Quick Facts
Investor Institutional
Ticker: BUFOX BUIOX
Daily Pricing:  
As of 7/12/2024  
NAV: $16.11 $16.23
$ Change: $0.17 $0.16
% Change:
1.07% 1.00%
YTD:
4.47% 4.44%
Inception Date: 5/21/2004 7/1/2019
Expense Ratio: 1.50% 1.35%
Total Net Assets: $70.90 Million  (6/30/24)
Morningstar Category: Small Cap Growth
Benchmark Index: Russell 2000 Growth
Related Material:
   Fund Fact Sheet Q1 2024
   PM Commentary Q1 2024
Fund Objective & Investment Process

The investment objective of the Buffalo Early Stage Growth Fund is long-term growth of capital. The Fund invests primarily in equity securities, consisting of common stocks, preferred stocks, convertible securities, warrants and rights, of companies that, at the time of purchase by the Fund, are defined as early stage growth companies. Early stage growth companies are defined by the Fund as companies, at the time of purchase, with market capitalizations below the weighted average of the Russell 2000 Growth Index and are starting to develop a new product or service or have recently developed a new product or service.

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, 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 premier early-stage growth companies which generally demonstrate:

  • Strong management teams
  • Little or no debt
  • Potential for increasing free cash flow
  • Scalable business models with a competitive advantage
  • Potential for increasing margins
  • Attractive risk/reward given the market framework
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We believe investing in an actively-managed portfolio of premier, early-stage, growth companies could lead to growth of capital over time. We look for companies that could benefit from long-term industrial, technological, or general market trends, and are trading at what we view as attractive valuations.

Craig Richard, Portfolio Manager

Morningstar Rating

       

Overall Morningstar Rating™ of BUFOX based on risk-adjusted returns among 550 Small Growth funds as of 6/30/24.

Investment Style

Performance (%)

As of 6/30/243 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO EARLY STAGE GROWTH FUND - Investor-3.161.49-2.13-10.375.707.2213.138.12
BUFFALO EARLY STAGE GROWTH FUND - Institutional-3.191.48-2.11-10.275.837.3713.298.28
  Russell 2000 Growth Index-2.924.449.14-4.866.177.3911.598.56
As of 6/30/243 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO EARLY STAGE GROWTH FUND - Investor-3.161.49-2.13-10.375.707.2213.138.12
BUFFALO EARLY STAGE GROWTH FUND - Institutional-3.191.48-2.11-10.275.837.3713.298.28
  Russell 2000 Growth Index-2.924.449.14-4.866.177.3911.598.56

20132014201520162017201820192020202120222023
BUFFALO EARLY STAGE GROWTH FUND - Investor61.70-7.38-9.4111.0527.18-3.9534.0347.697.79-30.769.83
BUFFALO EARLY STAGE GROWTH FUND - Institutional61.94-7.24-9.2811.2227.37-3.8134.2047.967.94-30.669.98
  Russell 2000 Growth Index43.305.60-1.3811.3222.17-9.3128.4834.632.83-26.3618.66
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
BUFOX vs Russell 2000 Growth Index (As of 6/30/24)
Upside Capture81.42
Downside Capture103.56
Alpha-6.08
Beta0.94
Sharpe Ratio-0.62
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 6/30/24) 
 
# of Holdings58
Median Market Cap$1.49 B
Weighted Average Market Cap$3.04 B
3-Yr Annualized Turnover Ratio18.39%
% of Holdings with Free Cash Flow74.14%
Active Share94.44%
Top 10 Holdings
HoldingTickerSector% of Net
Assets
Transcat, Inc.TRNSInformation Technology3.23
Compass Diversified HoldingsCODIFinancials2.95
Willdan Group, Inc.WLDNIndustrials2.94
Hamilton Lane IncorporatedHLNEFinancials2.80
Patrick Industries, Inc.PATKConsumer Discretionary2.73
SunOpta Inc.STKLConsumer Staples2.73
Bowman Consulting Group, Ltd.BWMNIndustrials2.68
Kinsale Capital Group, Inc.KNSLFinancials2.57
Verra Mobility Corp.VRRMIndustrials2.56
CyberArk Software Ltd.CYBRInformation Technology2.41
TOP 10 HOLDINGS TOTAL27.60%
As of 3/31/24. 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 6/30/24. 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 6/30/24. Market Cap percentages may not equal 100% due to rounding.

Management

Craig Richard, CFA
Portfolio Manager

21 Years of Experience

 View full bio

Doug Cartwright, CFA
Portfolio Manager

17 Years of Experience

 View full bio

Commentary

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 Early Stage Growth
Documents
Last
Updated
  Fact Sheet3/31/24
  Quarterly Commentary3/31/24
  Full Fund Holdings3/31/24
  Prospectus7/28/23
  Statement of Additional Information7/28/23
  Annual Report3/31/24
  Semi-Annual Report9/30/23
  Tax Guide - 20231/8/24
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 Early Stage Growth Fund (BUFOX) received 2 stars among 550 for the three-year, 2 stars among 519 for the five-year, and 2 stars among 399 Small Growth funds for the ten-year period ending 6/30/24.