Inception Date
  December 17, 2001

Total Fund Assets
  $151.84 Million  (9/30/18)

Expense Ratio

Benchmark Index
  Morningstar U.S. Mid Growth


Overall Morningstar™ rating out of 540 Mid-cap Growth funds as of 9/30/18 (derived from a weighted average of the fund’s three-, five-, and ten-year risk adjusted return measure).


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.

Risk vs Category



The Morningstar™ Risk vs Category rating is an assessment of the variations in a fund’s monthly returns, with an emphasis on downside variations, in comparison to the 540 funds in the Mid-Cap Growth category, as of 9/30/18.


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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 within the range of the Morningstar U.S. Mid Growth Index.

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

Performance (%)

As of 9/30/183 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND4.6311.2415.5610.408.6210.849.378.27
  Morningstar U.S. Mid Growth Index7.8617.0324.7617.0712.8512.8311.288.96
  Russell Midcap Growth Index7.5713.3821.1016.6513.0013.4611.109.43
  Lipper Mid Cap Growth Index7.1415.4922.1816.9012.3712.3410.618.67
  Morningstar Mid-Cap Growth Category6.4813.4220.3115.8111.6811.9710.147.85
As of 9/30/183 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND4.6311.2415.5610.408.6210.849.378.27
  Morningstar U.S. Mid Growth Index7.8617.0324.7617.0712.8512.8311.288.96
  Russell Midcap Growth Index7.5713.3821.1016.6513.0013.4611.109.43
  Lipper Mid Cap Growth Index7.1415.4922.1816.9012.3712.3410.618.67
  Morningstar Mid-Cap Growth Category6.4813.4220.3115.8111.6811.9710.147.85
vs Morningstar U.S. Mid Growth Index
(As of 9/30/18)
Upside Capture71.84
Downside Capture101.47
Sharpe Ratio0.95

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.

As of July 27, 2018 the Morningstar U.S. Mid Growth Index has replaced the Russell Midcap Growth Index as the Fund’s primary benchmark. The Advisor believes that the new index is more appropriate given the Fund’s holdings.

Growth of $10k

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.


(As of 9/30/18) 
# of Holdings63
Median Market Cap$11.67 B
Weighted Average Market Cap$18.58 B
3-Yr Annualized Turnover Ratio45.13%
% of Holdings with Free Cash Flow80.33%
% of Holdings with No Net Debt34.43%
Active Share87.25%
Name of HoldingTickerSector% of Net Assets
Verisk AnalyticsVRSKIndustrials2.44%
ZoetisZTSHealth Care2.41%
CME GroupCMEFinancials2.35%
F5 NetworksFFIVTechnology2.15%
Palo Alto NetworksPANWTechnology2.11%
CoStar GroupCSGPReal Estate2.11%
View Full Holdings

As of 6/30/18. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Those listed are for the previous quarter. Fund holdings are subject to change and are not recommendations to buy or sell any securities.

Buffalo publishes this listing of securities held as of the most recent calendar-quarter end, with a 30 or 60 day lag depending on the portfolio. Buffalo may exclude any portion of holdings from publication when deemed in the best interest of the portfolio.

The portfolio data and its presentation here may differ from the complete schedules of investments in regulatory filings due to differing accounting and reporting requirements.

As of 9/30/18. 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.

As of 9/30/18. Market Cap percentages may not equal 100% due to rounding.



(As of 6/30/18) — Supportive economic data drove positive domestic equity performance in the 2nd quarter. The unemployment rate declined to 3.8%, the lowest level in 18 years. Wages have continued to rise, with average hourly earnings up 2.7% as of May. Corporate earnings growth continued to be robust. The Federal Reserve increased their target rate by 0.25% and raised their forecast for growth and inflation again in June. Meanwhile, economic growth outside the U.S. slowed, with the divergence driving strength in the U.S. dollar. Increasing trade protectionism along with the dollar’s strength, led to the relative outperformance of domestically focused industries and smaller capitalization companies, which generally do less international business than large caps. Crude oil prices continued to rise, despite the strong dollar, driven by lower stockpiles in the U.S. and President Trump’s decision to withdraw from the Iran nuclear accord.

The Russell 3000 Index returned 3.89% in the quarter. Growth continued to outpace value, with the Russell 3000 Growth Index up 5.87% and the Russell 3000 Value Index up 1.71%. By size, the Russell Microcap Index led the way with a return of 9.97%, followed by the small cap Russell 2000 Index at 7.75%. The large cap Russell 1000 Index was up 3.57%, and the Russell Midcap Index was up 2.82%. Energy was the best performing sector, driven by strength in crude oil prices. The Consumer Discretionary, Information Technology, and Real Estate sectors also had strong quarters. Meanwhile, trade fears and rising input costs caused the underperformance of Industrials, and Financials were weaker as a result of the yield curve flattening.


(As of 6/30/18) — In the 2nd quarter of 2018, the Buffalo Mid Cap Growth Fund returned 3.43%, ahead of the benchmark Russell Mid Cap Growth Index return of 3.16%. The Fund’s outperformance was driven by strong stock selection in Financials, Information Technology, Industrials, and Health Care, which was partially offset by negative selection in Consumer Discretionary and Consumer Staples. For the year to date period, the Buffalo Mid Cap Growth Fund has returned 6.32% compared to the benchmark return of 5.40% for the Russell Midcap Growth Index.


Among the top contributors during the quarter were two Health Care companies, Exact Sciences and Ligand Pharmaceuticals, along with a Technology company, F5 Networks. Both Exact Sciences and Ligand Pharmaceuticals were driven by company-specific factors.

Exact Sciences was a new position in the 1st quarter of 2018. The company is transforming the way cancer screening is done for colorectal cancer. We purchased shares on weakness from what we viewed as conservative guidance resulting from a harsh flu season, and shares have outperformed as the company exceeded guidance.

Ligand Pharmaceuticals licenses technologies that help companies discover and develop medicines. The company posted strong results helped by several licensing deals, including signing three new customers to its OmniAb platform for discovering fully-human antibodies.

F5 Networks was one of several strong contributors in the technology sector. The company appears to have turned the corner, with stronger results showing the potential for growth acceleration, after a period of declining growth due to longer sales cycle, driven by cloud adoption among many top customers.


Among the top detractors in the quarter were two Consumer Discretionary companies, LKQ Corp and Norwegian Cruise Line, and one Materials company, Summit Materials.

LKQ reported a disappointing quarter driven by weather conditions and supply issues associated with the consolidation of distribution centers. Strong revenues in the U.S. didn’t flow through to profits, as LKQ scrambled to move inventory to weather affected areas around the country using high-cost, last-minute
shipping. Also, the software used in their new, highly-automated United Kingdom distribution center had some flaws that resulted in increased use of overtime labor to fill orders and some missed revenue opportunities. These issues are largely behind them, and margins should improve going forward.

Norwegian Cruise Line Holdings declined in the quarter despite reporting results ahead of expectations and raising guidance for the year. Investors are concerned about increasing industry capacity and rising fuel costs. Demand remains strong (they are selling rooms for 2019 earlier than normal and at higher prices), and most of their fuel costs are hedged for this year and next.

Summit Materials reported weak results in the seasonally-slow 1st quarter, as winter weather hampered construction work in their markets. The company maintained guidance but communicated that it would be back-half weighted. Reports of irrational cement pricing by one of their competitors and macro-economic concerns also weighed on the stock.


(As of 6/30/18) — We continue to see the economic environment as supportive for earnings growth. The most worrisome risk to this status quo has been the increasing possibility of trade wars. President Trump has initiated tariffs and other restrictions on imports from China and has shown a willingness to rethink other trade agreements such as the North American Free Trade Agreement (NAFTA). The fallout from these decisions is on our radar, particularly for the companies most impacted by changes to international trade. However, we believe a strong domestic economy will help offset any negative impact from changes in international trade, and our outlook for the remainder of 2018 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. Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security. Earnings growth is not representative of the fund’s future performance.

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.

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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 received 1 star among 540 for the three-year, 2 stars among 483 for the five-year, and 2 stars among 342 Mid-Cap Growth funds for the ten-year period ending 9/30/18.

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.

©2018 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.