Fund Evaluator:
Buffalo High Yield Institutional (BUIHX)
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Best Performing in High Yield Bond Over the Last Year
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| 6.4% | Fidelity High Income (SPHIX) |
Fund Details
Buffalo High Yield Institutional Overview
Buffalo High Yield Institutional (BUIHX) is an actively managed Taxable Bond High Yield Bond fund. Buffalo launched the fund in 2019.
The investment seeks current income, with long-term growth of capital as a secondary objective. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in higher-yielding, higher-risk debt securities rated below investment grade by the major rating agencies, commonly known as “junk bonds.” Debt securities may include fixed and floating rate bonds, bank debt, and convertible debt securities. The fund may invest up to 20% of its net assets in sponsored or unsponsored American Depositary Receipts (“ADRs”) and securities of foreign companies.
About Buffalo High Yield Institutional (BUIHX)
There are 3 members of the management team with an average tenure of 16.62 years: Jeffrey Sitzmann (2007), Paul Dlugosch (2007), Jeff Deardorff (2015). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Universal TR USD index with a weighting of 100% and ICE BofA US High Yield TR USD index with a weighting of 100%. Buffalo High Yield Institutional has 176 securities in its portfolio. The top 10 holdings constitute 19.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Buffalo High Yield Institutional is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Buffalo High Yield Institutional has 12.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 3.8% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 90.9% (78.4% domestic bond, 12.5% foreign bond and 1.8% convertible bond). Buffalo High Yield Institutional has 3.5% of the portfolio in cash.
Assets Under Management
The fund has $555 million in total assets, which is above the $550 million average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
BUIHX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Buffalo High Yield Institutional expense ratio is high compared to funds in the High Yield Bond category. Buffalo High Yield Institutional has an expense ratio of 0.87%, which is 5% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Buffalo High Yield Institutional has a portfolio turnover rate of 39%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 73% for the High Yield Bond category.
Recently, in the month of August 2026, Buffalo High Yield Institutional returned 0.9%, which earned it a grade of C, as the High Yield Bond category had an average return of 0.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Buffalo High Yield Institutional has a trailing yield of 7.11%, which is above the 6.24% category average. The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Buffalo High Yield Institutional Grades
Year to date, the fund has returned 3.0%, 0.4 percentage points better than the category, which translates into a grade of B. The fund has returned 3.6% over the past year (grade of F), 7.7% over the past three years (grade of C) and 4.9% per year over the past five years (grade of A) and 5.5% per year over the past 10 years (grade of A).
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BUIHX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BUIHX Return (NAV) | 0.9% | 1.0% | 3.6% | 7.7% | 4.9% | 5.5% |
| BUIHX Grade | C | B | F | C | A | A |
| +/- Category | -0.0% | 0.2% | -1.1% | -0.1% | 1.1% | 0.8% |
| High Yield Bond Avg | 0.9% | 0.8% | 4.6% | 7.8% | 3.8% | 4.7% |
| BUIHX Tax Cost Ratio | na | na | 2.8% | 2.9% | 3.0% | na |
BUIHX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BUIHX Return (NAV) | 3.0% | 5.3% | 9.9% | 11.8% | -5.4% | 5.7% | 9.4% | 12.4% | -2.3% | 6.0% | 6.7% |
| BUIHX Grade | B | F | A | C | A | B | A | D | B | D | F |
| +/- Category | 0.4% | -2.6% | 2.3% | -0.0% | 4.6% | 0.6% | 4.2% | -0.6% | 0.4% | -0.7% | -6.8% |
| High Yield Bond Avg | 2.5% | 7.9% | 7.6% | 11.9% | -10.0% | 5.1% | 5.3% | 13.0% | -2.6% | 6.7% | 13.4% |
| Risk Measures | |
| Standard Deviation: | 2.9% |
| Total Risk Index: | 0.24 - Low |
| Category Risk Index: | 0.72 - Low |
| Category Risk Grade: | A (10% Rank) |
| Beta: | 0.30 |
| R-Squared: | 34% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Limited Sensitivity |
| Yield: | 7.1% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | |
| Total Assets: | $650 Mil |
| Fund Total Assets: | $ 556 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 39% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 19.1 years | |||
| Average Tenure: 16.6 years | |||
| Managers (Year): Sitzmann Jeffrey (2007), Dlugosch Paul (2007), Deardorff Jeff (2015) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 176 |
| % in Top 10 Holdings: | 19.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 12.5% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 3.8% |
| Domestic Bond: | 78.4% |
| Foreign Bond: | 12.5% |
| Convertible Bond: | 1.8% |
| Other: | 0.0% |
| Cash: | 3.5% |
Purchase Information
| Fund Family: | Buffalo |
| Phone Number: | 800-492-8332 |
| Website: | www.buffalofunds.com |
| Status: | Open |
| Inception Date: | July 1, 2019 |
| Min. Initial Purchase: | $250,000 |
| Min. Initial IRA Purchase: | $250,000 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.87% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.92% |
| Share Class: | Buffalo High-Yield |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
