Quick Facts
Inception Date:12/17/20017/1/2019
Expense Ratio:1.02%0.87%
Total Net Assets:$164.18 Million  (9/30/19)
Category:Mid Cap Growth
Benchmark:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q3 2019
   PM Commentary Q2 2019
   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 — companies, at the time of purchase, with 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 544 Mid-Cap Growth funds as of 9/30/19.

Investment Style

Performance (%)

As of 9/30/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor1.6130.308.5811.558.4810.728.908.28
BUFFALO MID CAP FUND - Institutional1.6830.488.7711.738.6510.899.068.45
  Morningstar U.S. Mid Growth Index-3.0825.583.9115.1711.2213.9210.748.67
  Lipper Mid Cap Growth Index-1.5324.443.9515.0210.9712.8210.118.40
  Morningstar Mid-Cap Growth Category-1.8022.761.1013.109.8912.569.487.43
As of 9/30/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND - Investor1.6130.308.5811.558.4810.728.908.28
BUFFALO MID CAP FUND - Institutional1.6830.488.7711.738.6510.899.068.45
  Morningstar U.S. Mid Growth Index-3.0825.583.9115.1711.2213.9210.748.67
  Lipper Mid Cap Growth Index-1.5324.443.9515.0210.9712.8210.118.40
  Morningstar Mid-Cap Growth Category-1.8022.761.1013.109.8912.569.487.43
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 9/30/19)
Upside Capture81.73
Downside Capture93.55
Sharpe Ratio0.71
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 9/30/19) 
# of Holdings61
Median Market Cap$11.53 B
Weighted Average Market Cap$18.56 B
3-Yr Annualized Turnover Ratio48.02%
% of Holdings with Free Cash Flow88.89%
% of Holdings with No Net Debt30.16%
Active Share78.83%
Top 10 Holdings
Name of HoldingTickerSector% of Net
CoStar GroupCSGPReal Estate3.05%
IHS MarkitINFOIndustrials2.93%
EquinixEQIXReal Estate2.77%
Exact SciencesEXASHealth Care2.65%
Verisk AnalyticsVRSKIndustrials2.58%
Palo Alto NetworksPANWTechnology2.39%
CBRE GroupCBREReal Estate2.26%
As of 6/30/19. 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 9/30/19. 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 9/30/19. 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 6/30/19) — The S&P 500 Index posted its best 1st half of a calendar year since 1997, rising 18.54% from January 1 to June 30. During the most recent quarter, the index was in negative territory for the first two months (April and May) then rose 7.05% in the final month, marking the best June since 1955, and finished with a return of 4.30% for the quarter.

Central banks and trade policies continued to drive financial markets during the period. The threat of increasing tariffs against China and Mexico contributed to the sell-off early in the quarter, and the June rally was largely a result of dovish central bank commentary, leading investors to anticipate rate cuts in the coming months.

The Russell 3000 Index returned 4.10% in the quarter. By style, growth outpaced value, with the Russell 3000 Growth Index up 4.50% and the Russell 3000 Value Index up 3.68%. Large caps generally outperformed small caps in the quarter. The Russell 1000 Index returned 4.25%, just ahead of the Russell Mid Cap Index return of 4.13%. The Russell 2000 returned 2.10% during the quarter. Financials were the best performing sector, followed by Materials and Information Technology. Energy was the only sector to post a negative return, driven by a decline in oil prices. Health Care and Real Estate also underperformed relative to the broad market.

(As of 6/30/19) — In the 2nd quarter of 2019, the Buffalo Mid Cap Growth Fund returned 6.68% compared to the benchmark Morningstar U.S. Mid Growth Index return of 7.06%. The Fund’s underperformance was driven by stock selection in Information Technology, which was partially offset by favorable stock selection in the Financials sector. For the year-to-date period, the Fund has returned 28.23% compared to the benchmark return of 29.58%.

Exact Sciences shares have been driven by the acceleration in growth of its Cologuard test used for colon cancer screening. Management commentary about the Pfizer sales agreement, beginning in 2019, provided optimism about the potential for sustaining high growth in Cologuard tests. The company stated that completed test results in the 1st quarter reflected little contribution from Pfizer because timeline from signing up new doctors to a patient’s completed test is around six months.

MSCI posted strong 1st quarter results, with the market rebound helping their asset-based fees and strong subscription growth, driven by successful growth initiatives (e.g. ESG and factor-based investing). Market tailwinds and solid exchange-traded fund (ETF) inflows continued to help the stock’s performance throughout the quarter.

CoStar Group, a provider of information and marketing services to the commercial real estate industry, continued to benefit from accelerating sales growth, with bookings up 36% year-over-year. The integration of ForRent into Apartments.com continued to go smoothly and create revenue synergy opportunities. Looking forward, we expect CoStar to continue to grow revenues at an attractive rate, as they further penetrate a large addressable market within the industry.

Among the top detractors in the quarter were Palo Alto Networks, Arista Networks, and Inogen. Both Arista Networks and Inogen shares declined on disappointing earnings reports. Arista faced a surprise slowdown in spending toward the end of the quarter, which impacted its results – surely a side effect of its concentration of sales to several of the top technology companies building out public cloud offerings at hyperscale. Inogen continued to face difficult comps from 2018, when its sales were boosted by orders from one of the largest home care providers in the portable oxygen market. Higher sales in its direct-to-consumer business and international markets have not been enough to offset headwinds in the home care market.

Palo Alto shares were weaker despite results that exceeded expectations. Investors concentrated their attention toward the growing focus on cloud security and its subscription business model. There are fears that the subscription nature of cloud security could become a headwind for growth in the core business of selling next generation firewalls, a hardware plus subscription business model.

(As of 6/30/19) — We continue to see the economic environment as supportive for earnings growth. The most worrisome risk to this status quo has been the increasing probability of trade wars, particularly with China. President Trump has initiated tariffs and other restrictions on imports from China and has shown a willingness to rethink other trade agreements. The fallout from these decisions is on our radar, particularly for the companies most impacted by changes to international trade. The Federal Reserve (the “Fed”) appears to be shifting back to an accommodative stance, as the next interest rate move is expected to be lower, breaking trend with the interest rate increases over the last several years. It appears the Fed is being proactive to avoid being too late in providing economic support, perhaps the trade situation with China has them more ready to act. Regardless of the outcome on trade with China, we believe a strong domestic economy will help offset any negative impact from changes in international trade and our outlook for the remainder of 2019 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. 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 2 stars among 544 for the 3-year, 2 stars among 487 for the 5-year, and 2 stars among 375 Mid-Cap Growth funds for the 10-year period ending 9/30/19.

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. ©2019 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.