Quick Facts
Inception Date:12/17/20017/1/2019
Expense Ratio:1.03%0.90%
Total Net Assets:$184.72 Million  (12/31/20)
Category:Mid Cap Growth
Benchmark:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q4 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 564 Mid-Cap Growth funds as of 12/31/20.

Investment Style

Performance (%)

As of 12/31/203 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor20.5534.1834.1819.7315.6211.689.559.72
BUFFALO MID CAP FUND - Institutional20.5634.4234.4219.9115.8011.849.729.89
  Morningstar U.S. Mid Growth Index19.3846.1746.1724.4020.8315.5911.9610.71
  Lipper Mid Cap Growth Index18.7735.9835.9820.6318.6213.9111.2910.00
  Morningstar Mid-Cap Growth Category21.0339.2639.2619.7717.8013.8310.879.15
As of 12/31/203 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor20.5534.1834.1819.7315.6211.689.559.72
BUFFALO MID CAP FUND - Institutional20.5634.4234.4219.9115.8011.849.729.89
  Morningstar U.S. Mid Growth Index19.3846.1746.1724.4020.8315.5911.9610.71
  Lipper Mid Cap Growth Index18.7735.9835.9820.6318.6213.9111.2910.00
  Morningstar Mid-Cap Growth Category21.0339.2639.2619.7717.8013.8310.879.15
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 12/31/20)
Upside Capture80.10
Downside Capture95.11
Sharpe Ratio0.93
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 12/31/20) 
# of Holdings69
Median Market Cap$15.95 B
Weighted Average Market Cap$24.63 B
3-Yr Annualized Turnover Ratio43.20%
% of Holdings with Free Cash Flow84.06%
Active Share79.98%
Top 10 Holdings
Name of HoldingTickerSector% of Net
Veeva SystemsVEEVHealth Care3.35%
CoStar GroupCSGPReal Estate3.30%
IHS MarkitINFOIndustrials3.20%
Verisk AnalyticsVRSKIndustrials3.08%
Bio-Rad LabsBIOHealth Care2.14%
Bio-Techne CorpTECHHealth Care2.09%
CBRE GroupCBREReal Estate2.08%
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.


Chris Carter, CFA
Portfolio Manager

12 Years of Experience

 View full bio

Josh West, CFA
Portfolio Manager

16 Years of Experience

 View full bio



(As of 9/30/20) — Equity markets sustained their momentum in the 3rd quarter, with the S&P 500 Index returning 8.93%. Macro data continued to improve, and companies broadly reported earnings that proved to be more resilient than expectations. While the U.S. experienced another spike in COVID-19 cases during the quarter and tragically surpassed 200,000 deaths, positive news on vaccines and therapy fronts continued to provide hope for investors.

The Russell 3000 Index increased 9.21% in the quarter. Growth continued to outperform value, as the Russell 3000 Growth Index advanced 12.86%, compared to the Russell 3000 Value Index return of 5.41%. Relative performance was correlated with market cap size in the quarter, with the large cap Russell 1000 Index delivering a return of 9.47%, compared to the Russell Mid Cap Index return of 7.46%, the smaller cap Russell 2000 Index return of 4.93%, and the Russell Micro Cap Index return of 3.69%. More cyclically-exposed Consumer Discretionary, Materials, and Industrial sectors performed best in the quarter. Energy was the sole declining sector, hurt by lingering weakness in oil demand.


(As of 9/30/20) — The Buffalo Mid Cap Fund returned 7.26% during the quarter, but trailed the Morningstar U.S. Mid Growth Index’s gain of 9.56%. The underperformance was largely the result of stock selection and an underweight position in the Information Technology sector. Across the entire portfolio, underexposure to non-earners and companies with sky-high valuation multiples, in our view, hurt relative performance. With interest rates expected to be “lower for longer”, sales growth was rewarded over profitability and valuation discipline during the market rebound.


CoStar Group was the top contributor to performance, with shares up around 19% in the quarter. The company reported 2nd quarter earnings that were much better than expectations, led by the Apartments.com business. Sales for their core CoStar Suite also recovered quicker than anticipated from coronavirus induced weakness.

Veeva Systems was another leading contributor, rising 20% in the quarter after reporting strong earnings. Their Vault product has strong momentum in the marketplace, and fears of declining CRM market share seem to have been addressed. They also announced a new consumer-facing application that could expand their addressable market.

IAA, Inc. was up 35% in the quarter. The salvage auto-auction company exceeded expectations, driven by strong revenue per unit sold. While units sold declined, volumes stabilized sooner than expected.


Hill-Rom was a leading detractor from portfolio performance for the quarter, with its stock declining 24%. While it reported results that exceeded consensus expectations, concern about the sustainability of its growth in future quarters led to a selloff. Management noted many one-time factors related to COVID-19 for the strong quarterly performance and provided guidance that led many to believe performance in the next quarter would be weaker.

RealPage also detracted from performance, with shares down 11% in the quarter despite reporting strong earnings and providing an optimistic outlook. Investors were likely concerned about the macroeconomic environment and the seemingly abrupt exit of the company’s CFO.


(As of 9/30/20) — After a turbulent start to the year, the focus remains on the trajectory of the COVID-19 pandemic and the associated economic fallout. Unfortunately, the gradual reopening of the economy has led to a surge in virus cases. Despite this, we expect state and local governments to resist shutting down economies again with strict shelter in place orders. On the positive side, several vaccines appear to show promise in immunizing people from the virus. The availability of a vaccine or cure would, obviously, be a welcome development and lead to more rapid and broader economic growth. We are also paying attention to the upcoming elections, and, while more people are expecting a “blue wave” in November, it is not clear to us that this outcome is currently reflected in the share prices of some companies that could be affected by policy changes.

While the timing and trajectory are unclear, the pandemic will eventually end and the economy will recover. When that happens, economic growth should broaden and the scarcity value of growth in equity markets will diminish. The recent outperformance of “growth at any price” cannot continue forever, and a reversal in market leadership is likely to be painful for investors that ignored valuations. While we expect volatility to remain high, it will not change our investment philosophy. We will continue to invest in businesses with solid growth opportunities, durable competitive advantages, scalable business models, and good management teams, when they are trading at attractive valuations, in our opinion. 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 564 for the 3-year, 3 stars among 504 for the 5-year, and 2 stars among 383 Mid-Cap Growth funds for the 10-year period ending 12/31/20.

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. ©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.