High Yield Fund
Quick Facts
| Investor | Institutional | |
| Ticker: | BUFHX | BUIHX |
| Daily Pricing: | ||
| As of 12/20/2024 | ||
| NAV: | $10.69 | $10.68 |
| $ Change: | $0.01 | $0.01 |
| % Change: |
0.09% | 0.09% |
| YTD: |
9.31% | 9.48% |
| Inception Date: | 5/19/1995 | 7/1/2019 |
| Expense Ratio: | 1.03% | 0.87% |
| Total Net Assets: | $579.35 Million (9/30/24) | |
| Morningstar Category: | High Yield Bond | |
| Benchmark Index: | ICE BofA U.S. High Yield | |
| Dividend Distribution: | Monthly | |
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Related Material: Fund Fact Sheet Q3 2024 PM Commentary Q3 2024 Portfolio Manager Q&A |
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Fund Objective & Investment Process
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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Jeff Sitzmann, Portfolio Manager
Morningstar Rating
Overall Morningstar Rating™ of BUFHX based on risk-adjusted returns among 584 High Yield Bond funds as of 11/30/24.
Performance (%)
| As of 11/30/24 | 3 MO | YTD | 1 YR | 3 YR | 5 YR | 10 YR | 15 YR | 20 YR | Since Inception |
|---|---|---|---|---|---|---|---|---|---|
| BUFFALO HIGH YIELD FUND - Investor | 2.47 | 9.54 | 12.00 | 5.38 | 6.20 | 5.27 | 6.19 | 5.82 | 6.83 |
| BUFFALO HIGH YIELD FUND - Institutional | 2.51 | 9.70 | 12.18 | 5.54 | 6.36 | 5.42 | 6.34 | 5.98 | 6.99 |
| ICE BofA U.S. High Yield Index | 2.25 | 8.73 | 12.76 | 3.77 | 4.60 | 4.99 | 6.60 | 6.45 | 6.73 |
| Lipper High Yield Bond Funds Index | 2.19 | 8.52 | 12.22 | 3.63 | 4.38 | 4.50 | 6.12 | 5.58 | 5.56 |
| As of 9/30/24 | 3 MO | YTD | 1 YR | 3 YR | 5 YR | 10 YR | 15 YR | 20 YR | Since Inception |
|---|---|---|---|---|---|---|---|---|---|
| BUFFALO HIGH YIELD FUND - Investor | 3.25 | 7.71 | 12.86 | 4.51 | 6.16 | 5.22 | 6.17 | 5.88 | 6.81 |
| BUFFALO HIGH YIELD FUND - Institutional | 3.29 | 7.84 | 13.04 | 4.66 | 6.30 | 5.37 | 6.33 | 6.03 | 6.81 |
| ICE BofA U.S. High Yield Index | 5.29 | 8.08 | 15.74 | 3.14 | 4.58 | 4.97 | 6.75 | 6.58 | 6.74 |
| Lipper High Yield Bond Funds Index | 4.51 | 7.72 | 14.56 | 2.99 | 4.36 | 4.48 | 6.26 | 5.71 | 5.67 |
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BUFFALO HIGH YIELD FUND - Investor | 9.40 | 1.96 | 1.80 | 6.65 | 5.98 | -2.26 | 12.32 | 9.27 | 5.53 | -5.53 | 11.68 |
| BUFFALO HIGH YIELD FUND - Institutional | 9.56 | 2.11 | 1.95 | 6.81 | 6.14 | -2.12 | 12.40 | 9.43 | 5.69 | -5.39 | 11.85 |
| ICE BofAML U.S. High Yield Index | 7.42 | 2.50 | -4.64 | 17.49 | 7.48 | -2.26 | 14.41 | 6.17 | 5.36 | -11.17 | 13.54 |
3 Year Risk Metrics
| BUFHX vs ICE BofA U.S. High Yield Index (As of 9/30/24) | |
|---|---|
| Upside Capture | 64.47 |
| Downside Capture | 48.81 |
| Alpha | 2.55 |
| Beta | 0.60 |
| Sharpe Ratio | 0.16 |
Hypothetical Growth of $10,000
Distributions
Record 12/17/2024 Payable 12/18/2024
| Record Date | Payable Date | Distribution NAV | Net Investment Income | Short-Term Capital Gains | Long-Term Capital Gains | Distribution Total |
|---|---|---|---|---|---|---|
| 12/4/2024 | 12/5/2024 | - - | - - | - - | - - | - - |
| 11/18/2024 | 11/19/2024 | $10.83 (Inv) $10.82 (Inst) | 0.06717556 0.06856716 | - - | - - | 0.06717556 0.06856716 |
| 10/17/2024 | 10/18/2024 | $10.75 (Inv) $10.74 (Inst) | 0.06497785 0.06630922 | - - | - - | 0.06497785 0.06630922 |
| 9/17/2024 | 9/18/2024 | $10.77 (Inv) $10.76 (Inst) | 0.06120469 0.06247683 | - - | - - | 0.06120469 0.06247683 |
| 8/19/2024 | 8/20/2024 | $10.72 (Inv) $10.71 (Inst) | 0.06382040 0.06526419 | - - | - - | 0.06382040 0.06526419 |
| 7/17/2024 | 7/18/2024 | $10.68 (Inv) $10.67 (Inst) | 0.02780382 0.02916396 | - - | - - | 0.02780382 0.02916396 |
| 6/17/2024 | 6/18/2024 | $10.58 (Inv) $10.57 (Inst) | 0.06115125 0.06248291 | - - | - - | 0.06115125 0.06248291 |
| 5/17/2024 | 5/20/2024 | $10.61 (Inv) $10.60 (Inst) | 0.10765190 0.10893026 | - - | - - | 0.10765190 0.10893026 |
| 4/17/2024 | 4/18/2024 | $10.54 (Inv) $10.53 (Inst) | 0.03574674 0.03705502 | - - | - - | 0.03574674 0.03705502 |
| 3/18/2024 | 3/19/2024 | $10.57 (Inv) $10.56 (Inst) | 0.05863558 0.05979454 | - - | - - | 0.05863558 0.05979454 |
| 2/20/2024 | 2/21/2024 | $10.53 (Inv) $10.52 (Inst) | 0.07077710 0.07208359 | - - | - - | 0.07077710 0.07208359 |
| 1/17/2024 | 1/18/2024 | $10.52 (Inv) $10.51 (Inst) | 0.05439384 0.05564364 | - - | - - | 0.05439384 0.05564364 |
Portfolio
Portfolio Characteristics
| (As of 9/30/24) | |
|---|---|
| # of Holdings | 154 |
| 3-Yr Annualized Turnover Ratio | 30.95% |
| Average Duration | 2.65 years |
| Average Maturity | 4.50 years |
| 30-day SEC Yield | 7.05% |
Top 10 Holdings
| Name of Holding | Maturity Date | % of Net Assets |
|---|---|---|
| Amneal Pharmaceuticals Llc (Term Loan) | 5/4/2028 | 3.96 |
| Uniti Group Lp 10.5% | 2/15/2028 | 2.29 |
| Endo Finance Holdings, Inc. (Term Loan) | 4/23/2031 | 1.97 |
| Northern Oil And Gas, Inc. 8.125% | 3/1/2028 | 1.87 |
| Geo Group, Inc. 10.25% | 4/15/2031 | 1.68 |
| Directv Financing Llc (Term Loan) | 8/2/2029 | 1.65 |
| Burford Capital Global Finance Llc 9.25% | 7/1/2031 | 1.63 |
| Petiq Llc (Term Loan) | 4/7/2028 | 1.60 |
| Saturn Oil & Gas, Inc. 9.625% | 6/5/2029 | 1.60 |
| Ardonagh Group Finance Ltd. 8.875% | 2/15/2032 | 1.59 |
| TOP 10 HOLDINGS TOTAL | 19.85% |
Asset Allocation
Percentages of Total Assets as of 9/30/24. Allocation percentages may not equal 100% due to rounding.
Sector Weighting
As of 9/30/24. 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.
Duration
| Duration Breakout (%)* | |
|---|---|
| 10+ Years | 0.00 |
| 7-10 Years | 0.00 |
| 5-7 Years | 0.69 |
| 3-5 Years | 26.67 |
| 1-3 Years | 33.44 |
| 0-1 Years | 6.53 |
Credit Quality
| Quality Breakout (%) | |
|---|---|
| Baa | 0.75 |
| Ba | 13.15 |
| B | 75.25 |
| Caa | 8.61 |
| Unassigned | 2.24 |
All ratings are as of 9/30/24. Moody’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 C (lowest grade); ratings are subject to change without notice. Unassigned rating indicates that the debtor was not rated by an NRSRO and should not be interpreted as indicating low quality.
Management
Commentary
Literature
| Buffalo High Yield Fund Documents | Last Updated |
|---|---|
| Fact Sheet | 9/30/24 |
| Quarterly Commentary | 9/30/24 |
| Full Fund Holdings | 6/30/24 |
| Prospectus | 7/29/24 |
| Statement of Additional Information | 7/29/24 |
| Annual Report | 3/31/24 |
| Semi-Annual Report | 9/30/23 |
| Tax Guide - 2023 | 1/8/24 |
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 5 stars among 584 for the 3-year, 5 stars among 548 for the 5-year, and 5 stars among 420 High Yield Bond funds for the 10-year period ending 11/30/24.