Quick Facts
Inception Date:12/17/2001
Total Net Assets:$151.84 Million  (9/30/18)
Expense Ratio:1.02%
Category:Mid Cap Growth
Benchmark:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q3 2018
   PM Commentary Q3 2018
   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™ based on risk-adjusted returns among 542 Mid-cap Growth funds as of 11/30/18.

Investment Style

Performance (%)

As of 11/30/183 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND-10.101.321.305.315.7913.617.827.59
  Morningstar U.S. Mid Growth Index-9.626.306.6511.329.9915.859.848.25
  Russell Midcap Growth Index-8.004.755.3211.2410.1716.649.758.83
  Lipper Mid Cap Growth Index-7.946.857.0911.689.5515.299.318.09
  Morningstar Mid-Cap Growth Category-9.193.614.0910.058.5114.698.727.19
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

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.

3 Year Risk Metrics
vs Morningstar U.S. Mid Growth Index (As of 9/30/18)
Upside Capture71.84
Downside Capture101.47
Sharpe Ratio0.95
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 9/30/18) 
# 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%
Top 10 Holdings
Name of HoldingTickerSector% of Net
Verisk AnalyticsVRSKIndustrials2.44%
ZoetisZTSHealth Care2.41%
CME GroupCMEFinancials2.35%
F5 NetworksFFIVTechnology2.15%
Palo Alto NetworksPANWTechnology2.11%
CoStar GroupCSGPReal Estate2.11%
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.
Sector Weighting

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.

Market Capitalization

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


Chris Carter, CFA
Portfolio Manager

9 Years of Experience

 View full bio

Josh West, CFA
Portfolio Manager

13 Years of Experience

 View full bio



(As of 9/30/18) — U.S. economic strength and solid corporate earnings growth drove healthy equity returns in the 3rd quarter. The widely-followed S&P 500 Index had a total return of 7.71%, its best quarterly gain since 2013. In September, initial jobless claims fell to the lowest level since 1969, wages grew at the fastest rate since 2009, consumer confidence reached the highest level since 2000, and the National Federation of Independent Business (NFIB) survey of small business optimism was at an all-time high (the survey dates back to 1974). Against this strong economic backdrop, the Federal Reserve raised the targeted federal funds rate by another 25 basis points to a range of 2.00% to 2.25%. Slowly rising interest rates led to flat bond returns.

The divergence between domestic and international equity market performance continued during the quarter, with the MSCI EAFE Index advancing just 1.35%. The Russell 3000 Index gained 7.12% in the 3rd quarter. By style, growth continued to outperform value, with the Russell 3000 Growth Index increasing 8.88% compared to the Russell 3000 Value Index’s advance of 5.39%. Large caps did better than small caps as the Russell 1000 Index returned 7.42%, the Russell Midcap Index returned 5.00%, and the Russell 2000 Index returned 3.58% in the quarter. Every economic sector was positive this quarter, with Health Care and Industrials the top performers, while Materials and Energy lagged the indexes.


(As of 9/30/18) — The Buffalo Mid Cap Fund returned 4.63% in the 3rd quarter, underperforming the Morningstar U.S. Mid Growth Index return of 7.86%. The fund’s relative underperformance was largely driven by stock selection in the Information Technology sector, where not owning Advanced Micro Devices and Square caused performance to trail the benchmark. Both stocks are large benchmark weights and were up 106% and 61% in the quarter, respectively. A large relative underweight in the retail industry was also a drag on performance as that area produced outsized gains for the benchmark.

Bio-Techne rallied during the period on strong organic sales growth, which drove earnings to exceed consensus expectations. The company benefited from new diagnostics and therapeutics being developed from information derived from the Human Genome Project. Further, the company provided guidance for its upcoming fiscal year that calls for sustained organic growth.

Ligand shares were higher in the quarter on strong results driven by outperformance of its royalty income driven by growing sales of two drugs at Novartis and Amgen. In addition, the company recognized a large milestone payment related to its OmniAb platform for antibody discovery during the quarter.

Summit Materials, a vertically-integrated construction materials company, reported a weak 2nd quarter, missing estimates and reducing guidance for the year. The stock continued to decline throughout the quarter, driven by wet weather in key markets, hurricanes, and reports of competitive cement pricing.

Portola Pharmaceuticals shares traded lower during the quarter on disappointing sales of its newly launched drug, Bevyxxa. The drug struggled to gain traction among hospitals, as price and gaining approval at individual hospitals were cited as causes for disappointing sales. Those hospital approvals are taking longer than originally planned as some hospitals only review drugs annually for addition, with the 4th quarter as the key time to get approval. It appears meaningful sales will be on hold until at least 2019.


(As of 9/30/18) — According to Federal Reserve Bank of Chicago President Charles Evans, “the U.S. economy is firing from all cylinders.” Going forward, the market could experience some volatility as investors focus alternately on economic strength and the removal of monetary stimulus. While the economy remains supportive of corporate earnings growth, valuation multiples may not continue expanding in a rising interest rate environment. As always, we remain focused on investing in competitively-advantaged companies with strong long-term growth opportunities when they are trading at attractive valuations.

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.

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 received 1 star among 542 for the three-year, 2 stars among 490 for the five-year, and 2 stars among 341 Mid-Cap Growth funds for the ten-year period ending 11/30/18.

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. 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.