Quick Facts
Investor Institutional
Daily Pricing:  
As of 2/7/2023  
NAV: $15.16 $15.26
$ Change: $0.26 $0.26
% Change:
1.74% 1.73%
12.05% 12.12%
Inception Date: 12/17/2001 7/1/2019
Expense Ratio: 1.02% 0.87%
Total Net Assets: $130.67 Million  (12/31/22)
Morningstar Category: Mid Cap Growth
Benchmark Index: Russell Midcap Growth
Related Material:
   Fund Fact Sheet Q4 2022
   PM Commentary Q4 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 534 Mid-Cap Growth funds as of 12/31/22.

Morningstar Sustainability Rating™ of BUFMX out of 1,580 US Equity Mid Cap funds as of 11/30/22, based on 98% of AUM

Carbon Metric Rating of BUFMX as of 9/30/22 in the Mid Cap Growth category, based on 95% of AUM; long positions only


Historical Sustainability Score Rank of BUFMX

Performance (%)

As of 1/31/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO MID CAP FUND - Investor9.319.09-12.885.788.089.178.2310.278.20
BUFFALO MID CAP FUND - Institutional9.099.11-12.775.928.239.338.3910.448.36
  Russell Midcap Growth Index7.768.73-8.526.468.2611.679.8311.389.10
  Morningstar U.S. Mid Growth Index9.849.75-
  Lipper Mid Cap Growth Index7.398.77-12.144.647.3410.698.6810.478.18
  Morningstar Mid-Cap Growth Category6.678.63-10.976.507.7210.899.0110.487.58
As of 12/31/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO MID CAP FUND - Investor6.10-27.80-27.803.557.278.817.109.557.79
BUFFALO MID CAP FUND - Institutional6.14-27.69-27.693.707.428.977.269.717.95
  Russell Midcap Growth Index6.90-26.72-26.723.857.6411.418.6110.868.70
  Morningstar U.S. Mid Growth Index4.84-32.37-32.374.368.4011.348.12--
  Lipper Mid Cap Growth Index5.06-29.79-29.792.326.7010.447.389.927.78
  Morningstar Mid-Cap Growth Category5.07-27.79-27.794.147.0910.677.819.967.19

BUFFALO MID CAP FUND - Investor29.255.85-0.525.9313.66-7.3037.9834.1814.61-27.80
BUFFALO MID CAP FUND - Institutional29.456.00-0.376.0813.82-7.1638.1634.4214.73-27.69
  Russell Midcap Growth Index35.7411.90-0.207.3325.27-4.7535.4735.5912.73-26.72
  Morningstar U.S. Mid Growth Index34.079.77-0.716.4625.67-3.1636.0146.1714.97-32.37
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 12/31/22)
Upside Capture88.64
Downside Capture95.51
Sharpe Ratio0.13
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 12/31/22) 
# of Holdings63
Median Market Cap$13.23 B
Weighted Average Market Cap$20.27 B
3-Yr Annualized Turnover Ratio33.75%
% of Holdings with Free Cash Flow88.89%
Active Share86.59%
Top 10 Holdings
Name of HoldingTickerSector% of Net
CoStar GroupCSGPReal Estate3.35%
Verisk AnalyticsVRSKIndustrials3.24%
Palo Alto NetworksPANWTechnology3.08%
CBRE GroupCBREReal Estate2.98%
Global PaymentsGPNIndustrials2.59%
Aspen TechnologyAZPNTechnology2.14%
Veeva SystemsVEEVHealth Care2.13%
As of 9/30/22. 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 12/31/22. 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 12/31/22. 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

18 Years of Experience

 View full bio

Craig Richard, CFA
Portfolio Manager

21 Years of Experience

 View full bio

Doug Cartwright, CFA
Portfolio Manager

17 Years of Experience

 View full bio



(As of 12/31/22) — Capital markets rallied modestly in the 4th quarter as the S&P 500 Index gained 7.56%, the only positive quarter for 2022. Cooler inflation readings, resilient consumer spending, and better-than-expected corporate earnings buoyed markets during the first two months of the 4th quarter before pulling back in December. Much of the focus remains on the path of future interest rates, recession fears, and the economic and market impact those events may generate in 2023.

Despite the 4th quarter advance, the stock market recorded its worst calendar year since 2008, with a decline of -18.11% for the S&P 500 Index, and a loss of -32.54% for the growth-oriented and technology-heavy Nasdaq Composite Index. Large cap technology stocks and the more interest-rate sensitive assets suffered the most, while value stocks outperformed. In the end, nine of the S&P 500 Index’s 11 economic sectors declined. Energy stocks were the bright spot, recording a gain of 65.72% for the sector while Utilities eked out a gain of 1.57% in 2022.

The damage wasn’t isolated to the stock market as the investment-grade bond indices suffered double-digit losses for the year as well. In fact, a traditional balanced investment portfolio of 60% stocks and 40% bonds suffered the 4th worst drawdown in the past 100 years.

Recapping quarterly results, the broad-based Russell 3000 Index advanced 7.18% in the period. Value stocks significantly outperformed growth stocks to close out 2022, as the Russell 3000 Value Index returned 12.18% versus a return of just 2.31% for the Russell 3000 Growth Index. Relative performance was mixed going down in market cap size as small caps advanced less than large caps in the quarter, while mid cap stocks outperformed both large and small caps. Larger cap stocks returned 7.24%, as measured by the Russell 1000 Index, compared to the smaller cap Russell 2000 Index return of 6.23%, while the Russell Midcap Index produced a return of 9.18% in the quarter.


(As of 12/31/22) — The Buffalo Mid Cap Fund (BUFMX) returned 6.10% for the quarter compared to a return of 6.90% for the Russell Midcap Growth Index. Strong stock selection in Industrials and Health Care was offset by some underperforming holdings in Consumer and Technology. Relative performance also suffered from our lack of exposure to the stronger performing Energy sector and an underweight position in Consumer Discretionary stocks, which rallied during the quarter. From a factor perspective, high sales growth underperformed in the quarter, and with the benefit of hindsight, we were too early in upgrading the growth profile of the Fund. While this caused a slight drag on performance during the quarter, we believe it better positions the Fund for the multi-year time horizon.


The top contributors to Fund performance during the period were Garter, Ametek, and ABIOMED.

Gartner, a leading research and advisory company, reported strong financial results in the 4th quarter of the fiscal year. The company’s revenues and earnings exceeded analysts’ expectations, driven by strong demand for its research and consulting services and a return to in-person conferences. Gartner’s digital business also performed well, with continued growth in its subscription-based offerings. Additionally, the company’s operating margin surprised to the upside as costs related to new hires are ramping slower than expected.

Ametek, a leading global manufacturer of electronic instruments and electromechanical devices, reported strong operating performance in the 4th quarter, highlighted by strong bookings and a record backlog. The company also raised guidance for the year and announced two bolt-on acquisitions. With valuations coming down and ample mergers and acquisition capacity, Ametek is potentially in a good position to take advantage of the market sell-off.

ABIOMED was another top contributor in the quarter, following a bid from Johnson & Johnson to acquire the company.


Top detractors for the quarter included Palo Alto Networks and DoubleVerify.

Security software provider, Palo Alto Networks, declined during the 4th quarter, despite posting strong results and raising guidance above Wall Street expectations. Investors seem to be concerned that the recent strength in security spending could lose steam and that growth will decelerate against tougher year-over-year comparisons.

DoubleVerify, a leading software platform for digital media measurement and analytics, was also a detractor during the quarter. Shares traded lower as investors grew increasingly concerned about advertising spending against the backdrop of a weakening consumer and tighter corporate budgets. For its part, the company reported strong quarterly results with revenues growing 26% and operating margins improving year-over-year. We recognize there are cyclical headwinds, but DoubleVerify appears well positioned to benefit from the growth in online advertising and the need for independent measurement and audience verification.


(As of 12/31/22) — The 4th quarter was the only quarter of 2022 where equity markets had positive returns, and market narratives continue to focus on the interest rate cycle and Federal Reserve (the “Fed”) efforts to tame inflation. The 10-year Treasury yield moved up just eight basis points this quarter, putting the benchmark yield at 3.88%. That compares to a cumulative increase of 230 basis points through the first three quarters of the year. Cooler readings on inflation suggest the Fed’s interest rate hikes are having their intended impact on demand, and we suspect that future rate hikes will be more modest in size.

The good news is that inflation is now moderating, even with the economy at full employment. We have seen prices peak for gasoline, ocean freight, used cars, and various commodities. Small business hiring plans are waning. Growth in home prices and rents has slowed. The U.S. dollar has also weakened. The Fed’s work might not be complete, but they have done a lot and their inflation fighting appears to be working.

The bad news is that Fed policy typically works with a lag, and we have yet to feel the full impact of the tightening cycle. Lately, Fed officials have been reiterating their desire to keep interest rates higher for longer, to make sure that inflation doesn’t get a chance to reaccelerate. This raises the risk that they are behind the curve and will be overly restrictive for too long. If this plays out, it will weigh on consumer spending and economic growth, and it could lead to job losses and recession.

While it is very difficult to forecast what will happen with the economy, it is an even more futile effort to forecast what the market will do over the next year. We do know that because markets reflect future expectations, stock prices tend to bottom out before the economic data does. We also know that shares of good businesses are trading at more attractive prices than they were a year ago. We think this bodes well for future returns over a multi-year time horizon. Regardless of what happens with the economy or broader equity markets, we will strive to maximize the Fund’s risk-adjusted returns by investing in attractively-valued businesses with solid growth opportunities, durable competitive advantages, scalable business models, and exceptional management teams. 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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Retirement Information
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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.

©2022 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 534 for the 3-year, 3 stars among 499 for the 5-year, and 2 stars among 389 Mid-Cap Growth funds for the 10-year period ending 12/31/22. 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.