(PUB) Investing 2015

March 2015

Morningstar FundInvestor

5

Data through February 28, 2015 Buffalo Mid Cap

Ticker

Status Yield Total Assets

Mstar Category Mid-Cap Growth

BUFMX Open

0.0% $568 mil

Morningstar Analyst Rating 02-02-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating Average Average Neutral

95% 99% 90% 92% 95% 99% 98% 99%

ˇ

Manager Change Partial Manager Change

14.0 18.0 22.8

Morningstar Pillars Process Performance

Growth of $10,000

¶ ¶ ¶ ∞ ∞

Positive Neutral Neutral Neutral Positive

Investment Values of Fund Investment Values of S&P 500

10.0

People Parent Price

7.0

Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 02-15

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

12.92 16.60

14.48 13.83

15.01

15.29

9.14

13.60 48.80 22.34

16.91 24.34 9.28 -2.04 0.00 24.34 0.00 0.00 1.02 -0.43 54

15.60 -5.83 -7.94 -4.18 0.00 -5.83 0.00 0.32 1.02 -0.23 64

16.97 13.93 -2.07 -1.88

18.78 29.25 -3.14 -6.49

17.45 5.85 -7.84 -6.05 0.00 5.85 0.00 2.42 1.01 -0.20 66

18.51 6.07 3.50 -4.26 0.00 6.07

NAV

5.68

-39.43 9.97

Total Return %

5.72 1.12 0.00

-10.11 8.92

4.48 -1.46 0.00

-2.43 4.89 0.00

+/-S&P 500 +/-Russ MG

1.73 0.00

-4.98 0.00 5.68 0.00 0.29 1.02 -0.21 74

2.51 0.00

0.08

0.00

Income Return % Capital Return %

16.60

13.83

-39.43 9.97

48.80

13.85

29.25

25

19

74

20

16

53

90

16

Total Rtn % Rank Cat

Pillar Spectrum Positive ∞

0.00 0.16 1.03 -0.48

0.00 0.22 1.03 -0.39

0.00 1.22 1.02 -0.32

0.00 0.18 1.01 -0.23

0.00 0.00 1.02 -0.26

0.01 0.79 1.01 -0.34

0.00 3.08 1.01 0.07

0.00 0.00 . . . 568

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

Performance 02-28-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

24

21

19

21

34

17

12

21

31

31

45

2010 2011 2012 2013 2014

9.49 -10.01 12.46 12.21 24.34 2.01 3.59 -19.08 10.13 -5.83 15.06 -7.97 2.60 4.85 13.93 5.72 4.85 8.77 7.21 29.25 2.61 3.68 -4.20 3.86 5.85

167

269

375

473

197

399

727

670

612

622

562

Portfolio Analysis 12-31-14 Share change since 09-14 Total Stocks:52 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

CME Group Inc Class A Acuity Brands Inc

Finan Svs 28.6 Technology 37.5 Hlth care 44.8 Cnsmr Def 39.8 Cnsmr Cyc 23.5 Finan Svs 27.9 Cnsmr Cyc 26.2 Technology 30.6

3.16 3.00 2.97 2.83 2.81 2.57 2.56 2.53

. . . . . . . .

1 Yr 3 Yr 5 Yr

7.85

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 6.38 4.07

MG

Cat

$10,000

14.37 13.91

Avg -Avg Avg

+Avg

Hospira Inc

3 Mo 6 Mo 1 Yr

-6.24

15 10,638 63 10,580 60 10,785 64 14,960 84 19,178

Avg Avg

Boston Beer Co Inc Class Lions Gate Entertainment The Whitewave Foods Comp Affiliated Managers Grou Williams-Sonoma Inc Harman International Ind

5.80 -0.32 -13.44 7.85 -7.66 -17.70 14.37 -3.63 -12.29

10 Yr Incept

8.94 8.73

Cnsmr Def 51.8 17.03 2.60

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index S&P 500 Mstar Mid Growth TR

13.91 -2.27 8.94 0.95

-5.00 1.66

51 23,544 . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Alpha

-3.7 1.05

-1.7 0.98

Life Time Fitness Inc

Cnsmr Cyc 19.7 2.08 2.43

Beta

Genesee & Wyoming Inc Cl Under Armour Inc Class A

Industrl

22.5 14.66 2.42

R-Squared

65

84

Cnsmr Cyc 81.3

2.40

.

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

11.63 12.19

68 78 44

2.40 1.51 0.96

75 68 45

Standard Deviation

12.35 14.37

Equinix Inc

Technology

-1.13 2.34

. 21.1

Moody’s Corporation

Industrl

2.31 2.27 2.18

Mean

. . .

Perrigo Co PLC BorgWarner Inc

Hlth care 60.2 Cnsmr Cyc 21.5

7.89

Sharpe Ratio

1.15

Potential Capital Gain Exposure: 35% of assets

Akamai Technologies Inc Kansas City Southern Inc

Technology 37.7 10.40 2.15

Morningstar’s Take by David Kathman, CFA 02-02-15 Buffalo Mid Cap is undergoing a manager shift after another tough year. On Jan. 17, 2015, advisor Kornitzer Capital Management announced several management changes in the Buffalo funds. Kent Gasaway, who has comanaged this fund with Bob Male since its 2001 inception, is stepping away to focus on Buffalo Small Cap BUFSX, the firm’s struggling $3 billion flagship fund. (The firm also hired Jamie Cuellar, formerly of the PineBridge funds, as new comanager of Small Cap.) Male’s new comanager here is Dave Carlsen, who has comanaged Buffalo Growth BUFGX and Buffalo Discovery BUFTX for the past decade. These management shifts aren’t likely to result in dramatic changes for this fund. Carlsen says he plans to bring more valuation discipline to the portfolio and to take a more tactical approach, though it remains to be seen exactly what that will mean in practice. Buffalo Discovery has put up strong results over the decade that Calsen has helped manage it, though it was a technology sector fund until 2012, so those

Industrl

25.4

2.12

.

LKQ Corp

Cnsmr Cyc 19.7 -12.61 2.04

results are only partially relevant. These moves come on the heels of a five-year stretch of mediocre to poor relative returns, which have been all the more disappointing given the strong results the fund posted in its early years. To some extent, this recent weakness has resulted from the managers’ unwillingness to own the riskiest, lowest-quality mid-cap growth stocks during a period when risk has mostly been rewarded by the market. There have been some missteps, such as 2011’s bad bet on for-profit education stocks and energy-related stocks that got hit in 2014 by falling oil prices. The fund shouldn’t be judged too harshly for the past five years, especially given that the same strategy led to mostly stellar returns in the fund’s first eight years of existence. But Male is the only one of the managers responsible for that performance who is still on the fund, after the retirement of Grant Sarris in 2013 and now Gasaway’s shift. That fact creates enough uncertainty to drop the fund’s Morningstar Analyst Rating to Neutral from Bronze.

MSC Industrial Direct Co

Industrl

19.3

1.95

.

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 0.0 Large 11.2 Mid 72.5 Small 14.7 Micro 1.6 Avg $mil: 6,901

Value Blnd Growth

Large Mid Small

Cyclical 40.90 BasicMat 1.69 CnsmrCyc29.02 FinanSvs 10.19 Real Est 0.00 Sensitive 43.12 CommSrvs 0.00 Energy 2.25 Industrl 19.45 Technlgy 21.42 Defensive15.99 CnsmrDef 5.49 Hlthcare 10.50 Utilities 0.00

. .

h r t y u j i o p a k s d f

3 2

. 29 21 . 13 9 . . .

. . .

7 2 5 1

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

24.17 3.30 2.62 17.51 0.65 15.36 12.51 11.55 8.65 13.69

1.24 1.20 1.55 1.75 0.73 1.08 1.28 1.50 0.64 0.53

. 21 18 . 27 21

. .

5 1

. 12 8 . . .

% Rel Category

Composition - Net

Cash 1.2 Stocks 98.8 Bonds 0.0 Other 0.0 Foreign 6.0

Address:

Buffalo Funds Milwaukee, WI 53201 800-492-8332 www.buffalofunds.com

Minimum Purchase: Min Auto Inv Plan:

$2500 $100

Add: $100 IRA: $250

Add: $100

Profitability

% Rel Category

Sales Fees:

No-load, 2.00%R

Return on Equity Return on Assets Net Margin

17.76 8.18 11.59

1.04 1.11 1.14

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

1.00%

(% of Stock)

12-17-01

Actual Fees:

Mgt:1.00% Dist: .

Kornitzer Capital Management Inc

Expense Projections: Income Distribution:

3Yr:$322

5Yr:$558 10Yr:$1236

None

Semi-Annually

Fidelity Retail-NTF, CommonWealth NTF

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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