Investor Login Advisors Contact Us FAQs Search LARGE CAP FUND QUICK FACTS Investor Institutional Ticker: BUFEX BUIEX Inception Date: 5/19/1995 7/1/2019 Expense Ratio: 0.95% 0.80% Total Net Assets: $122.30 Million (9/30/21) Morningstar Category: Large Cap Growth Benchmark Index: Morningstar U.S. Large Growth Related Material: Fund Fact Sheet Q3 2021 PM Commentary Q3 2021 Summary Prospectus FUND OBJECTIVE & INVESTMENT PHILOSOPHY The investment objective of the Buffalo Large Cap Fund is long-term growth of capital. The Fund normally invests in equity securities, consisting of common stocks, preferred stocks, convertible securities, warrants and rights of large capitalization (“large-cap”) companies. The Fund considers a company to be a large-cap company if, at time of purchase by the Fund, it has a market capitalization greater than or equal to the lesser of (1) $10 billion, or (2) the median market capitalization of the Morningstar U.S. Large Growth Index. The median market capitalization of the Morningstar U.S. Large Growth Index changes due to market conditions and also changes with the composition of the Index. As of June 30, 2021, the median market capitalization of companies in the Morningstar U.S. Large Growth Index was approximately $84.1 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 favorable attributes, including attractive valuation, strong management, conservative debt, free cash flow, scalable business models, and competitive advantages. We don’t manage to our benchmark so we don’t have too much concentration in any one single trend. We also manage based on valuation, trimming positions when they approach their potential upside and adding to them as they get closer to the potential downside. Ken Laudan, Portfolio Manager MORNINGSTAR RATINGS Overall Morningstar Rating™ of BUFEX based on risk-adjusted returns among 1,137 Large Growth funds as of 10/31/21. Morningstar Sustainability Rating™ of BUFEX out of 1,549 US Equity Large Cap Growth funds as of 9/30/21, based on 100% of AUM Carbon Metric Rating of BUFEX as of 6/30/21 in the Large Growth category, based on 96% of AUM; long positions only Historical Sustainability Score Rank of BUFEX PERFORMANCE (%) MONTH - END QUARTER - END CALENDAR YEAR As of 10/31/21 3 MO YTD 1 YR 3 YR 5 YR 10 YR 15 YR 20 YR Since Inception BUFFALO LARGE CAP FUND - Investor 4.62 23.96 39.70 25.29 21.37 17.39 12.05 10.17 11.19 BUFFALO LARGE CAP FUND - Institutional 4.66 24.10 39.92 25.48 21.55 17.56 12.21 10.34 11.35 Morningstar U.S. Large Growth Index 5.36 25.58 42.85 29.86 26.32 19.77 13.67 10.31 - Lipper Large Cap Growth Fund Index 4.57 22.04 39.94 28.22 24.37 18.16 12.49 10.13 10.21 Morningstar Large Growth Category 4.71 20.47 39.55 26.53 22.95 17.43 12.17 10.60 10.15 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 BUFEX vs Morningstar U.S. Large Growth Index (As of 9/30/21) Upside Capture 80.49 Downside Capture 93.62 Alpha -0.97 Beta 0.88 Sharpe Ratio 0.98 HYPOTHETICAL GROWTH OF $10,000 Buffalo Large Cap Fund - Investor Class Morningstar U.S. Large Growth Index 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 $0 $100,000 $20,000 $40,000 $60,000 $80,000 This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the inception date of the benchmark index (6/30/97). Assumes reinvestment of dividends and capital gains. This chart does not imply future performance. PORTFOLIO PORTFOLIO CHARACTERISTICS (As of 9/30/21) # of Holdings 74 Median Market Cap $102.23 B Weighted Average Market Cap $723.56 B 3-Yr Annualized Turnover Ratio 12.00% % of Holdings with Free Cash Flow 82.89% Active Share 61.40% TOP 10 HOLDINGS Name of Holding Ticker Sector % of Net Assets Microsoft MSFT Technology 8.34% Amazon AMZN Consumer Discretionary 7.07% Apple AAPL Technology 5.89% Alphabet (A) GOOGL Technology 5.75% Facebook FB Technology 4.32% Visa V Financial Services 2.34% PayPal PYPL Financial Services 2.09% S&P Global SPGI Financial Services 1.83% ASML Holding ASML Technology 1.56% Texas Instruments TXN Technology 1.55% TOP 10 HOLDINGS TOTAL 40.74% As of 6/30/21. 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. View Full Holdings SECTOR WEIGHTING 16.0 2.7 0.0 4.0 12.4 5.6 52.4 2.5 1.0 0.0 0.0 3.3 20.2 1.2 0.0 2.6 14.9 0.0 55.7 0.0 4.1 1.2 0.0 0.0 Buffalo Large Cap Fund Morningstar U.S. Large Growth Index Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Telecommunications Utilities Cash 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 6… As of 9/30/21. 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 Mid Cap ($4.5B - $30B): 8.5% Large Cap (>$30B): 91.5% As of 9/30/21. Market Cap percentages may not equal 100% due to rounding. MANAGEMENT Ken Laudan Portfolio Manager 28 Years of Experience View full bio COMMENTARY Q3 2021 Commentary CAPITAL MARKET OVERVIEW PERFORMANCE COMMENTARY (As of 9/30/21) — The Buffalo Large Cap Fund (BUFEX) produced a return of 1.17% in the quarter, a result that outperformed the returns of the S&P 500 Index and the Morningstar Large Growth Category average of 0.58% and -0.07% respectively, but underperformed the prospectus benchmark Morningstar U.S. Large Growth Index, which generated a return of 2.35% in the period. TOP CONTRIBUTORS Icon Labs (ICON) – ICON is the second largest contract research organization (CRO) in the world specializing in the management and analysis of drug development programs for biopharmaceutical clients. Our recent timely purchase and holding of ICON shares remains predicated on continued out-sized revenue and earnings per share (EPS) growth owing to the recent PRA Health Sciences acquisition as well as on-going strength of research and development from biopharmaceutical firms around the globe. We believe ICON is aiming to sustain high single digit organic revenue growth with low double-digit EPS growth over the next several years. ICON shares advanced 27% for the portfolio in the quarter on a better appreciation of the growth opportunity, mostly stemming from the recently completed merger with PRA Health Sciences (closed on July 1st ). ICON also reported a healthy revenue and EPS beat with their June quarter financial performance, that was buoyed by strong net new business wins (up over 21%) resulting in increased full-year 2021 financial guidance. Alphabet (GOOG) – Alphabet is the parent company of Google and several former Google subsidiaries. We continue to have a large position in Alphabet based on our expectation the company may continue to drive strong growth from its leading franchises in online search and digital video advertising, while also gaining share in the large and fast growing public cloud computing sector on the strength of its highly-differentiated machine learning tool-kit. GOOG Class A shares appreciated 9.5% during the quarter on the back of a strong, across the board 2nd quarter financial performance with both Search and YouTube expanding a robust 62% and 84%, respectively year-over-year. Cloud accelerated nicely in the quarter as well, lifting 54% from the 2nd quarter of 2020. We will continue to watch the rollout of the iPhone 13 that launched in the 2nd quarter that has a feature allowing users to opt out of app tracking of personal data such as age, location, spending habits, etc. These new privacy options could potentially hamper efforts by advertisers on search and social media (Google, Facebook, and others) that target users with bespoke ads and promotions. Thermo Fisher (TMO) – Thermo Fisher is the global leader in providing life science tools, such as scientific instruments for labs, reagents used in both diagnostics (including COVID-19), and biopharma production. Via its recent acquisition of PPD, Inc., Thermo now provides clinical research services as a top five global player. Thermo has been a highly predictable revenue and EPS compounder that could deliver double-digit total shareholder returns within virtually any macro environment. TMO’s share price increased 13% in the quarter owing to a very positive investor day where the company increased their ’23-25 long-term organic revenue growth rate to 7% to 9%, which had previously been 5% to 7%. The company also provided a somewhat better ’22 initial outlook, which resulted in analysts increasing both near and long-term financial estimates. The new guidance was a welcome surprise given some growing concerns over China’s economic slowdown, which could negatively affect TMO’s revenues in China (about 8% of total revenue) and is something we will continue to watch closely. TOP DETRACTORS FedEx (FDX) – FDX is a leading multinational transportation and package delivery company, highly leveraged to the growth of e-commerce and business services such as overnight delivery. We own a moderately-weighted position in FDX shares, as the company could continue to benefit from the acceleration of e-commerce globally, owing to its broad, global network of linked aircraft and ground transportation. We also see a 3-4 year margin recovery theme, as certain aircraft are retired, coupled with TNT Express acquisition synergies and increased pricing power. FedEx shares declined 26% in the quarter, stemming from revenues and expenses being negatively impacted from a material labor shortage in package handlers at facilities around the U.S. The corollary has been late deliveries and extra overtime pay for current workers. We expect some modest relief with stronger-than-normal seasonal shipping rate increases and some improvement on the labor front, as we exit past supplemental unemployment benefits. While there were no other materially underperforming holdings relative to our benchmark, we would point out that not owning shares in several strong performing benchmark holdings of Tesla, Moderna, and Snowflake negatively impacted our relative performance. From a sector perspective, Healthcare and Financials remain slight relative over-weights due to our conviction in growth cyclicals/defensives heading into 2022. However, we would stress that Information Technology and Consumer Discretionary remain, by a large margin, the largest weightings in our Fund. OUTLOOK 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. LITERATURE Buffalo Large Cap Fund Documents Last Updated Fact Sheet 9/30/21 Quarterly Commentary 9/30/21 Full Fund Holdings 9/30/21 Summary Prospectus 7/29/21 Prospectus 7/29/21 Statement of Additional Information 7/29/21 Annual Report 3/31/21 Semi-Annual Report 9/30/20 Tax Guide - 2020 1/10/21 General Account Forms Investor Class Institutional Class Both 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 MORNINGSTAR RATING™ The Buffalo Large Cap Fund received 3 stars among 1,137 for the 3-year, 3 stars among 1,032 for the 5-year, and 3 stars among 763 Large Growth funds for the 10-year period ending 10/31/21. Other share classes may have different performance characteristics. MORNINGSTAR SUSTAINABILITY RATING™ MORNINGSTAR LOW CARBON DESIGNATION™ OUR FUNDS Discovery Fund Dividend Focus Fund Early Stage Growth Fund Flexible Income Fund Growth Fund High Yield Fund International Fund Large Cap Fund Mid Cap Fund Small Cap Fund INVEST WITH US Open an Account Directly Work with a Financial Advisor Platform Availability RESOURCES Account Forms Advisors Coverdell Accounts CUSIP IDs FAQs Investor Login IRA Accounts Literature Prospectus Tax Information ABOUT US Who We Are Investment Strategy Our Team Our History LinkedIn Prospectus Privacy Policy Definitions © 2021 Buffalo Funds. All rights reserved. Before you invest in the Buffalo Funds, please refer to the summary or statutory prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling (800) 49-BUFFALO. The prospectus should be read carefully before you invest or send money. Mutual fund investing involves risk; Principal loss is possible. The Buffalo Dividend Focus, Flexible Income, Early Stage Growth, Small Cap, Mid Cap, Discovery, Growth, and International Funds invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Dividend Focus, High Yield, Early Stage Growth, Small Cap, Mid Cap, Discovery, Growth, Large Cap and International Fund may invest in foreign securities which will involve political, economic and currency risks, greater volatility and differences in accounting methods. The International Fund may invest in emerging markets, which are generally more volatile and can have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries and securities markets that are substantially smaller, less liquid, more volatile and may have a lower level of government oversight than securities markets in more developed countries. The Flexible Income and High Yield Funds may invest in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The Flexible Income Fund may invest in MLPs which are subject to certain risks inherent in the structure of MLPs, including complex tax structure risks, limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates. Investors should be aware of risks involved with investing REITs and real estate securities, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. The Buffalo Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this website should be considered a solicitation to buy or an offer to sell shares of any Buffalo Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. Kornitzer Capital Management is the advisor to the Buffalo Funds, which are distributed by Quasar Distributors, LLC.