AnnualReport

BuffaloFunds

March 31, 2017




Message to Our Shareholders

The world experienced significant changes over the past 12 months, but investors took it all in stride as most of the world's major capital markets continued to march upward. The U.S. equity market generated a double-digit return for the 12 month period ending March 31, 2017 with the S&P 500 Index and Russell 3000 Index producing returns of 17.17% and 18.07%, respectively. Meanwhile bond markets experienced more dispersion in performance based on credit quality as more speculative issues, which were perhaps oversold in early 2016, rebounded strongly during the year. The Bank of America ML U.S. High Yield Master II Index, a fixed income index designed to track lower quality, non-investment grade bonds, produced a return of 16.88% while investment grade bonds, which are more dependent on the future direction of interest rates, were relatively flat for the year as measured by the Bloomberg Barclays U.S. Aggregate return of 0.44%. Equity markets outside of the U.S. also produced a strong showing for the past 12 months ending March 31, 2017 as global economic data has been consistently improving, particularly near the end of the period. In December, the European Central Bank announced that it would dial back its monthly bond buying program beginning in April 2017 from 80 billion euros ($86 billion U.S.) a month to 60 billion euros ($64.5 billion U.S.) a month until at least December 2017. And with the tapering of the buying program in effect, underlying sovereign interest rates are starting to increase. For example, the yield on Germany's 10-year government bond more than doubled, rising 18 basis points year to date to 0.39%. But even with the doubling of the yield on the German Bund, foreign buyers continue to struggle to find attractive absolute yield within the Eurozone. In fact, strong foreign investment in U.S. Treasuries has kept a lid on government bond yields through March 31, 2017. With that said, the consensus expectation is that the yield on the 10-year Treasury will be in a range of 3.00% to 3.50% by calendar year-end (compared to 2.37% as we write this update), but that expectation is dependent on the economy continuing to be strong, and assumes the Fed will continue to follow its plan of two additional rate increases before year-end. However, as reported at the end of April, the initial Gross Domestic Product for the first quarter of 2017 only increased at an annualized rate of 0.7%, which is the slowest pace since the first quarter of 2014 and could cast doubt on additional Fed Fund increases for this year.

With interest rates likely to remain low by historical standards, investors may continue to seek capital appreciation in the equity markets, now in the eighth year of the current bull market. As we write this update, geopolitical risks seem to become more elevated by the week, as President Trump keeps the world guessing about what United States foreign policy will look like over the next several years. Additionally,

key elections in Europe continue to put pressure on multi-national companies, as the populous vote moves away from Globalism toward one that embraces Nationalism. Closer to home, the on again, off again healthcare reform decision is casting doubt about whether Republicans will also be able to act upon President Trump's pro-growth agenda of infrastructure spending and tax reform. As of May, Congress had just three months to address tax reform and an infrastructure plan before another full month's recess in August. It has been more than 35 years since any major tax reform has occurred in America, so it will be unlikely that a change will take place within a three month period, but any increased visibility on changes being discussed could help investors determine the potential benefit to the economy and businesses. A significant portion of earnings growth since the Great Recession has been driven by operational efficiencies (cost cutting), but a moderate amount of inflation and positive tax reform could help propel corporate earnings to the next leg of earnings growth. Regardless, any revisions to tax and regulatory policies should reinvigorate economic growth. An additional jolt to the economy could be any move on President Trump's infrastructure plan, which while lagging details, has been described by one of the President's cabinet members as an investment program valued at $1 trillion over 10 years focusing on multiple sectors outside of transportation infrastructure, including energy, water and potentially broadband and veterans hospitals.

In closing we remind you that at Buffalo Funds, we take a long-term approach to investing. Just like our namesake, the buffalo, we are steady, strong, and proud. We have a record of growth that is a testament to our philosophy of trend-based, deeply-researched investing and commitment to long-term growth. Patience is our mantra, and our great strength. Those who invest in Buffalo Funds learn that patience truly is a virtue. We believe that the best way to invest for long-term growth is through a structured, disciplined process. Our steady approach avoids the histrionics of market reactions and allows us to focus on buying opportunities that fit our strategic goals. We appreciate your trust in our management teams and our organization. We will continue to work diligently to meet your expectations.

Sincerely,

Clay E. Brethour
President


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The Funds' investment objectives, risks, charges and expenses must be considered carefully before investing. The Prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-800-49-BUFFALO or visiting www.buffalofunds.com. Read it carefully before investing.

Past performance does not guarantee future results. Mutual fund investing involves risk. Principal loss is possible.

Kornitzer Capital Management is the Advisor to the Buffalo Funds which are distributed by Quasar Distributors, LLC.

Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax advisors or legal counsel for advice and information concerning their particular situation.

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.


3




Portfolio Management Review

Buffalo Discovery Fund

For the fiscal year ending March 31, 2017, the Buffalo Discovery Fund appreciated 16.13% and outperformed the Russell Mid Cap Growth Index which rose 14.07%. The outperformance of the Fund relative to the benchmark for the fiscal year was due to stock selection particularly within industrial and information technology sectors.

The top contributors to the Fund's performance for the year were Align Technology and FMC Corporation. Micron Technologies was also a top contributor and partly responsible for the strong stock selection in information technology during the twelve month period. Align has been a holding in the Fund for over ten years, a testament to our long term investment philosophy. The company continued to grow as penetration of Invisalign clear aligners for malocclusion expands. The company gained share as innovative adaptations of the base technology have increased the addressable population. FMC Corporation is a diversified chemical company serving the agricultural, health and industrial markets. The stock had strong twelve month performance for three primary reasons. The lithium business exceeded expectations in calendar 2016 due to strong demand, favorable pricing and good cost control. Secondly, the agriculture business is recovering from a cyclical downturn which was a result of oversupply and weakening agricultural commodity prices. Thirdly, during the agricultural downturn the industry consolidated with FMC a beneficiary of the consolidation. FMC will acquire Dupont's agricultural business at favorable terms as a result of a divesture required by regulators for the Dupont / Dow merger to close. Micron's stock staged an impressive recovery in fiscal year 2017, as memory chip oversupply corrected and pricing inflated.

Top detractors for the year included Stericycle and Under Armour. Under Armour entered the fiscal year with a lofty valuation. As top line growth slowed, management deferred the highly anticipated margin expansion, and the stock declined. The decelerating top line was partly due to weaker apparel demand in North America, a fashion cycle in footwear that missed the mark, and store closures by brick and mortar retailers such as The Sport's Authority and Macy's. We started to build a position mid-year and while the growth reacceleration is likely to take longer than we originally forecasted, the valuation is compelling and we believe the company has a huge opportunity in front of it with less than 8% share in its addressable markets globally. Under Armour has benefitted from the trend to healthier living and the brand equity remains strong despite the weaker than expected 2016 operating performance. Acuity Brands provides both residential and commercial LED

lighting solutions. We have owned the stock for several years and the company has been a key beneficiary of the transition to LED lighting. As the stock appreciated we trimmed the position. Over the past two quarters growth has slowed modestly and the stock sold off, leading to the more compelling current valuation, in our view. We anticipate growth will reaccelerate in the back half of calendar year 2017. Finally Stericycle was a detractor in the fiscal year primarily due to a substantial reset of the pricing for its regulated and specialized wastes disposal services to small accounts. We believe that the pricing environment is now well understood by management and investors, the valuation is attractive and the current guidance is conservative. The regulated waste business has significant barriers to entry, differentiated service levels and economies of scale. While the pricing reset was unexpected, we continue to like the long term fundamentals of the business.

The Fund ended the fiscal year with 86 stocks representing 85 companies, as we hold both the Class A and Class B shares of Lion's Gate Entertainment. The cash weighting as of March 31, 2017 was 2.6%. After three months of optimism related to the Republican sweep in November's elections, the reality of a laborious and uncertain political process is setting in. Regardless of the Administration's success on the legislative front, certainly the regulatory backdrop has improved, resulting in increased business confidence. Nevertheless we are now eight years into an expansion, and the cycle is maturing. Our valuation discipline should prove to be a differentiator, particularly as the broader equity market appreciates and valuations extend. The Buffalo Discovery Fund's process is to invest based on the Buffalo Long Term Growth Trends. By limiting our investment universe to companies that we believe are potential beneficiaries of the Trends, we are exposed to businesses operating in secular growth markets. The Trends are relevant in any political environment. Over the intermediate to long term, the capital markets are highly efficient and companies exposed to the long term trends driving growth in our economy should outperform.

Buffalo Dividend Focus Fund

The Buffalo Dividend Focus Fund produced a return of 18.35% for the twelve month period ending March 31, 2017 and outperformed the S&P 500 Index return of 17.17%. The Fund's relative outperformance was driven by the Energy, Real Estate and Consumer Discretionary sectors while the top detracting sectors were Information Technology and Industrials. The outperformance in the Energy sector relative to the benchmark reflects both an overweight sector allocation and security selection. Specific companies that contributed to positive performance over the past year


4



(Unaudited)

included Noble Midstream Partners, Devon Energy Corporation and Chevron. Within Real Estate the outperformance was driven by security selection specifically CoreCivic, which rose 34.13%. CoreCivic had declined due to certain policies implemented by the prior President and which were endorsed by his party's candidate but when she lost the U.S. Presidential election, the market's perception of the new President's policies was much improved and more favorable to CoreCivic. The relative outperformance within Consumer Discretionary was also due to security selection. Specific securities that generated some of the outperformance included Twenty-First Century Fox, Comcast, Marriott and Jack in the Box.

The primary sectors detracting from performance were Information Technology and Industrials. The relative underperformance within Information Technology was due to an underweight sector allocation while the relative underperformance within Industrials was due to security selection and to a lesser degree being underweight the sector. Specific subsectors within Information Technology which detracted from performance were Semiconductors and Technology Hardware. Within Industrials, the subsectors that detracted from performance were Rails, Airlines and Machinery. Cash was also a detractor over the year.

The top contributors to the Fund in fiscal 2017 were Noble Midstream Partners, Bank of America and Apple. Noble Midstream benefitted from the markets growth expectations associated with its parent as well as an improved underlying commodity environment. Bank of America's performance primarily reflects the election of a new U.S. President and a perception that his policies will be beneficial to banks via less regulation and more growth which should steepen the yield curve and improve net interest margins. Apple's stock was trading at a depressed valuation multiple and when earnings proved to be better than feared the stock price improved and it received a higher multiple. The top three detractors to the Fund in fiscal 2017 were Gilead Sciences, CVS and Target. The underperformance in Gilead reflects fears surrounding future growth as the company's Hepatitis C market shrinks as these patients are cured of their illness. CVS' underperformance reflects increased competition with Walgreens and the loss of several large contracts while Target continues to face fierce competition from both online and brick and mortar competitors. During the past year, the Fund exited its stake in Target.

Going forward, we continue to have a consistent message in that we look for companies that we believe 1) exhibit long term sustainable competitive advantages, 2) have a history of growing their revenues, earnings, and dividends,

3) generate significant amounts of free cash flow, 4) have rock solid balance sheets, 5) have management teams who exhibit stellar capital allocation skills and whose interests are aligned with shareholders, and 6) are trading at an adequate discount to our estimate of fair value. As the market has moved up and multiples have expanded over the last year, it has become more difficult to continue to find undervalued companies. We continue to search for companies that meet our criteria for purchase and sell those that no longer exhibit the qualities we desire.

We expect the market to experience continued volatility in the coming quarters as the Federal Reserve continues to normalize interest rates along with a focus on the ability of the Trump administration to enact infrastructure spending, deregulation, and corporate tax reform. Prospective tailwinds for the economy include further job growth, wage increases, lower tax rates, and simply more optimism from both businesses and consumers; all of which could lead to higher Gross Domestic Product (GDP) growth. On the other hand, potential headwinds include strengthening of the U.S. dollar, further increases in interest rates, and valuation metrics that are above historical market averages leading us to believe that the stock market may have a hard time achieving further multiple expansions.

Despite the expectation of continued volatility we continue to focus on wide moat, large capitalization companies that are trading at reasonable valuations, in our view. As always, the Fund will continue to focus on competitively advantaged companies that can be purchased at a fair price, in our opinion. As the stock market has continued to climb, it is getting harder to find companies that fit our investment criteria, but we continue to follow our process of finding new investment ideas and to be ready when market declines provide better opportunities.

Buffalo Emerging Opportunities Fund

For the 12-month period ending March 31, 2017, the Buffalo Emerging Opportunities Fund posted a positive return of 22.99%, roughly in-line with the Russell 2000 Growth Index return of 23.03%.

The Fund generated outperformance in the Information Technology ("IT") and Industrials sectors. Information Technology was the largest sector weighting in the Fund and generated average returns of 51.18% during the period compared to the index's return of 31.76%. Industrials were also an area of competitive stock selection, with the Fund's holdings returning 57.20% versus the index returns of 21.88%. Offsetting this outperformance was the Fund's Consumer Discretionary holdings which returned 2.76% compared to the 14.28% return posted by the index.


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Portfolio Management Review

(Continued)

Additionally, our cash balance for the year presented a drag on relative performance given the significant positive market returns over this time period.

The Fund took advantage of the market sell-off that occurred in the quarter ended March 2016 to add to existing Information Technology holdings or build new positions. Actions taken during this time period helped generate the outperformance among our technology holdings over the past fiscal year. Strategic acquirers also saw the disconnect in valuations that occurred during the period as portfolio companies inContact, Demandware, and Apogee were acquired by NICE Systems, Salesforce.com, and Google, respectively during the course of the past 12 months. Additionally, LogMeIn merged with the GoTo unit of Citrix Systems in a very favorable transaction for LogMeIn shareholders, a development that contributed significantly to our outperformance in the technology sector.

We remain focused on valuations and fundamentals and continue to monitor the risk/reward profile of our holdings. We will make changes to the portfolio based on market moves that provide either an opportunity to trim or add to a position based on potential inefficiencies in the smaller end of the market capitalization spectrum. The correction that began in calendar 2016 was one of those events and the Fund was rewarded in these cases by strategic acquirers supporting our thoughts with their capital being put to use to acquire the above mentioned holdings.

In the Industrials sector, Kornit Digital was a leading contributor to returns after being added to the Fund in June 2016 following several meetings with the management team. Kornit is the leading provider of digital direct to garment and roll-to-roll printing, allowing for high throughput of custom apparel and other use cases based on demand. With Kornit hardware and proprietary ink, online apparel designers can produce short runs of custom pieces based solely on demand. Kornit has been a prime beneficiary in the shift in consumer's increasing desire to purchase apparel online and a desire to have more unique pieces of clothing. In January, Amazon selected Kornit to deliver a large number of its Avalanche 1000 printers in support of Amazon's growing Merch program. In conjunction with this agreement, Kornit granted Amazon warrants that do not vest until Amazon purchases significant amounts of equipment and supplies from Kornit.

Meanwhile the Consumer Discretionary sector was a headwind to relative performance during the period as a few of our restaurant holdings detracted from results. Several investments in this area struggled with porting their success in a couple of existing markets to new markets. Additionally, the subtle but still meaningful shift in

consumer's spending to eat-at-home versus eat-away-from home proved to be a drag on same store sales metrics.

As the daily political headlines pass, geopolitical tensions heat up, and the realization that getting legislation passed in Washington is never easy, we aim to stay consistent to our strategy of building a portfolio of securities that should benefit from underlying secular growth trends that could have thriving business models over the long term regardless of the political climate. The Buffalo Emerging Opportunities Fund is focused primarily on identifying innovation within U.S. companies with North American revenue bases. Therefore the universe of companies we review for inclusion in the Fund is typically much more U.S. centric than most mid and large cap companies. We like this positioning given the dollar appreciation and foreign policy uncertainty. In addition, U.S. consumer and small business confidence are near or at all-time highs which should also bode well for our smaller, U.S. centric companies. Additionally, we continue to believe the landscape for potential acquisitions could benefit the Fund as larger companies continue to search out areas for growth as we enter year eight of the current bull market.

Buffalo Flexible Income Fund

The Buffalo Flexible Income Fund produced a return of 11.02% for the twelve month period ending March 31, 2017. During the same time period, the S&P 500 returned 17.17% and the Bank of America Merrill Lynch High Yield Master II Index returned 16.88%. The equity portion of the portfolio returned 12.85%. The Flexible Income Fund's equity component is primarily focused on large cap dividend payers which we believe possess significant competitive advantages. The primary sectors that led to the underperformance were industrials, financials and information technology. The underperformance within industrials was primarily due to security selection. Specifically, Pitney Bowes detracted 127 basis points from performance which was due to weak operating results and continued pressure on mail volumes as businesses transition away from traditional mail based marketing to digital. The underperformance in financials was due to sector allocation as the Fund was significantly underweight the best performing sector in the index. The underperformance in information technology was due to sector allocation and security selection as the Fund was significantly underweight the second best performing sector in the index. The security that negatively impacted performance the most during the period was Qualcomm. Additionally, several non-dividend paying companies generated positive returns during the year for the index. The Fund does not typically invest in these kinds of companies as our mandate is focused on companies that


6



(Unaudited)

pay dividends. The top contributors to the Fund in fiscal 2017 were Boeing, BB&T and Microsoft. Boeing continued to benefit from strong operating results and significant cash flow generation. BB&T share price improvement reflects investor expectations of a lower regulatory burden due to the new U.S. President and the hope of more favorable banking policies. Additionally, investors anticipate that the President's policies will improve growth which could lead to a steeper yield curve and better net interest margins. The top detractors to the Fund in fiscal 2017 were Pitney Bowes, HollyFrontier and Verizon.

The fixed income portion of the Buffalo Flexible Income Fund generated a return of 10.78% over the past 12 months and underperformed the Bank of America Merrill Lynch Master II Index which generated a return of 16.88%. The primary sectors detracting from performance were consumer discretionary, energy and information technology. The underperformance in the discretionary sector relative to the benchmark reflects both a significant overweight as well as security selection. The Fund was overweight the sector and the sector underperformed the index while the underperformance from security selection was due to our investment in Lions Gate Entertainment which reported weak fourth quarter earnings. Within energy, the underperformance was primarily due to security selection. Energy was the best performing sector within the high yield index over the past year and this partially reflects the significant return generated by various distressed energy credits. Fund management has historically avoided investing in distressed credit. The underperformance in the discretionary sector relative to the benchmark reflects both a significant overweight as well as security selection. The top contributors to the portfolio's fixed income performance included Valeant, Medicines Company and Bankrate while the three top detractors were Community Health, Alere and Wildhorse Resource Development.

As we look ahead, we remain focused on finding attractive yield opportunities that we believe have favorable risk reward outlooks. Within the equity space we remain focused on large cap dividend payers as well as select master limited partnerships (MLPs). Within fixed income, we are primarily focused on three asset classes, high yield bonds, convertible bonds and floating rate bank debt.

Buffalo Growth Fund

The Buffalo Growth Fund returned 12.88% in the fiscal year ending March 31, 2017, compared to its benchmark the Russell 1000 Growth Index return of 15.76%. Relative to the benchmark, energy, financials, and health care ended the fiscal year as the largest overweight sectors. While infor-

mation technology and consumer staples were the most underweight.

Among the leading contributors, Amazon.com was the top contributor for the fiscal year. Shares set all-time highs after the company reported record profits during the year. Results were robust as profit margins improved in its North American ecommerce business as sales continued to grow at a rapid pace. In addition, its web services business continued to grow profitably while maintaining a high level of growth throughout the year. Next, shares of Apple were driven by a strong launch of the new iPhone 7 in September 2016, leading growth to inflect higher. Also, the market position of the iPhone 7 has been helped by the product reliability issues at Samsung, providing an opportunity for Apple to gain market share. Finally, Align Technology shares were higher on continued strong growth of its innovative correction dental product, Invisalign. The company continued to have opportunities to invest to sustain its profit growth including geographic expansion and new products.

Among the detractors for the fiscal year, Nielsen shares declined on weaker than expected earnings growth. Results were negatively impacted by ongoing cost rationalization of many large consumer products companies with particular emphasis on more discretionary spending by these customers. However, the company has maintained growth in its core measurement businesses. Next, shares of Stericycle declined on weaker growth and guidance for the year. The company has experienced pricing headwinds in its medical waste business and two larger acquisitions have taken longer to integrate and yield synergies. We believe Stericycle remains a beneficiary of increasing utilization of medical care with an aging population. Finally, Under Armour shares fell on disappointing growth and profit forecasts for fiscal 2017. The company has experienced a setback of its growth due to some product innovation missteps combined with increasing competition in the athletic apparel space.

We continue to hold a more positive view on the domestic economic outlook relative to the global outlook. In Europe, elections in France and Germany this year continue to brew uncertainty on the heels of the surprise vote by the United Kingdom to exit the European Union last summer (Brexit). In addition, Europe still suffers from a debt problem among many European Union member nations. Greece and Italy have been widely reported as highly indebted countries but several other nations are not far from burdensome debt levels as well. In Asia, Japan continues to limp along in a lethargic recovery, while China's growth has moderated but remains at a high absolute level. In the U.S.,


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Portfolio Management Review

(Continued)

the initial optimism for economic stimulus from the new administration has diminished as President Trump met more resistance than expected in overhauling health care. This has resulted in the timeline being pushed out for policies expected to boost economic growth, such as tax reform and infrastructure spending. Even if approved, these growth boosting initiatives are unlikely to be significant in 2017 due to the delay caused by the focus on healthcare policy. In this environment, we continue to stay focused on attempts to hedge capital from potential downside risks, while taking incremental risk when justified by positively skewed potential return outcomes.

Buffalo High Yield Fund

The Buffalo High Yield Fund increased 8.37% for the fiscal year ended March 31, 2017. During the period, the Fund underperformed our primary benchmark, the Bank of America Merrill Lynch High Yield Master II Index (the "Index") which had a return of 16.88% by 851 basis points during the comparable period. Our underperformance relative to the Index can largely be attributed the Fund's strategy of owning higher credit quality issues with shorter durations which underperformed riskier names for much of the year. The Fund was also significantly underweight in the energy and mineral/mining sectors which were by far the two strongest performing sectors in the Index. In fiscal 2017, the high yield markets experienced significant volatility driven by: (i) highly volatile crude oil and other commodity prices that cratered in the first fiscal quarter before rallying significantly; (ii) investor concern over continued interest rate increases by the Fed; (iii) and uncertainty about the health of the global economies and state of the credit cycle. The Fund's energy allocation was roughly 5% compared to the Index's 14% weighting, and this was a key driver of the Fund's underperformance in the last nine months of the fiscal year.

The approximate rate and contribution of return from the various asset classes in the portfolio during the fiscal year 2017 was as follows:

  APPROXIMATE
UNWEIGHTED
RETURN
  APPROXIMATE
CONTRIBUTION
TO RETURN
 

Straight Corporates

   

9.6

%

   

6.6

%

 

Convertibles

   

13.4

%

   

1.8

%

 

Bank Loans

   

6.9

%

   

0.6

%

 

Convertible Preferred

   

12.2

%

   

0.1

%

 

Common Stocks

   

8.5

%

   

0.3

%

 

Cash

   

0.0

%

   

-1.0

%

 

Total

   

50.6

%

   

8.4

%

 

All asset classes provided positive returns for the Fund in the fiscal year. Given the heavy allocation in the Fund and overall strong performance in the asset class, straight

corporate bonds contributed the most to the Fund's performance. Primary contributors to the straight corporate bond portfolio included KCG Holdings 6.875% '20, Neustar 4.50% '23, and DigitalGlobe 5.250% '21. KCG Holdings notes started the fiscal year at depressed levels due to disappointing earnings but steadily improved over the year as earning performance improved and its low duration attracted investors. Neustar was acquired and DigitalGlobe refinanced its notes both of which drove prices back to par. Securities that underperformed in this asset class included Concordia Healthcare 9.500% '22, MDC Partners 6.500% '24, and Community Health Systems 7.125% '20.

As an asset class, convertible bonds posted the strongest unweighted return and were the second largest contributor to Fund performance. The Medicine Company 2.500% '22 and 2.750% '23 issues along with Greenbrier 3.500% '18 were the top performers. The stock of Medicine Company nearly doubled in early 2017 after a competitor's favorable clinical trials for a similar cholesterol drug were announced which drove the value of the convertible notes considerably higher. Greenbrier benefited from better than expected earnings and the "Trump Effect" following the November elections.

During the fiscal year, the Fund continued to increase its exposure to bank loans as we were able to find additional issues with attractive pricing, favorable credit quality, and perceived less exposure to rising interest rates than fixed rate bonds. Primary contributors in this segment included Akorn, Valeant Pharmaceuticals, and Diebold. The Fund only owned one convertible preferred stock position at the end of the fiscal year which was the Allergan 5.500% '27 convertible preferred. It had minimal impact on the Fund's returns during the year. Within the common stock segment of the portfolio, we liquidated all of our positions in September to raise liquidity for a pending redemption. In January, we received shares of Lions Gate Entertainment common stock as payment from a maturing convertible bond issue that we held.

After significant declines in the first calendar quarter ending March 31, 2016, the broad high yield market saw significant strength throughout fiscal 2016 as the Index recorded gains in all four quarters. Recent economic news continues to be mixed with the unemployment rate relatively strong, while the number of jobs created and inflation numbers remain benign. Thus, the rhetoric coming out of Federal Open Market Committee (FOMC) meetings continues to imply restrained optimism and a regime of slow incremental rate increases over the next two years. The U.S. Treasury yield curve has flattened in response to rising short term Fed Funds rate and lack of significant inflation.


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Within this environment, we continue to manage the Fund cautiously yet actively as we look into the new fiscal year. In managing the Fund, we continue to focus on high-quality issuers with defensive business models and manageable credit metrics. As yields and spreads tightened throughout fiscal 2017 to the lowest levels since 2013, we increased the weighting in floating rate bank loans and tried to add shorter duration issues when possible. We will continue to deploy the Fund's cash in opportunities that we believe offer the most appealing risk/reward tradeoffs with a bias toward high credit quality, appealing business models, relatively short duration, and attractive relative values. We will also remain opportunistic in adding floating rate bank loans and convertible bonds, the former providing some hedging to a rising rate environment and the latter giving the Fund exposure to underlying equity movements.

Buffalo International Fund

For the fiscal year ending March 31, 2017, the Buffalo International Fund appreciated 13.46%, slightly ahead of the Russell Global ex-U.S. Index, which returned 13.13%. The performance of the Fund was challenged by its sector allocation, but positively impacted due to stock selection, with the strongest benefit coming from stock selection within the information technology sector.

Broadcom, Kering and Adidas were the top contributors for the fiscal year. Broadcom, a stock we've owned almost since the Fund's inception, is a semiconductor manufacturer which continued to benefit as cellular handset and base station suppliers continue their roll-out of 4G capabilities, which requires greater use of semiconductor filters to handle the bandwidth and spectrum density. Kering and Adidas both benefited from a renewed focus on core brands, to which the consumer responded favorably.

Top detractors for the year's performance included Amer Sports Oyj, and several healthcare holdings, including Teva Pharmaceuticals and Allergan. Amer Sports Oyj develops and manufactures sports and fitness equipment and clothing, including the brands Wilson, Precor and Salomon. The brands had a poor showing during the holiday season, amid delays in new product launches. Overall the healthcare market is facing a great deal of uncertainty due to efforts to repeal and replace the Affordable Care Act and intense scrutiny on pharmaceutical pricing practices. Both Teva and Allergan have been recipients of this scrutiny and the stocks have suffered accordingly. In addition, Teva's acquisition of Actavis hasn't provided the anticipated synergies.

Having shrugged off hysteria caused by Britain's vote to exit the European Union (BREXIT) in mid-year 2016, and

gotten past a Fed rate hike last December, the outlook for global growth has turned positive with reflationary forces being felt in China, Europe and Japan. We are however concerned that some of the reflationary forces being propagated are due to another credit push from China, which may not be sustainable in the medium turn. In any event, the markets are acting with relief that the worst has passed and perhaps Central Banks may be moving toward market price discovery among and between asset classes. Elections are front and center in the European Union (EU), but for now, polls seem to indicate that the status quo will continue. We believe the political uncertainty in Europe should ameliorate as we move to the second half of the year, and attention again will focus on future Central Bank actions.

Overall, we continue to expect modestly improving economic growth around the globe. Our investment process is designed to favor a long-term secular growth perspective coupled within the context of our valuation and country specific macro analyses. While our process remains unchanged, we are taking incremental risks were it makes sense, while continuing to keep an eye towards the pursuit of hedging capital from potential downside risks. We continue to look for opportunities to buy or add to companies that are exposed to secular growth, improving balance sheets and sustainable business models that possess valuations which could provide appropriate prospective returns for our investors.

Buffalo Large Cap Fund

For the fiscal year ending March 31, 2017, the Buffalo Large Cap Fund appreciated 18.67% significantly outperforming the Russell 1000 Growth Index return of 15.76%. The outperformance of the Fund relative to the benchmark for the fiscal year was due to stock selection within the consumer discretionary sector. To a lesser extent, stock picking within the information technology and healthcare sectors also contributed to relative performance.

Amazon, Apple, and Micron Technologies were top contributors for the fiscal year. While many brick and mortar retailers are struggling to grow in the face of store closures, Amazon appears to be gaining share with overall top line growth having accelerated in 2016 over 2014 and 2015. The company remains extremely well positioned to potentially benefit from ecommerce growth and cloud computing. Apple's iPhone 7 sales meaningfully exceeded expectations in the fourth quarter of 2016 which were reported in January. The installed base of iPhones is approximately 570 million globally. The iPhone 8 launch later this year, the ten year anniversary product, will have a large target audience. Micron's stock staged an impressive recovery in 2016 as memory chip oversupply corrected and pricing inflated.


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Portfolio Management Review

(Continued)

Ending the quarter, we no longer believe that the company is undervalued.

Top detractors for the year's performance involved several healthcare holdings, including CVS Health and athenahealth. CVS Health's equity has been under pressure since early 2016 for a myriad of reasons including lost market share to several rivals over the past six months, concerns about drug pricing pressure that could affect the company's growth profile, and angst over the lack of transparency in the drug supply chain resulting in perhaps outsized profits for pharmacy benefit managers such as CVS at the expense of other businesses along the supply chain. While controversy surrounding the stock is elevated, we see little long term fundamental risk to the company and find the valuation compelling. athenahealth offers a cloud based information technology management system for healthcare providers. The company's operations underperformed expectations in the fourth quarter of 2016. Overall the healthcare provider market is facing a great deal of uncertainty due to efforts to repeal and replace the Affordable Care Act. We expect athenahealth's bookings and operating performance to improve as the uncertainty lifts.

The Fund ended the fiscal annual period with 46 stocks representing 45 companies, as we hold both the Class A and Class C shares of Alphabet, Inc. The cash weighting stood at 5.2% ending the period.

After three months of optimism related to the Republican sweep in November's elections, the reality of a laborious and uncertain political process is setting in. Regardless of the Administration's success on the legislative front, certainly the regulatory backdrop has improved, resulting in increased business confidence. Nevertheless we are now eight years into an expansion, and the cycle is maturing. Our valuation discipline should prove to be a differentiator, particularly as the broader equity market appreciates and valuations extend.

The Buffalo Large Cap Fund's process is to invest based on the Buffalo Long Term Growth Trends. By limiting our investment universe to companies that we believe are potential beneficiaries of the Trends, we are exposed to businesses operating in secular growth markets. The Trends are relevant in any political environment. Over the intermediate to long term, the capital markets are highly efficient and companies exposed to the long term trends driving growth in our economy should outperform.

Buffalo Mid Cap Fund

The Buffalo Mid Cap Fund generated a return of 12.94% for the 12 month period ending March 31, 2017, which

underperformed the Russell Midcap Growth Index return of 14.07% during the same period. The index was primarily driven higher by contributions from the information technology, health care, industrial and financial sectors with the Fund producing positive stock selection in all but one of those areas. Negative stock selection in consumer discretionary and materials contributed to the Fund's underperformance. Positive stock selection in financials, real estate and information technology sectors helped partially offset soft relative performance in the areas mentioned above. Also negatively impacting performance was our attention to valuation as we trimmed stocks, particularly in the fiscal fourth quarter, that continued to move higher. We are actively deploying capital into areas we believe have a more favorable risk/reward profile.

The Fund's consumer discretionary sector experienced negative selection effect for the period with Tractor Supply Company and Under Armour most negatively affecting the performance. Tractor Supply Company's results were impacted by unfavorable weather in certain areas of the country. We remain positive on the fundamentals of the company as stores in areas of the country not affected by weather continue to perform well. For Under Armour, weaker apparel demand in North America and dislocation at some retail sporting goods stores have caused sales to slow. Also hurting the stock is the company's desire to invest for long-term growth which is pressuring margins. Despite the weakness from both stocks, we remain positive on the long term fundamentals of both companies and believe the valuation profiles are compelling.

The Fund's financials performed well in the quarter as MarketAxess and MSCI were the top performers in the sector. MarketAxess Holdings, which operates an electronic trading platform for fixed-income securities, and provides market data and post-trade services for the global fixed-income markets, benefitted from the trend in electronic trading of fixed income securities away from traditional phone orders. The stock was up over 50% for the period. MSCI, which provides benchmark indexes and portfolio risk analytics tools to institutional investors, benefitted from the growth in Exchange Traded Funds (ETFs) and risk management solutions. MSCI operates what we view as an attractive business model that has a substantial recurring revenue stream with meaningful barriers to entry. The stock was up about 33% for the period.

The Fund's largest contributor to performance was Cepheid, a healthcare diagnostic company. The company received an offer to be acquired by Danaher at a greater than 50% premium to where the stock was trading. We had taken a position in the company at attractive prices,


10



(Unaudited)

believing that the market was not recognizing the value of the company correctly after a period of poor execution that was largely in the rear view mirror.

The setup for 2017 appears to bode well for both accelerated economic growth and performance of U.S equities. The new Presidential administration's focus on deregulation, infrastructure spending, and tax reform point to a more pro-growth, business-friendly environment, which could portend an extended cycle of economic growth. Investors are now keeping a close eye on President Trump's ability to pass meaningful tax reform, especially after promises of healthcare reform have so far fallen short. Inability to provide tax reform may cause market volatility though expectations for the timing of results are being actively managed by the new administration.

While we are pleased with the number of positions in the portfolio, we continue to look for additional ideas that could provide greater risk adjusted return potential. We have spent considerable time over the past few months analyzing companies with a greater cyclical profile that could stand to benefit from factors like accelerating job growth, improved construction activity, and increased energy production. We would expect those kinds of companies to outperform in this environment of an elongated economic cycle. While we have added some new positions in these areas, we are remaining true to our process of identifying what we believe to be beneficiaries of long-term trends and implementing our valuation discipline. We continue to actively reduce stocks with potential disproportionate downside risk and appreciate your continued support and confidence.

Buffalo Small Cap Fund

The Buffalo Small Cap Fund produced a return of 24.51% for the 12 month period ending March 31, 2017, outperforming the Russell 2000 Growth Index return of 23.03% during the same period. The Fund's relative performance was strongest in healthcare and technology, while weakest in consumer discretionary.

Technology was the Fund's best-performing sector relative to the index. The top-performing holding in the sector was LogMeIn, which announced a large synergistic merger with Citrix's GoTo business in July 2016 that could position the company for margin expansion and accelerated free cash flow growth. Another holding that outperformed in the sector was Cognex, a company focused on machine vision and factory automation, which benefited from strong performance with its consumer electronics, automotive, and logistics customers. The Fund also outperformed the index in healthcare with Exact Sciences providing the highest

contribution in the sector. The company continued to gain payer, doctor and patient support for Cologuard, a commercialized alternative to colonoscopy for detecting colorectal cancer. Investors are now starting to give some attention to the company's pipeline of screening tests in other areas of oncology like lung and breast cancer. Other portfolio holdings in this sector that drove above index returns included Supernus, a specialty pharmaceutical company that settled a generic challenge over their lead compound, and Cepheid, a diagnostic company that was purchased by Danaher.

Our Consumer Discretionary holdings represented the biggest underperformer relative to index sector results. The Fund's investment in Fitbit detracted from performance as consumer demand for the company's wearable devices declined significantly. The Fund's holdings in restaurants, specialty retail, and apparel also represented a drag relative to the index as our holdings underperformed. We have taken steps to potentially improve performance in this sector, including eliminating some holdings where fundamentals have failed to materialize, and redeploying the capital into companies we believe are poised for stronger returns.

Other sectors were more muted in their contribution to the Fund's relative performance. Consumer Staples and Financials contributed to outperformance, while Industrials and Materials served as slight drags. During the year, we were quite active in making changes to the portfolio in an attempt to position it for improved performance. The Fund finished the fiscal year with 73 holdings, a significant increase compared to 62 positions at the end of the previous year. While we are pleased with strong idea-generation and the increased number of securities in the portfolio, we continue to look for additional ideas that could provide greater risk-adjusted returns.

The setup for 2017 appears to bode well for both accelerated economic growth and performance of U.S equities. The new Presidential administration's focus on deregulation, infrastructure spending, and tax reform point to a more pro-growth, business-friendly environment. We have spent considerable time over the past few months looking at companies with a greater cyclical profile that could stand to benefit from factors like accelerating job growth, improved construction activity, and increased energy production. At the same time, uncertainties in the global geopolitical environment, and questions about the new administration's ultimate ability to pass reforms could lead to enhanced market volatility in coming quarters as well. While we have added some new positions in these areas, we are remaining true to our process of identifying potential beneficiaries of long-term trends and implementing our


11



Portfolio Management Review

(Unaudited)

valuation discipline. We continue to actively reduce stocks with disproportionate downside risk and those that have graduated well into being midcap stocks. We appreciate your continued support and confidence.

Sincerely,

John C. Kornitzer
President, KCM

Bond ratings are grades given to bonds that indicate their credit quality as determined by a private independent rating service such as Standard & Poor's. The firm evaluates a bond issuer's financial strength, or its ability to pay a bond's principal and interest in a timely fashion. Ratings are expressed as letters ranging from 'AAA', which is the highest grade, to 'D', which is the lowest grade. In limited situations when the rating agency has not issued a formal rating, the Advisor will classify the security as nonrated.

Earnings growth is not representative of a fund's future performance.

A basis point is one hundredth of a percentage point (0.01%)

Cash flow is the net amount of cash moving into and out of a business.

Yield is the income return on an investment.

Yield Curve is a curve on a graph in which the yield of fixed-interest securities is plotted against the length of time they have to run to maturity.

Free Cash Flow is revenue less operating expenses including interest expense and maintenance capital spending. It is the discretionary cash that a company has after all expenses and is available for purposes such as dividend payments, investing back into the business, or share repurchases.

Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration.


12



Investment Results

Total Returns as of March 31, 2017 (Unaudited)

           

AVERAGE ANNUAL

 
    GROSS EXPENSE
RATIO*
  THREE
MONTHS
 

ONE YEAR

 

FIVE YEARS

 

TEN YEARS

  SINCE
INCEPTION
 
Buffalo Discovery Fund (inception date 4/16/01)    

1.02

%

   

8.22

%

   

16.13

%

   

12.76

%

   

10.40

%

   

8.82

%

 

Russell Mid Cap Growth Index

   

N/A

     

6.89

%

   

14.07

%

   

11.95

%

   

8.13

%

   

8.13

%

 

Lipper Multi-Cap Growth Funds Index

   

N/A

     

9.22

%

   

17.11

%

   

11.94

%

   

7.69

%

   

5.92

%

 
Buffalo Dividend Focus Fund (inception date 12/03/12)    

0.98

%

   

6.56

%

   

18.35

%

   

N/A

     

N/A

     

14.45

%

 

S&P 500 Index

   

N/A

     

6.07

%

   

17.17

%

   

N/A

     

N/A

     

15.11

%

 

Lipper Equity Income Funds Index

   

N/A

     

4.03

%

   

16.09

%

   

N/A

     

N/A

     

12.59

%

 
Buffalo Emerging Opportunities Fund (inception date 5/21/04)    

1.48

%

   

7.13

%

   

22.99

%

   

11.28

%

   

6.16

%

   

7.59

%

 

Russell 2000 Growth Index

   

N/A

     

5.35

%

   

23.03

%

   

12.10

%

   

8.06

%

   

9.08

%

 

Lipper Small-Cap Growth Funds Index

   

N/A

     

6.51

%

   

19.93

%

   

10.52

%

   

6.78

%

   

7.95

%

 
Buffalo Flexible Income Fund (inception date 8/12/94)    

1.01

%

   

1.61

%

   

11.02

%

   

6.78

%

   

6.05

%

   

7.18

%

 

S&P 500 Index

   

N/A

     

6.07

%

   

17.17

%

   

13.30

%

   

7.51

%

   

9.58

%

 

Lipper Mixed-Asset Target Allocation Moderate Funds Index

   

N/A

     

4.23

%

   

10.61

%

   

6.91

%

   

4.69

%

   

6.94

%

 

Bank of America Merrill Lynch U.S. High Yield Master II Index

   

N/A

     

2.71

%

   

16.88

%

   

6.85

%

   

7.34

%

   

7.40

%

 
Buffalo Growth Fund (inception date 5/19/95)    

0.92

%

   

8.06

%

   

12.88

%

   

11.09

%

   

8.20

%

   

9.75

%

 

Russell 1000 Growth Index

   

N/A

     

8.91

%

   

15.76

%

   

13.32

%

   

9.13

%

   

8.66

%

 

Lipper Large Cap Growth Funds Index

   

N/A

     

10.26

%

   

15.77

%

   

11.60

%

   

7.67

%

   

7.51

%

 
Buffalo High Yield Fund (inception date 5/19/95)    

1.03

%

   

2.14

%

   

8.37

%

   

5.32

%

   

6.24

%

   

7.27

%

 

Bank of America Merrill Lynch U.S. High Yield Master II Index

   

N/A

     

2.71

%

   

16.88

%

   

6.85

%

   

7.34

%

   

7.40

%

 

Lipper High Yield Bond Funds Index

   

N/A

     

2.14

%

   

8.37

%

   

5.32

%

   

6.24

%

   

7.27

%

 
Buffalo International Fund (inception date 9/28/07)    

1.06

%

   

10.63

%

   

13.46

%

   

6.67

%

   

N/A

     

3.22

%

 

Russell Global (ex USA) Index Net

   

N/A

     

8.12

%

   

13.13

%

   

4.86

%

   

N/A

     

0.56

%

 

Lipper International Funds Index

   

N/A

     

8.10

%

   

11.70

%

   

6.01

%

   

N/A

     

0.82

%

 
Buffalo Large Cap Fund (inception date 5/19/95)    

0.95

%

   

8.37

%

   

18.67

%

   

13.56

%

   

8.11

%

   

9.29

%

 

Russell 1000 Growth Index

   

N/A

     

8.91

%

   

15.76

%

   

13.32

%

   

9.13

%

   

8.66

%

 

Lipper Large-Cap Growth Funds Index

   

N/A

     

10.26

%

   

15.77

%

   

11.60

%

   

7.67

%

   

7.51

%

 
Buffalo Mid Cap Fund (inception date 12/17/01)    

1.02

%

   

4.60

%

   

12.94

%

   

8.35

%

   

6.78

%

   

7.77

%

 

Russell Midcap Growth Index

   

N/A

     

6.89

%

   

14.07

%

   

11.95

%

   

8.13

%

   

8.37

%

 

Lipper Mid-Cap Growth Funds Index

   

N/A

     

8.01

%

   

16.55

%

   

10.55

%

   

7.65

%

   

7.45

%

 
Buffalo Small Cap Fund (inception date 4/14/98)    

1.01

%

   

10.51

%

   

24.51

%

   

9.62

%

   

6.42

%

   

11.24

%

 

Russell 2000 Growth Index

   

N/A

     

5.35

%

   

23.03

%

   

12.10

%

   

8.06

%

   

5.61

%

 

Lipper Small-Cap Growth Funds Index

   

N/A

     

6.51

%

   

19.93

%

   

10.52

%

   

6.78

%

   

7.11

%

 

*  As reported in the Funds' Prospectus dated July 29, 2016.

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 Funds may be lower or higher than the performance quoted. Performance data current of the most recent month-end may be obtained by calling 1-800-49-BUFFALO or by visiting the website at www.buffalofunds.com.

Until December 1, 2016, the Buffalo Discovery, Dividend Focus, Flexible Income, International, Large Cap, Mid Cap, and Growth Funds imposed a 2.00% redemption fee on shares held for less than 60 days and the Buffalo High Yield, Emerging Opportunities and Small Cap Funds imposed a 2.00% redemption fee on shares held less than 180 days.


13



Investment Results

(Continued) (Unaudited)

The Funds' returns shown do not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of shares. The benchmark returns shown, excluding the Lipper Indices, reflect the reinvestment of dividends and capital gains but do not reflect the deduction of any investment management fees, other expenses or taxes. The performance of the Lipper Indices is presented net of the Funds' fees and expenses; however, applicable sales charges are not taken into consideration. One cannot invest directly in an index.

The Lipper Multi-Cap Growth Funds Index is an unmanaged index that reflects the net asset value weighted return of 30 of the largest multi-cap growth funds tracked by Lipper. Its returns include net reinvested dividends. The S&P 500 Index is a capitalization weighted index of 500 large capitalization stocks which is designed to measure broad domestic securities markets. The Lipper Mixed-Asset Target Allocation Moderate Funds Index is an average of funds that, by portfolio practice, maintain a mix of between 40%-60% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The total return of the Lipper Average does not include the effect of sales charges. The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Large-Cap Growth Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Large-Cap classification. The Bank of America Merrill Lynch U.S. High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. The Lipper High Yield Bond Funds Index is a widely recognized index of the 30 largest mutual funds that invest primarily in high yield bonds. The Lipper International Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper International classification. The Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Mid-Cap Growth Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Mid-Cap classification. The Russell 2000 Growth Index measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Lipper Small-Cap Growth Funds Index is an unmanaged, equally weighted performance index of the 30 largest qualifying mutual funds (based on net assets) in the Lipper Small-Cap classification. Lipper Equity Income Funds Index tracks funds that seek relatively high current income and growth of income by investing at least 65% of their portfolio in dividend-paying equity securities. These funds' gross or net yield must be at least 125% of the average gross or net yield of the U.S. diversified equity fund universe. The Russell Global (ex USA) Index Net measures the performance of the global equity market based on all investable equity securities, excluding companies assigned to the United States. The Russell 3000 Growth Index measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index. The Russell 2000 is by far the most common benchmark for mutual funds that identify themselves as "small-cap", while the S&P 500 index is used primarily for large capitalization stocks.

Please refer to the prospectus for special risks associated with investing in the Buffalo Funds, including, but not limited to, risks involved with investments in science and technology companies, foreign securities, debt securities, lower- or unrated securities and smaller companies. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please refer to the Schedule of Investments for a complete list of Fund holdings.


14



(Unaudited)

Buffalo Discovery Fund

Growth of a $10,000 Investment

Buffalo Dividend Focus Fund

Growth of a $10,000 Investment

Buffalo Emerging Opportunities Fund

Growth of a $10,000 Investment

Buffalo Flexible Income Fund

Growth of a $10,000 Investment

Buffalo Growth Fund

Growth of a $10,000 Investment

Buffalo High Yield Fund

Growth of a $10,000 Investment

Buffalo International Fund

Growth of a $10,000 Investment

Buffalo Large Cap Fund

Growth of a $10,000 Investment


15



(Unaudited)

Buffalo Mid Cap Fund

Growth of a $10,000 Investment

Buffalo Small Cap Fund

Growth of a $10,000 Investment


16



Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs (including redemption fees) and (2) ongoing costs, including management fees and other Fund specific expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2016 – March 31, 2017).

ACTUAL EXPENSES

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account by $1,000 (for exam- ple, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Period" to esti- mate the expenses you paid on your account during the period. Although the Funds charge no sales load or trans- action fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at pre- vailing rates charged by U.S. Bancorp Fund Services, LLC, the Funds' transfer agent. If you request that a redemption be made by wire transfer, currently a $15.00 fee is charged by the Funds' transfer agent. To the extent a Fund invests in shares of other investment companies as part of its invest- ment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying

funds in which the Fund invests in addition to the expenses of the Fund. Actual expenses of the underlying funds are expected to vary among the various underlying funds. These expenses are not included in the examples below. The examples below include management fees, registration fees and other expenses. However, the examples below do not include portfolio trading commissions and related expenses and other extraordinary expenses as determined under U.S. generally accepted accounting principles.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line of each table below provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds' actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in our Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different Funds. In addition, if these transactional costs were included, your costs would have been higher.

BUFFALO DISCOVERY FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,077.60

   

$

5.23

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,014.83

   

$

5.07

   

*  Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO DIVIDEND FOCUS FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,112.50

   

$

5.00

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,015.43

   

$

4.77

   

*  Expenses are equal to the Fund's annualized expense ratio of 0.95%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO EMERGING OPPORTUNITIES FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,082.60

   

$

7.68

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,010.13

   

$

7.42

   

*  Expenses are equal to the Fund's annualized expense ratio of 1.48%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.


17



Expense Example

(Continued) (Unaudited)

BUFFALO FLEXIBLE INCOME FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,060.10

   

$

5.19

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,014.83

   

$

5.07

   

*  Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO GROWTH FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,067.10

   

$

4.69

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,015.83

   

$

4.57

   

*  Expenses are equal to the Fund's annualized expense ratio of 0.91%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO HIGH YIELD FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,027.80

   

$

5.16

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,014.73

   

$

5.12

   

*  Expenses are equal to the Fund's annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO INTERNATIONAL FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,076.20

   

$

5.28

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,014.73

   

$

5.12

   

*  Expenses are equal to the Fund's annualized expense ratio of 1.02%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO LARGE CAP FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,077.10

   

$

4.92

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,015.43

   

$

4.77

   

*  Expenses are equal to the Fund's annualized expense ratio of 0.95%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO MID CAP FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,057.70

   

$

5.18

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,014.83

   

$

5.07

   

*  Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

BUFFALO SMALL CAP FUND

  BEGINNING
ACCOUNT VALUE
OCTOBER 1, 2016
  ENDING
ACCOUNT VALUE
MARCH 31, 2017
  EXPENSES PAID DURING
PERIOD OCTOBER 1, 2016 -
MARCH 31, 2017*
 

Actual

 

$

1,000.00

   

$

1,102.00

   

$

5.29

   

Hypothetical (5% return before expenses)

 

$

1,000.00

   

$

1,014.83

   

$

5.07

   

*  Expenses are equal to the Fund's annualized expense ratio of 1.01%, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.


18



Allocation of Portfolio Holdings

Percentages represent market value as a percentage of investments as of March 31, 2017

BUFFALO DISCOVERY FUND

Common Stock

   

92.41

%

 

REITS

   

2.85

%

 

Short-Term Investments

   

4.74

%

 
     

100.00

%

 

BUFFALO DIVIDEND FOCUS FUND

Common Stock

   

86.97

%

 

Short-Term Investments

   

8.91

%

 

REITS

   

3.01

%

 

Convertible Preferred Stock

   

1.11

%

 

   

100.00

%

 

BUFFALO EMERGING OPPORTUNITIES FUND

Common Stock

   

93.71

%

 

Short-Term Investments

   

6.29

%

 
     

100.00

%

 

BUFFALO FLEXIBLE INCOME FUND

Common Stocks

   

81.21

%

 

Corporate Bonds

   

9.60

%

 

Convertible Bonds

   

6.26

%

 

REITS

   

2.06

%

 

Short-Term Investments

   

0.87

%

 
     

100.00

%

 

BUFFALO GROWTH FUND

Common Stock

   

96.22

%

 

REITS

   

2.15

%

 

Short-Term Investments

   

1.63

%

 

   

100.00

%

 

BUFFALO HIGH YIELD FUND

Corporate Bonds

   

64.08

%

 

Bank Loans

   

12.43

%

 

Convertible Bonds

   

12.41

%

 

Short-Term Investments

   

9.64

%

 

Convertible Preferred Stock

   

0.91

%

 

Common Stock

   

0.53

%

 
     

100.00

%

 

BUFFALO INTERNATIONAL FUND

Common Stock

   

93.60

%

 

Short-Term Investments

   

6.40

%

 
     

100.00

%

 

BUFFALO LARGE CAP FUND

Common Stock

   

91.64

%

 

REITS

   

6.16

%

 

Short-Term Investments

   

2.20

%

 

   

100.00

%

 


19



Allocation of Portfolio Holdings

(Unaudited)

BUFFALO MID CAP FUND

Common Stock

   

83.25

%

 

Short-Term Investments

   

11.92

%

 

REITS

   

4.83

%

 
     

100.00

%

 

BUFFALO SMALL CAP FUND

Common Stock

   

93.97

%

 

REITS

   

3.48

%

 

Short-Term Investments

   

2.55

%

 
     

100.00

%

 


20




 Buffalo Discovery Fund  

SCHEDULE OF INVESTMENTS

March 31, 2017

SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 

COMMON STOCKS — 94.27%

     

CONSUMER DISCRETIONARY — 15.45%

     
   

Distributors — 0.90%

 
 

387,720

   

LKQ Corp.(a)

 

$

11,348,564

   
   

Diversified Consumer Services — 1.35%

 
 

404,352

   

ServiceMaster Global Holdings Inc.(a)

   

16,881,696

   
   

Hotels, Restaurants & Leisure — 1.46%

 
 

41,160

   

Chipotle Mexican Grill, Inc.(a)

   

18,337,603

   
   

Household Durables — 1.72%

 
 

421,715

   

Garmin Ltd.(c)

   

21,553,854

   
   

Internet & Direct Marketing Retail — 0.50%

 
 

49,810

   

Expedia, Inc.

   

6,284,528

   
   

Internet Software & Services — 0.84%

 
 

896,000

   

Pandora Media Inc.(a)

   

10,581,760

   
   

Leisure Products — 0.90%

 
 

134,715

   

Polaris Industries Inc.

   

11,289,117

   
   

Media — 1.18%

 
 

289,627

   

Lions Gate Entertainment Corp. — Class A(a)(c)

   

7,692,493

   
 

289,627

   

Lions Gate Entertainment Corp. — Class B(a)(c)

   

7,061,106

   
     

14,753,599

   
   

Specialty Retail — 1.33%

 
 

310,285

   

Williams-Sonoma, Inc.

   

16,637,482

   
   

Textiles, Apparel & Luxury Goods — 5.27%

 
 

250,723

   

Columbia Sportswear Co.

   

14,729,976

   
 

805,500

   

Hanesbrands, Inc.

   

16,722,180

   
 

309,190

   

Luxottica Group S.p.A. — ADR(b)(c)

   

17,020,910

   
 

961,451

   

Under Armour, Inc. — Class C(a)

   

17,594,553

   
     

66,067,619

   
       

Total Consumer Discretionary (Cost $183,253,506)

   

193,735,822

   

CONSUMER STAPLES — 3.88%

     
   

Food Products — 1.16%

 
 

133,525

   

The Hershey Co.

   

14,587,606

   
   

Household Products — 1.25%

 
 

116,115

   

The Clorox Co.

   

15,655,786

   
   

Personal Products — 1.47%

 
 

216,670

   

The Estee Lauder Companies Inc. — Class A

   

18,371,449

   
       

Total Consumer Staples (Cost $46,504,822)

   

48,614,841

   

ENERGY — 3.38%

     
   

Energy Equipment & Services — 3.38%

 
 

318,118

   

Forum Energy Technologies Inc.(a)

   

6,585,043

   
 

617,216

   

Oceaneering International, Inc.

   

16,714,209

   
 

586,916

   

TechnipFMC plc(a)

   

19,074,770

   
       

Total Energy (Cost $43,047,226)

   

42,374,022

   

FINANCIALS — 8.28%

     
   

Capital Markets — 8.28%

 
 

362,325

   

Intercontinental Exchange, Inc.

   

21,692,398

   
 

233,210

   

MSCI, Inc.

   

22,665,680

   


21



 Buffalo Discovery Fund  

SCHEDULE OF INVESTMENTS

March 31, 2017

(Continued)

SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 
FINANCIALS (Continued)      
 

312,778

   

Nasdaq, Inc.

 

$

21,722,432

   
 

156,490

   

S&P Global, Inc.

   

20,459,502

   
 

344,525

   

SEI Investments Co.

   

17,377,841

   
       

Total Financials (Cost $79,716,100)

   

103,917,853

   

HEALTH CARE — 18.69%

     
   

Biotechnology — 2.96%

 
 

1,051,600

   

Dynavax Technologies Corp.(a)

   

6,257,020

   
 

88,700

   

Shire — ADR(c)

   

15,454,201

   
 

141,600

   

Vertex Pharmaceuticals Inc.(a)

   

15,483,960

   
     

37,195,181

   
   

Health Care Equipment & Supplies — 8.48%

 
 

1,153,533

   

Accuray Inc.(a)

   

5,479,282

   
 

209,233

   

Align Technology, Inc.(a)

   

24,001,117

   
 

260,520

   

Danaher Corp.

   

22,282,276

   
 

244,200

   

Dentsply Sirona Inc.

   

15,247,848

   
 

109,761

   

Inogen Inc.(a)

   

8,513,063

   
 

265,650

   

Insulet Corp.(a)

   

11,446,859

   
 

206,980

   

Nevro Corp.(a)

   

19,394,026

   
     

106,364,471

   
   

Health Care Providers & Services — 0.78%

 
 

337,900

   

Tivity Health, Inc.(a)

   

9,832,890

   
   

Health Care Technology — 2.43%

 
 

146,210

   

athenahealth Inc.(a)

   

16,476,405

   
 

237,010

   

Cerner Corp.(a)

   

13,948,038

   
     

30,424,443

   
   

Life Sciences Tools & Services — 2.71%

 
 

221,280

   

Accelerate Diagnostics, Inc.(a)

   

5,354,976

   
 

164,085

   

Agilent Technologies, Inc.

   

8,675,174

   
 

706,725

   

VWR Corp.(a)

   

19,929,645

   
     

33,959,795

   
   

Pharmaceuticals — 1.33%

 
 

691,470

   

Akorn, Inc.(a)

   

16,650,598

   
       

Total Health Care (Cost $187,515,461)

   

234,427,378

   

INDUSTRIALS — 15.15%

     
   

Aerospace & Defense — 0.98%

 
 

225,652

   

Hexcel Corp.

   

12,309,317

   
   

Commercial Services & Supplies — 3.12%

 
 

343,835

   

Republic Services, Inc.

   

21,596,276

   
 

211,985

   

Stericycle, Inc.(a)

   

17,571,437

   
     

39,167,713

   
   

Electrical Equipment — 1.80%

 
 

49,310

   

Acuity Brands, Inc.

   

10,059,240

   
 

80,220

   

Rockwell Automation, Inc.

   

12,491,056

   
     

22,550,296

   
   

Industrial Conglomerates — 1.25%

 
 

75,580

   

Roper Industries, Inc.

   

15,606,514

   


22



SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 
INDUSTRIALS (Continued)      
   

Machinery — 2.86%

 
 

81,985

   

Parker-Hannifin Corp.

 

$

13,143,835

   
 

453,154

   

Xylem, Inc.

   

22,757,394

   
     

35,901,229

   
   

Professional Services — 5.14%

 
 

453,920

   

IHS Markit Ltd.(a)(c)

   

19,041,944

   
 

539,167

   

Nielsen Holdings PLC

   

22,272,989

   
 

285,238

   

Verisk Analytics, Inc.(a)

   

23,144,211

   
     

64,459,144

   
       

Total Industrials (Cost $157,661,163)

   

189,994,213

   

INFORMATION TECHNOLOGY — 20.62%

     
   

Communications Equipment — 2.15%

 
 

65,925

   

F5 Networks, Inc.(a)

   

9,398,927

   
 

112,825

   

Harris Corp.

   

12,554,038

   
 

180,955

   

Juniper Networks, Inc.

   

5,035,978

   
     

26,988,943

   
   

Electronic Equipment, Instruments & Components — 1.58%

 
 

132,420

   

National Instruments Corp.

   

4,311,595

   
 

80,260

   

Trimble Inc.(a)

   

2,569,123

   
 

142,279

   

Zebra Technologies Corp. — Class A(a)

   

12,982,959

   
     

19,863,677

   
   

Internet Software & Services — 3.60%

 
 

94,238

   

Akamai Technologies, Inc.(a)

   

5,626,009

   
 

23,115

   

Alphabet, Inc. — Class A(a)

   

19,596,897

   
 

140,105

   

Facebook, Inc. — Class A(a)

   

19,901,915

   
     

45,124,821

   
   

IT Services — 3.37%

 
 

103,825

   

Cognizant Technology Solutions Corp. — Class A(a)

   

6,179,664

   
 

203,575

   

Fidelity National Information Services, Inc.

   

16,208,642

   
 

176,809

   

MasterCard, Inc. — Class A

   

19,885,708

   
     

42,274,014

   
   

Semiconductors & Semiconductor Equipment — 2.46%

 
 

77,935

   

Analog Devices, Inc.

   

6,386,773

   
 

243,877

   

Micron Technology, Inc.(a)

   

7,048,045

   
 

192,650

   

QUALCOMM, Inc.

   

11,046,551

   
 

79,190

   

Texas Instruments, Inc.

   

6,379,547

   
     

30,860,916

   
   

Software — 5.93%

 
 

224,130

   

Aspen Technology, Inc.(a)

   

13,205,739

   
 

53,705

   

CommVault Systems, Inc.(a)

   

2,728,214

   
 

153,735

   

Electronic Arts Inc.(a)

   

13,762,357

   
 

150,714

   

Red Hat, Inc.(a)

   

13,036,761

   
 

76,720

   

salesforce.com, Inc.(a)

   

6,328,633

   
 

175,015

   

Synopsys, Inc.(a)

   

12,623,832

   
 

212,900

   

Take-Two Interactive Software, Inc.(a)

   

12,618,583

   
     

74,304,119

   
   

Technology Hardware, Storage & Peripherals — 1.53%

 
 

133,725

   

Apple Inc.

   

19,210,933

   
       

Total Information Technology (Cost $181,092,287)

   

258,627,423

   


23



 Buffalo Discovery Fund  

SCHEDULE OF INVESTMENTS

March 31, 2017

(Continued)

SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 

MATERIALS — 8.82%

     
   

Chemicals — 6.82%

 
 

132,745

   

Ecolab Inc.

 

$

16,638,258

   
 

311,710

   

FMC Corp.

   

21,691,899

   
 

266,499

   

Ingevity Corp.(a)

   

16,216,464

   
 

73,275

   

International Flavors & Fragrances Inc.

   

9,711,136

   
 

179,480

   

Praxair, Inc.

   

21,286,328

   
     

85,544,085

   
   

Containers & Packaging — 2.00%

 
 

269,745

   

Bemis Company, Inc.

   

13,179,741

   
 

274,580

   

Sealed Air Corp.

   

11,966,196

   
     

25,145,937

   
       

Total Materials (Cost $90,592,477)

   

110,690,022

   
TOTAL COMMON STOCKS
(COST $969,383,042)
   

1,182,381,574

   

REAL ESTATE INVESTMENT TRUSTS (REITS) — 2.91%

     

REAL ESTATE — 2.91%

     
 

147,675

   

American Tower Corp.

   

17,948,420

   
 

46,279

   

Equinix Inc.

   

18,528,723

   
       

Total Real Estate (Cost $24,408,013)

   

36,477,143

   
TOTAL REITS
(COST $24,408,013)
   

36,477,143

   

SHORT TERM INVESTMENT — 4.84%

     

INVESTMENT COMPANY — 4.84%

     
 

60,696,439

   

Fidelity Institutional Money Market Fund — Government Portfolio — 0.01%(d)

   

60,696,439

   
       

Total Investment Company

   

60,696,439

   
TOTAL SHORT TERM INVESTMENT
(COST $60,696,439)
   

60,696,439

   
TOTAL INVESTMENTS — 102.02%
(COST $1,054,487,494)
   

1,279,555,156

   

Liabilities in Excess of Other Assets — (2.02)%

   

(25,316,883

)

 

TOTAL NET ASSETS — 100.00%

 

$

1,254,238,273

   

ADR — American Depositary Receipt

PLC — Public Limited Company

  (a)  Non income producing.

  (b)  A portion of this security is deemed illiquid. The total value of this security amounted to $2,713,415 (0.22% of net assets) at March 31, 2017.

  (c)  Foreign Issued securities. The total value of these securities amounted to $87,824,508 (7.00% of net assets) at March 31, 2017.

  (d)  The rate quoted is the annualized seven-day effective yield as of March 31, 2017.

  *  See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.

  The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.
24



 Buffalo Dividend Focus Fund  

SCHEDULE OF INVESTMENTS

March 31, 2017

SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 

COMMON STOCKS — 86.67%

     

CONSUMER DISCRETIONARY — 12.95%

     
   

Auto Components — 1.09%

 
 

18,050

   

The Goodyear Tire & Rubber Co.

 

$

649,800

   
   

Automobiles — 0.78%

 
 

13,200

   

General Motors Co.

   

466,752

   
   

Hotels, Restaurants & Leisure — 4.23%

 
 

11,625

   

Carnival Corp.

   

684,829

   
 

6,775

   

Cedar Fair, L.P.

   

459,413

   
 

3,400

   

Jack in the Box, Inc.

   

345,848

   
 

4,475

   

Marriott International, Inc. — Class A

   

421,455

   
 

10,600

   

Starbucks Corp.

   

618,934

   
     

2,530,479

   
   

Internet & Direct Marketing Retail — 1.04%

 
 

700

   

Amazon.com, Inc.(a)

   

620,578

   
   

Media — 3.03%

 
 

15,200

   

Comcast Corp. — Class A

   

571,368

   
 

22,400

   

Twenty-First Century Fox, Inc. — Class A

   

725,536

   
 

4,550

   

The Walt Disney Co.

   

515,925

   
     

1,812,829

   
   

Specialty Retail — 1.80%

 
 

6,125

   

Foot Locker, Inc.

   

458,211

   
 

4,225

   

The Home Depot, Inc.

   

620,357

   
     

1,078,568

   
   

Textiles, Apparel & Luxury Goods — 0.98%

 
 

28,300

   

Hanesbrands, Inc.

   

587,508

   
       

Total Consumer Discretionary (Cost $6,412,037)

   

7,746,514

   

CONSUMER STAPLES — 7.77%

     
   

Beverages — 1.25%

 
 

6,650

   

PepsiCo, Inc.

   

743,869

   
   

Food & Staples Retailing — 1.67%

 
 

5,050

   

CVS Health Corp.

   

396,425

   
 

8,350

   

Wal-Mart Stores, Inc.

   

601,868

   
     

998,293

   
   

Food Products — 2.13%

 
 

8,375

   

The Kraft Heinz Co.

   

760,534

   
 

8,900

   

Pinnacle Foods Inc.

   

515,043

   
     

1,275,577

   
   

Household Products — 1.95%

 
 

6,450

   

Colgate-Palmolive Co.

   

472,075

   
 

7,725

   

The Procter & Gamble Co.

   

694,091

   
     

1,166,166

   
   

Tobacco — 0.77%

 
 

6,450

   

Altria Group, Inc.

   

460,659

   
       

Total Consumer Staples (Cost $3,752,784)

   

4,644,564

   


25



 Buffalo Dividend Focus Fund  

SCHEDULE OF INVESTMENTS

March 31, 2017

(Continued)

SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 

ENERGY — 9.10%

     
   

Energy Equipment & Services — 1.20%

 
 

7,600

   

Halliburton Co.

 

$

373,996

   
 

4,400

   

Schlumberger Ltd.(b)

   

343,640

   
     

717,636

   
   

Oil, Gas & Consumable Fuels — 7.90%

 
 

8,850

   

Devon Energy Corp.

   

369,222

   
 

22,350

   

Enterprise Products Partners L.P.

   

617,083

   
 

5,275

   

EQT Midstream Partners LP

   

405,648

   
 

8,450

   

Exxon Mobil Corp.

   

692,984

   
 

11,575

   

Hess Corp.

   

558,031

   
 

14,200

   

Noble Midstream Partners LP

   

739,536

   
 

15,200

   

Royal Dutch Shell PLC. — Class A — ADR(b)

   

801,496

   
 

6,650

   

Tesoro Corp.

   

539,049

   
     

4,723,049

   
       

Total Energy (Cost $4,742,365)

   

5,440,685

   

FINANCIALS — 13.11%

     
   

Banks — 7.80%

 
 

48,050

   

Bank of America Corp.

   

1,133,499

   
 

21,650

   

BB&T Corp.

   

967,755

   
 

7,150

   

Citigroup Inc.

   

427,713

   
 

14,025

   

JPMorgan Chase & Co.

   

1,231,956

   
 

16,250

   

Wells Fargo & Co.

   

904,475

   
     

4,665,398

   
   

Capital Markets — 2.76%

 
 

950

   

BlackRock, Inc.

   

364,334

   
 

4,025

   

CME Group Inc.

   

478,170

   
 

4,580

   

Hamilton Lane Inc. — Class A(a)

   

85,509

   
 

5,550

   

S&P Global, Inc.

   

725,607

   
     

1,653,620

   
   

Diversified Financial Services — 1.56%

 
 

5,600

   

Berkshire Hathaway Inc. — Class B(a)

   

933,408

   
   

Insurance — 0.99%

 
 

10,425

   

Arthur J. Gallagher & Co.

   

589,430

   
       

Total Financials (Cost $5,920,655)

   

7,841,856

   

HEALTH CARE — 10.68%

     
   

Biotechnology — 2.53%

 
 

9,125

   

AbbVie Inc.

   

594,585

   
 

3,100

   

Amgen Inc.

   

508,617

   
 

6,050

   

Gilead Sciences, Inc.

   

410,916

   
     

1,514,118

   
   

Health Care Equipment & Supplies — 0.60%

 
 

4,450

   

Medtronic, PLC(b)

   

358,492

   
   

Health Care Providers & Services — 3.12%

 
 

4,275

   

Anthem, Inc.

   

707,000

   
 

5,775

   

Cardinal Health, Inc.

   

470,951

   
 

4,200

   

UnitedHealth Group Inc.

   

688,842

   
     

1,866,793

   


26



SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 
HEALTH CARE (Continued)      
   

Pharmaceuticals — 4.43%

 
 

4,450

   

Bristol-Myers Squibb Co.

 

$

241,991

   
 

3,150

   

Eli Lilly & Co.

   

264,946

   
 

6,825

   

Johnson & Johnson

   

850,054

   
 

9,600

   

Merck & Co., Inc.

   

609,984

   
 

19,800

   

Pfizer Inc.

   

677,358

   
     

2,644,333

   
       

Total Health Care (Cost $5,461,127)

   

6,383,736

   

INDUSTRIALS — 6.43%

     
   

Aerospace & Defense — 1.70%

 
 

3,425

   

The Boeing Co.

   

605,745

   
 

3,650

   

United Technologies Corp.

   

409,567

   
     

1,015,312

   
   

Airlines — 0.77%

 
 

9,950

   

Delta Air Lines, Inc.

   

457,302

   
   

Commercial Services & Supplies — 0.84%

 
 

6,900

   

Waste Management, Inc.

   

503,148

   
   

Industrial Conglomerates — 2.64%

 
 

2,150

   

3M Co.

   

411,360

   
 

26,850

   

General Electric Co.

   

800,130

   
 

2,950

   

Honeywell International, Inc.

   

368,366

   
     

1,579,856

   
   

Machinery — 0.48%

 
 

1,800

   

Parker-Hannifin Corp.

   

288,576

   
       

Total Industrials (Cost $3,060,571)

   

3,844,194

   

INFORMATION TECHNOLOGY — 18.22%

     
   

Communications Equipment — 1.00%

 
 

17,750

   

Cisco Systems, Inc.

   

599,950

   
   

Internet Software & Services — 1.97%

 
 

430

   

Alphabet, Inc. — Class A(a)

   

364,554

   
 

450

   

Alphabet, Inc. — Class C(a)

   

373,302

   
 

3,100

   

Facebook, Inc. — Class A(a)

   

440,355

   
     

1,178,211

   
   

IT Services — 1.92%

 
 

12,925

   

Visa Inc. — Class A

   

1,148,645

   
   

Semiconductors & Semiconductor Equipment — 4.24%

 
 

4,150

   

Broadcom Ltd.(b)

   

908,684

   
 

12,500

   

Intel Corp.

   

450,875

   
 

7,675

   

QUALCOMM, Inc.

   

440,085

   
 

9,150

   

Texas Instruments Inc.

   

737,124

   
     

2,536,768

   
   

Software — 4.93%

 
 

13,850

   

Activision Blizzard, Inc.

   

690,561

   
 

25,150

   

Microsoft Corp.

   

1,656,379

   
 

13,425

   

Oracle Corp.

   

598,889

   
     

2,945,829

   


27



 Buffalo Dividend Focus Fund  

SCHEDULE OF INVESTMENTS

March 31, 2017

(Continued)

SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 
INFORMATION TECHNOLOGY (Continued)      
   

Technology Hardware, Storage & Peripherals — 4.16%

 
 

15,720

   

Apple Inc.

 

$

2,258,335

   
 

7,350

   

Diebold Nixdorf, Inc.

   

225,645

   
     

2,483,980

   
       

Total Information Technology (Cost $7,753,737)

   

10,893,383

   

MATERIALS — 3.42%

     
   

Chemicals — 2.39%

 
 

8,475

   

The Dow Chemical Co.

   

538,502

   
 

7,900

   

Monsanto Co.

   

894,280

   
     

1,432,782

   
   

Metals & Mining — 1.03%

 
 

9,050

   

Compass Minerals International, Inc.

   

614,042

   
       

Total Materials (Cost $1,941,720)

   

2,046,824

   

TELECOMMUNICATION SERVICES — 1.79%

     
   

Diversified Telecommunication Services — 1.79%

 
 

13,300

   

AT&T Inc.

   

552,615

   
 

10,625

   

Verizon Communications, Inc.

   

517,969

   
       

Total Telecommunication Services (Cost $953,782)

   

1,070,584

   

UTILITIES — 3.20%

     
   

Electric Utilities — 3.20%

 
 

18,000

   

American Electric Power Co., Inc.

   

1,208,340

   
 

8,850

   

Edison International

   

704,549

   
       

Total Utilities (Cost $1,700,609)

   

1,912,889

   
TOTAL COMMON STOCKS
(COST $41,699,387)
   

51,825,229

   

REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.00%

     

REAL ESTATE — 3.00%

     
 

2,200

   

American Tower Corp.

   

267,388

   
 

33,135

   

CoreCivic, Inc.

   

1,041,102

   
 

1,050

   

Public Storage

   

229,855

   
 

7,400

   

Weyerhaeuser Co.

   

251,452

   
       

Total Real Estate (Cost $1,559,945)

   

1,789,797

   
TOTAL REITS
(COST $1,559,945)
   

1,789,797

   

CONVERTIBLE PREFERRED STOCKS — 1.11%

     

HEALTH CARE — 0.46%

     
   

Pharmaceuticals — 0.46%

 
 

320

   

Allergan plc

   

271,930

   
       

Total Health Care (Cost $252,917)

   

271,930

   


28



SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 

INDUSTRIALS — 0.65%

 
   

Commercial Services & Supplies — 0.65%

 
 

5,470

   

Stericycle, Inc.

 

$

391,378

   
   

Total Industrials (Cost $352,758)

   

391,378

   
TOTAL CONVERTIBLE PREFERRED STOCKS
(COST $605,675)
   

663,308

   

SHORT TERM INVESTMENT — 8.88%

 

INVESTMENT COMPANY — 8.88%

 
 

5,311,330

   

Fidelity Institutional Money Market Fund — Government Portfolio — 0.01%(c)

   

5,311,330

   
   

Total Investment Company

   

5,311,330

   
TOTAL SHORT TERM INVESTMENT
(COST $5,311,330)
   

5,311,330

   
TOTAL INVESTMENTS — 99.66%
(COST $49,176,337)
   

59,589,664

   

Other Assets in Excess of Liabilities — 0.34%

       

205,054

   

TOTAL NET ASSETS — 100.00%

 

$

59,794,718

   

ADR — American Depositary Receipt

PLC — Public Limited Company

  (a)  Non income producing.

  (b)  Foreign Issued Securities. The total value of these securities amounted to $2,412,312 (4.03% of net assets) at March 31, 2017.

  (c)  The rate quoted is the annualized seven-day effective yield as of March 31, 2017.

  *  See Note 1A of accompanying Notes to Financial Statements regarding valuation of securities.

  The Global Industry Classification Standard (GICS) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor's Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.
29



 Buffalo Emerging Opportunities Fund  

SCHEDULE OF INVESTMENTS

March 31, 2017

SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 

COMMON STOCKS — 94.24%

     

CONSUMER DISCRETIONARY — 23.82%

     
   

Auto Components — 3.01%

 
 

83,600

   

Motorcar Parts of America, Inc.(a)

 

$

2,569,028

   
   

Hotels, Restaurants & Leisure — 4.87%

 
 

140,500

   

Del Taco Restaurants, Inc.(a)

   

1,863,030

   
 

89,000

   

The Habit Restaurants, Inc. — Class A(a)

   

1,575,300

   
 

113,800

   

Kona Grill, Inc.(a)

   

716,940

   
     

4,155,270

   
   

Household Durables — 6.60%

 
 

32,400

   

Installed Building Products Inc(a)

   

1,709,100

   
 

20,500

   

iRobot Corp.(a)

   

1,355,870

   
 

39,000

   

LGI Homes, Inc.(a)

   

1,322,490

   
 

172,100

   

ZAGG Inc.(a)

   

1,239,120

   
     

5,626,580

   
   

Leisure Products — 3.84%

 
 

75,200

   

MCBC Holdings, Inc.

   

1,215,984

   
 

113,000

   

Nautilus, Inc.(a)

   

2,062,250

   
     

3,278,234

   
   

Media — 2.28%

 
 

82,300

   

Liberty Media Corp.-Liberty Braves(a)

   

1,946,395

   
   

Specialty Retail — 3.22%

 
 

96,555

   

At Home Group Inc.(a)

   

1,463,774

   
 

66,700

   

The Tile Shop Holdings, Inc.

   

1,283,975

   
     

2,747,749

   
       

Total Consumer Discretionary (Cost $17,815,786)

   

20,323,256

   

CONSUMER STAPLES — 2.48%

     
   

Beverages — 2.48%

 
 

39,100

   

MGP Ingredients, Inc.

   

2,120,393

   
       

Total Consumer Staples (Cost $1,396,681)

   

2,120,393

   

FINANCIALS — 6.12%

     
   

Capital Markets — 2.28%

 
 

26,100

   

Financial Engines Inc.

   

1,136,655

   
 

43,085

   

Hamilton Lane Inc. — Class A(a)

   

804,397

   
     

1,941,052

   
   

Diversified Financial Services — 1.07%

 
 

55,000

   

Compass Diversified Holdings

   

913,000

   
   

Insurance — 1.36%

 
 

36,300

   

Kinsale Capital Group, Inc.

   

1,163,052

   
   

Thrifts & Mortgage Finance — 1.41%

 
 

9,600

   

LendingTree, Inc.(a)

   

1,203,360

   
       

Total Financials (Cost $4,207,074)

   

5,220,464

   

HEALTH CARE — 17.44%

     
   

Biotechnology — 0.59%

 
 

36,900

   

Syndax Pharmaceuticals, Inc.(a)

   

506,268

   


30



SHARES OR
FACE AMOUNT
     

FAIR VALUE*

 
HEALTH CARE (Continued)      
   

Health Care Equipment & Supplies — 5.47%

 
 

170,992

   

Accuray Inc.(a)

 

$

812,212

   
 

12,400

   

Inogen Inc.(a)

   

961,744

   
 

99,885

   

Obalon Therapeutics, Inc.(a)

   

1,067,771

   
 

60,300

   

Oxford Immunotec Global PLC(a)(b)

   

934,047

   
 

47,100

   

Tactile Systems Technology, Inc.(a)

   

892,545

   
     

4,668,319

   
   

Health Care Providers & Services — 5.18%

 
 

119,800

   

Cross Country Healthcare, Inc.(a)

   

1,720,328

   
 

11,700

   

HealthEquity, Inc.(a)

   

496,665

   
 

40,900

   

LHC Group, Inc.(a)

   

2,204,510

   
     

4,421,503

   
   

Health Care Technology — 4.34%

 
 

60,809

   

HealthStream, Inc.(a)

   

1,473,402

   
 

54,800

   

Omnicell, Inc.(a)

   

2,227,620

   
     

3,701,022

   
   

Pharmaceuticals — 1.86%

 
 

75,000

   

Clearside Biomedical, Inc.(a)

   

595,500

   
 

57,500

   

Intersect ENT, Inc.(a)

   

986,125

   
     

1,581,625

   
       

Total Health Care (Cost $12,260,382)

   

14,878,737

   

INDUSTRIALS — 12.91%

     
   

Aerospace & Defense — 1.69%

 
 

45,400

   

Astronics Corp.(a)

   

1,440,542

   
   

Building Products — 1.86%

 
 

26,700

   

Apogee Enterprises, Inc.

   

1,591,587