Quick Facts
Inception Date:12/17/20017/1/2019
Expense Ratio:1.02%0.87%
Total Net Assets:$140.30 Million  (3/31/20)
Category:Mid Cap Growth
Benchmark:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q1 2020
   PM Commentary Q1 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 565 Mid-Cap Growth funds as of 4/30/20.

Investment Style

Performance (%)

As of 4/30/203 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor-6.22-
BUFFALO MID CAP FUND - Institutional-6.21-3.964.309.436.729.288.728.27
  Morningstar U.S. Mid Growth Index-5.14-3.454.5613.379.6712.3810.488.64
  Lipper Mid Cap Growth Index-8.87-7.320.0610.878.7711.029.808.10
  Morningstar Mid-Cap Growth Category-9.93-8.79-2.088.977.5110.659.097.09
As of 3/31/203 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor-15.40-15.40-2.895.553.908.017.377.40
BUFFALO MID CAP FUND - Institutional-15.39-15.39-2.785.694.048.167.537.56
  Morningstar U.S. Mid Growth Index-17.00-17.00-6.738.526.2211.109.027.79
  Lipper Mid Cap Growth Index-19.78-19.78-9.596.485.489.798.397.29
  Morningstar Mid-Cap Growth Category-20.64-20.64-11.174.664.339.467.726.32
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 3/31/20)
Upside Capture78.07
Downside Capture93.76
Sharpe Ratio0.24
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 3/31/20) 
# of Holdings67
Median Market Cap$12.22 B
Weighted Average Market Cap$18.26 B
3-Yr Annualized Turnover Ratio46.45%
% of Holdings with Free Cash Flow89.55%
% of Holdings with No Net Debt28.36%
Active Share75.21%
Top 10 Holdings
Name of HoldingTickerSector% of Net
IHS MarkitINFOIndustrials3.15%
CoStar GroupCSGPReal Estate3.00%
Palo Alto NetworksPANWTechnology2.47%
CBRE GroupCBREReal Estate2.45%
Verisk AnalyticsVRSKIndustrials2.39%
Tyler TechnologiesTYLTechnology2.24%
EPAM SystemsEPAMTechnology2.24%
As of 12/31/19. 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 3/31/20. 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 3/31/20. 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 3/31/20) — Global equity markets fell sharply in the 1st quarter of 2020 in reaction to the global spread of COVID-19. As the case count increased exponentially, the only effective response was for countries to go into lockdown. The economic impact of these actions became clear as the quarter progressed and virtually all asset classes suffered as a result. From February 19 through March 23, the U.S. stock market, as measured by the S&P 500 Index, declined around 34%, which was the fastest meltdown in history. Central banks and governments responded quickly to this event, with the U.S. Federal Reserve (the “Fed”) cutting interest rates twice in March and announcing unlimited quantitative easing. The U.S. Senate passed a $2 trillion stimulus package, providing assistance to individuals and businesses in distress. Optimism around these efforts helped the market rally into quarter end, leaving the S&P 500 Index down 19.60% from the start of the year.

The broad market Russell 3000 Index declined 20.90% in the 1st quarter. Growth outperformed value, with the Russell 3000 Growth Index declining 14.85% compared to the Russell 3000 Value Index decline of 27.32%. By capitalization size, large cap stocks held up best, with a -20.22% return in the quarter, represented by the Russell 1000 Index. The Russell Mid Cap Index fell -27.07%, followed by the smaller cap Russell 2000 Index which declined -30.61%. Best performing sectors were the Technology, Health Care, and Consumer Staples sectors. The Energy sector was hit hardest as falling demand and rising supply from Saudi Arabia caused oil prices to crater. The economically-sensitive Financial and Industrial sectors were also among the worst performing sectors in the quarter.


(As of 3/31/20) — The Buffalo Mid Cap Fund (BUFMX) returned -15.40% in the first quarter of 2020. While disappointing on an absolute basis, this compares favorably to the Morningstar U.S. Mid Growth Index’s return of -17.00%. Outperformance was driven by stock selection in the Industrial and Financial sectors, near zero exposure to the weak performing Energy sector, and a slightly elevated cash position. This was partially offset by poor stock selection in the Consumer Discretionary sector and underweight allocations to
the Health Care and Information Technology sectors.


The Fund’s largest holding, MSCI Inc., advanced slightly more than 12% in the quarter. Early in the period, the company reported strong results driven by rapid growth in their ESG franchise. Amongst the market turmoil later in the quarter, investors flocked to MSCI as they sought safety in the relative stability of their business model. We continue to hold a favorable view of MSCI’s long-term growth prospects.

Two top performers in the quarter were beneficiaries of trends that accelerated as a result of the COVID-19 virus, work from home and e-commerce. The first, Citrix Systems, provides solutions for securely accessing corporate computing from
remote locations by providing a VPN, or virtual private network. As shutdowns increased throughout March in response to COVID-19, the stock outperformed on the expectation that corporations would need to purchase more from Citrix to meet demand for an unprecedented number of employees working remotely.

Next, Chewy operates an e-commerce site for pet owners to purchase pet food, treats, medications, and other goods. The company noted an increase in new customers and an overall ramp up in business in March and April in response to COVID-19. Pet owners, like the rest of us, are stocking up on essentials and favoring convenient options, like Chewy, that deliver to our doorstep thus avoiding the need to leave home.


CBRE Group was the largest detractor in the quarter. Their transactional advisory business will likely experience steep declines this year driven by economic weakness. Investors have bad memories of how commercial real estate firms performed in the last recession. However, CBRE today has a much higher mix of recurring revenues and a cleaner balance sheet, and the company should perform well in an eventual recovery.

Norwegian Cruise Line Holdings was at the center of COVID-19 concerns. With the virus spreading on several cruise ships, the fallout could lead to lower cruise demand for several years. We were uncomfortable with the company’s financial and operating leverage and decided to exit the position.

LKQ traded lower in the quarter in response to mediocre earnings and the prospect of coronavirus driven weakness. Social distancing will lead to fewer miles driven in their core markets of the United States and Europe. With fewer miles driven, car repairs and maintenance will decline, further pressuring LKQ’s organic growth.


(As of 3/31/20) — The near-term outlook is extremely uncertain. We expect to see heightened volatility as investors assess the length and severity of the coronavirus pandemic and the economic fallout from social distancing policies. Consumer confidence is shaken, and
we expect the economy to struggle until a vaccine and/or drug treatment is widely available. The good news is that, given the number of businesses and governments working on this, a breakthrough could occur at any time.

In these turbulent times, we have not changed our investment philosophy or process. We are using the heightened volatility to look for new opportunities. Portfolio turnover has ticked up over the last couple of months, but we continue to take a long-term view when making new investments. We are also increasing our efforts to stress test the balance sheets and business models of portfolio holdings and prospective investments to make sure they can survive the current economic downturn. We will continue to invest in businesses with durable competitive advantages and superior growth
outlooks, when they are selling at attractive valuations. We believe that a portfolio of these companies will continue to offer attractive risk-adjusted returns. Thank you for
your continued support.

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 565 for the 3-year, 3 stars among 503 for the 5-year, and 2 stars among 387 Mid-Cap Growth funds for the 10-year period ending 4/30/20.

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.