Quick Facts
Investor Institutional
Daily Pricing:  
As of 9/29/2022  
NAV: $13.54 $13.61
$ Change: $-0.29 $-0.29
% Change:
-2.10% -2.09%
-31.34% -31.26%
Inception Date: 12/17/2001 7/1/2019
Expense Ratio: 1.02% 0.87%
Total Net Assets: $137.97 Million  (6/30/22)
Morningstar Category: Mid Cap Growth
Benchmark Index: Russell Midcap Growth
Related Material:
   Fund Fact Sheet Q2 2022
   PM Commentary Q2 2022
   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 Russell Midcap 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.

Josh West, Portfolio Manager

Morningstar Ratings


Overall Morningstar Rating™ of BUFMX based on risk-adjusted returns among 533 Mid-Cap Growth funds as of 8/31/22.

Morningstar Sustainability Rating™ of BUFMX out of 1,594 US Equity Mid Cap funds as of 7/31/22, based on 97% of AUM

Carbon Metric Rating of BUFMX as of 6/30/22 in the Mid Cap Growth category, based on 95% of AUM; long positions only


Historical Sustainability Score Rank of BUFMX

Performance (%)

As of 8/31/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO MID CAP FUND - Investor-3.77-24.95-23.076.819.399.777.169.668.12
BUFFALO MID CAP FUND - Institutional-3.75-24.85-22.986.979.559.937.329.828.28
  Russell Midcap Growth Index0.45-25.09-26.696.9810.1612.068.9311.018.97
  Morningstar U.S. Mid Growth Index-0.13-28.78-29.268.4011.3312.258.85--
  Lipper Mid Cap Growth Index-0.90-26.74-28.055.799.3711.238.1110.058.13
  Morningstar Mid-Cap Growth Category-0.84-24.85-25.817.939.8411.368.2910.067.54
As of 6/30/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO MID CAP FUND - Investor-21.67-29.61-26.975.228.039.336.778.777.85
BUFFALO MID CAP FUND - Institutional-21.67-29.55-26.885.378.199.506.938.948.01
  Russell Midcap Growth Index-21.07-31.00-29.574.258.8811.508.219.978.61
  Morningstar U.S. Mid Growth Index-21.33-33.93-30.655.2410.1911.808.29--
  Lipper Mid Cap Growth Index-21.14-31.76-29.603.318.2010.697.588.987.83
  Morningstar Mid-Cap Growth Category-20.56-30.28-28.585.048.6910.827.669.037.21

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
  Russell Midcap Growth Index15.8135.7411.90-0.207.3325.27-4.7535.4735.5912.73
  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 Russell Midcap Growth Index (As of 6/30/22)
Upside Capture88.76
Downside Capture91.56
Sharpe Ratio0.23
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 6/30/22) 
# of Holdings63
Median Market Cap$13.46 B
Weighted Average Market Cap$20.24 B
3-Yr Annualized Turnover Ratio32.08%
% of Holdings with Free Cash Flow88.89%
Active Share88.16%
Top 10 Holdings
Name of HoldingTickerSector% of Net
Verisk AnalyticsVRSKIndustrials3.14%
CBRE GroupCBREReal Estate2.88%
Palo Alto NetworksPANWTechnology2.78%
Bio-Techne CorpTECHHealth Care2.77%
Aspen TechnologyAZPNTechnology2.51%
CoStar GroupCSGPReal Estate2.28%
As of 3/31/22. 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 6/30/22. 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 6/30/22. 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 6/30/22) — The equity market, as measured by the S&P 500 Index, suffered its second quarterly decline since the onset of the COVID-19 pandemic, over two years ago, producing a return of -4.60% during the January–March period. Weak capital market performance can be largely attributed to the Federal Reserve’s decision to raise interest rates and reduce the size of its balance sheet, also known as quantitative tightening. Other headwinds, including the war in Ukraine, significant inflation, and persistent supply chain bottlenecks, only added to the backdrop of uncertainty for domestic and global markets.

The broad-based Russell 3000 Index fell -5.28% in the quarter. Value stocks outperformed growth stocks by a large amount, as the Russell 3000 Value Index returned -0.85% compared to a decline of -9.25% for the Russell 3000 Growth Index. Large cap stocks fell less than smaller cap stocks during the quarter, as the Russell 1000 Index declined -5.13%, followed by a return of -5.68% for the Russell Midcap Index, and -7.53% for the small cap Russell 2000 Index. Energy stocks surged during the period on rising oil prices while the more defensive Utilities and Telecommunication Services sectors were also modestly positive. The Consumer Discretionary and Technology areas of the market were the largest underperformers due to inflation and rising rates.


(As of 6/30/22) — The Buffalo Mid Cap Fund (BUFMX) declined 21.67% in the 2nd quarter. This result was slightly behind the Russell Midcap Growth Index’s return of -21.07%. Positive stock selection in Information Technology was offset by poor stock selection in Industrials and a lack of exposure to Consumer Staples, which declined much less than the Index. The Fund doesn’t currently own any Consumer Staples companies, given a lack of long-term secular growth in the sector. In short, it was an ugly quarter in the markets and there weren’t many places for a growth investor to hide.


The top contributors in the quarter were both stocks that weren’t owned for the entire period. First, a new position, DoubleVerify was purchased late in the quarter. DoubleVerify is an advertising technology company that provides digital media measurement. They monitor and measure online advertising campaigns to assure that ads are being viewed by actual people (not bots or fraud) and that ads aren’t being placed on sites or next to content that could be harmful to their brand. We expect DoubleVerify to benefit from digital continuing to gain share of ad budgets and an increasing focus on return on investment (ROI) and brand safety.

TripAdvisor was also a top contributor. Although the stock declined 34% in the quarter, we sold it in April when it was up 2.5%. We lost confidence in management’s strategy and decided to allocate the funds to higher conviction ideas.

Kinsale Capital Group, a specialty property and casualty insurer specializing in excess and surplus lines (E&S), was another top contributor in the quarter. The company benefited from a growing E&S market and continued hard market conditions that have allowed for elevated pricing.


Lyft, Inc. was the top detractor during the quarter. Despite a better than expected 1st quarter, the company’s guidance for the remainder of the year was very disappointing. Revenue guidance was positive, but margins are expected to decline meaningfully. Lyft is increasing spending to attract drivers to their platform, which is calling into question the long-term economics of the business. We acknowledge the uncertainty about future margins but view the risk/reward as favorable at the current valuation.

Expedia Group was another detractor in the quarter. Expedia is an online travel agency (OTA) with brands that include Expedia, Hotels.com, Vrbo, and Travelocity. There has been a strong recovery in demand for consumer travel coming out of the COVID pandemic, but investors are increasingly concerned that fundamentals have peaked ahead of a potential recession, and that Expedia has ceded some market share in hotels to Booking.com. However, we believe the company is well positioned to benefit from a multi-year recovery in services spending that should continue to play out, and that share loss concerns have been overstated due to the divestment of a subsidiary in Europe. We view the valuation as compelling given the recent pullback.


(As of 6/30/22) — Financial conditions have tightened substantially this year. The Federal Funds rate has risen from 0.0-0.25% to 1.5-1.75% and is expected to rise another 75 basis points in July. 10-year Treasury yields have increased from 1.5% to 3.0% due to inflation fears, causing mortgage rates to rise considerably as well. Decelerating economic growth and higher interest rates have driven severe multiple compression, especially in growth stocks, with a bear market beginning in June.

Tighter monetary policy is beginning to have an impact on demand, which will help tame inflation, but also slow growth. Given the current strength of the job market and consumer balance sheets, the Federal Reserve should be able to focus on getting inflation under control without worrying about the other half of its dual mandate (full employment) for the foreseeable future. As of this writing, the consensus in the market seems to be that inflation is currently peaking and will moderate from here. Current concerns are that the Federal Reserve will make a policy mistake by raising rates beyond neutral in a recessionary environment, worsening the slowdown.

While it is impossible to pinpoint a market bottom in real time, bear markets and recessions have historically been a good time to invest in equity markets for long-term investors. We are excited about the valuations being offered by the market on strong, growing businesses that we have considered too expensive in the past. 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 what we believe to be attractive valuations.

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 3 stars among 533 for the 3-year, 3 stars among 489 for the 5-year, and 2 stars among 379 Mid-Cap Growth funds for the 10-year period ending 8/31/22. 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.