Quick Facts
Inception Date:5/19/19957/1/2019
Expense Ratio:0.95%0.81%
Total Net Assets:$108.80 Million  (3/31/21)
Category:Large Cap Growth
Benchmark:Morningstar U.S. Large Growth
Related Material:
   Fund Fact Sheet Q4 2020
   PM Commentary Q4 2020
   Summary Prospectus
Fund Objective & 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.

Ken Laudan, Portfolio Manager

Morningstar Rating


Overall Morningstar Rating™ of BUFEX based on risk-adjusted returns among 1,186 Large Growth funds as of 3/31/21.

Investment Style

Performance (%)

As of 3/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO LARGE CAP FUND - Investor3.223.2256.7819.6018.5614.5011.008.6910.67
BUFFALO LARGE CAP FUND - Institutional3.233.2357.0219.7718.7414.6711.178.8510.83
  Morningstar U.S. Large Growth Index-0.73-0.7355.7821.8420.7716.8912.038.19-
  Lipper Large Cap Growth Fund Index1.571.5762.6922.0320.9715.4411.098.509.68
  Morningstar Large Growth Category2.232.2363.5720.4419.4214.7310.969.079.69
As of 3/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO LARGE CAP FUND - Investor3.223.2256.7819.6018.5614.5011.008.6910.67
BUFFALO LARGE CAP FUND - Institutional3.233.2357.0219.7718.7414.6711.178.8510.83
  Morningstar U.S. Large Growth Index-0.73-0.7355.7821.8420.7716.8912.038.19-
  Lipper Large Cap Growth Fund Index1.571.5762.6922.0320.9715.4411.098.509.68
  Morningstar Large Growth Category2.232.2363.5720.4419.4214.7310.969.079.69
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 12/31/20)
Upside Capture81.92
Downside Capture100.97
Sharpe Ratio0.92
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 12/31/20) 
# of Holdings52
Median Market Cap$73.96 B
Weighted Average Market Cap$556.84 B
3-Yr Annualized Turnover Ratio12.88%
% of Holdings with Free Cash Flow82.69%
Active Share65.27%
Top 10 Holdings
Name of HoldingTickerSector% of Net
AmazonAMZNConsumer Discretionary7.73%
Alphabet (A)GOOGLTechnology4.12%
VisaVFinancial Services2.69%
DanaherDHRHealth Care2.59%
EquinixEQIXReal Estate2.56%
S&P GlobalSPGIFinancial Services2.31%
PayPalPYPLFinancial Services2.22%
As of 9/30/20. 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 12/31/20. 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 12/31/20. Market Cap percentages may not equal 100% due to rounding.




(As of 12/31/20) — Equity markets extended their rally in the 4th quarter, with the S&P 500 Index returning 12.15%. This capped the end to a historic year in which the S&P advanced 18.40% despite the world suffering through a global pandemic. The biggest news in the quarter was the U.S. Food and Drug Administration’s (FDA) approval of two separate vaccines, following very encouraging clinical results. This helped investors look beyond worsening COVID-19 trends and provided hope that an end to the pandemic could be in sight.

The Russell 3000 Index increased 14.68% in the quarter. Value stocks led the advance, as the Russell 3000 Value Index advanced 17.21% compared to the Russell 3000 Growth Index return of 12.41% during the period. Relative performance was inversely correlated by market cap in the quarter (i.e., small caps outperformed big caps). The Russell 1000 Index delivered a return of 13.69% compared to the Russell Mid Cap Index return of 19.91%. Smaller market cap indexes surged even more as the Russell 2000 Index returned 31.37% and the Russell Micro Cap Index returned 31.39%. Cyclically-sensitive sectors such as Energy, Financials, Industrials, and Materials performed best in the quarter. The more defensive areas like Telecom Services, Consumer Staples, Utilities, and Healthcare lagged. All sectors produced positive absolute results.


(As of 12/31/20) — The Buffalo Large Cap Fund (BUFEX) generated a return of 9.88% during the quarter, outperforming the Morningstar U.S. Large Growth Index return of 8.89%. Strong stock selection in Information Technology and a portfolio underweight to the Telecom Services sector were the biggest contributors to outperformance. Meanwhile, negative stock selection in the Consumer Discretionary sector served as a slight offset to relative outperformance during the quarter.


Alphabet (parent company of Google) was the top contributor for the Fund in the quarter, returning over 19%. The company reported very strong revenue growth in all segments including Search and YouTube, and continued to maintain a very strong competitive position.

Apple was also a top contributor for the Fund during the quarter, with the stock increasing by nearly 15%. Demand for the company’s devices has remained consistently strong, and the launch of the iPhone 12 appears to position the company well for a favorable growth cycle. The company is also continuing its favorable mix shift to high margin digital services, which could help drive significant earnings growth in 2021 and beyond.


Salesforce.com was the largest detractor for the portfolio in the quarter. After very strong growth in the first nine months of the year, the stock reported a somewhat disappointing bookings outlook in December 2020. The company also announced a large acquisition of Slack, and some investors fear the company’s M&A strategy might not generate the sales synergies the company is targeting. We continue to believe the company’s competitive position is strong and have a favorable outlook on its growth prospects over the long-term.


(As of 12/31/20) — Looking forward into 2021, we believe many factors point to optimism for the performance of large cap growth stocks and the overall markets but will likely see elevated volatility. Although the January special elections in Georgia have tipped control of the Senate (and, by extension, both houses of Congress) to Democrats, the Democratic majorities are slim, and far narrower than many investors feared leading up to the November election. Given this narrow majority, it will likely be difficult for the Congress to pass sweeping legislation (tax, regulatory, etc.) that would be viewed as negatives for many companies in our large cap universe. At the same time, some sectors such as alternative energy and infrastructure should be poised for improved growth in 2021 under the newly elected leadership in the Senate and White House. Control of the Congress by the Democrats does, however, appear to be driving some investor flows out of large cap due to the likelihood of increased stimulus spending, which will likely be more beneficial to small caps over large caps because they are viewed as more cyclical. We also believe that the “big tech” stocks, which make up a large portion of the Fund, could receive more regulatory scrutiny by Democrat-led Congress in coming quarters. This could pressure some of these stocks, but at the same time many of these companies have very strong market positions and growth outlooks that would be very difficult to disrupt with legislation.

While the initial state-by-state rollout of the vaccines appears sluggish, we think it is likely that much of the vulnerable population in the U.S. can be vaccinated by the end of the June. We believe there is a large pent-up demand for travel, events, and consumer spending, and these sectors will see strong earnings growth this year. The state of the U.S. economy will depend, in part, on the success in treating the COVID pandemic, but the jobless rate stands at 6.7%, far below the April 2020 peak of nearly 15%. It seems likely that the U.S. economy will continue to heal off the lows reached in March 2020, and many of the companies in the Fund could continue to benefit from continued improvement in consumer confidence. At the same time, the U.S. stock markets are trading near all-time highs at the start of 2021, with many stocks trading at elevated valuations relative to historical averages. We do not expect to see significant multiple expansion in large caps from current levels, and the high valuations could expose these names to heightened volatility as 2021 unfolds.

Within the framework above, we are cautiously optimistic about the prospects for our large cap growth stocks in 2021. We continue to manage the Fund actively, allocating capital away from fully-valued stocks, which we believe have limited upside, to those that appear to have better risk/reward tradeoffs. Our time-tested strategy of investing in premier large cap growth companies, which could benefit from long-term trends and trade at attractive valuations, in our opinion, remains the cornerstone of our work, and we appreciate your continued confidence in our efforts.

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
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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.

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 1,186 for the 3-year, 3 stars among 1,065 for the 5-year, and 3 stars among 788 Large Growth funds for the 10-year period ending 3/31/21.

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