“This Small-Cap Fund Is Performing Big”

March 9, 2021

Buffalo Small Cap Fund co-portfolio manager Jamie Cuellar, CFA, was recently featured in an article in Financial Advisor magazine, discussing the future growth potential of small cap stocks. Jamie also discusses growth vs value investing in small cap companies and why they have significantly outperformed value stocks in recent years.

I think more people are willing to step out on the risk curve given that interest rates are low and the economy is improving, and some people are rotating into small caps because of that. ~ Jamie Cuellar, CFA

The article also goes into the Small Cap Fund’s team approach to the companies held in the Fund, and Jamie identified several companies within the Fund’s portfolio that exemplify their investment philosophy:

  • Kornit Digital – KRNT (NASDAQ)
  • Bandwidth Inc. – BAND (NASDAQ)
  • ICF International – ICFI (NASDAQ)
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The Buffalo Small Cap Fund has been a prime beneficiary of the recent extraordinary rebound in U.S. stocks due to the Fund’s focus on small cap companies, which generally tend to outperform the broader market in economic recoveries.

BUFSX/BUISX Portfolio Managers
– Jamie Cuellar, Alex Hancock, Bob Male
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. As of 12/31/20 the Buffalo Small Cap Fund held Kornit Digital 1.93%, Bandwidth 1.85%, and ICF International 1.70%. 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. ESG (Environmental, Social, and Corporate Governance) refers to the three central factors in measuring the sustainability and societal impact of an investment in a company or business.

Annualized Performance (%)

As of 3/31/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO SMALL CAP FUND - Investor-15.79-15.79-16.9319.3417.5413.5110.0010.2212.52
BUFFALO SMALL CAP FUND - Institutional-15.72-15.72-16.7919.5217.7213.6810.1710.3812.69
  Russell 2000 Growth Index-12.63-12.63-14.339.8810.3311.218.818.57  6.58
  Morningstar U.S. Small Growth Index-13.37-13.37-13.879.5611.6311.499.12--
  Lipper Small Cap Growth Fund Index-11.96-11.96-6.6013.9014.6112.559.338.81  7.90
  Morningstar Small Growth Category-12.78-12.78-9.0213.8713.6912.209.519.38  8.03

The expense ratio for BUISX is 0.87% and 1.02% for BUFSX. 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. Fund performance may be subject to substantial short term changes.

Annualized Performance (%) as of 12/31/20

 1 Yr3 yr5 Yr10 Yr
Buffalo Small Cap Fund (BUFSX)66.3630.2524.4315.94
Russell 2000 Growth Total Return Index34.6316.2016.3613.48

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