High Yield Fund


Overall Morningstar™ rating out of 567
High Yield Bond funds as of 8-31-2014 (derived from a weighted average of the fund’s three-, five-, and ten-year risk adjusted return measure, if applicable).

Characteristics

  • Invests in high-yielding corporate and convertible bonds
  • Core holdings established in industries with favorable long-term trends
  • Long-term focus

Strategy

The Fund's management team seeks securities with what they believe are attractive yields and valuations, with a focus on bonds rated below investment grade. Our proprietary in-house research identifies companies which, in our opinion, are able to sustain or grow their profit margins, have solid management teams, and have the financial strength to weather difficult economic environments. Core bond holdings include industries with favorable long-term trends (e.g., demographic, technological, etc.), supplemented with holdings of companies that have fallen deeply out of favor. Managers also have the discretion to include convertible bonds and dividend-paying equities as appropriate to support income goals.

Investment Team

Paul Dlugosch  

Paul Dlugosch, CFA

Portfolio Manager


  • Investment professional since 1997
  • Joined KCM in 2002
  • Prior experience - Antares Capital Corporation and LaSalle National Bank
  • B.S. - University of Iowa
Alexander Hancock  

Alexander Hancock, CFA

Portfolio Manager


  • Investment professional since 1998
  • Joined KCM in 2002
  • Prior experience - ClearLight Partners, LLC. and Salomon Smith Barney
  • B.A. - Dartmouth College
Jeffrey Sitzmann  

Jeffrey Sitzmann, CFA

Portfolio Manager


  • Investment professional since 1987
  • Joined KCM in 2002
  • Prior experience - Banc One Investment Advisors, Anthem Inc., and Duff & Phelps Inc.
  • B.B.A. - University of Toledo
  • M.B.A. - University of Chicago

 

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ (based on a Morningstar Risk Adjusted Return measure that accounts for variation in a fund’s monthly performance, including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Buffalo High Yield Fund received 2 stars among 567 for the three-year, 2 stars among 497 for the five-year, and 3 stars among 345 High Yield Bond funds for the ten-year period ending 8/31/2014.

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