High Yield Fund

High Yield Fund

Quick Facts
InvestorInstitutional
Ticker:BUFHXBUIHX
Inception Date:5/19/19957/1/2019
Expense Ratio:1.02%0.87%
Total Net Assets:$186.83 Million  (3/31/20)
Category:High Yield Bond
Benchmark:ICE BofAML U.S. High Yield
Dividend Distribution:Monthly
Related Material:
   Fund Fact Sheet Q1 2020
   PM Commentary Q1 2020
   Summary Prospectus
Fund Objective & Investment Process

The investment objective of the Buffalo High Yield Fund is primarily current income, with long-term growth of capital as a secondary objective. The High Yield Fund normally invests at least 80% of its net assets in higher-yielding, higher-risk debt securities rated below investment grade by the major rating agencies (or in similar unrated securities), commonly known as “junk bonds”. Debt securities can include fixed and floating rate bonds as well as bank debt and convertible debt securities.

While the Fund maintains flexibility to invest in bonds of varying maturities, the Fund generally holds bonds with intermediate-term maturities. With respect to the remaining 20% of the Fund’s net assets, the Fund may invest in investment grade debt securities, U.S. Treasury Securities (typically with maturities of 60 days or less), money market funds, and equity investments, including dividend paying stocks and convertible preferred stocks.
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Our team brings many years of credit research experience to the bond market. We are proud to have provided our shareholders with what we believe is a conservative approach to investing in high yield bonds since 1995.

Jeff Sitzmann, Portfolio Manager

Morningstar Rating

       

Overall Morningstar Rating™ of BUFHX based on risk-adjusted returns among 631 High Yield Bond funds as of 4/30/20.

Performance (%)

As of 4/30/203 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
(5/19/95)
BUFFALO HIGH YIELD FUND - Investor-9.48-9.33-4.700.762.094.425.306.066.48
BUFFALO HIGH YIELD FUND - Institutional-9.46-9.29-4.640.882.234.565.456.216.63
  ICE BofAML U.S. High Yield Index-9.82-9.82-5.261.433.195.666.566.546.69
  Lipper High Yield Bond Funds Index-10.93-11.00-6.440.722.214.975.395.005.42
  Morningstar High Yield Bond Category-9.70-9.68-5.670.632.154.685.405.385.44
As of 3/31/203 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
(5/19/95)
BUFFALO HIGH YIELD FUND - Investor-12.52-12.52-6.67-0.121.474.294.985.826.35
BUFFALO HIGH YIELD FUND - Institutional-12.50-12.50-6.620.001.604.445.145.976.50
  ICE BofAML U.S. High Yield Index-13.12-13.12-7.450.552.675.506.226.346.55
  Lipper High Yield Bond Funds Index-14.29-14.29-8.47-0.181.684.805.044.785.28
  Morningstar High Yield Bond Category-12.70-12.70-7.67-0.181.664.525.055.175.31
For performance prior to 7/1/19 (Inception Date of Institutional Class), performance of the Investor Class shares is used and includes expenses not applicable and lower than those of Investor Class shares.Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower of higher than the performance quoted and can be obtained here. Performance is annualized for periods greater than 1 year. Each Morningstar category average represents a universe of funds with similar objectives.
3 Year Risk Metrics
BUFHX vs ICE BofAML U.S. High Yield Index (As of 3/31/20)
Upside Capture76.16
Downside Capture86.97
Alpha-0.63
Beta0.91
Sharpe Ratio-0.25
Hypothetical Growth of $10,000
This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the Inception Date. Assumes reinvestment of dividends and capital gains. This chart does not imply future performance.
Distributions
2020 Distribution Dates:

Record Date: June 17, 2020 | Payable Date: June 18, 2020

Record Date: July 17, 2020 | Payable Date: July 20, 2020

Record Date: August 17, 2020 | Payable Date: August 18, 2020

Record Date: September 17, 2020 | Payable Date: September 18, 2020

Record Date: October 19, 2020 | Payable Date: October 20, 2020

Record Date: November 17, 2020 | Payable Date: November 18, 2020

Record Date: December 17, 2020 | Payable Date: December 18, 2020


Record
Date
Payable
Date
Distribution
NAV
Net Investment
Income
Short-Term Capital
Gains
Long-Term Capital
Gains
Distribution
Total
5/18/205/19/20$10.11 (Inv)

$10.10 (Inst)
$0.06052835

$0.06238986
-

-
-

-
$0.06052835

$0.06238986
4/17/204/20/20$10.07 (Inv)

$10.06 (Inst)
$0.02440948

$0.02566136
-

-
-

-
$0.02440948

$0.02566136
3/17/203/18/20$9.46 (Inv)

$9.45 (Inst)
$0.02418153

$0.02551335
-

-
-

-
$0.02418153

$0.02551335
2/18/202/19/20$11.30 (Inv)

$11.29 (Inst)
$0.04216331

$0.04290937
-

-
-

-
$0.04216331

$0.04290937
1/17/201/21/20$11.27 (Inv)

$11.26 (Inst)
$0.03963858

$0.04127700
-

-
-

-
$0.03963858

$0.04127700
For historical distributions, click here.

Portfolio

Portfolio Characteristics
(As of 3/31/20) 
 
# of Holdings136
3-Yr Annualized Turnover Ratio33.06%
Average Duration3.44 years
Average Maturity6.55 years
30-day SEC Yield4.98%
Top 10 Holdings
Name of Holding% of Net
Assets
MacDonald Dettwiler (Term Loan B, 7/5/24)2.19%
Consolidated Communications (6.500%, 10/1/22)2.10%
Quad Graphics (7.000%, 5/1/22)1.75%
Phillips Van Heusen (7.750%, 11/15/23)1.70%
MPLX (6.875%, 8/15/23)1.64%
Nuance Communications (1.500% , 11/1/35)1.63%
Brunswick (7.375%, 9/1/23)1.59%
Performance Food Group Escrow Corp (5.500% , 10/15/27)1.49%
Cardtronics (1.000%, 12/1/20)1.49%
Treehouse Foods (6.000%, 2/15/24)1.44%
TOP 10 HOLDINGS TOTAL15.53%
As of 12/31/19. Top 10 Holdings for the quarter are not disclosed until 60 days after quarter end. Fund holdings are subject to change and are not recommendations to buy or sell any securities.
Asset Allocation
Percentages of Total Assets as of 3/31/20. Allocation percentages may not equal 100% due to rounding.
Sector Weighting
As of 3/31/20. Security weightings are subject to change and are not recommendations to buy or sell any securities. Sector Allocation may not equal 100% due to rounding.
Loan Duration
Duration Breakout (%)*
10+ Years0.00
7-10 Years0.97
5-7 Years8.97
3-5 Years27.14
1-3 Years27.83
0-1 Years16.35
*Excludes Bank Loans and Converts.
Loan Quality
Quality Breakout (%)
A & Above0.00
BBB5.68
BB28.43
B48.63
CCC4.03
Non Rated13.23
All ratings are as of 3/31/20. Standard & Poor’s is the rating source for the Quality Breakout Table. A credit rating is an assessment provided by a nationally recognized statistical rating organization (NRSRO), such as Moody’s or Standard & Poor’s. The firm evaluates the of credit worthiness of an issuer with respect to debt obligations, including specific securities, money market instruments, or other bonds. Ratings are measured on a scale that generally ranges from AAA (highest grade) to D (lowest grade); ratings are subject to change without notice. Not Rated (NR) indicates that the debtor was not rated by an NRSRO and should not be interpreted as indicating low quality.

Management

Paul Dlugosch, CFA
Portfolio Manager

22 Years of Experience

 View full bio

Jeff Sitzmann, CFA
Portfolio Manager

32 Years of Experience

 View full bio

Jeff Deardorff, CFA
Portfolio Manager

21 Years of Experience

 View full bio

Commentary

CAPITAL MARKET OVERVIEW

(As of 3/31/20) — After producing positive returns in the past three consecutive quarters of 2019, the U.S. high yield sector suffered a significant correction during the period, driven by the
COVID-19 outbreak and plunging crude oil prices. The Saudi-Russian power struggle over oil output and the virus pandemic overshadowed everything in the month of March. The U.S Federal Reserve (the “Fed”) enacted extraordinary measures including slashing interest rates, removing the caps on the size of asset purchases, and restarting the Term Asset-Backed Securities Loan Facility (TALF). Congress passed a $2+ trillion
economic relief package in concert with the Fed’s moves, but in spite of these efforts, the flight to quality ensued quickly and painfully. The 10-year Treasury bond returned 12.09% during the quarter, while the S&P 500 Index logged a return of -19.60%.

The flight to quality along with increased market volatility resulted in high yield mutual funds experiencing cash outflows of about $16.7 billion during the quarter. In fact, the $13 billion outflow in the month of March was the second largest monthly outflow for high yield, trailing only the $13.6 billion outflow in June 2013. This follows a $3 billion inflow in the previous quarter and a $3.2 billion inflow in the 3rd quarter of 2019. The
$73 billion in high yield new issuance during the quarter was essentially all brought to market in January and February as demand vanished in March. In fact, only five bonds, totaling $4.2 billion, priced during the month of March compared to March 2019’s volume total of $26.6 billion.

During the quarter, the yield on the 10-year U.S. Treasury Bond declined from 1.92% to 0.67% as investors scrambled to safety. The U.S. high yield universe as a whole was on the opposite side of that flight to quality, with negative returns in every industry, sector, and credit rating silo. According to data from JP Morgan, the highest quality end of the high yield credit spectrum (i.e., split BBB and BB), suffered less than the lower
end of the quality spectrum. The split BBB segment produced the smallest loss at -8.35% and split B was the worst performer with a -24.56% loss.

According to data from JP Morgan, the U.S. high yield market’s spread to worst for the period was 9.49%, which was 525 basis points (bps) wider than at year-end and 339 bps wider than the 20-year historical average of 610 bps. The yield to worst for the high yield market at quarter end was 10.00%, above the 20-year average of 8.70%, and above the yield of 6.84% as of December 31st.

PERFORMANCE COMMENTARY

(As of 3/31/20) — The Buffalo High Yield Fund (BUFHX) decreased -12.52% for the quarter, compared to a decline of -13.12% for the ICE BofAML U.S. High Yield Index. The Fund also declined less than the Lipper High Yield Bond Funds Index, which produced a return of -14.28%
for the quarter.

Fund Composition by Asset Class
12/31/183/31/196/30/199/30/1912/31/19
Straight Corporates68.1%65.4%64.7%65.0%55.6%
Convertibles7.6%10.1%12.1%13.4%17.7%
Bank Loans20.2%17.2%15.2%16.0%16.2%
Preferred Stock0.0%0.0%0.0%0.0%1.1%
Convertible Preferred0.6%0.6%0.0%0.0%0.0%
Common Stocks0.8%0.7%1.4%1.2%1.7%
Cash2.7%6.0%6.5%4.4%7.6%
Total100.0%100.0%100.0%100.0%100.0%
Approximate Rate and Contribution of Return from the Fund’s Various Asset Classes in 4Q19
Unweighted ReturnContribution to Return
Straight Corporates2.2%1.31%
Convertibles8.4%1.28%
Bank Loans2.4%0.37%
Preferred Stocks6.4%0.04%
Convertible Preferred0.0%0.00%
Common Stocks6.6%0.09%
Total2.90%

TOP CONTRIBUTORS

There were only a handful of securities that delivered positive returns for the Fund, with the three top contributors being Brunswick 7.375% corporate bonds, Dermira 3.000%
convertible notes, and Holly Energy Partners 6.000% corporate notes. Brunswick is an investment grade credit with a high coupon and a relatively short maturity date of 2023, which protected it somewhat from the downturn. Dermira was acquired by Eli Lilly in March, and the notes were converted at a small premium to par. Holly Energy Partner notes were called by the company in February at a premium.

TOP DETRACTORS

Specific securities that detracted the most from performance include MPLX 6.875% corporate bonds, Energy Transfer common equity, and US Silica bank debt. All three
companies are directly exposed to the energy exploration and production (E&P) sector, which was significantly hurt by plummeting crude prices.

OUTLOOK

(As of 3/31/20) — Until March, the United States had been enjoying a growing economy with modest inflation that had created a favorable environment for risky assets. However, near the end of February and early March, the COVID-19 pandemic and plummeting crude oil prices wreaked havoc on the markets. The U.S. high yield default rate increased to a three-year high of 3.54% in March, which was up 91 bps from the 2.63% level in December 2019, and above the 3.44% long-term average.

We are concerned first and foremost about the ongoing COVID-19 pandemic and the fallout on global economies, while previous issues such as China trade talks and the upcoming presidential election become a secondary focus. We are managing the Fund cautiously yet actively, focusing on high-quality issuers with defensive business models and manageable credit metrics. We ended the quarter with 136 positions unchanged from the previous quarter’s level (excluding cash). We will continue to deploy the Fund’s cash in opportunities that we believe offer the most appealing risk/reward tradeoff with a bias toward shorter durations and less levered credits. Additionally, we believe bank loans offer a more defensive position as they provide senior positioning in the capital structure. Finally, we continue to look for opportunities in convertible bonds and preferreds.

The opinions expressed are those of the Portfolio Manager(s) and are subject to change, are not guaranteed and should not be considered recommendations to buy or sell any security. Earnings growth is not representative of the fund’s future performance.

Literature

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

Fundamental Approach

We get to know the companies we invest in and learn how they run their business.

Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.

Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.

Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

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

The Buffalo High Yield Fund (BUFHX) received 3 stars among 631 for the 3-year, 3 stars among 542 for the 5-year, and 3 stars among 346 High Yield Bond funds for the 10-year period ending 4/30/20.

In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average, and the top 10% High. Morningstar Risk is measured for up to three time periods (three, five, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated. ©2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Style Box™ reveals a fund’s investment strategy by showing its investment style and market capitalization based on the fund’s portfolio holdings.

Bond ratings are grades given to bonds that indicates their credit quality as determined by a private independent rating service such as [Standard & Poor’s or Moody’s, etc.]. 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. Not Rated category includes holdings that are not rated by any rating agencies.
Buffalo Funds named to IBD Best Mutual Funds 2020

Buffalo Funds named to IBD Best Mutual Funds 2020

Media Coverage

Buffalo Funds named to IBD Best Mutual Funds 2020

Overview

The Buffalo International Fund (BUFIX) and the Buffalo High Yield Fund (BUFHX) are included on the Investor’s Business Daily 2020 Best Mutual Funds Award Winner list, in the 5th annual ranking by the investment publication, announced this week.

The International Fund was included in the Best International Stock Funds, and the High Yield Fund was included in the Best U.S. Taxable Bond Funds.

Funds named to IBD’s list were chosen because they have outperformed their benchmark index over the past 1, 3, 5, and 10-year periods, as of 12/31/19. In order to make the list, funds must have outperformed in all four time periods. IBD made its selections from 3,374 mutual funds that met the criteria of having at least 10 years of operation.

We’re honored that our funds have been recognized in this way by IBD. These funds exemplify our firm’s goal of consistently delivering strong risk-adjusted performance to our shareholders, said Clay Brethour, president of the Buffalo Funds.

The Buffalo International Fund is managed by Bill Kornitzer and Nicole Kornitzer, a team that has been in place since 2009.

The Buffalo High Yield Fund is managed by Bob Male, Jamie Cuellar, and Alex Hancock.

To view IBD’s complete list and analysis of the Best Mutual Funds 2020, please visit: https://www.investors.com/etfs-and-funds/mutual-funds/best-mutual-funds-beating-sp-500-over-last-1-3-5-10-years/

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 value. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained here. Performance data current to the most recent quarter-end may be obtained here. Performance is annualized for periods greater than 1 year.

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

References to other mutual funds should not to be considered an offer to buy or sell these securities.

HIGHLIGHT

BUFIX and BUFHX named to Investor’s Business Daily Best Mutual Funds 2020 list in the International Stock Fund and U.S. Taxable Bond Funds categories, respectively.

MEDIA CONTACT

Joel Crampton
Director of Marketing
(913) 647-9881
Email

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Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

“Outlook on High Yield Markets”

“Outlook on High Yield Markets”

“Outlook on High Yield Markets”

Insights from the defensively-minded, high yield fixed income team of Buffalo High Yield Fund portfolio managers

The high yield market (as measured by the BofA Merrill Lynch HY Master II Index) has rallied significantly since February 2016 and notched 20 consecutive months without posting a loss of 50 basis points (bps) or more, something that hasn’t occurred in over 20 years. In this latest report, the portfolio managers of the Buffalo High Yield Fund identify several factors that have driven spread compression and high yield performance in the market.

Areas covered in this report include:

  • Our view on today’s high yield markets
  • Current market drivers
  • Areas of concern
  • Action items for investors
  • The appeal of bank loans
  • The risks of high yield index benchmarks
  • Our distinctive investment approach to high yield markets

As a defensively-minded, high yield fixed income team, the Buffalo High Yield Fund portfolio managers follow a more cautious investment philosophy, with the goal of producing compelling risk-adjusted performance over a full market cycle.

Past performance is not a guarantee of future results. Index performance is not illustrative of fund performance. It is not possible to invest directly in an index. Please click here for fund performance.

Fundamental Approach

We get to know the companies we invest in and learn how they run their business.

Top-Down & Bottom-Up

We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.

Proprietary Philosophy

We construct our portfolios based on our own proprietary investment strategy.

Disciplined Investing

Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.

U.S. News “Best Mutual Funds in 2016” List Includes Several Buffalo Funds

U.S. News “Best Mutual Funds in 2016” List Includes Several Buffalo Funds

Media Coverage

U.S. News “Best Mutual Funds in 2016” List Includes Several Buffalo Funds

Overview

As of August 31, 2016, U.S. News showed the Buffalo International Fund was ranked #4 of 385 Foreign Large Growth funds, the Buffalo Discovery Fund was ranked #7 of 630 Mid-Cap Growth funds, and the Buffalo Flexible Income Fund was ranked #15 of 380 Allocation–70% to 85% Equity funds. Other Buffalo Funds that ranked within the top 100 in their category include the Buffalo High Yield Fund (#41 of 712 High Yield Bond funds) and the Buffalo Large Cap Fund (#47 of 1,436 Large Growth funds).

For more information and current rankings, visit the U.S. News website here.

The U.S. News Best Mutual Fund Score is determined by the overall equal weightings of ratings from five data sources: Morningstar, Lipper, Zacks, TheStreet.com, and Standard & Poor’s as of 8/31/2016. To learn more about their scoring methodology, click here.

HIGHLIGHT

International Fund #4
Discovery Fund #7
Flexible Income Fund #15

MEDIA CONTACT

Joel Crampton
Director of Marketing
(913) 647-9881
Email


Click here for current ratings of the Buffalo Funds.

The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics.

While the U.S. News Mutual Fund Score combines all five equally weighted category scores to achieve its weighting, Lipper intends its measures to be used as individual assessments of a fund’s ability to meet specific goals, rather than as a cumulative measure of fund quality. Lipper rankings are comprised of five unique measures (Total Return, Consistent Return, Preservation, Expense, and Tax Efficiency), each with a 1-to-5 score, ranking each fund against its peers. The highest 20% of funds in each peer group are named Lipper Leaders, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. The overall calculation is based on an equal-weighted average of percentile ranks for each measure over three-, five-, and ten-year periods (if applicable). Lipper Ratings for Total Return reflect funds’ historical total return performance relative to peers. Lipper Ratings for Consistent Return reflect funds’ historical risk-adjusted returns, relative to peers. Lipper Ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Lipper Ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers. Lipper Ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures.

The Zacks Mutual Fund Rank ranks funds on a scale from 1 to 5, with 1 being a Strong Buy and 5 being a Strong Sell. Each quarter, Zacks updates their Mutual Fund Rank by evaluating the average Zacks Rank for the stocks owned by the fund and blending this with other criteria their studies show is beneficial in finding funds that will outperform in the future. In general, the higher the average Zacks Rank for the stocks in the fund, then the higher the Zacks Mutual Fund Rank.

TheStreet.com Ratings Investment Ratings for Funds condense the available fund performance and risk data into a single composite opinion of each fund’s risk-adjusted performance. “A (Buy) Excellent” rating means the fund has an excellent track record of maximizing performance while minimizing risk, thus delivering the best possible combination of total return on investment and reduced volatility. “B (Buy) Good” rating means the fund has a good track record of balancing performance with risk. “C (Hold) Fair” rating ratings means the fund has a track record which is about average. “D (Sell) Weak” rating means the fund has underperformed the universe of other funds given the level of risk in its underlying investments, resulting in a weak risk-adjusted performance. “E (Sell) Very Weak” rating means the fund has significantly underperformed most other funds given the level of risk in its underlying investments, resulting in a very weak risk-adjusted performance. The plus sign (+) is an indication that the fund is in the top third of its letter grade. The minus sign (-) is an indication that the fund is in the bottom third of its letter grade. “U Unrated” rating means the fund does not have sufficient history to make a reliable assessment of its risk-adjusted performance.

The CFRA Rankings range from five-star (highest) to one-star (lowest) and follow a normalized distribution curve, based upon the fund’s rank in its Category. Top 10% receive five stars, next 20% receive four stars, middle 40% receive three stars, next 20% receive two stars, and the bottom 10% receive one star. Rankings are refreshed on a weekly basis to incorporate the latest inputs from the holdings-based analysis and the latest relative performance review.

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 value. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained here. Performance data current to the most recent quarter-end may be obtained here.

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

References to other mutual funds should not to be considered an offer to buy or sell these securities.

Sign Up for Automatic Updates

Stay up-to-date with the most recent media coverage and press releases about the Buffalo Funds.

FOR FINANCIAL PROFESSIONALS

Terms of Use – Email lists are created for use by U.S. investment professionals only and are published strictly for informational purposes. Providing access to the content of these emails does not explicitly or implicitly constitute a solicitation of services or products of the Buffalo Funds, Kornitzer Capital Management, or any of their affiliates. The information contained in the emails is not intended for distribution to, or for use by, investment professionals in a jurisdiction where distribution or purchase is not authorized. The information contained in these emails is not appropriate for use by individual investors. By registering for any of these emails, you agree to Buffalo's terms and conditions and that you are qualified as an institutional investor or otherwise member of a registered broker/dealer, registered investment advisor, or investment consulting firm.

FOR INDIVIDUAL INVESTORS

Income Investing Strategies to Preserve Principal

Income Investing Strategies to Preserve Principal

Media Coverage

Income Investing Strategies to Preserve Principal

Overview

The Buffalo High Yield Fund (BUFHX) was included in an article on Seeking Alpha, which analyzed income funds that preserved principal from 2006-2016, making note of the special year-end dividend the Fund pays annually.

“Retirement income investors should always consider whether an investment has proven that it can preserve their precious capital during periods of economic disruption. Achieving that goal requires a solid business strategy executed by competent investment managers. Investors can use price charts that span good times and bad to identify funds that have preserved investment capital.” ~ Thomas Cook, article author

To access the article click here.

Dividend payments are not guaranteed. The chart included in the article illustrates the performance of a hypothetical $1,000 investment made in the Fund on 1/1/2005. It assumes reinvestment of dividends and capital gains. The chart does not imply future performance.

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 value. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained here. Performance data current to the most recent quarter-end may be obtained here.

Opinions expressed are those of the author or Funds and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

References to other mutual funds should not to be considered an offer to buy or sell these securities.

Definitions can be viewed by clicking here.

HIGHLIGHT

Using techniques identified in the article, a few income funds are highlighted (including the Buffalo High Yield Fund) that pay regular dividends and preserved investors’ capital during the period before and through the Great Recession.

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