High Yield Fund


Overall Morningstar™ rating out of 597
High Yield Bond funds as of 2-28-2017 (derived from a weighted average of the fund’s three-, five-, and ten-year risk adjusted return measure, if applicable).

Characteristics

  • Invests in high-yielding corporate and convertible bonds
  • Core holdings established in industries with favorable long-term trends
  • Long-term focus

Strategy

The Fund's management team seeks securities with what they believe are attractive yields and valuations, with a focus on bonds rated below investment grade. Our proprietary in-house research identifies companies which, in our opinion, are able to sustain or grow their profit margins, have solid management teams, and have the financial strength to weather difficult economic environments. Core bond holdings include industries with favorable long-term trends (e.g., demographic, technological, etc.), supplemented with holdings of companies that have fallen deeply out of favor. Managers also have the discretion to include convertible bonds and dividend-paying equities as appropriate to support income goals.

Investment Team

Jeff Deardorff  

Jeff Deardorff, CFA

Portfolio Manager


  • Investment professional since 1997
  • Joined KCM in 2002
  • Prior experience - Koch Industries
  • B.S. - Kansas State University
Paul Dlugosch  

Paul Dlugosch, CFA

Portfolio Manager


  • Investment professional since 1997
  • Joined KCM in 2002
  • Prior experience - Antares Capital Corporation and LaSalle National Bank
  • B.S. - University of Iowa
Jeffrey Sitzmann  

Jeffrey Sitzmann, CFA

Portfolio Manager


  • Investment professional since 1987
  • Joined KCM in 2002
  • Prior experience - Banc One Investment Advisors, Anthem Inc., and Duff & Phelps Inc.
  • B.B.A. - University of Toledo
  • M.B.A. - University of Chicago

 

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar RatingTM for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar RatingTM metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Buffalo High Yield Fund received 4 stars among 597 for the three-year, 3 stars among 474 for the five-year, and 4 stars among 319 High Yield Bond funds for the ten-year period ending 2/28/2017.

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