Quick Facts
Inception Date:12/17/20017/1/2019
Expense Ratio:1.03%0.88%
Total Net Assets:$201.82 Million  (12/31/21)
Morningstar Category:Mid Cap Growth
Benchmark Index:Morningstar U.S. Mid Growth
Related Material:
   Fund Fact Sheet Q4 2021
   PM Commentary Q3 2021
   Summary Prospectus
Fund Objective & Investment Strategy

The investment objective of the Buffalo Mid Cap Fund is long-term growth of capital. The Fund normally invests at least 80% of its net assets in equity securities, consisting of common stocks, preferred stocks, convertible preferred stocks, warrants and rights of medium capitalization (“mid-cap”) companies. The Fund defines mid-cap companies as those companies that, at the time of purchase, have market capitalizations within the range of the Morningstar U.S. Mid Growth Index. As of June 30, 2021 the range of market capitalizations of the Morningstar U.S. Mid Growth Index was $4.3 billion to $93.2 billion.

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.

Josh West, Portfolio Manager

Morningstar Ratings


Overall Morningstar Rating™ of BUFMX based on risk-adjusted returns among 538 Mid-Cap Growth funds as of 12/31/21.

Morningstar Sustainability Rating™ of BUFMX out of 1,555 US Equity Mid Cap funds as of 11/30/21, based on 99% of AUM

Carbon Metric Rating of BUFMX as of 9/30/21 in the Mid Cap Growth category, based on 95% of AUM; long positions only


Historical Sustainability Score Rank of BUFMX

Performance (%)

As of 12/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO MID CAP FUND - Investor5.3314.6114.6128.5017.4613.8910.159.979.96
BUFFALO MID CAP FUND - Institutional5.3114.7314.7328.6817.6214.0610.3110.1310.13
  Morningstar U.S. Mid Growth Index4.7614.9714.9731.7222.7017.4912.3210.9110.92
  Lipper Mid Cap Growth Index2.5812.2212.2226.8719.9215.8611.3710.0210.11
  Morningstar Mid-Cap Growth Category2.7613.0513.0527.4719.3715.6611.1310.109.35
As of 12/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO MID CAP FUND - Investor5.3314.6114.6128.5017.4613.8910.159.979.96
BUFFALO MID CAP FUND - Institutional5.3114.7314.7328.6817.6214.0610.3110.1310.13
  Morningstar U.S. Mid Growth Index4.7614.9714.9731.7222.7017.4912.3210.9110.92
  Lipper Mid Cap Growth Index2.5812.2212.2226.8719.9215.8611.3710.0210.11
  Morningstar Mid-Cap Growth Category2.7613.0513.0527.4719.3715.6611.1310.109.35

BUFFALO MID CAP FUND - Investor13.9329.255.85-0.525.9313.66-7.3037.9834.1814.61
BUFFALO MID CAP FUND - Institutional14.1029.456.00-0.376.0813.82-7.1638.1634.4214.73
  Morningstar U.S. Mid Growth Index15.8134.079.77-0.716.4625.67-3.1636.0146.1714.97
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 12/31/21)
Upside Capture79.95
Downside Capture85.10
Sharpe Ratio1.56
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 12/31/21) 
# of Holdings64
Median Market Cap$19.52 B
Weighted Average Market Cap$30.84 B
3-Yr Annualized Turnover Ratio35.94%
% of Holdings with Free Cash Flow81.25%
Active Share82.84%
Top 10 Holdings
Name of HoldingTickerSector% of Net
IHS MarkitINFOIndustrials3.87%
CBRE GroupCBREReal Estate3.26%
Bio-Techne CorpTECHHealth Care2.87%
CoStar GroupCSGPReal Estate2.73%
Verisk AnalyticsVRSKIndustrials2.71%
Palo Alto NetworksPANWTechnology2.47%
Veeva SystemsVEEVHealth Care2.46%
As of 9/30/21. 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 12/31/21. 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 12/31/21. Market Cap percentages may not equal 100% due to rounding.


For information on the recent portfolio management team changes, click here.
Josh West, CFA
Portfolio Manager

17 Years of Experience

 View full bio

Craig Richard, CFA
Portfolio Manager

20 Years of Experience

 View full bio

Doug Cartwright, CFA
Portfolio Manager

16 Years of Experience

 View full bio



(As of 9/30/21) — Equity market returns were somewhat mixed in the 3rd quarter, but the S&P 500 Index etched out a modestly positive return of 0.58%. The global recovery hit a speed bump during the period as the world dealt with rising COVID-19 Delta variant infections, an energy price spike, and supply chain issues that continued to constrain economic growth. After trading lower earlier in the quarter, interest rates increased later in the period in response to higher-than-expected inflation data and an admission from the Federal Reserve (the “Fed”) that they would need to begin removing monetary stimulus from the economy sometime soon.

The Russell 3000 Index declined -0.10% in the quarter. Growth stocks outperformed Value stocks as the Russell 3000 Growth Index returned 0.69% versus a drop of -0.93% for the Russell 3000 Value Index. Relative performance was correlated with market cap size as large caps outperformed small caps in the quarter. The large cap Russell 1000 Index returned 0.21% compared to the Russell Midcap Index return of -0.93%. Smaller market cap indices were even more negative, with the Russell 2000 Index returning -4.36% and the Russell Microcap Index returning -4.98%. Financials were the top performing sector for the quarter, while Industrials and Materials were lagging sectors.


(As of 9/30/21) — The Buffalo Mid Cap Fund (BUFMX) produced a return of -1.50% in the quarter. This result was slightly behind the Morningstar U.S. Mid Growth Index’s return of 0.20%. The Fund underperformed early in the period, as the Delta variant spread and interest rates fell, causing weakness in reopening beneficiaries and strength in high-multiple, long-duration growth companies. This was somewhat offset by outperformance later in the quarter, as COVID cases trended lower and economic optimism led to increasing interest rates.


MSCI shares benefited from another strong quarter. Index revenue came in ahead of expectations, and their ESG (Environmental, Sustainability, & Governance) and Climate offerings drove accelerating revenue growth. The strong revenue performance led the company to increase free cash flow guidance. We believe MSCI should benefit from the growth of international investing, increasing use of passive investments, and ESG-driven investing for years to come.

Palo Alto Networks shares advanced, driven by accelerating growth reported in the quarter and a better-than-expected outlook for fiscal year 2022. The company appears to be at the end of an investment cycle, and it has adapted its product portfolio to prosper from a network security market driven by cloud computing use cases. This pivot by the company to embrace cloud security should continue to support revenue growth, as investment levels normalize boost profit growth.

Gartner, a technology focused research and advisory company, reported a very strong quarter with significant upside across all metrics. Contract value growth accelerated sharply in both business segments. Expense growth remained controlled, and earnings and cash flow forecasts were materially increased after the quarter. While research and consulting are both growing nicely, their conferences business could provide further upside with a return to in-person events.


The top three detractors from Fund performance were Lyft, Vroom, and Vimeo.

First, Lyft shares were negatively impacted by renewed fears over COVID-19, driven by the Delta variant. Despite reporting results that exceeded expectations and a better-than-expected profit outlook, shares traded off, based on guidance for less robust sales growth.

Next, Vroom, an online dealership for used cars, was negatively impacted by a mixed outlook for the September quarter. Used car prices have seen unprecedented appreciation driven by scarce new car availability resulting from component shortages. Expectations for a return to normal price depreciation drove a decline in gross profit margin per unit and was a catalyst that sent shares lower over the quarter.

Finally, Vimeo, a recent spin-off from IAC that provides video software solutions for professionals and enterprises, traded lower during the quarter. COVID-19 was a boon for the Vimeo, with the company experiencing a large increase in subscribers as well as a boost in revenue per subscriber, driven by adoption of premium features. Over the next few quarters, Vimeo is going to anniversary its strongest growth quarters making for difficult growth comparisons. The company stated that it expects sales growth may temporarily fall below its long term target of at least 30% growth. The outlook disappointed investors.


(As of 9/30/21) — Consensus thinking is coming around to the fact that inflation may not be completely transitory and the Federal Reserve will likely have to dial back its support for the economy. The current debate centers on whether or not the economy can continue to grow in the face of higher inflation and less fiscal stimulus. This can lead in two directions, stagflation or robust economic growth. Judging by the flattening yield curve and the outperformance of high-multiple, long-duration growth equities, stagflation appears to be the more popular view. We take the other view.

The Delta variant has clearly hampered the economic reopening, but we believe it has only delayed a more robust recovery. We don’t foresee weak consumer demand and high unemployment as problems anytime soon. Consumer wallets are in good shape, helped by government support during the pandemic. To some extent, this has reduced incentives to work, at least at pre-COVID wage levels. Job growth has been disappointing recently, but with vaccination rates up, the possibility of a pharmaceutical treatment, declining COVID cases, and reduced unemployment benefits, we would expect this to improve. Improving labor supply, along with fewer factory and port closures, should alleviate widespread supply chain problems and boost economic growth.

We believe the portfolio is well-positioned for an environment of increased economic optimism and higher long-term interest rates. But this is a result of our bottom-up process, not the implementation of any top-down view. We are under-exposed to hyper-growth companies with sky high valuation multiples because we don’t think they currently present us with an attractive risk/reward profile. While we are mindful of macroeconomic fluctuations, they do not drive our investment process. We will continue to invest in businesses with solid growth opportunities, durable competitive advantages, scalable business models, and good management teams, when they are trading at attractive valuations, in our opinion. Thank you for your continued support.

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.

Morningstar Rating™

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 Morningstar Rating does not include any adjustment for sales loads. 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.

©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 Buffalo Mid Cap Fund (BUFMX) received 4 stars among 538 for the 3-year, 3 stars among 491 for the 5-year, and 2 stars among 380 Mid-Cap Growth funds for the 10-year period ending 12/31/21. Other share classes may have different performance characteristics.
Morningstar Sustainability Rating™

The Morningstar Sustainability Rating™ is intended to measure how well the issuing companies of the securities within a fund’s portfolio holdings are managing their financially material environmental, social and governance, or ESG, risks relative to the fund’s Morningstar Global Category peers. The Morningstar Sustainability Rating calculation is a five -step process. First, each fund with at least 67% of assets covered by a company-level ESG Risk Score from Sustainalytics receives a Morningstar Portfolio Sustainability Score. The Morningstar Portfolio Sustainability Score is an asset weighted average of company-level ESG Risk Scores. The Portfolio Sustainability Score ranges between 0 to 100, with a higher score indicating that a fund has, on average, more of its assets invested in companies with high ESG Risk. Second, the Historical Sustainability Score is an exponential weighted moving average of the Portfolio Sustainability Scores over the past 12 months. The process rescales the current Portfolio Sustainability Score to reflect the consistency of the scores. The Historical Sustainability Score ranges between 0 to 100, with a higher score indicating that a fund has, on average, more of its assets invested in companies with high ESG Risk, on a consistent historical basis. Third, the Morningstar Sustainability Rating is then assigned to all scored funds within Morningstar Global Categories in which at least thirty (30) funds receive a Historical Sustainability Score and is determined by each fund’s Morningstar Sustainability Rating Score rank within the following distribution: High (highest 10%), Above Average (next 22.5%), Average (next 35%), Below Average (next 22.5%), and Low (lowest 10%). Fourth, Morningstar applies a 1% rating buffer from the previous month to increase rating stability. This means a fund must move 1% beyond the rating breakpoint to change ratings. Fifth, they adjust downward positive Sustainability Ratings to funds with high ESG Risk scores. The logic is as follows: If Portfolio Sustainability score is above 40, then the fund receives a Low Sustainability Rating. If Portfolio Sustainability score is above 35 and preliminary rating is Average or better, then the fund is downgraded to Below Average. If the Portfolio Sustainability score is above 30 and preliminary rating is Above Average, then the fund is downgraded to Average. If the Portfolio Sustainability score is below 30, then no adjustment is made. The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe. Since a Sustainability Rating is assigned to all funds that meet the above criteria, the rating it is not limited to funds with explicit sustainable or responsible investment mandates. Morningstar updates its Sustainability Ratings monthly. The Portfolio Sustainability Score is calculated when Morningstar receives a new portfolio. Then, the Historical Sustainability Score and the Sustainability Rating is calculated one month and six business days after the reported as-of date of the most recent portfolio. As part of the evaluation process, Morningstar uses Sustainalytics’ ESG scores from the same month as the portfolio as-of date. Please click on http://corporate1.morningstar.com/SustainableInvesting/ for more detailed information about the Morningstar Sustainability Rating methodology and calculation frequency. Sustainalytics is an independent ESG and corporate governance research, ratings, and analysis firm. Morningstar, Inc. holds a non-controlling ownership interest in Sustainalytics.

Morningstar Low Carbon Designation™

The Morningstar® Low Carbon Designation™ is intended to allow investors to easily identify low-carbon funds across the global universe. The designation is an indicator that the companies held in a portfolio are in general alignment with the transition to a low-carbon economy. The designation is given to portfolios that have low carbon-risk scores and low levels of exposure to fossil fuels. To determine carbon-risk scores and fossil fuel involvement, Morningstar uses Sustainalytics' company-level data. The Morningstar® Portfolio Carbon Risk Score™ measures the risk that companies in a portfolio face from the transition to a low-carbon economy. The Morningstar® Portfolio Fossil Fuel Involvement™ percentage assesses the degree to which a portfolio is exposed to thermal coal extraction and power generation as well as oil and gas production, power generation, and products & services. To receive a Morningstar Portfolio Carbon Risk Score, at least 67% of portfolio assets must have a carbon-risk rating from Sustainalytics. The percentage of assets covered is rescaled to 100% before calculating the score. To receive the designation, a portfolio must meet two criteria: 1) a 12-month trailing average Morningstar Portfolio Carbon Risk Score below 10 and 2) a 12-month trailing average exposure to fossil fuels less than 7% of assets, which is approximately a 33% underweighting to the global equity universe. Funds receive the Low Carbon designation based on the most recent quarterly calculations of their 12- month trailing average Morningstar Portfolio Carbon Risk Scores and Morningstar Portfolio Fossil Fuel Involvement. Funds holding the Low Carbon designation that no longer meet the criteria will not receive the designation for the subsequent quarter. All Morningstar Portfolio Carbon Metrics, including the Morningstar Portfolio Carbon Risk Score, Morningstar Portfolio Fossil Fuel Involvement, and the Morningstar Low Carbon Designation, are calculated quarterly. Please visit http://corporate1.morningstar.com/SustainableInvesting/ for more detail information about the Morningstar Low Carbon Designation and its calculation. Sustainalytics is an independent ESG and corporate governance research, ratings, and analysis firm. Morningstar, Inc. holds a non-controlling ownership interest in Sustainalytics.