Quick Facts
Investor Institutional
Daily Pricing:  
As of 10/2/2023  
NAV: $13.89 $13.99
$ Change: $-0.16 $-0.17
% Change:
-1.14% -1.20%
-1.07% -0.99%
Inception Date: 5/21/2004 7/1/2019
Expense Ratio: 1.50% 1.35%
Total Net Assets: $88.67 Million  (6/30/23)
Morningstar Category: Small Cap Growth
Benchmark Index: Russell 2000 Growth
Related Material:
   Fund Fact Sheet Q2 2023
   PM Commentary Q2 2023
Recent Media Coverage
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 that, at the time of purchase by the Fund, have market capitalizations below the median of the Russell 2000 Growth Index and are companies that 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

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 562 Small Growth funds as of 8/31/23.

Investment Style

Performance (%)

As of 8/31/233 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO EARLY STAGE GROWTH FUND - Investor3.688.480.621.685.128.1210.938.34
BUFFALO EARLY STAGE GROWTH FUND - Institutional3.658.560.751.825.278.2811.098.50
  Russell 2000 Growth Index7.4512.686.782.672.468.178.458.41
  Morningstar U.S. Small Growth Index8.4419.0610.37-0.362.228.018.558.31
  Morningstar Small Growth Category7.7311.626.453.774.749.129.32-
As of 6/30/233 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO EARLY STAGE GROWTH FUND - Investor6.2513.8913.116.137.529.5111.898.69
BUFFALO EARLY STAGE GROWTH FUND - Institutional6.2714.0113.316.307.689.6812.068.85
  Russell 2000 Growth Index7.0513.5518.536.104.228.838.858.53
  Morningstar U.S. Small Growth Index7.3418.2917.362.413.878.658.808.35
  Morningstar Small Growth Category5.3412.0015.207.476.699.759.49-

BUFFALO EARLY STAGE GROWTH FUND - Investor61.70-7.38-9.4111.0527.18-3.9534.0347.697.79-30.76
BUFFALO EARLY STAGE GROWTH FUND - Institutional61.94-7.24-9.2811.2227.37-3.8134.2047.967.94-30.66
  Russell 2000 Growth Index43.305.60-1.3811.3222.17-9.3128.4834.632.83-26.36
  Morningstar U.S. Small Growth Index41.862.46-0.189.6123.77-5.6727.6043.52-1.00-33.31
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 6/30/23)
Upside Capture101.76
Downside Capture100.83
Sharpe Ratio0.22
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 Characteristics
(As of 6/30/23) 
# of Holdings58
Median Market Cap$1.3 B
Weighted Average Market Cap$2.34 B
3-Yr Annualized Turnover Ratio28.73%
% of Holdings with Free Cash Flow53.45%
Active Share96.55%
Top 10 Holdings
HoldingTickerSector% of Net
Kinsale Capital Group, Inc.KNSLFinancials3.72
Federal Signal CorporationFSSIndustrials3.57
Transcat, Inc.TRNSInformation Technology2.95
Compass Diversified HoldingsCODIFinancials2.78
Bowman Consulting Group, Ltd.BWMNIndustrials2.57
ICF International, Inc.ICFIIndustrials2.40
Verra Mobility Corp. Class AVRRMIndustrials2.33
NV5 Global IncNVEEIndustrials2.31
Establishment Labs Holdings, Inc.ESTAHealth Care2.30
Playa Hotels & Resorts N.V.PLYAConsumer Discretionary2.27
As of 6/30/23. 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.
Sector Weighting
As of 6/30/23. 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 6/30/23. Market Cap percentages may not equal 100% due to rounding.


Craig Richard, CFA
Portfolio Manager

21 Years of Experience

 View full bio

Doug Cartwright, CFA
Portfolio Manager

17 Years of Experience

 View full bio



(As of 6/30/23) —The Buffalo Early Stage Growth Fund generated a return of 6.25% for the quarter compared to the Russell 2000 Growth Index return of 7.05%. Small cap growth stocks
rebounded in the second quarter from selling pressure in March related to concerns
around the banking sector and its impact on the overall economy. Year-to-date, the
fund has produced a return of 13.89% compared to the Index return of 13.55%. Stock selection within the Financial and Industrial sectors contributed positively to
relative performance in the quarter while stock selection in the Healthcare sector was
a deterrent to relative performance. Overall the fund trailed the benchmark return by
0.80% during the quarter.

Top Contributors

The top contributor to performance results in the quarter was Absolute Software.
Absolute Software is a security software vendor that is unique in that its product is
installed at the time of production by the OEM and can be activated later to allow
organizations to see, control and protect the computer hardware in their organization.
In May, the company announced an agreement to be acquired by a private equity firm
in an all-cash transaction at a 34% premium to the prevailing share price. We would
note this marks the third holding in the fund that has been acquired this calendar year.
Over the past five years, the fund has ranged between two to seven holdings that have
been acquired on a calendar year basis. Given the fund’s presence at the smaller end of
the small cap growth universe, we would continue to expect it to be a beneficiary of this
activity if we are successful in finding companies that could become attractive to both
financial and strategic buyers.

Top Detractors

Shutterstock was the largest detractor from portfolio results in the quarter.
Shutterstock provides a marketplace/platform of digital imagery in which advertisers
pay to license the content and contributors of the content are able to capture royalty
payments. A leading force in the advances in the domestic equity markets year to date
has been the potential for artificial intelligence (AI) applications. Sentiment around
Shutterstock turned negative during the quarter as potential competitive disruption
brought on by AI-related digital image creators became the focal point. We will continue
to monitor the risk but believe that Shutterstock protecting companies/advertisers from
potential plagiarism and copyright infringement is a key differentiator for Shutterstock
moving forward.


(As of 6/30/23) — The fund ended the quarter with 57 holdings.
The market has become more settled on the storyline of the Federal Reserve navigating
a soft economic landing as disinflation continues to take hold while economic and labor
metrics remain steady. We note that the labor market remains in great shape, excess cash
on personal balance sheets has begun to decline but overall remains in good standing.
Corporate profits have also proven resilient in the face of historically high inflation over the
past year. Overall, the economic foundation remains solid, in our opinion.

We have seen signs of excess return in the market with AI-related companies, retail
investor dominated stocks, and other speculative assets seeing unwarranted advances.
We stick to investing in companies based on strong fundamentals, competitive positioning,
and realistic expectations for valuation parameters for our holdings.

Our job remains to find and hold attractive small cap companies that have not been fully
appreciated by the market or are mispriced due to recent results or events. The fund
typically invests at the smaller end of the small cap growth spectrum and the managers
continue to seek companies with sustainable growth due to secular growth trends or
innovative, disruptive products. We believe less investor interest in the smaller market cap
segment of the stock market creates opportunity for us to uncover value over the long-term.

The Buffalo Early Stage Growth Fund is focused primarily on identifying innovation within
U.S. companies with primarily North American revenue bases. With an active share of
greater than 90%, a lower turnover strategy with 50-70 holdings, the fund aims to continue
to offer a distinct offering from the Index and category peers.

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.


Buffalo Early Stage Growth
  Fact Sheet6/30/23
  Quarterly Commentary6/30/23
  Full Fund Holdings3/31/23
  Statement of Additional Information7/28/23
  Annual Report3/31/23
  Semi-Annual Report9/30/22
  Tax Guide - 20221/8/23
General Account
  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 562 for the three-year, 3 stars among 526 for the five-year, and 2 stars among 393 Small Growth funds for the ten-year period ending 8/31/23.

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. ©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 Morningstar Style Box™ reveals a fund’s investment strategy by showing its investment style and market capitalization based on the fund’s portfolio holdings.