Inception Date
  May 19, 1995

Total Fund Assets
  $68.36 Million  (9/30/17)

Expense Ratio

Benchmark Index
  Russell 1000 Growth


Overall Morningstar™ rating out of 1,226 Large Growth funds as of 11/30/17 (derived from a weighted average of the fund’s three-, five-, and ten-year risk adjusted return measure).


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.

Risk vs Category


Low High

The Morningstar™ Risk vs Category rating is an assessment of the variations in a fund’s monthly returns, with an emphasis on downside variations, in comparison to the 1,226 funds in the Large Growth category, as of 11/30/17.

Large Cap News

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Investment Strategy

The investment objective of the Buffalo Large Cap Fund is long-term growth of capital. The Large Cap Fund normally invests at least 80% of its net assets in equity securities, consisting of domestic common and preferred stocks of large capitalization (“large-cap”) companies — a company, at time of purchase by the Fund, with a market capitalization greater than or equal to the lesser of $10 billion or the median market capitalization of companies in the S&P 500 Index.


We don’t manage to our benchmark so we don’t have too much concentration in any one single trend. We also manage based on valuation, trimming positions when they approach their potential upside and adding to them as they get closer to the potential downside.

~ Elizabeth Jones, Portfolio Manager


Performance (%)

As of 11/30/173 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
Buffalo Large Cap Fund7.6324.5125.8212.9916.858.989.129.67
  Russell 1000 Growth Index8.4229.2130.8113.1017.149.8710.119.22
  Lipper Large Cap Growth Fund Index6.9531.2131.2511.3515.928.168.918.11
  Morningstar Large Growth7.2526.8727.6910.5315.258.199.388.13
As of 9/30/173 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
Buffalo Large Cap Fund2.8317.2016.4716.4716.068.0810.299.45
  Russell 1000 Growth Index5.9020.7221.9412.6915.269.0810.658.96
  Lipper Large Cap Growth Fund Index5.6423.8321.4411.1914.287.569.337.90
  Morningstar Large Growth5.2919.8519.7510.3613.707.559.928.16
YearBuffalo Large Cap FundRussell 1000 Growth IndexMorningstar Large Growth Category
(As of 9/30/17)

vs Russell 1000 Growth Index
Upside Capture91.16
Downside Capture80.07
Sharpe Ratio1.26

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.

Growth of $10k

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.


(As of 9/30/17)

# of Holdings46
Median Market Cap$46.23 B
Weighted Average Market Cap$181.83 B
3-Yr Annualized Turnover Ratio42.73%
% of Holdings with Free Cash Flow86.96%
% of Holdings with No Net Debt28.26%
Active Share72.82%
Name of HoldingTickerSector% of Net Assets
Amazon.comAMZNConsumer Discretionary4.69%
Alphabet (A)GOOGLTechnology3.15%
United Parcel GroupUPSIndustrials2.56%
CME GroupCMEFinancials2.49%
ShireSHPGHealth Care2.48%
View Full Holdings

As of 6/30/17. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Those listed are for the previous quarter. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

Buffalo publishes this listing of securities held as of the most recent calendar-quarter end, with a 30 or 60 day lag depending on the portfolio. Buffalo may exclude any portion of holdings from publication when deemed in the best interest of the portfolio.

The portfolio data and its presentation here may differ from the complete schedules of investments in regulatory filings due to differing accounting and reporting requirements.

As of 6/30/17. 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.

As of 6/30/17. Market Cap percentages may not equal 100% due to rounding.


Equity markets continued their winning streak in the 3rd quarter of 2017 with the S&P 500 Index posting its 8th consecutive quarterly gain. Investors have been encouraged by the synchronized upswing in global economic growth. For the first time since 2007, all 45 countries tracked by the Organization for Economic Cooperation and Development (OECD) are on pace to grow this year, with the growth rates expected to accelerate in 33 of those countries. This economic backdrop, in conjunction with strong corporate earnings and a renewed focus on tax reform, helped the reflation trade regain momentum in the quarter.

The reflation trade, also known as the “Trump trade” pushed shares of banks, industrials, and smaller companies higher while expectations of another interest rate increase by the Federal Reserve drove relative weakness in Treasury bonds and their stock market proxies such as utility companies. The U.S. dollar also strengthened during the period against most major foreign currencies. Furthermore, strong demand and slowing production of oil in the U.S. drove West Texas Intermediate crude prices up 12.2% in the period.

The Russell 3000 Index, a broad market performance benchmark, produced a total return of 4.57% during the quarter. Growth stocks outperformed value stocks, as the Russell 3000 Growth Index advanced 5.93% compared to a gain of 3.27% for the Russell 3000 Value Index. Shares of smaller capitalized companies generally outperformed larger companies during the quarter. The Russell Microcap Index and the smaller-cap Russell 2000 Index climbed 6.65% and 5.67% respectively during the period, while the Russell Midcap Index advanced by 3.47% and the larger-cap Russell 1000 Index increased by 4.48%. Technology and energy were the best performing sectors, while consumer staples and consumer discretionary sectors lagged.


The Buffalo Large Cap Fund returned 2.83% in the quarter, underperforming the Russell 1000 Growth Index which rose 5.90%. Stock selection within the consumer discretionary and healthcare sectors drove the underperformance for the period.

Facebook continued to drive impressive top line growth and operating leverage through mobile advertising spending on its platform. The value proposition of digital ad spending appears to resonate with Facebook’s clients.

Microsoft was another top contributor in the third calendar quarter. The company is transitioning from a packaged software company to a cloud based software solution for both B2B (business-to–business) and B2C (business-to-consumer) end markets. This transition, which is gaining momentum, has accelerated growth and the equity has advanced as a result.

T. Rowe Price’s stock appreciated in the quarter. After several years of net outflows T. Rowe Price has seen solid capital inflows this year which we attribute to the strong performance of the equity funds as well as the attractive pricing of their actively managed products.

Top detractors in the period all have exposure to the consumer discretionary sector.

Chipotle Mexican Grill saw decelerating same store sales growth over the last two quarters and efforts to jumpstart growth have fallen short. The near term operating performance is likely to remain challenged. Nevertheless, we believe the company is a leader in the fast casual space, and with better leadership, can resume its growth trajectory.

Alliance Data Systems’ equity declined in the quarter as charge-offs from the private label credit card portfolio exceeded expectations. In addition, the BrandLoyalty business will fall short for the fiscal year due to some promotional program delays, resulting in a 5% earnings guidance reduction. Since the new guidance was issued in July the stock is off about 15% which we believe is an over-reaction. The company has a plan to improve collections and has a track record of executing. Given the overall strength of the consumer, we do not find this modest charge off increase as overly concerning.

Under Armour also declined in the period. For the five years leading up to 2017 the company experienced hypergrowth. Such growth is hard to sustain and most recently management lost sight of some important drivers of the business, including product quality, the fashion trend, channel conflict and encroaching competition. A high quality Chief Operating Officer, Patrik Frisk, was added to the executive team in late June. The turnaround will take some time, but we continue to believe the category has positive underlying long term growth trends, namely the increasing consumer focus on healthy living and active lifestyles.


The Fund ended the 3rd calendar quarter of 2017 with 46 stocks representing 45 companies, as we hold both the Class A and Class C shares of Alphabet, Inc. We exited four positions and added four stocks to the Fund during the 3rd quarter of 2017. The cash weighting stood at 4.2% ending the period.

U.S. economic growth accelerated in the 2nd quarter with U.S. Real Gross Domestic Product (GDP) growing 3.1%, recent measures of manufacturing and industrial activity in the U.S. support expanded activity in the 3rd quarter of 2017, consumer confidence is high, and unemployment reached a low of 4.2% in September.

Companies who have beaten earnings expectations and lack controversy have predominately seen their stocks appreciate as investors appear to be chasing the outperformers. Our discipline requires we trim or exit the winners as valuation exceeds our best case scenarios. While we see ample opportunities to deploy capital in companies trading at attractive valuations, frequently those valuations come with some controversy. And just as investors are bidding up the outperformers, they are driving down the underperformers to, at times, irrational low valuations, as traders press the panic button and sell. However, with fear comes opportunity; we are acutely aware of the current market dynamic and stand ready to potentially profit from it.

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. Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security. Earnings growth is not representative of the fund’s future performance.

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.

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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 Large Cap Fund received 4 stars among 1226 for the three-year, 4 stars among 1110 for the five-year, and 3 stars among 786 Large Growth funds for the ten-year period ending 11/30/17.

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.

©2017 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.