Quick Facts
Investor Institutional
Daily Pricing:  
As of 9/29/2022  
NAV: $13.54 $13.62
$ Change: $-0.28 $-0.28
% Change:
-2.03% -2.01%
-29.22% -29.10%
Inception Date: 4/14/1998 7/1/2019
Expense Ratio: 1.01% 0.86%
Total Net Assets: $774.29 Million  (6/30/22)
Morningstar Category: Small Cap Growth
Benchmark Index: Russell 2000 Growth
Related Material:
   Fund Fact Sheet Q2 2022
   PM Commentary Q2 2022
   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 583 Small Growth funds as of 8/31/22.

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 8/31/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO SMALL CAP FUND - Investor5.88-22.84-27.8414.1314.1012.489.0811.4511.89
BUFFALO SMALL CAP FUND - Institutional5.92-22.75-27.7614.3114.2712.659.2411.6212.06
  Russell 2000 Growth Index3.33-22.29-25.265.936.6910.167.709.78  5.95
  Morningstar U.S. Small Growth Index-0.15-28.06-31.742.606.149.527.44--
  Lipper Small Cap Growth Fund Index-0.72-23.46-24.557.7910.2411.257.979.68  7.14
  Morningstar Small Growth Category-0.31-24.57-25.927.809.3110.858.1610.14  7.24
As of 6/30/223 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO SMALL CAP FUND - Investor-19.18-31.94-38.098.8711.4411.168.029.8311.40
BUFFALO SMALL CAP FUND - Institutional-19.15-31.86-38.009.0411.6111.338.189.9911.57
  Russell 2000 Growth Index-19.25-29.45-33.431.404.809.306.808.34  5.57
  Morningstar U.S. Small Growth Index-22.41-32.79-36.23-0.144.979.056.84--
  Lipper Small Cap Growth Fund Index-18.71-28.43-27.914.539.0610.767.328.47  6.90
  Morningstar Small Growth Category-19.80-29.98-30.574.247.7910.267.448.92  6.96

BUFFALO SMALL CAP FUND - Investor19.9344.15-6.55-4.466.2227.07-5.7840.9766.364.85
BUFFALO SMALL CAP FUND - Institutional20.1144.36-6.41-4.326.3727.26-5.6441.1766.604.97
  Russell 2000 Growth Index14.5943.305.60-1.3811.3222.17-9.3128.4834.632.83
  Morningstar U.S. Small Growth Index14.5041.862.46-0.189.6123.77-5.6727.6043.52-1.00
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 6/30/22)
Upside Capture136.84
Downside Capture99.43
Sharpe Ratio0.31
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 Holdings79
Median Market Cap$2.03 B
Weighted Average Market Cap$2.62 B
3-Yr Annualized Turnover Ratio63.33%
% of Holdings with Free Cash Flow76.32%
Active Share91.26%
Top 10 Holdings
Name of HoldingTickerSector% of Net
ICF IntlICFIIndustrials2.55%
Air Transport Services GroupATSGIndustrials2.31%
Halozyme TherapeuticsHALOHealth Care2.23%
Everi HoldingsEVRIConsumer Discretionary2.18%
Privia Health GroupPRVAHealth Care2.18%
Tenable HoldingsTENBTechnology2.08%
NV5 GlobalNVEEIndustrials2.07%
FTI ConsultingFCNIndustrials2.00%
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.


Jamie Cuellar, CFA
Portfolio Manager

30 Years of Experience

 View full bio

Bob Male, CFA
Portfolio Manager

36 Years of Experience

 View full bio



(As of 6/30/22) — The stock market extended year-to-date losses during the 2nd quarter. Inflation, rising interest rates, and economic uncertainty continued to be major headwinds for investors as recession talks gained traction. The S&P 500 Index fell -16.10% during the quarter, bringing the total return for the first half of the year to -19.96%. News headlines, which included energy shortages, the war in Ukraine, China’s COVID lockdowns, and the potential for softer corporate earnings next quarter, added to the pessimistic market sentiment. However, the Federal Reserve’s hawkish stance on inflation, expectations for additional interest rate increases, and a reduction in the size of its balance sheet, continued to signal confidence in the U.S. economy moving forward.

The broad-based Russell 3000 Index declined -16.70% in the quarter. Value stocks fell less than growth stocks as the Russell 3000 Value Index returned -12.41%, versus a return of -20.83% for the Russell 3000 Growth Index. Relative performance slightly favored market cap size as large caps outperformed small caps in the quarter. Larger cap stocks, as measured by the Russell 1000 Index, returned -16.67% compared to the smaller cap Russell 2000 Index return of -17.20% and the Russell Microcap Index return of -18.96%. There were no advancing economic sectors for the quarter, but Consumer Staples, Energy, Utilities, and Healthcare held up better on a relative basis. Consumer Discretionary, Information Technology and Communication Services areas lagged.


(As of 6/30/22) — The Buffalo Small Cap Fund (BUFSX) produced a return of -19.18% in the quarter, a result that was in-line with the Russell 2000 Growth Index return of -19.25%. The Fund produced solid relative performance in Healthcare, Industrials, and Financials, while Technology, Consumer Discretionary, and Materials underperformed.


The largest contributor to Fund performance for the quarter was Transmedics, a healthcare equipment company with burgeoning product cycles around its Organ Containment System (“OCS”). OCS is used to transport hearts, livers, and lungs for organ transplants, and its National OCS Program (“NOP”), which provides organ explant and logistics services using its OCS product. The company is seeing excellent uptake of its product and services and remains in the early stages of its growth potential, by our analysis.

Privia Health was also a contributor to performance results. Privia, a healthcare services provider that partners with practitioners and helps them move to a value-based care model from fee for service, continued to differentiate itself from its peers due to its capital-light model and higher cash flow margins. The move to value-based care is still in its infancy, and we believe Privia will be a solid player in this growing industry.


Technology weakness was largely due to the underperformance of TaskUs, a Business Process Outsource (BPO) company that provides outsourced services, largely for other technology companies. The company reported better than expected results for the March quarter but failed to raise full year estimates due to an offshore transition from its largest customer, which lowers revenues in the near term. We believe the TaskUs offering can help companies looking to lower their costs by moving these functions offshore and should eventually garner more attention due to the weaker macroeconomic environment. As a result of the share price pullback, we believe the stock is undervalued and remains in the portfolio.


(As of 6/30/22) — With the worst first half performance for small cap stocks since 1973 now in the books, we believe that investors are close to pricing in a recessionary scenario for small companies that may or may not happen over the next 12 months. Historically, small caps underperform large caps going into a recession and outperform coming out of one. If small cap stocks have indeed nearly priced in a recession, as the historical data suggests, we could be entering a period where allocators might want to warm up to the asset class.

According to data from Jefferies (the investment banking and financial services firm), the small cap market as a percent of the total market is now less than 4% — a level unseen since the 1930s and a sharp contrast from the peak of nearly 14% in 1984/1985. When relative performance between small caps and large caps has been this low, it is typically followed by a five-year period where the small cap asset class outperforms. Additionally, according to BofA Securities, the Russell 2000 Index’s price-to-earnings ratio (P/E) is at 11.6x, the lowest since the market bottom of the global financial crisis in February/March of 2009.

There has also been a severe correction in high valuation areas such as medical technology and software. As a result, our investment opportunity universe has increased as many of those companies are now trading at more reasonable price levels. We believe near-term market volatility will remain high, especially entering the second quarter reporting period, where estimates for many companies will need to come down. For patient capital, willing and able to ride out near-term volatility, the market could be setting up a nice entry point into the small cap asset class.

At the portfolio level, we continue to focus on companies that benefit from long-term trends with a focus on higher quality characteristics, as measured by return on equity and balance sheet strength, that can withstand a period where access to capital may be constrained. We continue to look for companies with unique product cycles, pricing power, and those that can take market share, which should produce additional opportunities for growth.

As always, thank you for your continued trust and conviction in our capabilities over the long haul. We look forward to proving updates on better times.

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.

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 5 stars among 583 for the 3-year, 4 stars among 534 for the 5-year, and 3 stars among 399 Small Growth funds for the 10-year period ending 8/31/22, 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.