Quick Facts
Inception Date:12/17/2001
Total Net Assets:$135.56 Million  (3/31/19)
Expense Ratio:1.02%
Category:Mid Cap Growth
Benchmark:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q1 2019
   PM Commentary Q1 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™ based on risk-adjusted returns among 542 Mid-Cap Growth funds as of 5/31/19.

Investment Style

Performance (%)

As of 5/31/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND3.2421.275.8910.527.2411.987.958.00
  Morningstar U.S. Mid Growth Index1.8320.849.9715.0810.9215.3410.318.60
  Russell Midcap Growth Index-0.1917.816.8713.8810.2815.299.878.99
  Lipper Mid Cap Growth Index0.5718.006.5614.4110.1814.219.548.24
  Morningstar Mid-Cap Growth Category-0.3616.763.1712.769.1113.788.977.28
As of 3/31/193 MOYTD1 YR3 YR5 YR10 YR15 YRSince Inception
BUFFALO MID CAP FUND20.2020.208.4010.996.6013.587.738.03
  Morningstar U.S. Mid Growth Index21.0321.0313.3916.4310.9117.2310.218.69
  Russell Midcap Growth Index19.6219.6211.5115.0610.8917.609.949.18
  Lipper Mid Cap Growth Index18.7518.7510.9615.8910.0716.239.508.36
  Morningstar Mid-Cap Growth Category18.1918.198.0414.188.9915.708.847.44

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 3/31/19)
Upside Capture77.94
Downside Capture99.01
Sharpe Ratio0.73
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 3/31/19) 
# of Holdings62
Median Market Cap$11.96 B
Weighted Average Market Cap$19.73 B
3-Yr Annualized Turnover Ratio46.09%
% of Holdings with Free Cash Flow85.71%
% of Holdings with No Net Debt33.33%
Active Share82.98%
Top 10 Holdings
Name of HoldingTickerSector% of Net
Palo Alto NetworksPANWTechnology2.99%
CoStar GroupCSGPReal Estate2.67%
IHS MarkitINFOIndustrials2.57%
Verisk AnalyticsVRSKIndustrials2.43%
Expedia GroupEXPEConsumer Discretionary2.10%
As of 3/31/19. 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 3/31/19. 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 3/31/19. 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 3/31/19) — Equity markets rebounded sharply to start 2019. The widely followed S&P 500 Index returned 13.65% in the 1st quarter, its best quarterly performance in 10 years. The market advance can be largely attributed to the Federal Reserve’s decision to put quarterly short term interest rate hikes on hold and end its balance sheet runoff. Additionally, prospects for a trade agreement between the U.S. and China appeared to improve, and the U.S. Government reopened after its longest shut down in history.

The Russell 3000 Index advanced 14.04% in the 1st quarter. Growth outperformed value, with the Russell 3000 Growth Index returning 16.18% compared to a return of 11.93% for the Russell 3000 Value. By size, midcaps led the way this quarter with the Russell Midcap Index returning 16.54%, followed by a return of 14.58% for the small cap Russell 2000 Index and 14.00% for the large cap Russell 1000 Index. Technology, Real Estate, and Industrials were the best performing sectors, while Health Care and Financials were relative underperformers.


(As of 3/31/19) — The Buffalo Mid Cap Fund produced a strong absolute return of 20.20% in the 1st quarter, but slightly trailed the Morningstar U.S. Mid Growth Index’s return of 21.03%. The relative underperformance was largely due to stock selection in the Consumer Discretionary and Health Care sectors.

ServiceNow shares surged higher after the company provided guidance for 2019 sales and earnings that exceeded consensus expectations. The company has benefited from digital transformation of business among its core customers in the Forbes Global 2000, a trend that appears to be capable of sustaining long term growth.

MSCI Inc., the index and investment services provider advanced 35% in the 1st quarter. The stock reacted favorably to a strong earnings report, an upbeat analyst day, and rising international equity markets. Looking forward, MSCI should continue to benefit from trends towards globalization, the growth of passive investing internationally, and the increasing focus on ESG (environmental, social, and governance) factors by investors.

EPAM Systems was another top performer in the 1st quarter, and like ServiceNow, has benefited from digital transformation. EPAM is a leading provider of outsourced engineering services for software and digital platform services. The company exceeded expectations for both the current quarter and guidance for 2019 and appears to have a sustainable path to future growth in the years to come.

A leading detractor in the quarter was Sony Corporation, where the outlook and results within the gaming division softened in the period causing investor concern. The current generation of gaming consoles, including Sony’s PlayStation are nearing replacement with many expecting next generation consoles to come to market in 2020-2021. Historically, gaming profits have peaked prior to new consoles being introduced. However, the business has become more subscription oriented, which should benefit profits relative to past cycles.

Another detractor in the quarter was Inogen, a leading medical device company in the portable oxygen market. Shares traded off following the company’s announcement of in-line financial results and guidance. The company described a tough comparison for growth in the 1st half of 2019, as a home care medical company which was a large purchaser of its portable oxygen devices in 2018 has paused orders indefinitely. Inogen has ramped its direct-to-consumer sales force, which has led to some margin compression as it invests to support new hires. The sales force expansion investment is expected to lead to growth acceleration later in 2019.


(As of 3/31/19) — The labor market continues to strengthen, boding well for consumer spending. While industrial activity has decelerated, it is still at a level that supports moderate Gross Domestic Product growth. Continued economic growth, subdued inflation, and a rebound in corporate earnings growth create a healthy backdrop for equity investing. However, the recent bounce back in equity valuations and ongoing trade disputes somewhat temper our bullish sentiment. Regardless, we continue to believe that investing in businesses with competitive advantages, strong growth outlooks, and attractive valuations, in our opinion, should generate solid risk adjusted returns.

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 2 stars among 542 for the three-year, 2 stars among 482 for the five-year, and 2 stars among 361 Mid-Cap Growth funds for the ten-year period ending 5/31/19.

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. ©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.