Quick Facts

(As of 6/30/17)


Inception Date
  May 19, 1995

Total Fund Assets
  $66.2 M

Expense Ratio

Benchmark Index
  Russell 1000 Growth


Overall Morningstar™ rating out of 1,277 Large Growth funds as of 6/30/17 (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 1,277 funds in the Large Growth category, as of 6/30/17.

Large Cap News


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 (which fluctuates due to market and composition conditions, approximately $18.1 billion as of 6/30/16).


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



(As of 6/30/17)3 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
Buffalo Large Cap Fund5.1613.9722.4612.6816.517.848.609.43
Russell 1000 Growth Index4.6713.9920.4211.1115.308.919.038.78
Lipper Large Cap Growth Fund Index6.3117.2222.679.6414.467.647.677.72
Morningstar Large Growth5.0114.1420.028.8013.877.518.208.00
Each Morningstar category average represents a universe of funds with similar objectives.
(As of 6/30/17)3 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
Buffalo Large Cap Fund5.1613.9722.4612.6816.517.848.609.43
Russell 1000 Growth Index4.6713.9920.4211.1115.308.919.038.78
Lipper Large Cap Growth Fund Index6.3117.2222.679.6414.467.647.677.72
Morningstar Large Growth5.0114.1420.028.8013.877.518.208.00
Each Morningstar category average represents a universe of funds with similar objectives.
YearBuffalo Large Cap FundRussell 1000 Growth IndexMorningstar Large Growth Category
Each Morningstar category average represents a universe of funds with similar objectives.
(As of 6/30/17)

vs Russell 1000 Growth Index
Upside Capture95.20
Downside Capture78.96
Standard Deviation10.41
Sharpe Ratio1.20

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.

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 6/30/17)

# of Holdings46
Median Market Cap$44.50 B
Weighted Average Market Cap$169.02 B
3-Yr Annualized Turnover Ratio44.75%
% of Holdings with Free Cash Flow84.78%
% of Holdings with No Net Debt28.26%
Active Share72.83%
Name of HoldingTickerSector% of Portfolio
Amazon.comAMZNConsumer Discretionary3.71%
Roche Holding AG (ADR)RHHBYHealth Care3.55%
Alphabet (A)GOOGLTechnology3.29%
CME GroupCMEFinancials2.44%
Intercontinental ExchangeICEFinancials2.37%
View Full Holdings

As of 3/31/17. 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 got off to a strong start in the first quarter of 2017, thanks to an improving economic outlook. In February, small business optimism, as measured by the National Federation of Independent Businesses, was at its highest level in 12 years. In addition, the University of Michigan’s March consumer confidence survey showed that consumers were more confident in the economy than they have been at any time since 2000. Against this backdrop, growth stocks outperformed value stocks, led by technology, health care, and consumer discretionary companies. The recent strength in infrastructure companies, banks, and high-tax-rate stocks stalled late in the quarter when, following Congress’s failure to agree on a health care reform bill, investors began to question the Trump administration’s ability to enact elements of its pro-growth agenda. Within commodities, the price of West Texas Intermediate (WTI) crude oil fell 6% during the quarter in response to better than expected U.S. oil inventories and production.


The Russell 3000 Index advanced 5.74% in the first quarter and larger cap stocks outperformed smaller cap stocks. The Russell 1000 Index returned 6.03%, followed by the Russell Mid Cap Index return of 5.15%, and the Russell 2000 Index result of 2.47%. The Russell Micro Cap Index advanced just 0.38% in the quarter. The Russell 3000 Growth Index outperformed the Russell 3000 Value Index by 5.64%. Technology was the best performing sector during the quarter while the energy sector was the worst performer, driven by the decline in crude oil.

In the quarter, the Russell 1000 Growth Index returned 8.91%, modestly outperforming the Buffalo Large Cap Fund which appreciated 8.37%. The underperformance in the period was driven by sector allocation, specifically the Fund’s overweight of energy versus the benchmark. The energy sector in the benchmark was down over 11% in the first quarter, underperforming the broader index by almost 20%.

The top contributors to the fund’s performance in the quarter were Amazon and Apple. While many brick and mortar retailers are struggling to grow in the face of store closures, Amazon appears to have gained share with overall top line growth having accelerated in 2016 over 2014 and 2015. We believe the company remains extremely well positioned to benefit from ecommerce growth and cloud computing. Apple’s iPhone 7 sales meaningfully exceed expectations in the fourth quarter of 2016 which reported in January. The installed base of iPhones is approximately 570 million globally. The iPhone 8 launch later this year, the ten year anniversary product, is expected to have a large target audience.

Top detractors for the quarter were Schlumberger and Qualcomm. Schlumberger, an oil field service company with a leadership position outside the U.S., sold off in the quarter as a drilling recovery outside the U.S. has lagged, putting pressure on Schlumberger near term operating results. Qualcomm’s stock came under pressure early in the quarter after Apple sued Qualcomm alleging Qualcomm’s has monopoly control of semiconductor chips used in mobile devices.

The Fund ended the first 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 six stocks to the Fund during the first quarter of 2017. The cash weighting stood at 5.2% ending the period.


After three months of optimism related to the Republican sweep in November’s elections, the reality of a laborious and uncertain political process is setting in. Regardless of the Administration’s success on the legislative front, certainly the regulatory backdrop has improved, resulting in increased business confidence. Nevertheless we are now eight years into an expansion, and the cycle is maturing. Our valuation discipline should prove to be a differentiator, particularly as the broader equity market appreciates and valuations extend.

The Buffalo Large Cap Fund’s process is to invest based on the Buffalo Long Term Growth Trends. By limiting our investment universe to companies that we believe are beneficiaries of the Trends, we are exposed to businesses operating in secular growth markets. The Trends are relevant in any political environment. Over the intermediate to long term, the capital markets are highly efficient and companies exposed to the long term trends driving growth in our economy should outperform.

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.

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 5 stars among 1277 for the three-year, 5 stars among 1152 for the five-year, and 3 stars among 803 Large Growth funds for the ten-year period ending 6/30/17.

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.