Quick Facts
Investor Institutional
Daily Pricing:  
As of 2/7/2023  
NAV: $25.55 $25.69
$ Change: $0.50 $0.51
% Change:
2.00% 2.03%
14.16% 14.23%
Inception Date: 5/19/1995 7/1/2019
Expense Ratio: 0.92% 0.77%
Total Net Assets: $133.10 Million  (12/31/22)
Morningstar Category: Large Cap Growth
Benchmark Index: Russell 3000 Growth
Related Material:
   Fund Fact Sheet Q4 2022
   PM Commentary Q4 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 1,131 Large Growth funds as of 12/31/22

Morningstar Sustainability Rating™ of BUFGX out of 1,584 US Equity Large Cap Growth funds as of 11/30/22, based on 100% of AUM

Carbon Metric Rating of BUFGX as of 9/30/22 in the Large Growth category, based on 98% of AUM; long positions only


Historical Sustainability Score Rank of BUFGX

Performance (%)

As of 1/31/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO GROWTH FUND - Investor7.969.79-
BUFFALO GROWTH FUND - Institutional8.019.83-
  Russell 3000 Growth Index4.608.44-15.489.5210.7814.1811.3111.279.66
  Morningstar U.S. Growth Index6.0410.93-20.857.059.6813.3910.68--
  Lipper Large Cap Growth Fund Index6.449.00-
  Morningstar Large Growth Category5.948.54-16.086.988.5812.239.6610.198.58
As of 12/31/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO GROWTH FUND - Investor3.06-31.13-31.132.457.3510.768.589.689.54
BUFFALO GROWTH FUND - Institutional3.09-31.03-31.032.597.5110.928.749.859.71
  Russell 3000 Growth Index2.31-28.97-28.977.3210.4513.7510.1010.689.37
  Morningstar U.S. Growth Index0.15-36.70-36.704.559.2112.659.18--
  Lipper Large Cap Growth Fund Index2.86-32.03-32.034.858.9112.358.449.338.25
  Morningstar Large Growth Category3.10-29.91-29.914.728.3011.778.349.588.29

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 12/31/22)
Upside Capture85.74
Downside Capture102.40
Sharpe Ratio0.08
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 12/31/22) 
# of Holdings45
Median Market Cap$82.19 B
Weighted Average Market Cap$588.35 B
3-Yr Annualized Turnover Ratio16.16%
% of Holdings with Free Cash Flow88.89%
Active Share56.19%
Top 10 Holdings
Name of HoldingTickerSector% of Net
AmazonAMZNConsumer Discretionary6.87%
Alphabet (C)GOOGTechnology5.42%
Alphabet (A)GOOGLTechnology4.51%
UnitedHealth GroupUNHHealth Care2.32%
Meta PlatformsFBTechnology2.13%
S&P GlobalSPGIFinancials2.00%
As of 9/30/22. 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 12/31/22. 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 12/31/22. 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 12/31/22) — Capital markets rallied modestly in the 4th quarter as the S&P 500 Index gained 7.56%, the only positive quarter for 2022. Cooler inflation readings, resilient consumer spending, and better-than-expected corporate earnings buoyed markets during the first two months of the 4th quarter before pulling back in December. Much of the focus remains on the path of future interest rates, recession fears, and the economic and market impact those events may generate in 2023.

Despite the 4th quarter advance, the stock market recorded its worst calendar year since 2008, with a decline of -18.11% for the S&P 500 Index, and a loss of -32.54% for the growth-oriented and technology-heavy Nasdaq Composite Index. Large cap technology stocks and the more interest-rate sensitive assets suffered the most, while value stocks outperformed. In the end, nine of the S&P 500 Index’s 11 economic sectors declined. Energy stocks were the bright spot, recording a gain of 65.72% for the sector while Utilities eked out a gain of 1.57% in 2022.

The damage wasn’t isolated to the stock market as the investment-grade bond indices suffered double-digit losses for the year as well. In fact, a traditional balanced investment portfolio of 60% stocks and 40% bonds suffered the 4th worst drawdown in the past 100 years.

Recapping quarterly results, the broad-based Russell 3000 Index advanced 7.18% in the period. Value stocks significantly outperformed growth stocks to close out 2022, as the Russell 3000 Value Index returned 12.18% versus a return of just 2.31% for the Russell 3000 Growth Index. Relative performance was mixed going down in market cap size as small caps advanced less than large caps in the quarter, while mid cap stocks outperformed both large and small caps. Larger cap stocks returned 7.24%, as measured by the Russell 1000 Index, compared to the smaller cap Russell 2000 Index return of 6.23%, while the Russell Midcap Index produced a return of 9.18% in the quarter.


(As of 12/31/22) — The Buffalo Growth Fund (BUFGX) returned 3.06% for the quarter, beating the Russell 3000 Growth Index’s return of 2.31%. Strong stock selection across all sectors, with the exception of Industrials, contributed to performance. The portfolio benefited from strong returns in a number of Fund holdings, but the largest contribution to relative performance came from not owning Tesla, which is a large weight in the index and declined nearly 54% in the quarter. This was somewhat offset by a lack of exposure to consumer staples, aerospace & defense, and machinery companies that performed well in the period.


The top contributors to fund performance during the period were Mastercard, Schlumberger, and Fair Isaac.

Mastercard was the top contributor to performance in the quarter. The company reported strong financial results. Improving cross-border travel and resilient consumer spending drove better than expected revenues. We believe the company is well positioned to benefit from the global economy’s continued shift away from paper currency and the growth of ecommerce.

Schlumberger, an oilfield services company that provides technology for reservoir characterization, drilling, production, and processing, was another contributor to performance results in the quarter. The company reported better than expected revenues and earnings, driven by international well construction. Schlumberger also hosted a well-received investor day, highlighting multi-year growth opportunities and a shareholder friendly capital allocation policy. We expect Schlumberger to continue to benefit from years of underinvestment in global energy production.
Fair Isaac reported strong 4th quarter earnings and issued 2023 guidance well ahead of investor expectations. Much of the upside to revenues is being driven by pricing. We believe that the company has a strong competitive position and that after years of forgoing price increases for their FICO scores, they have an opportunity to increase prices in excess of inflation for the foreseeable future.


Top detractors for the quarter included Amazon.com and Apple.

Amazon.com reported disappointing quarterly results as revenues were in-line with expectations, but operating income disappointed driven by margin contraction at Amazon Web Services. Decelerating revenue growth and a weak 4th quarter guide also weighed on the stock. While the near-term may be bumpy, we believe the company will continue to dominate ecommerce, benefit from growth in the public cloud, and continue to rapidly grow advertising revenues over the long-term.

Apple reported solid results that were in sharp contrast to results at other large tech companies. However, lockdowns in China drove production shortfalls, leading many investors to reduce their expectation for growth in the coming quarters. We view near-term production shortfalls as a non-issue and expect Apple to continue to grow services revenue by monetizing their massive ecosystem of over one billion iPhone users.


(As of 12/31/22) — As mentioned above, the 4th quarter was the only quarter of 2022 where equity markets delivered positive returns. Market narratives continue to focus on the interest rate cycle and the Federal Reserve’s (the “Fed”) efforts to tame inflation. The 10-year Treasury yield ended the year at 3.88%, moving up just eight basis points during the quarter compared to a cumulative increase of 230 basis points through the first three quarters of the year. Cooler readings on inflation suggest the Fed’s interest rate hikes are having their intended impact on demand, and we suspect that future rate hikes will be more modest in size.

The good news is that inflation is now moderating, even with the economy at full employment. We have seen prices peak for gasoline, ocean freight, used cars, and various commodities. Growth in home prices and rents has slowed, the U.S. dollar has weakened, and small business hiring plans are waning. The Fed’s work might not be complete, but they have done a lot and it appears to be working.

The bad news is that Fed policy works with a lag, and we have yet to feel the full impact of the tightening cycle. Lately, Fed officials have been reiterating their desire to keep interest rates higher for longer, to make sure that inflation doesn’t get a chance to reaccelerate. This raises the risk that they are behind the curve and will be overly restrictive for too long. If this plays out, it will weigh on consumer spending, economic growth, and could lead to job losses and recession.

While it is very difficult to forecast what will happen with the economy, it is just as challenging to forecast what the stock market will do over the next year. History tells us that the market tends to bottom before the economic data does. We also believe that the stock prices of good businesses are being offered at more attractive valuations than they were a year ago. We think this bodes well for future returns over a multi-year time horizon. Regardless of what happens with the economy or broader equity markets, we will strive to maximize risk adjusted returns in the portfolio by investing in attractively valued businesses with solid growth opportunities, durable competitive advantages, scalable business models, and exceptional management teams.

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.

©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 2 stars among 1,131 for the 3-year, 3 stars among 1,054 for the 5-year, and 2 stars among 804 Large Growth funds for the 10-year period ending 12/31/22. 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.