Quick Facts
Inception Date:12/17/20017/1/2019
Expense Ratio:1.03%0.90%
Total Net Assets:$158.09 Million  (9/30/20)
Category:Mid Cap Growth
Benchmark:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q3 2020
   PM Commentary Q3 2020
   Summary Prospectus
Fund Objective & 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, that, at the time of purchase, have market caps between $4.5B and $30B.

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

Morningstar Rating


Overall Morningstar Rating™ of BUFMX based on risk-adjusted returns among 557 Mid-Cap Growth funds as of 9/30/20.

Investment Style

Performance (%)

As of 9/30/203 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor7.2611.3117.8713.9311.4810.888.608.77
BUFFALO MID CAP FUND - Institutional7.3811.4918.0614.1211.6611.058.778.94
  Morningstar U.S. Mid Growth Index9.5622.4532.6219.8017.2015.0910.979.82
  Lipper Mid Cap Growth Index9.0014.4923.1316.0715.3813.4410.249.14
  Morningstar Mid-Cap Growth Category10.2015.0124.4914.6814.2813.229.748.17
As of 9/30/203 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor7.2611.3117.8713.9311.4810.888.608.77
BUFFALO MID CAP FUND - Institutional7.3811.4918.0614.1211.6611.058.778.94
  Morningstar U.S. Mid Growth Index9.5622.4532.6219.8017.2015.0910.979.82
  Lipper Mid Cap Growth Index9.0014.4923.1316.0715.3813.4410.249.14
  Morningstar Mid-Cap Growth Category10.2015.0124.4914.6814.2813.229.748.17
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
BUFMX vs Morningstar U.S. Mid Growth Index (As of 9/30/20)
Upside Capture74.49
Downside Capture95.11
Sharpe Ratio0.68
Hypothetical Growth of $10,000
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.


Portfolio Characteristics
(As of 9/30/20) 
# of Holdings71
Median Market Cap$15.05 B
Weighted Average Market Cap$22.12 B
3-Yr Annualized Turnover Ratio39.55%
% of Holdings with Free Cash Flow87.32%
% of Holdings with No Net Debt34.72%
Active Share76.40%
Top 10 Holdings
Name of HoldingTickerSector% of Net
IHS MarkitINFOIndustrials3.39%
CoStar GroupCSGPReal Estate3.28%
Verisk AnalyticsVRSKIndustrials2.93%
Veeva SystemsVEEVHealth Care2.71%
Bio-Techne CorpTECHHealth Care2.42%
MarketAxessMKTXFinancial Services2.15%
Kansas City SouthernKSUIndustrials2.11%
As of 6/30/20. 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 9/30/20. 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 9/30/20. Market Cap percentages may not equal 100% due to rounding.


Chris Carter, CFA
Portfolio Manager

10 Years of Experience

 View full bio

Josh West, CFA
Portfolio Manager

14 Years of Experience

 View full bio



(As of 6/30/20) — Equity markets rebounded sharply in the 2nd quarter following steep losses in the previous period. The S&P 500 Index produced a return of 20.54%, marking the best quarterly performance results in 20 years. Stimulus efforts by the Federal Reserve (the “Fed”) and the U.S. Treasury Department to limit COVID-related economic damage helped equity markets find a floor in late March. Declining COVID-19 case counts, optimism about treatment and potential vaccines, along with better-than-expected economic data also contributed to improved investor sentiment during the period. Although confirmed virus cases began spiking again in the final days of June, it was not enough to undo the best quarterly market results since the dot-com boom.

The broad market Russell 3000 Index advanced 22.03% in the quarter, and Growth outperformed Value as the Russell 3000 Growth Index moved up 27.99% during the period, compared to the Russell 3000 Value Index’s advance of 14.55%. Relative performance was inversely-correlated by market cap as the Russell Micro Cap Index advanced 30.54%, well above the large cap Russell 1000 Index’s return of 21.82%. Meanwhile the small cap Russell 2000 Index and the Russell Mid Cap Index were up 25.42% and 24.61%, respectively. The best performing sectors were Technology, Consumer Discretionary, and Energy while the less cyclically exposed, more defensive areas like Utilities, Telecommunication, and Consumer Staples lagged in the quarter.


(As of 6/30/20) — In the 2nd quarter of 2020, the Buffalo Mid Cap Growth Fund (BUFMX) returned 22.66%, lagging the benchmark Morningstar U.S. Mid Growth Index return of 34.66%. The Fund’s underperformance was due to stock selection in the Information Technology, Health Care, and Consumer Discretionary sectors. The quarter was defined by a significant rally across the board, however, companies less impacted, or even helped by shutdowns in the period, saw their share prices increase rapidly. Several companies in the benchmark more than doubled in value, with a speculative fervor that included little regard for how price paid today impacts returns over a long-term holding period. We anticipate that these speculative gains will be reconciled in the coming quarters and our more disciplined approach to price paid for future growth will be rewarded.


Among the top contributors during the second quarter were Veeva Systems, Splunk, and MarketAxess Holdings. Digital product delivery was a common thread for each of these three top performers. The market rewarded companies whose revenue models were unaffected by a nationwide shutdown during the pandemic.

Veeva Systems was boosted by strong 1st quarter results and guidance that surpassed consensus expectations. Veeva’s core business of providing software to the life sciences industry was helped by shutdowns as companies prioritized digital capabilities to support work from home.

Splunk shares rallied on quarterly results that benefited from accelerating digital transformation adoption by customers. Many customers of Splunk completed multi-year projects in just months spurred by office closures due to the shutdown.

MarketAxess benefited from volatility in fixed income markets as well as the shutdown, which helped to accelerate market share growth for its electronic platform for fixed income trading.


With the Fund up significantly in the quarter, there were not many positions detracting from performance and none significantly. TripAdvisor and Universal Display, two newly initiated positions, were the largest detractors. Each company is dependent upon a return to normalized economic activity on the part of the U.S. consumer, which was challenged as COVID-19 daily case counts increased in June.

Universal Display is a technology company that licenses and sells materials for making OLED screens, used in TVs and other electronics such as tablets and mobile phones. It is a beneficiary of growing penetration of OLED TVs, where LCD display is still the market share leader.

TripAdvisor is reliant on travel, where it sells advertising space alongside its review content and earns fees as a booking platform for restaurants and excursions. The drop off in revenue has been severe due to the pandemic. However, the company shares represent a significant opportunity as a more normal travel environment should return in coming years.


(As of 6/30/20) —The rally back from market lows in March was unprecedented, surprising in both magnitude and timing. The last several recessions and ensuing bear markets, have lasted several quarters, averaging about a year in duration. Provided the rally holds its gains and does not retest March lows, the peak to trough decline from this bear market will have lasted only about one month. The key premise for the quick market recovery is that the COVID-19 virus is like a natural disaster rather than a structural economic imbalance. In natural disasters, destruction is quick, and rebuilding happens immediately afterwards, spurring economic growth. In a structural economic imbalance, such as the financial crisis, entire sectors of the economy overshoot normal growth, resulting in years of rightsizing and adjustment that detract from economic growth. The biggest risk is that the market rally has assumed damage to future profits that will be short-lived and will steadily recover from lows set during the period. The future path of the COVID-19 virus must prove this to be true, otherwise we may see the narrative for the market change from short-lived losses towards a more structural imbalance, which would challenge the recent rally.

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.


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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 Mid Cap Fund (BUFMX) received 3 stars among 557 for the 3-year, 2 stars among 500 for the 5-year, and 2 stars among 380 Mid-Cap Growth funds for the 10-year period ending 9/30/20.

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.