Quick Facts
Investor Institutional
Daily Pricing:  
As of 9/29/2022  
NAV: $31.50 $31.64
$ Change: $-0.62 $-0.63
% Change:
-1.93% -1.95%
-29.31% -29.25%
Inception Date: 5/19/1995 7/1/2019
Expense Ratio: 0.93% 0.78%
Total Net Assets: $89.86 Million  (6/30/22)
Morningstar Category: Large Cap Growth
Benchmark Index: Russell 1000 Growth
Related Material:
   Fund Fact Sheet Q2 2022
   PM Commentary Q2 2022
   Summary Prospectus
Fund Objective & Investment Philosophy

The investment objective of the Buffalo Large Cap Fund is long-term growth of capital. The Fund normally invests in equity securities, consisting of common stocks, preferred stocks, convertible securities, warrants and rights of large capitalization (“large-cap”) companies. The Fund considers a company to be a large-cap company if, at time of purchase by the Fund, it has a market capitalization greater than or equal to the lesser of (1) $10 billion, or (2) the median market capitalization of the Russell 1000 Growth Index. The median market capitalization of the Russell 1000 Growth Index changes due to market conditions and also changes with the composition of the Index.

The Fund managers seek to identify companies for the Fund’s portfolio 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.


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.

Ken Laudan, Portfolio Manager

Morningstar Ratings


Overall Morningstar Rating™ of BUFEX based on risk-adjusted returns among 1,140 Large Growth funds as of 8/31/22.

Morningstar Sustainability Rating™ of BUFEX out of 1,604 US Equity Large Cap Growth funds as of 7/31/22, based on 100% of AUM

Carbon Metric Rating of BUFEX as of 6/30/22 in the Large Growth category, based on 93% of AUM; long positions only


Historical Sustainability Score Rank of BUFEX

Performance (%)

As of 8/31/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO LARGE CAP FUND - Investor-1.90-23.38-21.2310.2811.6013.779.349.939.82
BUFFALO LARGE CAP FUND - Institutional-1.89-23.32-21.1310.4411.7713.949.5110.099.98
  Russell 1000 Growth Index-1.67-23.19-19.0614.5114.7815.0911.1610.989.98
  Morningstar U.S. Large Growth Index-2.77-34.78-36.206.2510.4012.619.50--
  Lipper Large Cap Growth Fund Index-3.02-26.97-25.9910.6312.0913.359.419.408.64
  Morningstar Large Growth Category-2.69-24.96-23.7510.1611.4612.749.169.818.66
As of 6/30/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO LARGE CAP FUND - Investor-19.47-27.33-19.988.6610.7513.598.809.149.67
BUFFALO LARGE CAP FUND - Institutional-19.45-27.28-19.858.8310.9213.778.969.309.84
  Russell 1000 Growth Index-20.92-28.07-18.7712.5814.2914.8010.6710.329.78
  Morningstar U.S. Large Growth Index-29.81-39.32-35.674.059.8112.368.96--
  Lipper Large Cap Growth Fund Index-22.09-30.93-25.598.7311.8613.159.038.708.47
  Morningstar Large Growth Category-20.82-29.12-23.868.1011.0112.518.749.058.48

BUFFALO LARGE CAP FUND - Investor17.2332.7612.767.156.9024.86-1.6331.7728.0826.08
BUFFALO LARGE CAP FUND - Institutional17.4132.9612.927.317.0625.05-1.4831.9828.2826.27
  Russell 1000 Growth Index15.2633.4813.055.677.0830.21-1.5136.3938.4927.60
  Morningstar U.S. Large Growth Index17.9832.4614.387.711.7931.152.9433.8138.8621.47
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
BUFEX vs Russell 1000 Growth Index (As of 6/30/22)
Upside Capture78.57
Downside Capture95.54
Sharpe Ratio0.42
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. Assumes reinvestment of dividends and capital gains. This chart does not imply future performance.


Portfolio Characteristics
(As of 6/30/22) 
# of Holdings78
Median Market Cap$68.84 B
Weighted Average Market Cap$696.07 B
3-Yr Annualized Turnover Ratio37.90%
% of Holdings with Free Cash Flow85.00%
Active Share47.11%
Top 10 Holdings
Name of HoldingTickerSector% of Net
AmazonAMZNConsumer Discretionary7.14%
Alphabet (A)GOOGLTechnology6.97%
VisaVFinancial Services3.10%
NVIDIA CorporationNVDATechnology2.55%
Costco WholesaleCOSTConsumer Staples2.41%
TeslaTSLAConsumer Discretionary2.18%
Meta PlatformsFBTechnology2.12%
UnitedHealth GroupUNHHealth Care1.82%
As of 3/31/22. 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 6/30/22. 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 6/30/22. Market Cap percentages may not equal 100% due to rounding.


Ken Laudan
Portfolio Manager

29 Years of Experience

 View full bio



(As of 6/30/22) — The stock market extended year-to-date losses during the 2nd quarter. Inflation, rising interest rates, and economic uncertainty continued to be major headwinds for investors as recession talks gained traction. The S&P 500 Index fell -16.10% during the quarter, bringing the total return for the first half of the year to -19.96%. News headlines, which included energy shortages, the war in Ukraine, China’s COVID lockdowns, and the potential for softer corporate earnings next quarter, added to the pessimistic market sentiment. However, the Federal Reserve’s hawkish stance on inflation, expectations for additional interest rate increases, and a reduction in the size of its balance sheet, continued to signal confidence in the U.S. economy moving forward.

The broad-based Russell 3000 Index declined -16.70% in the quarter. Value stocks fell less than growth stocks as the Russell 3000 Value Index returned -12.41%, versus a return of -20.83% for the Russell 3000 Growth Index. Relative performance slightly favored market cap size as large caps outperformed small caps in the quarter. Larger cap stocks, as measured by the Russell 1000 Index, returned -16.67% compared to the smaller cap Russell 2000 Index return of -17.20% and the Russell Microcap Index return of -18.96%. There were no advancing economic sectors for the quarter, but Consumer Staples, Energy, Utilities, and Healthcare held up better on a relative basis. Consumer Discretionary, Information Technology and Communication Services areas lagged.


(As of 6/30/22) — For the quarter, the Buffalo Large Cap Fund (BUFEX) declined -19.47% versus a decline in the Russell 1000 Growth Index of -20.92%. Our relative outperformance reflects continued improved stock selection and better sector exposure performance within the Consumer Discretionary and Industrials categories.

As we do every quarter, we stress that while the Buffalo Large Cap Fund is not directly measured against the S&P 500 Index, we highlight its performance as you may use it as a natural comparator for equity returns. As you may know, the core difference between Buffalo Large Cap and the S&P 500 is the latter has much larger weightings in more cyclical sectors of the U.S. economy, namely Energy, Financials, and Industrials.


1) Enphase Energy
2) UnitedHealth Group
3) Eli Lilly
4) Vertex Pharmaceuticals
5) Arthur J. Gallagher & Co.

Enphase Energy (ENPH) is novel solar energy company that is rapidly becoming one of the leading global manufacturers of microinverters for solar panels used for residential and small commercial businesses. Key to the company’s leading market share has been its own proprietary integrated circuit which results in lower energy costs and increased solar energy features for homeowners. Beyond seeing sharp accelerating demand in Europe for residential and small business solar panel installations related to the Russia invasion into Ukraine, we’re equally positive on the company’s entrance into the important solar battery storage segment. Having the ability to store rather than lose excess solar energy to the grid provides a compelling holistic energy management system for customers while increasing the company’s revenue potential from $2,500 to $8,500 per home. Enphase shares rose 20.4% during the 2nd quarter and was the Fund’s top relative contributor this period.

UnitedHealth Group (UNH) was one of the Fund’s largest overweight investments during the period, with the shares rising 1.11%, reflecting its defensive positioning as the leading and best positioned healthcare service company in the U.S. We have increased the weighting from 1.9% of portfolio assets to over 3% as of the end of 2nd quarter.

Eli Lilly (LLY), although a smaller weighting than UnitedHealth above, the shares were still the third best contributor to Fund performance in the quarter, increasing 13.4%, reflecting the company’s appealing large cap growth profile but also a clear sector rotation to more defensive safe haven for investors.

Vertex Pharmaceuticals (VRTX) is akin to Eli Lilly, in the large cap pharma category, in that it represents one of the best growth profiles in the large cap biotech sector. Vertex shares rose 8% in the quarter, reflecting its favorable growth profile, reasonable valuation, and the thrust to more defensive positions for growth investors.

Arthur J. Gallagher (AJG) is one of the country’s largest insurance brokers within the property/casualty market while also recently expanding into the lucrative reinsurance segment via the acquisition of Willis Towers Watsons’ global reinsurance business. This was a growth accretive acquisition for Gallagher and should help accelerate organic revenue growth closer to high single digits through 2025.


1) Amazon
2) Apple
3) Microsoft
4) Alphabet

Of the holdings that weighed the most on relative performance in the quarter, Amazon (AMZN) had the biggest affect, negatively impacting Fund performance by 256 basis points, as the company’s shares slid 34.8%. While the top-line for Amazon has held up, the company has had a host of cost challenges from over-building on distribution facilities in 2020 and 2021, to over-hiring coming into 2022, to buying too much inventory, and being negatively impacted by fuel costs. These are similar headwinds felt by other large retailers including Walmart and Target during the most recent quarter. Things should start to ease for the company as sales comparisons get easier in the 3rd and 4th quarter of this year, and as the company slows down its spending and cuts back on some of its infrastructure. We believe shares are likely to mark time until we get into early 2023 when we expect revenue growth rates and margin expansion both improve.

Apple (AAPL) stock declined 21.6% this most recent quarter, reflecting the higher interest rate environment (tech stock valuations inversely correlated to rates) and consumer macro concerns, specifically around iPhone sales and recent lockdowns in China where most iPhone production resides. Otherwise, Apple remains one of the most structurally-sound holdings in the portfolio, although, an 8% weighting is still below the index weighting of 12%.

Microsoft (MSFT) shares declined 16.5% on weakness across the technology and software sector during the first three months of the year, mostly owing to a higher rate environment mentioned above. Company fundamentals remain positive as they continue to take share in Cloud hosting, and their core Office and gaming franchises remain the global leaders in their respective categories.

Alphabet (GOOG), not dissimilar to the three preceding jumbo market cap tech companies above, saw shares down 21.6% in the quarter. As you may know, GOOG is the market share leader in internet driven paid advertising and paid search. Much of the advertising and paid search is related to eCommerce retail goods and services. Retailers for the last year have been struggling through supply chain headwinds and now face a more challenged consumer both at the low and at the mid to high end, owing to ongoing inflation and creeping economic softness. Partially offsetting the slower retail/eComm issues for GOOG is that travel remains the second largest contributor to their large paid advertising platform, and travel is seeing a renaissance of sorts with solid underlying demand. As we head into the second half of 2022, we’ll continue to monitor the slope of eCommerce growth, with consensus calling for a 10% increase from 2021.

NVIDIA (NVDA) is a fabless semiconductor manufacturer that designs hardware and software aimed at various graphics applications used in gaming and industrial design (professional visualization/design simulation). NVDA is the leader in graphic processing units (GPUs) used in high performance computing. NVIDIA is also the global leader in the production of integrated circuits used for AI and machine learning, currently possessing the largest market share of AI/ML GPUs embedded in servers located in most of the large cloud and enterprise data centers. The shares declined 44.5% during the quarter owing to the macro market and tech valuation compression in addition to growing but decelerating demand for gaming GPUs. We view NVIDIA uniquely well positioned to capture the leading GPU share in the emerging market for virtual reality and in autonomous driving, in addition to a long runway in cloud-based AI/ML.


(As of 6/30/22) — As was the case in the 1st quarter of 2022, the broad equity and bond markets continue to be highly volatile, given an ongoing number of discrete variables and risk factors the market continues to grapple with. From stubborn inflation, to slowing economic indicators to geo-political issues (Ukraine/Russia war & heady ongoing tensions between China/Taiwan) around the globe, capped off by a global pandemic that has proven it’s also not transitory.

In a nutshell, this current market backdrop is all about risk-management. While adroit stock picking is always important for a fund’s performance, we’ve continued to ensure we remain sensitive to the rapidly changing macro environment with a balance of growth-oriented holdings but with a clear risk-management “defensive posture” within the portfolio. For instance, our average cash weighting during the 2nd quarter was 6.7%. As of mid-July, we’ve elevated the cash weighting slightly to 7.5% of Fund assets.

While inflation in the U.S. is hopefully nearing its peak over the next month or so, albeit at 40 year highs, there are an increasing array of decelerating economic indicators (as of early July) that raise the risk of lower corporate profit results and guidance as we head into the back half of 2022 and 2023. Therefore, we see no need to shift away from a more defensive positioned portfolio until we’re able to gain better clarity around several key risk factors, including more granularity surrounding both the global and U.S. economic outlook.

In this regard, if you were to ask us what the single most important unknown we most need clarity on, it would be the ability to better assess recession risk. Specifically, having more constructive data points that provide insight in the plausible depth and length of a potential U.S and global recession outcome over the next 6 to 9 months. Unfortunately, there are no clear answers today where we can even estimate likely probabilities.

As we move through the upcoming earnings season, we hope to gain incremental insight and perspective to better judge the risk and/or magnitude on the slowing U.S. and global economies. The Buffalo Large Cap management team’s base case is that we expect a recession both in Europe and in the U.S. over the next six to nine months that will at least produce a moderate impact on consumer and business spending with some concomitant negative impact to current financial estimates.

We are also keeping a close eye on the tragic Ukraine/Russia conflict, the economic situation in Europe (and Asia) as well as the growing BA.5 infection levels related to the most recent Omicron variant both in the U.S. and around the world.

While a potent combination of Federal Reserve (the “Fed”) monetary policy and fiscal stimulus provided a soft landing through the core COVID period, we now have entered an inflation-led phase and the Fed must now re-absorb much of the liquidity it provided over the last 28 months. Inflation is a stubborn enemy, particularly when, as a central bank you’re late in recognizing the intransigence of the beast as the Fed as been.

For this reason, we will continue with a defensive oriented portfolio while also keeping a close eye on compelling longer term growth opportunities should the market continue in a volatile cycle.

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. 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 Large Cap Fund received 3 stars among 1,140 for the 3-year, 3 stars among 1,052 for the 5-year, and 4 stars among 788 Large Growth funds for the 10-year period ending 8/31/22. 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.