Quick Facts
Inception Date:5/19/1995
Total Net Assets:$68.98 Million  (3/31/19)
Expense Ratio:0.94%
Category:Large Cap Growth
Benchmark:Morningstar U.S. Large Growth
Related Material:
   Fund Fact Sheet Q1 2019
   PM Commentary Q1 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 — a company, at time of purchase by the Fund, with 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™ based on risk-adjusted returns among 1,229 Large Growth funds as of 5/31/19.

Investment Style

Performance (%)

As of 5/31/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO LARGE CAP FUND1.2312.805.9313.8012.2814.498.639.53
  Morningstar U.S. Large Growth Index1.1913.986.1716.1813.0115.948.88-
  Russell 1000 Growth Index0.7013.685.3915.3312.3315.649.519.17
  Lipper Large Cap Growth Fund Index0.4613.915.0715.3211.4814.258.608.17
  Morningstar Large Growth Category0.1213.463.7713.8610.3813.978.728.32
As of 3/31/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO LARGE CAP FUND15.0215.0212.9615.6612.8716.548.779.69
  Morningstar U.S. Large Growth Index15.7615.7613.5117.2714.4217.609.03-
  Russell 1000 Growth Index16.1016.1012.7516.5313.5017.529.719.33
  Lipper Large Cap Growth Fund Index16.2116.2112.3116.9912.3316.268.718.32
  Morningstar Large Growth Category15.6715.6710.7115.3511.2615.948.848.47

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.

3 Year Risk Metrics
vs Morningstar U.S. Large Growth Index (As of 3/31/19)
Upside Capture88.21
Downside Capture89.62
Sharpe Ratio1.26
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 3/31/19) 
# of Holdings48
Median Market Cap$59.49 B
Weighted Average Market Cap$278.14 B
3-Yr Annualized Turnover Ratio30.13%
% of Holdings with Free Cash Flow85.42%
Active Share60.37%
Top 10 Holdings
Name of HoldingTickerSector% of Net
AmazonAMZNConsumer Discretionary6.67%
Alphabet (A)GOOGLTechnology4.75%
CME GroupCMEFinancials2.78%
DanaherDHRHealth Care2.56%
EquinixEQIXReal Estate2.41%
As of 3/31/19. 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 3/31/19. 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 3/31/19. Market Cap percentages may not equal 100% due to rounding.


Alex Hancock, CFA
Portfolio Manager

21 Years of Experience

 View full bio



(As of 3/31/19) — Equity markets rebounded sharply to start 2019. The widely followed S&P 500 Index returned 13.65% in the 1st quarter, its best quarterly performance in 10 years. The market advance can be largely attributed to the Federal Reserve’s decision to put quarterly short term interest rate hikes on hold and end its balance sheet runoff. Additionally, prospects for a trade agreement between the U.S. and China appeared to improve, and the U.S. Government reopened after its longest shut down in history.

The Russell 3000 Index advanced 14.04% in the 1st quarter. Growth outperformed value, with the Russell 3000 Growth Index returning 16.18% compared to a return of 11.93% for the Russell 3000 Value. By size, midcaps led the way this quarter with the Russell Midcap Index returning 16.54%, followed by a return of 14.58% for the small cap Russell 2000 Index and 14.00% for the large cap Russell 1000 Index. Technology, Real Estate, and Industrials were the best performing sectors, while Health Care and Financials were relative underperformers.


(As of 3/31/19) — The Buffalo Large Cap Fund (the “Fund”) returned 15.02% in the quarter, underperforming the Morningstar U.S. Large Growth Index (the “Index”) by 74 basis points, which returned 15.76% during the same time period. During the quarter, many stocks in the Fund rebounded and generated strong returns after the market sell-off in the final quarter of 2018. Stock selection within the Financial and Industrial sectors was a primary source of underperformance. Relative to the Index, the Fund outperformed in the sectors of Consumer Discretionary, Consumer Staples, Energy, Health Care, Real Estate, and Telecom. These sources of outperformance were more than offset by weakness in Financials, Industrials, IT, and Materials. The Fund’s cash position also served as a source of underperformance amidst the very strong market environment.

The Fund ended the quarter with 48 holdings (excluding cash) representing 47 companies, down from 49 holdings representing 48 companies at the end of the previous quarter. The cash position ended the period at about 5% of Fund assets, up from about 2.5% the prior quarter. During the period we initiated one new position in the Fund, and two of our holdings were eliminated due to mergers.

Microsoft returned 16% during the quarter, making the stock the biggest contributor to the Fund’s return. The company continued to report strong operating results, and its Azure (cloud infrastructure) segment appeared poised for further strong growth.

Amazon was another strong performer, returning almost 19% in the period. The company’s core retail business, web service, and smaller revenue sources like advertising continued to show significant growth opportunity, with the ability to take share from competitors.

Xilinx was the third best performing holding in the Fund during the quarter. The company reported strong quarterly earnings and its platforms appeared positioned for sustained growth in markets such as data center and 5G communications.

After outperforming in 2018, CME Group was the weakest relative performer this quarter, declining by almost 13%. Many of the company’s futures products (especially Equities) saw declines in traded volume driven by factors including lower volatility. While we believe the long-term growth outlook for the business is positive, difficult comps are likely to hold back growth rates for several quarters to come.

Another underperformer was Biogen, whose stock declined 21% in the quarter. The company announced in late March it would halt development of an important Alzheimer’s drug, leaving a significant hole in the company’s development pipeline.


(As of 3/31/19) — Following the strong market performance during the period, uncertainties that could drive large-cap growth stocks for the remainder of the year include: (i) the Fed’s recent signaling of a less hawkish stance on further rate increases; (ii) recent inversion of the yield curve that could portend future economic weakness, though investors appear to be ignoring it for now; (iii) increased investor confidence that the trade dispute with China will be resolved; and (iv) recent weakness in the economies of many European countries where many of our holdings have significant exposure.

These uncertainties are offset, in part, by apparent continued strength in the U.S. job market and signs that the U.S. housing market may be improving. At the same time, the benefits that many large cap companies reached from the tax reforms of 2018 are reaching an anniversary, and valuations of these stocks are trading at elevated valuations.

In the wake of the very strong market performance to start 2019, the Fund continues to focus on investing in high-quality growth stocks in all industries with relatively attractive valuations, which we believe should be a key driver of above-index risk-adjusted returns over the long term. We are seeking to reduce weightings in names that have appreciated above our target price and redeploy capital into those names with better risk-reward trade-offs. As always, we appreciate your support and confidence in our process over the long term.

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.

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 1229 for the three-year, 4 stars among 1097 for the five-year, and 3 stars among 811 Large Growth funds for the ten-year period ending 5/31/19.

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. ©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. 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.