Quick Facts
Investor Institutional
Daily Pricing:  
As of 6/8/2023  
NAV: $28.12 $28.28
$ Change: $0.19 $0.20
% Change:
0.68% 0.71%
25.65% 25.74%
Inception Date: 5/19/1995 7/1/2019
Expense Ratio: 0.92% 0.77%
Total Net Assets: $142.87 Million  (3/31/23)
Morningstar Category: Large Cap Growth
Benchmark Index: Russell 3000 Growth
Related Material:
   Fund Fact Sheet Q1 2023
   PM Commentary Q1 2023
   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 1,123 Large Growth funds as of 4/30/23

Morningstar Sustainability Rating™ of BUFGX out of 1,585 US Equity Large Cap Growth funds as of 3/31/23, based on 100% of AUM

Carbon Metric Rating of BUFGX as of 3/31/23 in the Large Growth category, based on 99% of AUM; long positions only


Historical Sustainability Score Rank of BUFGX

Performance (%)

As of 4/30/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO GROWTH FUND - Investor7.3717.871.959.7610.0511.4910.0910.3010.07
BUFFALO GROWTH FUND - Institutional7.3717.922.059.9210.2111.6610.2510.4710.23
  Russell 3000 Growth Index5.9014.832.2513.2413.1414.0511.5611.119.80
  Morningstar U.S. Growth Index3.0614.33-2.338.3611.0113.1210.61--
  Lipper Large Cap Growth Fund Index6.1215.681.5710.3211.2812.969.939.838.71
  Morningstar Large Growth Category3.7112.53-0.0910.0510.2612.039.719.998.63
As of 3/31/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO GROWTH FUND - Investor15.2415.24-12.5513.849.9111.5210.3710.6810.01
BUFFALO GROWTH FUND - Institutional15.3015.30-12.4414.0210.0811.6910.5310.8410.18
  Russell 3000 Growth Index13.8513.85-10.8818.2313.0214.1611.8811.479.79
  Morningstar U.S. Growth Index14.7914.79-17.4614.0211.3913.3111.13--
  Lipper Large Cap Growth Fund Index13.9113.91-12.6614.9111.1312.9310.2610.138.68
  Morningstar Large Growth Category11.6511.65-12.6714.8010.2112.0710.0510.318.63

BUFFALO GROWTH FUND - Investor35.408.882.644.8622.810.5131.9128.2921.69-31.13
BUFFALO GROWTH FUND - Institutional35.609.052.805.0222.990.6632.1128.4921.85-31.03
  Russell 3000 Growth Index34.2312.445.097.3929.59-2.1235.8538.2625.85-28.97
  Morningstar U.S. Growth Index33.3412.665.543.1629.520.7834.9044.6524.79-36.70
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 3/31/23)
Upside Capture89.53
Downside Capture103.08
Sharpe Ratio0.58
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 3/31/23) 
# of Holdings45
Median Market Cap$100.43 B
Weighted Average Market Cap$794.94 B
3-Yr Annualized Turnover Ratio15.25%
% of Holdings with Free Cash Flow88.89%
Active Share53.29%
Top 10 Holdings
Name of HoldingTickerSector% of Net
AmazonAMZNConsumer Discretionary5.18%
Alphabet (C)GOOGTechnology5.07%
Alphabet (A)GOOGLTechnology4.22%
UnitedHealth GroupUNHHealth Care2.47%
Thermo Fisher ScientificTMOHealth Care2.17%
As of 12/31/22. 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 3/31/23. 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 3/31/23. Market Cap percentages may not equal 100% due to rounding.


Dave Carlsen, CFA
Portfolio Manager

31 Years of Experience

 View full bio

Josh West, CFA
Portfolio Manager

18 Years of Experience

 View full bio



(As of 3/31/23) — Capital markets moved higher in the first quarter of 2023 as the S&P 500 Index gained 7.50% and the Bloomberg Aggregate Bond Index advanced 3.0%. Big swings in expectations for the Federal Reserve’s monetary policy drove market volatility during the period. Initially investors were concerned with data showing stubbornly high inflation and the prospect of additional interest rate hikes. However, during the final days of the quarter bank failures from Silicon Valley Bank, Signature Bank, and Credit Suisse, dramatically changed market expectations towards monetary policy and the impact that a banking crisis could have on the broader economy. As a result, shorter term Treasury yields fell, and large cap growth stocks rallied in a flight to quality. The view was that growth companies would be the biggest beneficiaries of lower rates, a reversal of the headwinds faced throughout 2022. Technology stocks were by far the leading contributors to broad market performance during the quarter while value stocks and dividend payers lagged. Excluding the technology sector, the S&P 500 Index return would have only been 2.70% during the period.

Recapping quarterly results, the broad-based Russell 3000 Index advanced 7.18%. Growth stocks significantly outperformed value stocks to start out the year, as the Russell 3000 Value Index returned just 0.91% versus a return of 13.85% for the Russell 3000 Growth Index. Relative performance improved going up in market capitalization (size) as large caps advanced more than small caps in the quarter. Larger cap stocks returned 7.46%, as measured by the Russell 1000 Index, compared to the smaller cap Russell 2000 Index return of 2.74%, while the Russell Microcap Index returned -2.83% in the quarter.


(As of 3/31/23) — The Buffalo Growth Fund returned 15.24% for the quarter, beating the benchmark Russell 3000 Growth Index return of 13.85%. Outperformance was driven by broad-based positive stock selection with noteworthy strength in the Industrial and Information Technology sectors. Here, record backlogs at many constituent companies support stable growth expectations for the near to intermediate term. In the midst of the growing uncertainty related to the regional banking crisis, these two sectors likely benefited from rotation away from Financials. Investors’ burgeoning interest in Generative AI throughout the quarter also played a positive role for the Tech sector.

The fund’s sector allocation impact was more mixed. Our overweight in Communication Services, one of the best performing sectors in the quarter, contributed positively while our underweight in Consumer Staples, a sector which trailed the broader benchmark return, also produced a positive allocation effect. Meanwhile, the Consumer Discretionary and Healthcare sectors were modest headwinds. In Consumer Discretionary, an underweight position in Tesla, which advanced +68% in the quarter, was the primary headwind. Finally, our overweight position in Health Care led to a modest sector allocation drag in an otherwise good quarter for the fund.


Microsoft (MSFT) shares advanced over 20% as investors rotated to Generative AI beneficiaries and the relative safety of well-capitalized large cap technology as uncertainty and turmoil at regional banks led to elevated recession fears. Microsoft has been investing heavily in the development of AI-powered solutions across its various business segments, such as using AI to enhance productivity and efficiency in its Azure cloud infrastructure, Search and Office software suite. Microsoft should continue to grow their leading share in cloud computing, gaming and MS Office productivity applications.

Meta Platforms (META) shares gained 76% during the period as investors embraced renewed expense discipline and expectations for improving revenue growth following a somewhat painful prior year that witnessed a bad combination of slowing growth and accelerated investments. The investments were targeted at innovative technologies to address Apple’s IOS privacy changes and short-form video capabilities to address competition from TikTok. Facebook is still a highly profitably digital advertising juggernaut with a favorable history of execution following transition years. We expect the recent investments will lead to improving engagement and revenue growth reacceleration.


Azenta (AZTA) was a top detractor during the quarter. Investors reacted negatively to 2023 guidance that projected a slower pace of margin expansion due to accelerated investments to build out their global sales infrastructure. Following the sale of its semiconductor business, Azenta is now a pure-play life sciences company with a cash-rich balance sheet. The company has carved out a clinical research niche by offering both cold storage repositories for biological tissue samples and genomic analysis services to leading biopharma companies who are increasingly outsourcing this capability to Azenta rather than build it in-house. Headwinds from currency (FX), China lockdowns, and COVID-related revenues have weighed on near-term results. However, the long-term trend towards biologics and cell and gene therapy have not slowed, and these new drugs require a materially different infrastructure for storage and shipping that is beneficial to the company.

Schlumberger (SLB) was also a negative contributor for the quarter. After the regional banking crisis, investors priced in a greater likelihood of recession which negatively impacted growth expectations in global energy markets. Schlumberger is an oilfield services company that supplies technology for reservoir characterization, drilling, production, and processing. The company generates attractive returns on capital and has a strong competitive position. Earnings estimates for the company are likely to move higher as the oil and gas industry stands to receive help from China’s reopening, Europe’s ban on Russian gas, and the U.S. government ultimately needing to refill the Strategic Petroleum Reserve.


(As of 3/31/23) — We believe stock market multiples have largely adjusted to higher interest rates, but corporate earnings may still need to adjust downward to reflect a more difficult business environment. We expect companies will provide cautious earnings guidance due to slowing economic activity, higher funding costs and tightening credit conditions. On a positive note, we are seeing signs that the Federal Reserve’s aggressive effort to combat inflation is working. Inflation has likely peaked and supply chains are loosening. If inflation continues to slow at the current pace, the Fed is likely nearing the end of its rate-raising cycle with perhaps one more 25 basis point increase at its May meeting.

Our strategy is to take a long-term risk aware view and build positions in premier growth companies as risk/reward improves. We are leaning into quality; dominant companies with strong balance sheets and moaty businesses generating attractive returns. We’re also keeping a watchful eye for price dislocations where near-term uncertainty creates long-term opportunity. As we move through this more tumultuous part of the economic cycle, heightened investor fear and market volatility can lead to incredibly attractive stock opportunities for prepared investors with a long-term investment horizon. We believe investing in well-managed companies with durable competitive advantages trading at attractive valuations will continue to generate outsized multiyear returns. Thank you for your continued trust and 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.

©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 Buffalo Growth Fund (BUFGX) received 3 stars among 1,123 for the 3-year, 3 stars among 1,042 for the 5-year, and 3 stars among 798 Large Growth funds for the 10-year period ending 4/30/23. 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.