Investor Login Advisors Contact Us FAQs Search HIGH YIELD FUND QUICK FACTS Investor Institutional Ticker: BUFHX BUIHX Inception Date: 5/19/1995 7/1/2019 Expense Ratio: 1.03% 0.87% Total Net Assets: $299.17 Million (9/30/21) Morningstar Category: High Yield Bond Benchmark Index: ICE BofAML U.S. High Yield Dividend Distribution: Monthly Related Material: Fund Fact Sheet Q3 2021 PM Commentary Q3 2021 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. Read More ▼ MORNINGSTAR RATING Overall Morningstar Rating™ of BUFHX based on risk-adjusted returns among 631 High Yield Bond funds as of 10/31/21. PERFORMANCE (%) MONTH - END QUARTER - END CALENDAR YEAR As of 10/31/21 3 MO YTD 1 YR 3 YR 5 YR 10 YR 15 YR 20 YR Since Inception BUFFALO HIGH YIELD FUND - Investor 0.50 4.92 12.19 7.89 6.15 6.09 6.20 6.73 7.04 BUFFALO HIGH YIELD FUND - Institutional 0.54 5.06 12.40 8.02 6.30 6.24 6.35 6.89 7.20 ICE BofAML U.S. High Yield Index 0.40 4.49 10.74 7.15 6.25 6.66 7.06 7.75 7.13 Lipper High Yield Bond Funds Index 0.52 5.06 11.42 6.75 5.94 6.15 6.00 6.77 5.95 Morningstar High Yield Bond Category 0.34 4.13 10.10 6.22 5.37 5.66 5.87 6.70 5.87 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 9/30/21) Upside Capture 98.21 Downside Capture 88.17 Alpha 1.21 Beta 0.92 Sharpe Ratio 0.71 HYPOTHETICAL GROWTH OF $10,000 Buffalo High Yield Fund - Investor Class ICE BofAML High Yield Index 2000 2005 2010 2015 2020 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 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 2021 Distribution Dates: — Record Date (12/2/21); Payment Date (12/3/21) – Capital Gains, if any — Record Date (12/17/21); Payment Date (12/20/21) – Ordinary Income, if any Record Date Payable Date Distribution NAV Net Investment Income Short-Term Capital Gains Long-Term Capital Gains Distribution Total 11/18/21 11/19/21 $11.89 (Inv) $11.88 (Inst) $0.03967448 $0.04129057 - - - - $0.03967448 $0.04129057 10/18/21 10/19/21 $11.93 (Inv) $11.92 (Inst) $0.04366965 $0.04519780 - - - - $0.04366965 $0.04519780 9/17/21 9/20/21 $11.94 (Inv) $11.93 (Inst) $0.03991191 $0.04143702 - - - - $0.03991191 $0.04143702 8/17/21 8/18/21 $11.87 (Inv) $11.86 (Inst) $0.03582984 $0.03725405 - - - - $0.03582984 $0.03725405 7/19/21 7/20/21 $11.92 (Inv) $11.91 (Inst) $0.04163377 $0.04318868 - - - - $0.04163377 $0.04318868 6/17/21 6/18/21 $11.96 (Inv) $11.95 (Inst) $0.06239306 $0.06385012 - - - - $0.06239306 $0.06385012 5/17/21 5/18/21 $11.88 (Inv) $11.87 (Inst) $0.02955878 $0.03092565 - - - - $0.02955878 $0.03092565 4/19/21 4/20/21 $11.89 (Inv) $11.88 (Inst) $0.02511590 $0.02671660 - - - - $0.02511590 $0.02671660 3/17/21 3/18/21 $11.78 (Inv) $11.77 (Inst) $0.04416967 $0.04553159 - - - - $0.04416967 $0.04553159 2/17/21 2/18/21 $11.89 (Inv) $11.88 (Inst) $0.03905063 $0.04046545 - - - - $0.03905063 $0.04046545 1/19/21 1/20/21 $11.83 (Inv) $11.82 (Inst) $0.02991434 $0.03150591 - - - - $0.02991434 $0.03150591 For historical distributions, click here. PORTFOLIO PORTFOLIO CHARACTERISTICS (As of 9/30/21) # of Holdings 147 3-Yr Annualized Turnover Ratio 32.79% Average Duration 2.80 years Average Maturity 7.27 years 30-day SEC Yield 3.26% TOP 10 HOLDINGS Name of Holding Maturity Date % of Net Assets Nuance Communications 1.500%, 11/1/35 2.52% MPLX 6.875%, 8/15/23 2.44% Northern Oil & Gas 8.125%, 3/1/28 2.06% Matador Resources 5.875%, 9/15/26 1.93% PetIQ 3 Month LIBOR +4.250%, 4/7/28 1.69% Energy Transfer 7.125%, perpetual preferred 1.59% CNX Resources 7.250%, 3/14/27 1.46% Builders FirstSource 5.000%, 3/1/30 1.43% Diebold Nixdorf 8.500%, 4/15/24 1.40% Consol Energy 11.000%, 11/15/25 1.36% TOP 10 HOLDINGS TOTAL 17.88% As of 6/30/21. 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. View Full Holdings ASSET ALLOCATION Bank Loans (16.3%) Convertible Bonds (13.6%) Corporate Bonds (62.4%) Preferred Stock (2.3%) REIT (2.5%) Cash (3.0%) Percentages of Total Assets as of 9/30/21. Allocation percentages may not equal 100% due to rounding. SECTOR WEIGHTING Buffalo High Yield Fund ConsumerDiscretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Telecommunications Utilities Cash 0% 5% 10% 15% 20% 25% 30% As of 9/30/21. 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 0.34 5-7 Years 14.19 3-5 Years 23.83 1-3 Years 25.82 0-1 Years 19.76 *Excludes Bank Loans and Converts. CREDIT QUALITY Quality Breakout (%) Baa 2.25 Ba 8.63 B 45.41 Caa 10.45 Unassigned 33.26 All ratings are as of 9/30/21. 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 24 Years of Experience View full bio Jeff Sitzmann, CFA Portfolio Manager 34 Years of Experience View full bio Jeff Deardorff, CFA Portfolio Manager 24 Years of Experience View full bio COMMENTARY Q3 2021 Commentary CAPITAL MARKET OVERVIEW PERFORMANCE COMMENTARY (As of 9/30/21) — The Buffalo High Yield Fund (BUFHX) increased 0.74% in the 3rd quarter, trailing the ICE BofAML U.S. High Yield Index (the “Index”) and Lipper High Yield Bond Funds Index, which gained 0.94% and 0.88% respectively. We ended the quarter with 147 positions, basically unchanged from the previous quarter’s level of 148 (excluding cash). Fund Composition by Asset Class 9/30/20 12/31/20 3/31/21 6/30/21 9/30/21 Straight Corporates 60.6% 61.0% 62.7% 61.5% 65.3% Convertibles 17.6% 14.7% 16.3% 17.0% 16.1% Bank Loans 16.3% 17.2% 11.2% 13.7% 13.5% Preferred Stock 1.5% 1.2% 2.2% 2.3% 2.2% Convertible Preferred 0.0% 0.0% 0.0% 0.0% 0.0% Common Stocks 0.4% 0.1% 0.0% 0.0% 0.0% Cash 3.6% 5.8% 7.6% 5.5% 2.9% Approximate Rate and Contribution of Return from the Fund’s Various Asset Classes in 3Q21 Contribution to Return Straight Corporates 0.96% Convertibles -0.19% Bank Loans 0.15% Preferred Stocks 0.04% Convertible Preferred 0.00% Common Stocks 0.00% Total 0.74% TOP CONTRIBUTORS The three top contributors for the Fund during the quarter were Consol Energy 11% corporate bonds, Quad Graphics 7% corporate bonds, and Air Transportation Services 1.125% convertible bonds. Consol Energy operates coal mines in Pennsylvania and West Virginia, and its bonds gained during the quarter, as coal prices increased roughly 60% during the period. Quad Graphics performed well after posting better-than-expected earnings in the quarter and announcing the sale of a non-core business, which was used to pay down debt. Air Transportation Services convertible bonds rallied in conjunction with the underlying common stock, after the company posted better-than-expected earnings in early August. TOP DETRACTORS The Invacare 4.25% convertible bonds, Smile Direct Club 0.0% convertible bonds, and the Avaya 2.25% convertible bonds were the worst performers during the quarter. Invacare convertible bonds were negatively impacted by disappointing earnings announcement that were driven by global supply chain disruptions. Smile Direct Club convertible bonds declined after posting weaker-than-expected earnings. The position was liquidated during the quarter. Despite meeting analysts’ estimates, Avaya convertible bonds declined after the company provided guidance for the rest of 2021 that missed expectations. OUTLOOK 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 Buffalo High Yield Fund Documents Last Updated Fact Sheet 9/30/21 Quarterly Commentary 9/30/21 Full Fund Holdings 9/30/21 Summary Prospectus 7/29/21 Prospectus 7/29/21 Statement of Additional Information 7/29/21 Annual Report 3/31/21 Semi-Annual Report 9/30/20 Tax Guide - 2020 1/10/21 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 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 4 stars among 631 for the 3-year, 4 stars among 553 for the 5-year, and 4 stars among 367 High Yield Bond funds for the 10-year period ending 10/31/21. 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. ©2021 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. OUR FUNDS Discovery Fund Dividend Focus Fund Early Stage Growth Fund Flexible Income Fund Growth Fund High Yield Fund International Fund Large Cap Fund Mid Cap Fund Small Cap Fund INVEST WITH US Open an Account Directly Work with a Financial Advisor Platform Availability RESOURCES Account Forms Advisors Coverdell Accounts CUSIP IDs FAQs Investor Login IRA Accounts Literature Prospectus Tax Information ABOUT US Who We Are Investment Strategy Our Team Our History LinkedIn Prospectus Privacy Policy Definitions © 2021 Buffalo Funds. All rights reserved. Before you invest in the Buffalo Funds, please refer to the summary or statutory prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling (800) 49-BUFFALO. The prospectus should be read carefully before you invest or send money. Mutual fund investing involves risk; Principal loss is possible. The Buffalo Dividend Focus, Flexible Income, Early Stage Growth, Small Cap, Mid Cap, Discovery, Growth, and International Funds invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Dividend Focus, High Yield, Early Stage Growth, Small Cap, Mid Cap, Discovery, Growth, Large Cap and International Fund may invest in foreign securities which will involve political, economic and currency risks, greater volatility and differences in accounting methods. The International Fund may invest in emerging markets, which are generally more volatile and can have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries and securities markets that are substantially smaller, less liquid, more volatile and may have a lower level of government oversight than securities markets in more developed countries. The Flexible Income and High Yield Funds may invest in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The Flexible Income Fund may invest in MLPs which are subject to certain risks inherent in the structure of MLPs, including complex tax structure risks, limited ability for election or removal of management, limited voting rights, potential dependence on parent companies or sponsors for revenues to satisfy obligations, and potential conflicts of interest between partners, members and affiliates. Investors should be aware of risks involved with investing REITs and real estate securities, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. The Buffalo Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this website should be considered a solicitation to buy or an offer to sell shares of any Buffalo Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. Kornitzer Capital Management is the advisor to the Buffalo Funds, which are distributed by Quasar Distributors, LLC.