Quick Facts
Investor Institutional
Ticker: BUFHX BUIHX
Daily Pricing:  
As of 7/12/2024  
NAV: $10.68 $10.67
$ Change: $0.02 $0.02
% Change:
0.19% 0.19%
YTD:
5.11% 5.19%
Inception Date: 5/19/1995 7/1/2019
Expense Ratio: 1.03% 0.87%
Total Net Assets: $505.81 Million  (6/30/24)
Morningstar Category: High Yield Bond
Benchmark Index: ICE BofA U.S. High Yield
Dividend Distribution: Monthly
Related Material:
   Fund Fact Sheet Q1 2024
   PM Commentary Q1 2024
   Portfolio Manager Q&A
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.

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 594 High Yield Bond funds as of 6/30/24.

Performance (%)

As of 6/30/243 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO HIGH YIELD FUND - Investor1.564.3211.483.655.744.766.745.786.75
BUFFALO HIGH YIELD FUND - Institutional1.604.4011.653.815.884.916.905.946.91
  ICE BofA U.S. High Yield Index1.112.6510.521.703.764.237.376.546.62
  Lipper High Yield Bond Funds Index1.223.0710.291.793.673.826.875.685.56
As of 6/30/243 MOYTD1 YR3 YR5 YR10 YR15 YR20 YRSince Inception
BUFFALO HIGH YIELD FUND - Investor1.564.3211.483.655.744.766.745.786.75
BUFFALO HIGH YIELD FUND - Institutional1.604.4011.653.815.884.916.905.946.91
  ICE BofA U.S. High Yield Index1.112.6510.521.703.764.237.376.546.62
  Lipper High Yield Bond Funds Index1.223.0710.291.793.673.826.875.685.56

20132014201520162017201820192020202120222023
BUFFALO HIGH YIELD FUND - Investor9.401.961.806.655.98-2.2612.329.275.53-5.5311.68
BUFFALO HIGH YIELD FUND - Institutional9.562.111.956.816.14-2.1212.409.435.69-5.3911.85
  ICE BofAML U.S. High Yield Index7.422.50-4.6417.497.48-2.2614.416.175.36-11.1713.54
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 BofA U.S. High Yield Index (As of 6/30/24)
Upside Capture66.27
Downside Capture48.81
Alpha2.57
Beta0.60
Sharpe Ratio0.09
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
2024 Projected Distribution Dates:

Record 7/17/2024 Payable 7/18/2024

Record 8/19/2024 Payable 8/20/2024

Record 9/17/2024 Payable 9/18/2024

Record 10/17/2024 Payable 10/18/2024

Record 11/18/2024 Payable 11/19/2024

Record 12/4/2024 Payable 12/5/2024 Cap Gains (if any)

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
6/17/20246/18/2024$10.58 (Inv)

$10.57 (Inst)
0.06115125

0.06248291
-

-
-

-
0.06115125

0.06248291
5/17/20245/20/2024$10.61 (Inv)

$10.60 (Inst)
0.10765190

0.10893026
-

-
-

-
0.10765190

0.10893026
4/17/20244/18/2024$10.54 (Inv)

$10.53 (Inst)
0.03574674

0.03705502
-

-
-

-
0.03574674

0.03705502
3/18/20243/19/2024$10.57 (Inv)

$10.56 (Inst)
0.05863558

0.05979454
-

-
-

-
0.05863558

0.05979454
2/20/20242/21/2024$10.53 (Inv)

$10.52 (Inst)
0.07077710

0.07208359
-

-
-

-
0.07077710

0.07208359
1/17/20241/18/2024$10.52 (Inv)

$10.51 (Inst)
0.05439384

0.05564364
-

-
-

-
0.05439384

0.05564364
For historical distributions, click here.

Portfolio

Portfolio Characteristics
(As of 6/30/24) 
 
# of Holdings151
3-Yr Annualized Turnover Ratio32.10%
Average Duration2.76 years
Average Maturity4.40 years
30-day SEC Yield7.02%
Top 10 Holdings
Name of HoldingMaturity Date% of Net
Assets
Amneal Pharmaceuticals Llc Term Loan5/4/20282.91
Uniti Group Lp 10.5%2/15/20282.69
Northern Oil And Gas, Inc. 8.125%3/1/20282.09
Geo Group, Inc. Term Loan3/23/20272.03
Directv Financing Llc Term Loan8/2/20291.93
Burford Capital Global Finance Llc 9.25%7/1/20311.82
Martin Midstream Partners L.p. 11.5%2/15/20281.70
Trulite Holding Corp. Term Loan3/1/20301.69
Energy Transfer Lp 7.125%Perpetual1.66
Consensus Cloud Solutions, Inc. 6.0%10/15/20261.65
TOP 10 HOLDINGS TOTAL20.16%
As of 3/31/24. 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 6/30/24. Allocation percentages may not equal 100% due to rounding.

Sector Weighting

As of 6/30/24. 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+ Years0.00
7-10 Years0.00
5-7 Years0.66
3-5 Years27.10
1-3 Years31.13
0-1 Years9.75
*Excludes Bank Loans and Converts.
Credit Quality
Quality Breakout (%)
Baa1.26
Ba19.82
B67.98
Caa8.02
Unassigned2.92

All ratings are as of 6/30/24. 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

Paul Dlugosch, CFA
Portfolio Manager

26 Years of Experience

 View full bio

Jeff Sitzmann, CFA
Portfolio Manager

36 Years of Experience

 View full bio

Jeff Deardorff, CFA
Portfolio Manager

26 Years of Experience

 View full bio

Commentary

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
  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 5 stars among 594 for the 3-year, 5 stars among 563 for the 5-year, and 5 stars among 427 High Yield Bond funds for the 10-year period ending 6/30/24.

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.