July 17, 2002 — Kornitzer Capital Management said it is reopening the Buffalo Small-Cap Fund (BUFSX), citing the fund’s reduced asset base and an increase in the number of attractively priced small cap stocks.
The fund was closed to new investors on April 15, when, according to a Buffalo shareholder representative, the portfolio had $1.15 billion in assets. The fund’s assets now stand at approximately $845 million.
“This is a decision our managers were not contemplating even two weeks ago,” said Kornitzer President John Kornitzer in a press release. “However, given the recent decline in the market, we now believe the time is right to reopen the fund,”
Tom Laming, chief equity strategist and co-manager of the fund, said Market conditions and valuation levels have “changed dramatically since the Fund was closed in April.”
Co-managed by Laming and Kent Gasaway, the fund has plunged 22.28% year-to-date through July 16, while its benchmark, the Russell 2000 Index, dropped 16.07% over that period.
Ranked 5 Stars by Standard & Poor’s, Buffalo Small-Cap Fund returned 30.3% annualized for the three-year period ended in May, versus 10.1% for small-cap blend funds on average.