Quick Facts
Inception Date:4/14/19987/1/2019
Expense Ratio:1.01%0.86%
Total Net Assets:$1.16 Billion  (12/31/21)
Morningstar Category:Small Cap Growth
Benchmark Index:Morningstar U.S. Small Growth
Related Material:
   Fund Fact Sheet Q4 2021
   PM Commentary Q4 2021
   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.

“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 580 Small Growth funds as of 12/31/21.

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 Morningstar U.S. Small Growth Index. As of June 30, 2021 the range of market capitalizations of the Morningstar U.S. Small Growth Index was $543 million to $20.4 billion.

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.


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

Recent Recognition
Featured Articles & Reports




Performance (%)

As of 12/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO SMALL CAP FUND - Investor-3.284.854.8534.9724.1017.0511.5611.4713.48
BUFFALO SMALL CAP FUND - Institutional-3.274.974.9735.1624.2817.2211.7211.6413.65
  Morningstar U.S. Small Growth Index-0.65-1.00-1.0021.9316.1814.4410.459.05  7.32
  Lipper Small Cap Growth Fund Index2.1211.2211.2225.9119.0615.5110.519.42  8.57
  Morningstar Small Growth Category1.7411.8911.8925.8718.0915.1610.7410.13  8.75
As of 12/31/213 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO SMALL CAP FUND - Investor-3.284.854.8534.9724.1017.0511.5611.4713.48
BUFFALO SMALL CAP FUND - Institutional-3.274.974.9735.1624.2817.2211.7211.6413.65
  Morningstar U.S. Small Growth Index-0.65-1.00-1.0021.9316.1814.4410.459.05  7.32
  Lipper Small Cap Growth Fund Index2.1211.2211.2225.9119.0615.5110.519.42  8.57
  Morningstar Small Growth Category1.7411.8911.8925.8718.0915.1610.7410.13  8.75

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
  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 Morningstar U.S. Small Growth Index (As of 12/31/21)
Upside Capture145.67
Downside Capture97.23
Sharpe Ratio1.37
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 Holdings81
Median Market Cap$2.09 B
Weighted Average Market Cap$3.37 B
3-Yr Annualized Turnover Ratio62.44%
% of Holdings with Free Cash Flow61.25%
Active Share92.29%
Top 10 Holdings
Name of HoldingTickerSector% of Net
Everi HoldingsEVRIConsumer Discretionary2.16%
Rush Street InteractiveRSIConsumer Discretionary2.07%
ICF IntlICFIIndustrials2.03%
Castle BiosciencesCSTLHealth Care1.79%
Tenable HoldingsTENBTechnology1.77%
Cambium Networks CorpCMBMTechnology1.77%
Palomar HoldingsPLMRFinancials1.68%
Array TechnologiesARRYTechnology1.65%
Open Lending Corp.LPROFinancials1.63%
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.


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 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) — Many small cap growth companies continued to struggle during the quarter as a result of declining gross domestic product (GDP) estimates due to supply chain disruptions and the COVID-19 spike from the highly transmissible Delta variant. Investors gravitated to the relative safety of larger companies, and market capitalization was a meaningful driver of relative performance during the period. The Russell 2000 Index of smaller companies declined -4.36% in the quarter, underperforming the Russell Midcap Index and the larger cap Russell 1000 Index, which produced returns of -0.93% and 0.21%, respectively. Growth companies outperformed Value in the mid and large cap indices during the quarter, but Growth underperformed Value in the smaller cap Russell 2000 Index by 267 basis points. Small cap value has meaningfully outperformed small cap growth year to date. Weakness was seen in all but one sector of the Morningstar U.S. Small Growth Index, as only Energy produced positive returns. Healthcare and Telecom Services were the weakest performing sectors within the index, while Technology and Industrials declined the least.

The Buffalo Small Cap Fund (BUFSX) produced a return of -5.96% for the quarter, underperforming the Morningstar U.S. Small Cap Growth Index return of -4.50%. Healthcare drove most of the underperformance, followed by weakness in Industrials and Telecom Services while Consumer Discretionary, Technology, and Financials outperformed.

Historically, stock selection drives the Fund’s relative performance, but attribution analysis this quarter shows that our allocation effect and selection effect detracted by an almost equal amount. The negative allocation effect came from a portfolio overweight to Consumer Discretionary and Telecom Services, two weaker performing benchmark sectors along with a portfolio underweight to Technology and Energy, two better performing benchmark sectors.


Rush Street Interactive (RSI) was a significant contributor for the quarter. An online sports betting and interactive casino company, Rush Street shares struggled during the spring and early summer due to weakness in companies that came public through a SPAC, or special purpose acquisition company. Seasonal weakness in online sports betting companies ahead of the pivotal NFL season also weighed on the company’s shares. The stock recovered this quarter, as investors grew increasingly excited about online sports betting as the NFL season kicked off. Additionally, the company maintained solid market share in their key iCasino markets, and investors cheered the potential for further consolidation within the group, as a couple of deals were announced with some speculation that RSI could be an acquisition candidate.


Bandwidth (BAND) was the largest detractor during the period. Industry consolidation and vertical integration within the Communications Platform as a Service (CPaaS) group drove fears that Bandwidth has a competitive disadvantage, which led to share price declines. Continued tough competition throughout the remainder of 2021, especially in areas where Bandwidth benefited from additional political traffic in 2021, contributed to the selloff. We believe the latter is a short-term phenomenon that will anniversary this upcoming quarter, and Wall Street is failing to give credit for Bandwidth’s own acquisition activity, namely the acquisition of Voxbone, which accelerates Bandwidth’s entry into Europe.

Hydroform (HYFM) was another detractor from performance during the quarter. A distributor of controlled environment agricultural products such as nutrients, consumables and lighting largely used by the fast-growing cannabis industry, Hydroform’s stock was weak due to a slowdown in the California market, following an inventory correction from an earlier harvest. We believe this will prove to be a short-term event, and the long-term opportunity for Hydroform, namely more markets approving cannabis usage along with the potential for highly accretive acquisitions by the company, remains intact.


(As of 9/30/21) — The outlook for small caps remains somewhat mixed, in our view. Investor concerns over rising inflation, a planned reduction in the Fed’s purchase of bonds, higher interest rates, a looming debt ceiling vote, uncertainty in Washington, continued economic headwinds from supply chain disruptions, and ongoing fears of additional COVID outbreaks weighs on market sentiment and drives investors to the relative safety of larger cap companies or less risky assets. As one can surmise from the length of the list of concerns, there is definitely a decently sized “wall of worry” impacting investors. We believe many of these concerns are already “baked into the cake,” noting that small cap growth stocks have experienced a significant amount of relative underperformance this year. Furthermore, small cap stocks tend to outperform as the economy accelerates and with the worst of the Delta variant seemingly behind us, most economists have 4th quarter GDP picking back up, after ratcheting down 3rd quarter growth expectations due to COVID. We also note that small caps tend to outperform in periods of rising interest rates, as this is generally a sign of an improving economy. The yield on 10-year US Treasury Bonds has started rising after bottoming in July 2021.

While growth stocks may continue to lag value if the economy experiences an acceleration due to supply chain improvements or as COVID fears wane, we remain confident in the outlook for growth stocks in the medium- to long-term, as high government debt levels may eventually weigh on outsized GDP growth, giving growth companies premium positioning with investors. We are cognizant of the negative impact rising interest rates typically have on long duration assets, characterized by high valuations and significant operating losses, and are positioning the portfolio accordingly.

This quarter was noteworthy for the Fund in that, staying true to a small cap focus and investing in smaller market cap companies, did not work as well as hanging on to “winners” which have now become mid-cap companies. In our post-mortem of the quarter’s performance, we noticed that the Fund’s smaller market cap holdings (those under $1.8 billion in market cap) meaningfully underperformed investments above that cap range. Relative to the benchmark index, the portfolio maintained an overweight to smaller companies (under $1.8 billion or less in market cap), which contributed to our performance shortfall. We observe that our Fund typically underperforms during significant rotations out of the smaller market cap range and during significant rotation towards value from growth. This quarter was true to form. We take some comfort in that prior periods such as late 2018/early 2019 and late 2016/early 2017, this phenomenon has been short lived. In closing, we remain highly confident in our time-tested investment process, the companies in the portfolio, and the new ideas we continue to uncover. As always, we appreciate your continued support over the long run.

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
  New Account Application
  New Account Application - Entity
  Change or Add Account Details
  Cost Basis Method Election
  Power of Attorney
Individual Retirement Account (IRA) Forms
  IRA Account Application
  IRA Beneficiary Addition / Change
  IRA Required Minimum Distribution (RMD)
  IRA / Qualified Plan Distribution Request
  IRA Transfer
Coverdell Education Savings Accounts (ESA) Forms
  Coverdell ESA Application
  Coverdell ESA Distribution Request
  Coverdell ESA Transfer
Retirement Information
  Retirement Savings Options for Individuals

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 580 for the 3-year, 4 stars among 513 for the 5-year, and 4 stars among 385 Small Growth funds for the 10-year period ending 12/31/21, 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. ©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 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.