Quick Facts
Investor Institutional
Daily Pricing:  
As of 6/8/2023  
NAV: $14.16 $14.25
$ Change: $-0.01 $-0.01
% Change:
-0.07% -0.07%
5.75% 5.79%
Inception Date: 4/14/1998 7/1/2019
Expense Ratio: 1.01% 0.86%
Total Net Assets: $850.06 Million  (3/31/23)
Morningstar Category: Small Cap Growth
Benchmark Index: Russell 2000 Growth
Related Material:
   Fund Fact Sheet Q1 2023
   PM Commentary Q1 2023
   Summary Prospectus



Portfolio Managers Jamie Cuellar and Bob Male discuss the foundation for the Buffalo Small Cap Fund investment strategy – finding companies that are rapidly growing and can benefit from long term trends.


An actively-managed portfolio of smaller-capitalization, rapidly-growing companies that can benefit from positive, long-term trends remains an excellent way to exploit an inefficient market.

Bob Male, Co-Portfolio Manager

“I think what really differentiates us is our process, where we combine the top-down work of looking at trends provided with the bottoms-up fundamental research we do on each company.”
  ~ Jamie Cuellar, CFA

Listen to the Portfolio Managers discuss their Investment Philosophy

Morningstar Rating


Overall Morningstar Rating™ of BUFSX based on risk-adjusted returns among 561 Small Growth funds as of 4/30/23.

Investment Style
Fund Objective & Investment Philosophy

The investment objective of the Buffalo Small Cap Fund is long-term growth of capital. The Small Cap 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 small capitalization (“small-cap”) companies. The Small Cap Fund defines small-cap companies as those that, at the time of purchase, have market capitalizations within the range of the Russell 2000 Growth Index.

The Fund managers seek to identify companies for the 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 attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages.

Recent Recognition
Featured Articles & Reports






Performance (%)

As of 4/30/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO SMALL CAP FUND - Investor-7.881.34-3.359.039.589.939.6410.9611.19
BUFFALO SMALL CAP FUND - Institutional-7.831.41-
  Russell 2000 Growth Index-4.644.840.727.824.008.448.239.48  5.76
  Morningstar U.S. Small Growth Index-1.269.28-2.744.653.898.308.20--
  Lipper Small Cap Growth Fund Index-4.645.24-2.0410.527.279.888.719.56  6.99
  Morningstar Small Growth Category-5.044.17-3.069.926.799.498.7910.08  7.02
As of 3/31/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO SMALL CAP FUND - Investor5.905.90-11.9817.3110.9110.5110.5911.8611.42
BUFFALO SMALL CAP FUND - Institutional5.865.86-11.9217.4611.0610.6710.7512.0211.58
  Russell 2000 Growth Index6.076.07-10.6013.364.268.498.6710.04  5.83
  Morningstar U.S. Small Growth Index10.2010.20-15.179.953.988.288.57--
  Lipper Small Cap Growth Fund Index6.556.55-11.1016.417.589.939.2010.06  7.07
  Morningstar Small Growth Category6.106.10-12.0516.237.279.589.2710.57  7.13

BUFFALO SMALL CAP FUND - Investor44.15-6.55-4.466.2227.07-5.7840.9766.364.85-30.01
BUFFALO SMALL CAP FUND - Institutional44.36-6.41-4.326.3727.26-5.6441.1766.604.97-29.88
  Russell 2000 Growth Index43.305.60-1.3811.3222.17-9.3128.4834.632.83-26.36
  Morningstar U.S. Small Growth Index41.862.46-0.189.6123.77-5.6727.6043.52-1.00-33.31
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
BUFSX vs Russell 2000 Growth Index (As of 3/31/23)
Upside Capture126.49
Downside Capture105.29
Sharpe Ratio0.61
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 3/31/23) 
# of Holdings75
Median Market Cap$2.80 B
Weighted Average Market Cap$3.25 B
3-Yr Annualized Turnover Ratio55.97%
% of Holdings with Free Cash Flow67.12%
Active Share90.20%
Top 10 Holdings
Name of HoldingTickerSector% of Net
TransMedics GroupTMDXHealth Care2.87%
ICF IntlICFIIndustrials2.55%
Privia Health GroupPRVAHealth Care2.26%
Halozyme TherapeuticsHALOHealth Care2.16%
MGP IngredientsMGPIConsumer Staples2.11%
Establishment LabsESTAHealth Care2.03%
Castle BiosciencesCSTLHealth Care1.98%
NV5 GlobalNVEEIndustrials1.89%
As of 12/31/22. 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 3/31/23. 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 3/31/23. Market Cap percentages may not equal 100% due to rounding.


Jamie Cuellar, CFA
Portfolio Manager

31 Years of Experience

 View full bio

Bob Male, CFA
Portfolio Manager

37 Years of Experience

 View full bio



(As of 3/31/23) — Capital markets moved higher in the first quarter of 2023 as the S&P 500 Index gained 7.50% and the Bloomberg Aggregate Bond Index advanced 3.0%. Big swings in expectations for the Federal Reserve’s monetary policy drove market volatility during the period. Initially investors were concerned with data showing stubbornly high inflation and the prospect of additional interest rate hikes. However, during the final days of the quarter bank failures from Silicon Valley Bank, Signature Bank, and Credit Suisse, dramatically changed market expectations towards monetary policy and the impact that a banking crisis could have on the broader economy. As a result, shorter term Treasury yields fell, and large cap growth stocks rallied in a flight to quality. The view was that growth companies would be the biggest beneficiaries of lower rates, a reversal of the headwinds faced throughout 2022. Technology stocks were by far the leading contributors to broad market performance during the quarter while value stocks and dividend payers lagged. Excluding the technology sector, the S&P 500 Index return would have only been 2.70% during the period.

Recapping quarterly results, the broad-based Russell 3000 Index advanced 7.18%. Growth stocks significantly outperformed value stocks to start out the year, as the Russell 3000 Value Index returned just 0.91% versus a return of 13.85% for the Russell 3000 Growth Index. Relative performance improved going up in market capitalization (size) as large caps advanced more than small caps in the quarter. Larger cap stocks returned 7.46%, as measured by the Russell 1000 Index, compared to the smaller cap Russell 2000 Index return of 2.74%, while the Russell Microcap Index returned -2.83% in the quarter.


(As of 3/31/23) — The Buffalo Small Cap Fund advanced 5.90% in the first quarter, a result that was roughly in-line with the Russell 2000 Growth Index return of 6.07%. Weak stock selection within Industrials and Information Technology, two of the largest allocations in the benchmark, weighed on performance. However, strong stock selection within Health Care, the benchmark’s largest weight, and Consumer Discretionary helped offset relative underperformance for the quarter.


The fund’s largest contributors to performance for the quarter were Double Verify Holdings, Inc. and Natera, Inc. Double Verify, a software platform for digital media measurement and analytics, shared strong results with their first quarter earnings beat across the board demonstrating platform strength and resilience against a challenging macro backdrop. Natera, a diagnostics company focusing on developmental and commercialization of testing services for women’s health, oncology and organ health, experienced strong performance with the announcement of Medicare extending coverage of Natera’s Signatera MRD Test for breast cancer.


The largest detractor from performance at the security level for the quarter was Clearfield, Inc., a company that designs, manufactures, and distributes fiber optic management, protection, and delivery products for communications networks. Broad-based investor concerns weighed on the stock throughout the quarter on fears of capital spending reductions occurring at broadband service providers because of increasing interest rates effects on cost of capital. Additionally, the company’s first quarter earnings guided lower revenue and margin growth in the near term as the decline in their backlog suggested customers’ returning to normalized order levels and subsequently working through inflated inventory levels.


(As of 3/31/23) — As we look ahead to remainder of the year, inflation continues to be of concern for investors despite the efforts from the Federal Reserve as they have raised interest rates an additional 50 basis points (bps) since the start of the year. Inflation has been decelerating but it is still far from the Fed’s target of 2%. Furthermore, tighter credit standards as a result of the March banking crisis is clouding the economic picture. However, there are a few offsetting factors that point to a soft landing including a strong labor market, consumer resilience, and a stable housing market.

With that being said, we note that small cap company valuations have further re-rated this past quarter as expectations have been reset by management. With the increase in volatility, we are taking advantage of compelling valuations and well-capitalized small cap companies with attractive business models and good fundamentals. Portfolio positioning will continue to be fairly defensive as we remain cautious on the everchanging macro environment. We continue to appreciate your interest in the fund.

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.


General Account
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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.

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 Small Cap Fund (BUFSX) received 2 stars among 561 for the 3-year, 4 stars among 522 for the 5-year, and 3 stars among 388 Small Growth funds for the 10-year period ending 4/30/23, based on risk-adjusted returns.

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. ©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 Morningstar Style Box™ reveals a fund’s investment strategy by showing its investment style and market capitalization based on the fund’s portfolio holdings.

Diversification does not assure a profit, nor does it protect against a loss in a declining market.

Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Both actively and passively managed mutual funds generally have daily liquidity. There are no guarantees regarding the performance of actively and passively managed mutual funds. Actively managed mutual funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains.