Inception Date
  December 17, 2001

Total Fund Assets
  $156.13 Million  (3/31/18)

Expense Ratio

Benchmark Index
  Russell Midcap Growth


Overall Morningstar™ rating out of 549 Mid-cap Growth funds as of 3/31/18 (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 549 funds in the Mid-Cap Growth category, as of 3/31/18.


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Investment Strategy

The investment objective of the Buffalo Mid Cap Fund is long-term growth of capital. The Mid Cap Fund normally invests at least 80% of its net assets in equity securities, consisting of domestic common stocks and preferred stocks of medium capitalization (“mid-cap”) companies — companies, at the time of purchase, with market caps within the range of the Russell Midcap Growth Index.

The Fund managers seek to identify companies for the Mid 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.


Our focus has always been on investing in secular growth companies we believe are attractively-priced with strong balance sheets. We remain convinced the inefficiencies inherent in the small and mid-cap market spectrum, in addition to where we are in the economic cycle, are best suited for disciplined, active management of the portfolio.

~ Chris Carter, Portfolio Manager

Performance (%)

As of 3/31/183 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
Buffalo Mid Cap Fund2.792.7911.694.779.769.1810.798.00
  Russell Midcap Growth Index2.172.1719.749.1713.3110.6112.129.04
  Lipper Mid Cap Growth Index3.243.2420.359.1912.549.5511.378.20
  Morningstar Mid-Cap Growth2.152.1518.348.2811.949.3911.027.42
As of 3/31/183 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
Buffalo Mid Cap Fund2.792.7911.694.779.769.1810.798.00
  Russell Midcap Growth Index2.172.1719.749.1713.3110.6112.129.04
  Lipper Mid Cap Growth Index3.243.2420.359.1912.549.5511.378.20
  Morningstar Mid-Cap Growth2.152.1518.348.2811.949.3911.027.42
YearBuffalo Mid Cap FundRussell Midcap Growth IndexMorningstar Mid-Cap Growth Category
(As of 3/31/18)

vs Russell Midcap Growth Index
Upside Capture76.74
Downside Capture101.57
Sharpe Ratio0.40

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.

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 3/31/18)

# of Holdings72
Median Market Cap$12.11 B
Weighted Average Market Cap$18.14 B
3-Yr Annualized Turnover Ratio49.28%
% of Holdings with Free Cash Flow79.10%
% of Holdings with No Net Debt35.82%
Active Share84.72%
Name of HoldingTickerSector% of Net Assets
Verisk AnalyticsVRSKIndustrials2.44%
CME GroupCMEFinancials2.16%
ZoetisZTSHealth Care2.08%
F5 NetworksFFIVTechnology2.03%
EquinixEQIXReal Estate2.02%
LKQLKQConsumer Discretionary1.85%
Air Products & ChemicalsXNYSMaterials1.85%
View Full Holdings

As of 12/31/17. 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 3/31/18. 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 3/31/18. Market Cap percentages may not equal 100% due to rounding.


Commentary for Q1 2018   (As of 3/31/18)


(As of 12/31/17) — Equity markets ended 2017 on a strong note. The 4th quarter saw a continuation of trends that have influenced the market all year. Investor optimism about improving global economic growth and strong corporate earnings led to another quarter of higher stock prices and low volatility. Strong holiday sales and the passage of tax reform legislation also provided tailwinds to equity markets. The CBOE Volatility Index continued to hover near record lows, and, for the first time since 1958, U.S. equities delivered positive returns in every single month of the year.

The Russell 3000 Index produced a total return of 6.34% in the 4th quarter. Growth continued to outperform value, with the Russell 3000 Growth Index up 7.61%, beating the 5.08% return from the Russell 3000 Value. Large companies generally outperformed smaller companies during the quarter. The Russell 1000 returned 6.59%, the Russell Midcap Index returned 6.07%, the Russell 2000 returned 3.34%, and the Russell Microcap Index returned 1.80%. Consumer Discretionary and Technology were the best performing sectors in the 4th quarter. Consumer Staples, Health Care, and Utilities underperformed.


(As of 12/31/17) — In the 4th quarter the Buffalo Mid Cap Growth Fund returned 3.88%, trailing the benchmark Russell Midcap Growth Index return of 6.81%. The fund’s underperformance was driven by unfavorable selection within the consumer discretionary, health care, and financials sectors.

Among the top contributors during the quarter were Cavium, Verisk Analytics, and Dollar Tree. Cavium shares traded higher on a buyout offer from Marvell that was accepted by the board. The acquisition is expected to close in the middle of 2018. For Marvell, the deal provides it with exposure to higher growth markets and diversifies its revenue away from the mature hard disk drive market.

Next, Verisk Analytics reported a favorable surprise in earnings that was a result of an inflection in growth. Its largest business segment, insurance analytics, was helped by hurricanes in Q3. Financial services and energy segments also contributed better results, marking the 1st time in several years all segments outperformed.

Finally, Dollar Tree shares were also driven higher by stronger than expected earnings. Sales growth exceeded expectations both at the flagship Dollar Tree stores and the recently acquired Family Dollar helping to drive operating margin leverage that resulted in earnings outperformance.

Detractors in the period were Nevro, Twilio, and Expedia. While Nevro revenues exceeded expectations for the quarter, the results were not enough to sustain shareholder optimism as shares traded lower. Nevro is taking significant market share with a clinically superior product in spinal cord stimulation, but deeper pocketed competitors have been successful in slowing share loss. Next, Twilio reported strong revenue results but gross margin disappointed leading investors to question its ability to reach its profit margin targets and drive earnings growth in the future. Finally, Expedia shares were under pressure during the quarter as the outlook for 2018 called for higher marketing spend that led analysts to revise earnings growth lower for the year.


(As of 12/31/17) — We are coming off a banner year for equity markets in 2017. Looking towards the near future, the economic outlook continues to support equity markets by providing an environment ripe for growth. Inflation and unemployment remain at low levels, while interest rates are expected to rise at a modest pace. In addition, the new tax code includes a tax cut for corporations, which should result in additional investment to support future growth. Many large corporations have also announced special bonuses or increased pay as a result of the tax break, which will support consumer spending growth as well.

While the economic outlook is robust, we are monitoring several potential risks to the markets. First, the threat of a potential military confrontation with North Korea remains as the U.S. seeks to prevent the development of nuclear weapons. Second, trade agreements such as NAFTA (North American Free Trade Agreement) may be dissolved or renegotiated, and abrupt changes would be impactful for many companies with operations in Mexico. Finally, valuations reflect a long standing bull market and represent a risk should investors turn pessimistic. Despite these risks, our outlook for 2018 remains positive.

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 Mid Cap Fund received 2 stars among 549 for the three-year, 2 stars among 485 for the five-year, and 3 stars among 352 Mid-Cap Growth funds for the ten-year period ending 3/31/18.

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.