Quick Facts
Inception Date:12/17/20017/1/2019
Expense Ratio:1.03%0.90%
Total Net Assets:$19072 Million  (3/31/21)
Category:Mid Cap Growth
Benchmark:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q4 2020
   PM Commentary Q4 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 560 Mid-Cap Growth funds as of 3/31/21.

Investment Style

Performance (%)

As of 3/31/213 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor4.614.6165.9220.4317.1211.969.409.85
BUFFALO MID CAP FUND - Institutional4.604.6066.1820.6017.2812.129.5610.01
  Morningstar U.S. Mid Growth Index-1.62-1.6273.2622.3720.5914.3211.1610.47
  Lipper Mid Cap Growth Index1.691.6972.3720.0319.3913.2710.749.96
  Morningstar Mid-Cap Growth Category3.963.9681.9520.2919.1613.3810.479.24
As of 3/31/213 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor4.614.6165.9220.4317.1211.969.409.85
BUFFALO MID CAP FUND - Institutional4.604.6066.1820.6017.2812.129.5610.01
  Morningstar U.S. Mid Growth Index-1.62-1.6273.2622.3720.5914.3211.1610.47
  Lipper Mid Cap Growth Index1.691.6972.3720.0319.3913.2710.749.96
  Morningstar Mid-Cap Growth Category3.963.9681.9520.2919.1613.3810.479.24
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 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 Mid Cap Growth Fund (BUFMX) returned 20.55% in the quarter, surpassing the benchmark Morningstar U.S. Mid Growth Index return of 19.38%. The Fund’s outperformance was driven by favorable stock selection within the Healthcare sector.


The top contributors during the 4th quarter were Lyft, RealPage, and MSCI Inc.

Lyft shares climbed higher on a combination of factors including election results in California that denied the reclassification of contract drivers to employees. While revenue reported for the quarter was negatively impacted by a resurgence of COVID throughout the country, Lyft continued to cut costs and delivered better-than-expected results. The cost cuts are particularly important as revenue is expected to rebound in coming quarters, and incremental profits on those revenues will drive the company to profitability quicker than previously anticipated.

RealPage shares received a boost in December with the announcement that it would be acquired by Thoma Bravo. Some have speculated it is possible the company could receive a competing offer, with the Thoma Bravo offer providing a 45-day window to ‘go shop’.

MSCI, Inc. reported a strong 3rd quarter, driven by its index and Environmental, Social, and Governance (ESG) businesses. Retention rates also rebounded, providing confidence that COVID-driven cancellations in the 2nd quarter were indeed a one-time occurrence. Furthermore, its index business is aided by fees on higher market levels, and strong equity markets bode well for future results.


The biggest detractors in the period were Splunk, Equinix, and Veeva Systems.

Splunk delivered disappointing results and pulled long term guidance management they had provided earlier in the quarter. The company cited unprecedented scrutiny on larger value deals, where C-suite sign-offs were required for deals that previously required none.

Equinix shares were softer during the quarter, although it delivered results and guidance in-line with expectations. The rise in interest rates during the period likely had an impact, as real estate investment trust (REIT) shares are more sensitive to shifts in rates than other sectors. In this case, optimism about vaccine approvals has increased economic growth expectations and thus led to higher interest rates.

Veeva Systems, a provider of software to the life sciences industry, reported a strong quarter and provided 2021 guidance that was generally above expectations. However, their margin guidance disappointed some investors. In addition, the change in government has increased investor anxiety about potential regulatory changes that could affect Veeva’s end markets.


(As of 12/31/20) — We completed a year in the markets without precedent. From one of the quickest and most significant drawdowns, with March marking the low, to finishing the year with strong positive returns. Within that is a market that has become bifurcated. Technology-driven and stay-at-home stocks were big winners in 2020. The valuations among those companies are drawing comparisons to the dot com bubble of 1999-2000. However, the balance of the market appears reasonably-priced based on prospects for a return to normal and growth in 2021.

We are optimistic that the COVID-19 virus will be brought under control, with the vaccines providing resilience to COVID for an increasing share of the population. The risk versus reward for owning companies whose prospects are tied to this recovery in activity far outweigh the attractiveness of those companies who were rewarded with expanding valuations, as investors sought companies relatively less impacted or even strengthened by COVID. We believe this distinction is the most important one facing investors in 2021 and have positioned the portfolio to benefit from the potential rebound in economic activity.

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 4 stars among 560 for the 3-year, 3 stars among 500 for the 5-year, and 2 stars among 379 Mid-Cap 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.