Quick Facts
Investor Institutional
Daily Pricing:  
As of 6/8/2023  
NAV: $18.30 $18.29
$ Change: $0.06 $0.06
% Change:
0.33% 0.33%
0.33% 0.33%
Inception Date: 8/12/1994 7/1/2019
Expense Ratio: 1.01% 0.86%
Total Net Assets: $469.22 Million  (3/31/23)
Morningstar Category: Large Value
Benchmark Index: Russell 3000
Dividend Distribution: Monthly
Related Material:
   Fund Fact Sheet Q1 2023
   PM Commentary Q1 2023
   Summary Prospectus
Fund Objective & Investment Process

The investment objective of the Buffalo Flexible Income Fund is primarily the generation of high current income and, as a secondary objective, the long-term growth of capital. To pursue its investment objectives, the Flexible Income Fund invests in both debt and equity securities.

The allocation of assets invested in each type of security is designed to balance income and long-term capital appreciation with reduced volatility of returns. The Flexible Income Fund expects to change its allocation mix over time based on the Fund managers’ view of economic conditions and underlying security values.

The Fund maintains a flexible investment policy which allows it to invest in debt securities with varying maturities. However, it is anticipated that the dollar-weighted average maturity of debt securities that the Fund purchases will not exceed 15 years.

Our investment strategy seeks to generate yield for any investor needing monthly income with capital appreciation, and we use many methods to address potential downside risks.

John Kornitzer, Portfolio Manager

Morningstar Rating


Overall Morningstar Rating™ of BUFBX based on risk-adjusted returns among 1,135 Large Value funds as of 4/30/23.

Investment Style

Performance (%)

As of 4/30/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO FLEXIBLE INCOME FUND - Investor-0.321.944.4716.248.627.247.048.507.50
BUFFALO FLEXIBLE INCOME FUND - Institutional-0.291.934.5716.398.777.407.208.667.65
  Russell 3000 Index1.348.321.5014.0710.6011.679.6210.069.94
  Morningstar Moderately Aggressive Target Risk Index-0.495.880.919.315.937.03---
  Lipper Mixed-Asset Target Allocation Moderate Funds Index0.135.060.957.285.345.815.296.156.66
  Morningstar Large Value Category-2.852.011.3815.217.899.027.598.44-
As of 3/31/233 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO FLEXIBLE INCOME FUND - Investor-0.96-0.96-0.8720.048.417.077.128.677.41
BUFFALO FLEXIBLE INCOME FUND - Institutional-0.97-0.97-0.7820.208.577.227.288.837.57
  Russell 3000 Index7.187.18-8.5818.4810.4511.739.9010.449.93
  Morningstar Moderately Aggressive Target Risk Index4.884.88-6.6212.125.827.11---
  Lipper Mixed-Asset Target Allocation Moderate Funds Index4.014.01-5.669.345.145.855.446.376.64
  Morningstar Large Value Category0.870.87-5.1018.937.789.127.848.81-

BUFFALO FLEXIBLE INCOME FUND - Investor16.683.59-1.979.9013.21-7.0018.76-2.2430.004.01
BUFFALO FLEXIBLE INCOME FUND - Institutional16.853.75-1.8310.0713.38-6.8618.87-2.1030.214.22
  Russell 3000 Index33.5512.560.4812.7421.13-5.2431.0220.8925.66-19.21
  Morningstar Moderately Aggressive Target Risk Index20.184.97-2.4010.2118.89-6.7422.9513.5114.04-15.48
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.
Hypothetical Growth of $10,000
This chart illustrates the performance of a hypothetical $10,000 investment made in the Fund on the Fund’s inception date. Assumes reinvestment of dividends and capital gains. This chart does not imply future performance.
Net Investment
Short-Term Capital
Long-Term Capital
5/17/235/18/23$18.09 (Inv)

$18.08 (Inst)




4/17/234/18/23$18.56 (Inv)

$18.55 (Inst)




3/17/233/20/23$17.39 (Inv)

$17.38 (Inst)




2/17/232/21/23$18.07 (Inv)

$18.07 (Inst)




1/17/231/18/23$18.38 (Inv)

$18.38 (Inst)




2023 Distribution Dates:

Net Investment Income, if any – Record Date (6/20/23); Payment Date (6/21/23)

Net Investment Income, if any – Record Date (7/17/23); Payment Date (7/18/23)

Net Investment Income, if any – Record Date (8/17/23); Payment Date (8/18/23)

Net Investment Income, if any – Record Date (9/18/23); Payment Date (9/19/23)

Net Investment Income, if any – Record Date (10/17/23); Payment Date (10/18/23)

Net Investment Income, if any – Record Date (11/17/23); Payment Date (11/20/23)

Capital Gains, if any – Record Date (12/4/23); Payment Date (12/5/23)

Net Investment Income, if any – Record Date (12/18/23); Payment Date (12/19/23)
For historical distributions, click here.


Portfolio Characteristics
(As of 3/31/23) 
# of Holdings55
Median Market Cap$62.19 B
Weighted Average Market Cap$308.55 B
3-Yr Annualized Turnover Ratio3.44%
30-day SEC Yield1.96%
Top 10 Holdings
HoldingTicker / MaturitySector% of Net
Hess CorpHESEnergy4.14%
APA CorpAPAEnergy3.76%
Eli Lilly & CoLLYHealth Care3.32%
PepsiCoPEPConsumer Staples2.91%
Costco WholesaleCOSTConsumer Staples2.85%
Arthur J Gallagher & CoAJGFinancial Services2.79%
As of 12/31/22. 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.
Sector Weighting
As of 3/31/23. 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.
Asset Allocation
As of 3/31/23. Allocation percentages may not equal 100% due to rounding.


John Kornitzer
Portfolio Manager

55 Years of Experience

 View full bio

Paul Dlugosch, CFA
Portfolio Manager

26 Years of Experience

 View full bio



(As of 3/31/23) — Capital markets moved higher in the first quarter of 2023 as the S&P 500 Index gained 7.50% and the Bloomberg Aggregate Bond Index advanced 3.0%. Big swings in expectations for the Federal Reserve’s monetary policy drove market volatility during the period. Initially investors were concerned with data showing stubbornly high inflation and the prospect of additional interest rate hikes. However, during the final days of the quarter bank failures from Silicon Valley Bank, Signature Bank, and Credit Suisse, dramatically changed market expectations towards monetary policy and the impact that a banking crisis could have on the broader economy. As a result, shorter term Treasury yields fell, and large cap growth stocks rallied in a flight to quality. The view was that growth companies would be the biggest beneficiaries of lower rates, a reversal of the headwinds faced throughout 2022. Technology stocks were by far the leading contributors to broad market performance during the quarter while value stocks and dividend payers lagged. Excluding the technology sector, the S&P 500 Index return would have only been 2.70% during the period.

Recapping quarterly results, the broad-based Russell 3000 Index advanced 7.18%. Growth stocks significantly outperformed value stocks to start out the year, as the Russell 3000 Value Index returned just 0.91% versus a return of 13.85% for the Russell 3000 Growth Index. Relative performance improved going up in market capitalization (size) as large caps advanced more than small caps in the quarter. Larger cap stocks returned 7.46%, as measured by the Russell 1000 Index, compared to the smaller cap Russell 2000 Index return of 2.74%, while the Russell Microcap Index returned -2.83% in the quarter.


(As of 3/31/23) — The Buffalo Flexible Income Fund declined -0.97% for the quarter compared to a gain of 7.18% for the Russell 3000 Index. The energy sector declined during the period while technology stocks rallied significantly. The fund is overweight energy and underweight technology relative to the benchmark, primary headwinds to performance results during the quarter.

The top three contributors to the fund’s performance were Microsoft Corporation, Lionsgate and Qualcomm. Shares of Microsoft advanced during the quarter driven by better than expected earnings and positive views surrounding the release of its AI product. Lionsgate reported strong earnings which was mainly driven by the film and TV-studio businesses and partly helped by the library revenue. The Starz business continues to lose subscribers and management is moving forward with a plan to split the company into two separate stand alone businesses, which should be completed in 2023. Management reiterated its full year guidance. Qualcomm reported earnings that were roughly in-line with estimates during the quarter and revised down its second quarter earnings. The share appreciation reflects investor expectations that the semiconductor inventory correction should be resolved by the back half of calendar 2023 as well as improved growth associated with China reopening.

The top three detractors were APA, ConocoPhillips and Pfizer. APA and Conoco were negatively impacted by the declines in energy prices as both crude oil and natural gas declined during the quarter. Crude oil declines reflect potentially lower demand associated with an anticipated recession later in the year, while natural gas prices declined due to mild weather and expected demand declines in the back half of the year due to an economic slowdown. Pfizer’s top and bottom-line guidance for 2023 was significantly reduced below expectations during the quarter due to declines in its COVID franchise. Additionally, management announced it was acquiring Seagen, which some investors viewed negatively.


(As of 3/31/23) — Looking ahead global economies continue to slow. While many companies have already lowered financial guidance for the year, we could be bracing for an earnings season where companies’ lower guidance for 2023. Despite the uncertainty, we remain focused on wide moat, large capitalization dividend-paying companies trading at reasonable valuations, in our view. As always, the fund will continue to emphasize competitively advantaged companies that can be purchased at a fair value. We will be ready to take advantage of opportunities created by stock market volatility using market declines as attractive entry points for long-term investors.

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.


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

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 Flexible Income Fund (BUFBX) received 4 stars among 1135 for the 3-year, 4 stars among 1087 for the 5-year, and 2 stars among 806 Large Value funds for the 10-year period ending 4/30/23.

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. ©2022 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.