio-building strategies that have helped the Buffalo Small Cap Fund weather the recent market volatility.

MEDIA CONTACT

Joel Crampton
Director of Marketing
(913) 647-9881
Email

Featured Articles


Focusing on Midcaps with Secular Growth Tailwinds

Josh West and Chris Carter, Buffalo Mid Cap co-portfolio managers, discuss a variety of issues affecting their investment strategy, including the current interest rate environment, globalization, the growth of ESG investing, and Millennials.

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.

Actively Managing a Diversified Portfolio of Small-Cap Companies

Actively Managing a Diversified Portfolio of Small-Cap Companies

Media Coverage

Overview

Buffalo Funds Small Cap co-portfolio manager Jamie Cuellar, CFA, was recently interviewed by The Wall Street Transcript, where he discussed how his team analyzes small-cap company valuations and why they view the asset class as very inefficient. He also provides several examples of companies within his portfolio that highlight his team’s investment strategy at work:

  • Twilio (NYSE:TWLO)
  • Mimecast (NASDAQ:MIME)
  • CoreCivic (NYSE:CXW)
  • MasTec (NYSE:MTZ)

Jamie also gave his outlook on small-cap companies in the United States in the coming year, including the impact of the current economy, the recent tax cuts, and the repatriation of corporate cash holdings back to the United States.

We believe that by investing in an actively managed and diversified portfolio of companies that benefit from long-term industrial, technological or general market trends, and trading at attractive valuations, are going to lead to superior growth of capital over time. ~ Jamie Cuellar, CFA, Co-Portfolio Manager, Buffalo Small Cap Fund

To access The Wall Street Transcript article click here.

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 value. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained here. Performance data current to the most recent quarter-end may be obtained here.

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.

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

References to other mutual funds should not to be considered an offer to buy or sell these securities.

A complete list of the Fund’s holdings can be found here. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Earnings growth is not representative of the fund’s future performance.

AUM stands for Assets Under Management. API stands for Application Programming Interface. ARPU stands for Average Revenue Per User. SMB stands for Small/Medium-size Business. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, Amortization. Cash flow is the total amount of money being transferred into and out of a business. REIT stands for Real Estate Investment Trust. Dividend yield is a dividend expressed as a percentage of a current share price. GDP stands for Gross Domestic Product. M&A stands for Mergers & Acquisitions. P&L stands for Profit & Loss. The Russell 2000 is an unmanaged index that consists of the smallest 2,000 securities in the Russell 3000 Index, representing approximately 10% of the Russell 3000 total market capitalization. It is not possible to invest directly in an index.

HIGHLIGHT

Jamie Cuellar, co-portfolio manager, discusses how his team analyzes small-cap company valuations and why they view the asset class as very inefficient, while providing several examples of companies within his portfolio that highlight his team’s investment strategy at work.

MEDIA CONTACT

Joel Crampton
Director of Marketing
(913) 647-9881
Email

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

BUFSX – A Small Cap Fund with Potential Positive Momentum

BUFSX – A Small Cap Fund with Potential Positive Momentum

Fund Communications

Home > Insights & News > Fund Communications > BUFSX – A Small Cap Fund with Potential Positive Momentum

Small Cap Fund

Total Assets $527.80 Million  (7/1/19)
Expense Ratio 1.01% / 0.86%
Benchmark Morningstar U.S. Small Growth

Portfolio Managers

A Small Cap Fund With Potential Positive Momentum

The Buffalo Small Cap Fund has a long history of investing in companies that can benefit from long-term trends while maintaining valuation discipline.

Long-Term Growth Strategy – The Fund seeks high-quality companies poised for sustainable growth with strong, competitive positions and reasonable valuations.

Idea generation has been a key focus for the Fund over the past 2 years, which has broadened the portfolio, reduced single stock risk, and driven recent performance.

We believe a greater domestic focus by most small cap companies aligns well with the focus of the new administration and makes small cap investing very timely.

Top 5 BUFSX Portfolio Holdings*

  • Nevro Corp.
  • Dave & Busters Inc
  • Cyber-Ark Software
  • CoStar Group
  • Interxion Holdings

Open for Business – it is often difficult to find a Small Cap Growth fund open to new investors due to the category’s limited capacity constraints. BUFSX was closed to new investors but is now OPEN… with significant capacity to grow assets.

Performance Matters – the Buffalo Small Cap 1-year total return is beating the Russell 2000 Growth Index by 19%.

As of 6/30/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
(4/14/98)
BUFFALO SMALL CAP FUND - Investor6.4429.685.3019.669.0012.538.8511.77
BUFFALO SMALL CAP FUND - Institutional6.4829.775.4619.849.1712.709.0111.93
  Morningstar U.S. Small Growth Index2.4722.383.4715.789.5014.849.096.23
  Russell 2000 Growth Index2.7520.36-0.4914.698.6314.418.906.18
  Lipper Small Cap Growth Fund Index5.1825.096.9517.6610.3314.698.717.24
  Morningstar Small Growth Category4.1221.823.2216.129.1814.478.977.44

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 standardized performance information 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.

Battle Tested – the Fund was launched in April 1998 and has a 19-year track record, weathering all types of markets.

Benefits of Active in Small Cap – we believe small cap stocks are often inefficiently-priced given they receive less attention from Wall Street firms. Because of this, we believe active management is the right choice for the small cap asset class over the long-term.

We seek to generate superior long-term performance with a strategy that offers a broad, diversified portfolio, which may make it less volatile.

Experienced Management – the Fund’s managers have an average of 25 years of professional investment experience.

*As of 12/31/16. Percent of net assets: Nevro 2.46%, Dave & Buster’s 2.26%, CyberArk Software 2.25%, CoStar Group 2.24%, InterXion Holding 2.23%. Holdings are subject to change without notice and are not recommendations to buy or sell any securities.

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

The Russell 2000 Growth Index is an unmanaged index that measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Small Cap Growth Fund Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Small-Cap classification. It is not possible to invest directly in an index.

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