Quick Facts
Inception Date:5/19/19957/1/2019
Expense Ratio:0.94%0.79%
Total Net Assets:$89.88 Million  (12/31/19)
Category:Large Cap Growth
Benchmark:Morningstar U.S. Large Growth
Related Material:
   Fund Fact Sheet Q4 2019
   PM Commentary Q3 2019
   Summary Prospectus
Fund Ojbective & Investment Process

The investment objective of the Buffalo Large Cap Fund is long-term growth of capital. The Large Cap Fund invests primarily in equity securities, consisting of domestic common and preferred stocks of large capitalization (“large-cap”) companies, that, at time of purchase by the Fund, have a market capitalization greater than $30 billion.

The Fund managers seek to identify companies for the Large Cap 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.

Alex Hancock, Portfolio Manager

Morningstar Rating


Overall Morningstar Rating™ of BUFEX based on risk-adjusted returns among 1,218 Large Growth funds as of 12/31/19.

Investment Style

Performance (%)

As of 12/31/193 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO LARGE CAP FUND - Investor8.2731.7731.7717.4113.1413.389.337.339.98
BUFFALO LARGE CAP FUND - Institutional8.3031.9831.9817.5913.3113.559.507.4910.15
  Morningstar U.S. Large Growth Index10.1433.8133.8121.7914.6415.0410.012.77-
  Lipper Large Cap Growth Fund Index10.0933.3933.3920.5213.2013.669.284.188.67
  Morningstar Large Growth Category9.3531.7131.7118.1011.9812.898.656.348.77
As of 12/31/193 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO LARGE CAP FUND - Investor8.2731.7731.7717.4113.1413.389.337.339.98
BUFFALO LARGE CAP FUND - Institutional8.3031.9831.9817.5913.3113.559.507.4910.15
  Morningstar U.S. Large Growth Index10.1433.8133.8121.7914.6415.0410.012.77-
  Lipper Large Cap Growth Fund Index10.0933.3933.3920.5213.2013.669.284.188.67
  Morningstar Large Growth Category9.3531.7131.7118.1011.9812.898.656.348.77
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 Morningstar U.S. Large Growth Index (As of 12/31/19)
Upside Capture81.14
Downside Capture97.67
Sharpe Ratio1.30
Hypothetical Growth of $10,000
This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the inception date of the benchmark index (6/30/97). Assumes reinvestment of dividends and capital gains. This chart does not imply future performance.


Portfolio Characteristics
(As of 12/31/19) 
# of Holdings54
Median Market Cap$54.60 B
Weighted Average Market Cap$308.26 B
3-Yr Annualized Turnover Ratio29.17%
% of Holdings with Free Cash Flow90.74%
Active Share54.37%
Top 10 Holdings
Name of HoldingTickerSector% of Net
AmazonAMZNConsumer Discretionary5.82%
Alphabet (A)GOOGLTechnology4.69%
VisaVFinancial Services3.31%
CME GroupCMEFinancial Services3.18%
EquinixEQIXReal Estate2.91%
Intercontinental ExchangeICEFinancial Services2.41%
DanaherDHRHealth Care2.37%
S&P GlobalSPGIFinancial Services2.35%
As of 9/30/19. 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 12/31/19. 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 12/31/19. Market Cap percentages may not equal 100% due to rounding.


Alex Hancock, CFA
Portfolio Manager

21 Years of Experience

 View full bio



(As of 9/30/19) — The U.S. stock market continued to advance in the 3rd quarter, as expectations for accommodative monetary policy appeared to outweigh concerns of slowing economic growth. The S&P 500 Index returned 1.70% in the period, bringing the year-to-date return to 20.55% through quarter-end. Weak economic data led the Federal Reserve to cut interest rates twice in the quarter, driving rates lower and bond prices higher. U.S. markets outperformed international markets on the strength of the U.S. dollar.

The Russell 3000 Index gained 1.16% in the quarter. Value narrowly outperformed growth, with the Russell 3000 Value Index up 1.23% and the Russell 3000 Growth Index advancing 1.10%. Large caps generally outperformed small caps in the quarter. The Russell 1000 Index returned 1.42%, the Russell Midcap Index returned 0.48%, and the Russell 2000 Index posted a loss of 2.40%. Defensive sectors led the way in the period, with Utilities up 9.34%, Real Estate up 7.69%, and Consumer Staples up 6.12%. Energy was the worst performing sector with a total return of -6.61%. Health Care was also weak, returning -2.25% on increasing political concerns.


(As of 9/30/19) — The Buffalo Large Cap Fund returned 0.98% for the quarter, outperforming the Morningstar U.S. Large Growth Index, which declined 0.09%. The Index experienced significant volatility, bottoming in early August, followed by gains through the end of September to finish mostly flat for the quarter. Relative to the Index, the Fund outperformed in the sectors of Financials, Technology, Health Care, Energy, Industrials, Consumer Discretionary, and Real Estate. These sectors of outperformance were partially offset by weakness in Materials, Telecom, and Consumer Staples.

The Fund ended the quarter with 52 holdings (excluding cash) representing 51 companies, up from 51 holdings representing 50 companies at the end of the previous quarter. The cash position ended the period at about 5% of Fund assets, in line with the prior quarter. During the period we initiated one new position in the Fund.


Alphabet (parent company of Google) returned almost 13% during the period and was the biggest contributor to the Fund’s return. After a disappointing 1st quarter 2019, the company reported a strong 2nd quarter 2019, with an acceleration in revenue driven by growth in mobile search, YouTube, and the Cloud. Although this company has outsized exposure to regulatory scrutiny associated with the upcoming election cycle, it remains the dominant player in internet search and appears poised for continued strong growth in coming periods.offset by some pressure in the pricing rate of some of its contracts.

Apple was another top-performing portfolio holding during the quarter, also returning 13%. Although this company is exposed to risks from the trade war with China, it reported a solid 2nd quarter, and outlook for growth in new products (i.e. wearables, next generation iPhones, Apple TV+, etc.) is strong, leading to optimism about performance in 2020 and beyond.

Equinix was also among the top performing positions in the quarter, returning 14%. The company is a leader in the data center space and has benefited from strong demand for its services. The company’s operating results have been strong, with growth across geographic regions and its various customer verticals.


Amazon was the fund’s biggest detractor from performance during the quarter, declining by 8%. This stock has been a strong contributor to performance in recent years, but reported mixed quarterly results, including expense pressure, partially due to a move to one-day shipping and the web services business which is growing more slowly than Microsoft’s and Google’s. We continue to remain optimistic about the company’s long-term prospects for growth in the eCommerce and web services segments, which remain large opportunities.

Xilinx was another weak position declining by nearly 19%. The company’s chip platforms have been well-positioned to grow in markets such as data center and 5G communications, but its operations and growth outlook have been hurt materially by the trade dispute and export restrictions on Huawei. Uncertainty about the company’s future growth outlook related to these factors has now hit the stock’s valuation.

PayPal was the third biggest detractor, declining by 9%. This company is a leader in the payment space and has benefited from the shift to eCommerce, but reported a weak 2nd quarter and also a reduction in 2nd half 2019 revenue guidance caused by delays in partner integration and launch of new pricing plans.


(As of 9/30/19) — Looking forward into the 4th quarter of 2019 and beyond, we remain cautiously optimistic about the long-term outlook for large cap stocks but believe they could be poised for continued volatility. Factors which we believe will drive this volatility include President Trump’s ongoing unresolved trade dispute with China. While there is no obvious end in sight for the trade war, we believe President Trump has a strong incentive to reach an agreement in order to prevent a sinking of the U.S. economy and declining stock markets going into the 2020 election year. We continue to see mixed signals about the health of the U.S. economy as the job market has remained relatively strong, but some data has pointed to slowing economic growth. The Federal Reserve cut rates twice in the 3rd quarter, but the timing and direction of more easing is unclear. We expect political concerns to drive market volatility as the Democrat-led House of Representatives explores an impeachment process against President Trump. We also believe the risk that Democrat primary voters could nominate a business-unfriendly candidate could pressure many large cap stocks, especially the “FAANG” stocks which account for large weightings in the Index, and many health care companies, which are sensitive to pricing legislation that would pressure growth and margins.

Within this framework, we have been managing the Fund cautiously yet actively, seeking to deploy capital into ideas which we believe have the most favorable risk/reward tradeoffs. We are continuing our strategy to identify investment opportunities in large cap companies with strong secular growth opportunities, which could benefit from long term trends and which should be relatively well-positioned to withstand the risk factors cited above, while also trading at attractive valuations, in our opinion. We appreciate 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. Earnings growth is not representative of the fund’s future performance.


General Account
  New Account Application
  New Account Application - Entity
  Change or Add Account Details
  Cost Basis Method Election
  Power of Attorney
Individual Retirement Account (IRA) Forms
  IRA Account Application
  IRA Beneficiary Addition / Change
  IRA Required Minimum Distribution (RMD)
  IRA / Qualified Plan Distribution Request
  IRA Transfer
Coverdell Education Savings Accounts (ESA) Forms
  Coverdell ESA Application
  Coverdell ESA Distribution Request
  Coverdell ESA Transfer
Retirement Information
  Retirement Savings Options for Individuals

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.

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 1,218 for the 3-year, 4 stars among 1,086 for the 5-year, and 3 stars among 811 Large Growth funds for the 10-year period ending 12/31/19.

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. ©2020 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 Morningstar Style Box™ reveals a fund’s investment strategy by showing its investment style and market capitalization based on the fund’s portfolio holdings.