Quick Facts
Investor Institutional
Daily Pricing:  
As of 5/24/2022  
NAV: $24.97 $25.06
$ Change: $-0.51 $-0.52
% Change:
-2.00% -2.03%
-26.49% -26.47%
Inception Date: 5/19/1995 7/1/2019
Expense Ratio: 0.92% 0.77%
Total Net Assets: $195.33 Million  (3/31/22)
Morningstar Category: Large Cap Growth
Benchmark Index: Russell 3000 Growth
Related Material:
   Fund Fact Sheet Q1 2022
   PM Commentary Q1 2022
   Summary Prospectus
Fund Objective & Investment Philosophy

The investment objective of the Buffalo Growth Fund is long-term growth of capital. The Fund invests in common stocks and other equity securities, including preferred stock, convertible securities, warrants and rights, with a goal of maintaining at least 75% of the Fund’s portfolio in companies with market capitalizations greater than the median of the Russell 3000 Growth Index at the time of purchase or $5 billion, whichever is lower. The median market capitalization of the Russell 3000 Growth Index changes due to market conditions and also changes with the composition of the index.

With respect to the remaining 25% of the equity weighting of the Fund’s portfolio, the Fund may invest in companies of any size, including, but not limited to, those with market capitalizations less than the lower of the median of the Russell 3000 Growth Index or $5 billion, whichever is lower.

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


The Growth Fund invest in secular trend leaders: attractively-priced, financially-strong, well-managed companies across all market cap segments, which we believe are favorably positioned to harvest the lion’s share of big secular growth trends.

Dave Carlsen, CFA, Co-Portfolio Manager

Morningstar Ratings


Overall Morningstar Rating™ of BUFGX based on risk-adjusted returns among 1,137 Large Growth funds as of 4/30/22

Morningstar Sustainability Rating™ of BUFGX out of 1,596 US Equity Large Cap Growth funds as of 3/31/22, based on 100% of AUM

Carbon Metric Rating of BUFGX as of 3/31/22 in the Large Growth category, based on 99% of AUM; long positions only


Historical Sustainability Score Rank of BUFGX

Performance (%)

As of 4/30/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO GROWTH FUND - Investor-13.77-20.37-10.5510.5712.9212.359.619.0310.38
BUFFALO GROWTH FUND - Institutional-13.72-20.31-10.4110.7413.0912.529.779.2010.55
  Russell 3000 Growth Index-12.46-20.22-6.8315.8416.5815.1811.3410.0910.09
  Morningstar U.S. Growth Index-16.48-25.90-14.8713.7116.0414.5310.81--
  Lipper Large Cap Growth Fund Index-14.39-22.59-12.7113.0715.1913.7910.048.768.99
  Morningstar Large Growth Category-12.94-21.19-12.0912.1914.0813.199.769.078.97
As of 3/31/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO GROWTH FUND - Investor-9.24-9.249.5617.4716.3813.7110.869.3910.96
BUFFALO GROWTH FUND - Institutional-9.18-9.189.7417.6616.5613.8811.039.5511.12
  Russell 3000 Growth Index-9.25-9.2512.8622.6820.1616.6412.6310.3610.65
  Morningstar U.S. Growth Index-11.97-11.979.1922.1320.8416.4812.39--
  Lipper Large Cap Growth Fund Index-11.35-11.356.7920.0019.0315.2611.339.129.57
  Morningstar Large Growth Category-10.76-10.765.7518.7417.6514.6511.049.519.51

BUFFALO GROWTH FUND - Investor11.8635.408.882.644.8622.810.5131.9128.2921.69
BUFFALO GROWTH FUND - Institutional12.0335.609.052.805.0222.990.6632.1128.4921.85
  Russell 3000 Growth Index15.2134.2312.445.097.3929.59-2.1235.8538.2625.85
  Morningstar U.S. Growth Index17.2733.3412.665.543.1629.520.7834.9044.6524.79
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
BUFGX vs Russell 3000 Growth Index (As of 3/31/22)
Upside Capture74.96
Downside Capture90.23
Sharpe Ratio0.91
Hypothetical Growth of $10,000
This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the Fund’s inception date. This chart does not imply future performance.


Portfolio Characteristics
(As of 3/31/22) 
# of Holdings49
Median Market Cap$114.50 B
Weighted Average Market Cap$909.67 B
3-Yr Annualized Turnover Ratio22.48%
% of Holdings with Free Cash Flow91.84%
Active Share50.01%
Top 10 Holdings
Name of HoldingTickerSector% of Net
AmazonAMZNConsumer Discretionary6.21%
Alphabet (C)GOOGTechnology5.00%
Alphabet (A)GOOGLTechnology4.18%
Meta PlatformsFBTechnology3.23%
S&P GlobalSPGIFinancials2.28%
CBRE GroupCBREReal Estate2.00%
As of 12/31/21. 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 3/31/22. 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 3/31/22. Market Cap percentages may not equal 100% due to rounding.


Dave Carlsen, CFA
Portfolio Manager

30 Years of Experience

 View full bio

Josh West, CFA
Portfolio Manager

17 Years of Experience

 View full bio



(As of 3/31/22) — The equity market, as measured by the S&P 500 Index, suffered its second quarterly decline since the onset of the COVID-19 pandemic, over two years ago, producing a return of -4.60% during the January–March period. Weak capital market performance can be largely attributed to the Federal Reserve’s decision to raise interest rates and reduce the size of its balance sheet, also known as quantitative tightening. Other headwinds, including the war in Ukraine, significant inflation, and persistent supply chain bottlenecks, only added to the backdrop of uncertainty for domestic and global markets.

The broad-based Russell 3000 Index fell -5.28% in the quarter. Value stocks outperformed growth stocks by a large amount, as the Russell 3000 Value Index returned -0.85% compared to a decline of -9.25% for the Russell 3000 Growth Index. Large cap stocks fell less than smaller cap stocks during the quarter, as the Russell 1000 Index declined -5.13%, followed by a return of -5.68% for the Russell Midcap Index, and -7.53% for the small cap Russell 2000 Index. Energy stocks surged during the period on rising oil prices while the more defensive Utilities and Telecommunication Services sectors were also modestly positive. The Consumer Discretionary and Technology areas of the market were the largest underperformers due to inflation and rising rates.


(As of 3/31/22) — The Buffalo Growth Fund (BUFGX) returned -9.24% during the period, outperforming the Morningstar U.S. Growth Index’s (the “Index”) return of -11.97%. The Fund’s outperformance was driven by stock selection in the Information Technology, Health Care, and Industrial sectors. Meanwhile, the Consumer sector was the only meaningful detractor relative to the Index. Overall, our focus on quality companies and reasonably-priced growth had a broadly positive impact on Fund performance during a turbulent market environment.


Palo Alto Networks, a leading network security solutions provider, was a top contributor for the portfolio in the quarter. Investors cheered better than expected billings guidance for fiscal year 2022 driven by improved enterprise spending and strong adoption of next generation security products. Security spending remains a priority following numerous high profile cyber-attacks in recent years, while the work from home trend has expanded the threat landscape and coincident revenue opportunity for Palo Alto.

Union Pacific Corporation was also a top contributor in the quarter. Investors responded favorably to improving rail volumes driven by strengthening demand for energy and materials products. The cyclically-improving rail volumes give a boost to the broader plan to improve margins and operating efficiency through application of technology and precision scheduled railroading (PSR) techniques.


Meta Platforms, Inc. detracted from Fund results this quarter after it disclosed that it would accelerate spending in the near term to drive monetization of short-form video content and advance its leadership status in the Metaverse, a network of virtual worlds focused on social connection and digital commerce utilizing virtual and augmented reality technologies. The accelerated investment cycle led to much lower than anticipated margin guidance with little corresponding revenue lift in 2022 given the longer term nature of these investments. Meanwhile, Meta’s advertising revenues have been pressured in the near term by Apple’s recent iOS privacy changes that make it harder for advertisers to trace user behavior on iPhones. While investment cycles cause disruption and require patience, Facebook remains a highly profitably digital advertising juggernaut with a favorable history of execution during transition years. We expect the near term investment cycle to ultimately lead to better engagement and large monetization opportunities in exciting new markets.

Microsoft Corporation was also a significant detractor in the quarter. While the stock outperformed the benchmark, its large position size resulted in a relatively large negative contribution for the period. The company is a prime beneficiary of workplace digital transformation and the move from on premise IT infrastructure to the cloud. As the world economy continues to emerge from the pandemic, Microsoft is well positioned to gain share of rising IT budgets.


(As of 3/31/22) — The market environment is more complex than in recent quarters. Geopolitical conflict, a more hawkish Federal Reserve, persistent inflation, and lingering supply constraints remain challenges, while tailwinds such as ultra-low interest rates, the Federal Reserve put, and fiscal stimulus fade.

In its latest public messaging, the Federal Reserve (the “Fed”) strongly signaled its move from Dovish to Hawkish regarding inflation, given the persistence of supply chain constraints and rising prices. As the drum-beat for interest rate normalization and quantitative tightening grows more forceful, we think the market will continue to transition incrementally away from speculative stocks and rotate increasingly to growth and quality factors. It remains to be seen whether the Fed can throttle-down inflation without sending the economy into recession. In any case, we do expect the Fed to get a firmer handle on inflation through 2022, which could cause investors to become more discerning about recent gains in commodities and cyclically-oriented equities.

We believe the portfolio is well positioned for an environment of moderating economic growth and higher long-term interest rates. The evolving market environment should favor companies with scale advantages and pricing power, as they are best positioned to maintain profit margins, reinvest in their businesses, grow earnings, and take market share. We will continue to invest in businesses with solid growth opportunities, durable competitive advantages, scalable business models, and good management teams, when they are trading at attractive valuations, in our opinion.

Thank you for your continued support.

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. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Earnings growth is not representative of the fund’s future performance.


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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.

Morningstar Rating™

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 Morningstar Rating does not include any adjustment for sales loads. 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.

©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 Buffalo Growth Fund (BUFGX) received 2 stars among 1,137 for the 3-year, 3 stars among 1,048 for the 5-year, and 2 stars among 775 Large Growth funds for the 10-year period ending 4/30/22. Other share classes may have different performance characteristics.
Morningstar Sustainability Rating™

The Morningstar Sustainability Rating™ is intended to measure how well the issuing companies of the securities within a fund’s portfolio holdings are managing their financially material environmental, social and governance, or ESG, risks relative to the fund’s Morningstar Global Category peers. The Morningstar Sustainability Rating calculation is a five -step process. First, each fund with at least 67% of assets covered by a company-level ESG Risk Score from Sustainalytics receives a Morningstar Portfolio Sustainability Score. The Morningstar Portfolio Sustainability Score is an asset weighted average of company-level ESG Risk Scores. The Portfolio Sustainability Score ranges between 0 to 100, with a higher score indicating that a fund has, on average, more of its assets invested in companies with high ESG Risk. Second, the Historical Sustainability Score is an exponential weighted moving average of the Portfolio Sustainability Scores over the past 12 months. The process rescales the current Portfolio Sustainability Score to reflect the consistency of the scores. The Historical Sustainability Score ranges between 0 to 100, with a higher score indicating that a fund has, on average, more of its assets invested in companies with high ESG Risk, on a consistent historical basis. Third, the Morningstar Sustainability Rating is then assigned to all scored funds within Morningstar Global Categories in which at least thirty (30) funds receive a Historical Sustainability Score and is determined by each fund’s Morningstar Sustainability Rating Score rank within the following distribution: High (highest 10%), Above Average (next 22.5%), Average (next 35%), Below Average (next 22.5%), and Low (lowest 10%). Fourth, Morningstar applies a 1% rating buffer from the previous month to increase rating stability. This means a fund must move 1% beyond the rating breakpoint to change ratings. Fifth, they adjust downward positive Sustainability Ratings to funds with high ESG Risk scores. The logic is as follows: If Portfolio Sustainability score is above 40, then the fund receives a Low Sustainability Rating. If Portfolio Sustainability score is above 35 and preliminary rating is Average or better, then the fund is downgraded to Below Average. If the Portfolio Sustainability score is above 30 and preliminary rating is Above Average, then the fund is downgraded to Average. If the Portfolio Sustainability score is below 30, then no adjustment is made. The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe. Since a Sustainability Rating is assigned to all funds that meet the above criteria, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. The Portfolio Sustainability Score is calculated when Morningstar receives a new portfolio. Then, the Historical Sustainability Score and the Sustainability Rating is calculated one month and six business days after the reported as-of date of the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics’ ESG scores from the same month as the portfolio as-of date. Please click on http://corporate1.morningstar.com/SustainableInvesting/ for more detailed information about the Morningstar Sustainability Rating methodology and calculation frequency. Sustainalytics is an independent ESG and corporate governance research, ratings, and analysis firm. Morningstar, Inc. holds a non-controlling ownership interest in Sustainalytics.

Morningstar Low Carbon Designation™

The Morningstar® Low Carbon Designation™ is intended to allow investors to easily identify low-carbon funds across the global universe. The designation is an indicator that the companies held in a portfolio are in general alignment with the transition to a low-carbon economy. The designation is given to portfolios that have low carbon-risk scores and low levels of exposure to fossil fuels. To determine carbon-risk scores and fossil fuel involvement, Morningstar uses Sustainalytics' company-level data. The Morningstar® Portfolio Carbon Risk Score™ measures the risk that companies in a portfolio face from the transition to a low-carbon economy. The Morningstar® Portfolio Fossil Fuel Involvement™ percentage assesses the degree to which a portfolio is exposed to thermal coal extraction and power generation as well as oil and gas production, power generation, and products & services. To receive a Morningstar Portfolio Carbon Risk Score, at least 67% of portfolio assets must have a carbon-risk rating from Sustainalytics. The percentage of assets covered is rescaled to 100% before calculating the score. To receive the designation, a portfolio must meet two criteria: 1) a 12-month trailing average Morningstar Portfolio Carbon Risk Score below 10 and 2) a 12-month trailing average exposure to fossil fuels less than 7% of assets, which is approximately a 33% underweighting to the global equity universe. Funds receive the Low Carbon designation based on the most recent quarterly calculations of their 12- month trailing average Morningstar Portfolio Carbon Risk Scores and Morningstar Portfolio Fossil Fuel Involvement. Funds holding the Low Carbon designation that no longer meet the criteria will not receive the designation for the subsequent quarter. All Morningstar Portfolio Carbon Metrics, including the Morningstar Portfolio Carbon Risk Score, Morningstar Portfolio Fossil Fuel Involvement, and the Morningstar Low Carbon Designation, are calculated quarterly. Please visit http://corporate1.morningstar.com/SustainableInvesting/ for more detail information about the Morningstar Low Carbon Designation and its calculation. Sustainalytics is an independent ESG and corporate governance research, ratings, and analysis firm. Morningstar, Inc. holds a non-controlling ownership interest in Sustainalytics.