Inception Date
  May 19, 1995

Total Fund Assets
  $71.23 Million  (9/30/18)

Expense Ratio

Benchmark Index
  Morningstar U.S. Large Growth


Overall Morningstar™ rating out of 1,258 Large Growth funds as of 9/30/18 (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



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 1,258 funds in the Large Growth category, as of 9/30/18.


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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 Morningstar U.S. Large Growth Index. The capitalization of the Morningstar U.S. Large Growth Index changes due to market conditions and index composition.


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.

~ Alex Hancock, Portfolio Manager


Performance (%)

As of 9/30/183 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO LARGE CAP FUND7.9713.8121.2617.0315.0713.379.539.93
  Morningstar U.S. Large Growth Index7.1620.3829.1120.0317.2314.299.59-
  Russell 1000 Growth Index9.1717.0926.3020.5516.5814.3110.679.65
  Lipper Large Cap Growth Fund Index7.5617.3524.9518.9714.9612.889.608.58
  Morningstar Large Growth Category7.5415.6423.1817.6814.0212.609.848.76
As of 9/30/183 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO LARGE CAP FUND7.9713.8121.2617.0315.0713.379.539.93
  Morningstar U.S. Large Growth Index7.1620.3829.1120.0317.2314.299.59-
  Russell 1000 Growth Index9.1717.0926.3020.5516.5814.3110.679.65
  Lipper Large Cap Growth Fund Index7.5617.3524.9518.9714.9612.889.608.58
  Morningstar Large Growth Category7.5415.6423.1817.6814.0212.609.848.76
vs Morningstar U.S. Large Growth Index
(As of 9/30/18)
Upside Capture82.67
Downside Capture84.26
Sharpe Ratio1.63

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.

As of July 27, 2018 the Morningstar U.S. Large Growth Index has replaced the Russell 1000 Growth Index as the Fund’s primary benchmark. The Advisor believes that the new index is more appropriate given the Fund’s holdings.

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 9/30/18) 
# of Holdings48
Median Market Cap$57.94 B
Weighted Average Market Cap$298.10 B
3-Yr Annualized Turnover Ratio36.32%
% of Holdings with Free Cash Flow83.33%
Active Share62.68%
Name of HoldingTickerSector% of Net Assets
AmazonAMZNConsumer Discretionary6.21%
Alphabet (A)GOOGLTechnology4.72%
CME GroupCMEFinancials3.04%
Lowe'sLOWConsumer Discretionary2.46%
EquinixEQIXReal Estate2.41%
Alnylam PharmaceuticalsALNYHealth Care2.36%
View Full Holdings

As of 6/30/18. 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 9/30/18. 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 9/30/18. Market Cap percentages may not equal 100% due to rounding.



(As of 6/30/18) — Supportive economic data drove positive domestic equity performance in the 2nd quarter. The unemployment rate declined to 3.8%, the lowest level in 18 years. Wages have continued to rise, with average hourly earnings up 2.7% as of May. Corporate earnings growth continued to be robust. The Federal Reserve increased their target rate by 0.25% and raised their forecast for growth and inflation again in June. Meanwhile, economic growth outside the U.S. slowed, with the divergence driving strength in the U.S. dollar. Increasing trade protectionism along with the dollar’s strength, led to the relative outperformance of domestically-focused industries and smaller capitalization companies, which generally do less international business than large caps. Crude oil prices continued to rise, despite the strong dollar, driven by lower stockpiles in the U.S. and President Trump’s decision to withdraw from the Iran nuclear accord.

The Russell 3000 Index returned 3.89% in the quarter. Growth continued to outpace value, with the Russell 3000 Growth Index up 5.87% and the Russell 3000 Value Index up 1.71%. By size, the Russell Microcap Index led the way with a return of 9.97%, followed by the small cap Russell 2000 Index at 7.75%. The large cap Russell 1000 Index was up 3.57%, and the Russell Midcap Index was up 2.82%. Energy was the best performing sector, driven by strength in crude oil prices. The Consumer Discretionary, Information Technology, and Real Estate sectors also had strong quarters. Meanwhile, trade fears and rising input costs caused the underperformance of Industrials, and Financials were weaker as a result of the yield curve flattening.


(As of 6/30/18) — The Buffalo Large Cap Fund returned 5.23 % in the quarter while the Russell 1000 Growth Index appreciated 5.76%. Stock selection within the Healthcare and Industrials sectors accounted for the relative underperformance, which was somewhat offset by strong selection within the Consumer Discretionary sector. In addition, the Fund’s underweight of Consumer Staples, a sector that underperformed the index in the period, contributed positively to relative returns.


Amazon continues to grow revenue in excess of expectations with strength across its various businesses including ecommerce, Amazon Web Services, and advertising.

Under Armour delivered results in excess of expectations in North America in the 1st quarter of 2018. During the latter part of the company’s hyper-growth phase from 2010 to 2016, management lost its way, sacrificing attention to product quality for increased distribution. In the wake of that fiasco, leadership has revamped product development with two key goals: 1) a dramatic SKU reduction and 2) refocused development efforts on innovation and quality. Investors should expect to see the results of these efforts starting in the fall of 2018.

Microsoft also delivered stellar results in the quarter that drove stock appreciation. The standout performers for the company were Office 365 (the subscription Office product), Azure (the cloud services segment), LinkedIn, and gaming.


The only meaningful detractor in the period was Alnylam Pharmaceuticals. Alnylam is the leader in silencing production of specific proteins at the cellular level through binding RNA and therefore rendering the RNA inactive. Their lead drug candidate, Patisarin, successfully completed phase III clinical trials in patients with hATTR amyloidosis and is awaiting Federal Drug Administration (FDA) approval. In the quarter, a rival drug from Pfizer also reported positive phase III results in this patient population, and Alnylam’s stock sold off due to fears of competition. Nevertheless, we are confident that Alnylam’s drug is more effective and will be the market leader in this life-threatening disease. In addition, Alnylam has a rich pipeline
with other development products expected to launch in 2019 and 2020.


(As of 6/30/18) — The Fund ended the quarter with 46 stocks representing 45 companies as we hold both the Class A and C shares of Alphabet. The cash position ended the period at about 4.2% of fund assets. During the quarter we exited three holdings and initiated three new positions in the Fund.

The Buffalo Large Cap Fund’s modest underperformance this quarter is not surprising given continued strong outperformance of growth over value. While we are definitively growth managers, we do not chase momentum, and we have valuation discipline. We have populated the portfolio with growth stocks with attractive valuations. This discipline typically leads to underperformance in a momentum market, but should be rewarded once valuation moves to the forefront of investors’ psyche. We embrace this approach because it should lead to better performance in a down market and better risk-adjusted returns over the long term.

With midterm elections approaching, the likelihood of a resolution to the current trade dispute with China seems high in the 2nd half of 2018. Based on domestic growth equity returns over the past several months, investors appear to be discounting any prolonged trade war leading to a derailment of this expansion. While volatility may increase in the near term, as timelines extend and rhetoric escalates on the topic, we believe that ultimately a compromise will be reached. Once that happens, market strength should broaden as a key overhang is removed for certain industries that are more exposed to this threat.

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 3 stars among 1258 for the three-year, 3 stars among 1129 for the five-year, and 3 stars among 818 Large Growth funds for the ten-year period ending 9/30/18.

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.

©2018 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.