Why I am able to hold funds like fpacx is because I don't reinvest dividends and when folks start worrying, I look for entry point to add.
I am probably in the minority here who thinks, getting hoodwinked by the argument of compunding returns and never taking any money off the table, keeping reinvesting distributions, and then experiencing bad markets leads to bad decisions. Better to take some paper gains off the table.
So many funds made sizeable distributions last year. All that money for me is sitting in cash waiting to be deployed back, instead of being down additional 10%. Not to mention I don't need to hire a CPA come tax time

FYI: The CEO of Doubleline Capital and newest member of the Barron's Roundtable likes closed end funds and other ways to buy oversold assets at an even bigger discount. His first pick: Annaly Capital.
Regards,
Ted
http://www.barrons.com/video/jeffrey-gundlach-how-to-get-a-12-yield/FFE95EFA-55AC-47BC-AB0C-248A5531FCDA.html

@TheShadow Well, that is a "second order" question, which tells me (as if I didn't realize it already) that you've walked around a few blocks in the MF World. I did intend to pursue that question while sniffing around the Chartwell site, but the lights in the room started to flicker and spooky music started to play, so I thought it best to get out and try again later. :)
I was thinking, given the big honking FEL they have on their 2 young funds, Chartwell might do something with good ol' Z share crap; i.e. as part of the "adsorption" of Berwyn funds, they'd convert present Berwyn shareholder accounts to special Z share status (no load) and create another share class for future retail investors (with the FEL of their current funds). I'm still of this inclination, because it is clear from TriState Capital's press releases that this acquisition is all about asset gathering and fee income extraction. The bank holding company is awfully young, and I suspect these two purchases (Chartwell and now Berwyn) may have been funded almost entirely by debt, so maybe this emphasis was done to placate bank shareholders. I dunno.
However, your observation does raise alternative possibilities. The question of which way they'll go with initial and subsequent investment also remains an open one (Berwyn 3000/250 vs. Chartwell 1000/100).
Merging the 2 operations (Berwyn and Chartwell) shouldn't be too taxing; they are about a 5 minute drive from each other:
http://www.mapquest.com/directions/from/us/pa/berwyn/19312/1189-lancaster-ave-40.043427,-75.453515/to/us/pa/berwyn/19312/1235-westlakes-dr-40.06315,-75.471817

@heezsafe
Since the Killen Group is being acquired, what are the chances are that those with existing investments in the Berwyn Funds will be converted to "I" shares (similar to what happened with the Stratton Funds being acquired by Sterling Capital. I purchased the Stratton Small Cap Fund before the cut-off; I now have Sterling Capital Special Opportunities "I" class upon Jim0445's recommendation or the acquisition of the Pennsylvania Avenue Event Driven Fund (in which Quaker grandfathered existing Penn shareholders from paying the "A" class load))?
Chartwell's prospectus for the Short Duration High Yield Fund indicates that on January 15, 2016 the "A" shares were terminated and only the "I" shares exist. Investors in the "A" shares had the right to convert to "I" shares.
It appears the same cannot be said for the Small Cap Value Fund though.

And here is the website of the new advisor for the Berwyn Funds, Chartwell Investment Partners ("a wholly-owned subsidiary of TriState Capital Holdings, Inc., a registered bank holding company based in Pittsburgh, Pennsylvania"), who will be swallowing The Killen Group, and all of the Berwyn Funds, whole:
http://www.chartwellmutualfunds.com/index.html

Here is a link discussing the acquisition of The Killen Group:
http://www.businesswire.com/news/home/20151216006307/en/TriState-Capital-Expand-Chartwell-Investment-Management-Business
Here is an older link discussing Tri-State Capital acquiring Chartwell Investment Partners:
http://www.businesswire.com/news/home/20140107006804/en/TriState-Capital-Acquire-Chartwell-Investment-Partners

http://www.sec.gov/Archives/edgar/data/1135300/000089418916006930/buffalo_497e.htm
497 1 buffalo_497e.htm SUPPLEMENTARY MATERIALS
--------------------------------------------------------------------------------
Filed pursuant to Rule 497(e)
Registration Nos. 333-56018; 811-10303
Buffalo Emerging Opportunities Fund
Buffalo Small Cap Fund
Each a series of Buffalo Funds®
Supplement dated January 21, 2016
to the Prospectus dated July 29, 2015, as supplemented on October 13, 2015
--------------------------------------------------------------------------------
Effective immediately, the Buffalo Emerging Opportunities Fund (the “Emerging Opportunities Fund”) and the Buffalo Small Cap Fund (the “Small Cap Fund”) (collectively, the “Funds”), each a series of Buffalo Funds, will re-open to new investors. The Emerging Opportunities Fund had been closed to new investors since November 18, 2013 and the Small Cap Fund had been closed to new investors since April 26, 2010. All references to the Funds being closed to new investors are hereby deleted from the Prospectus.
The Funds are reopening because Kornitzer Capital Management, Inc., the Funds’ investment advisor, believes that cash flows would allow the Funds to take advantage of attractive opportunities in each Fund’s universe of companies.
The Funds will remain open until further notice.
For additional details, please call the Funds at 1-800-49-BUFFALO.
Please retain this supplement with your Prospectus.

FYI: Many investors and strategists are guardedly bullish about income prospects for real estate investment trusts (REITs) this year. Todd Rosenbluth, director of ETF and mutual fund research for S&P Capital IQ, likes the outlook for REIT dividend increases this year if REIT fundamentals remain strong, "as we think they will," he told IBD via email
Regards,
Ted
http://license.icopyright.net/user/viewFreeUse.act?fuid=MjEzOTYwMDM=
Enlarged Graphic:
http://news.investors.com/photopopup.aspx?path=WMUT90-012116.gif&docId=790651&xmpSource=&width=1000&height=829&caption=&id=790652

http://www.sec.gov/Archives/edgar/data/1567138/000116204416001395/gator497201601.htm
497 1 gator497201601.htm
January 20, 2016
GATOR OPPORTUNITIES FUND
Supplement to the Prospectus dated July 29, 2015, as supplemented December 21, 2015
On December 21, 2015, the Gator Opportunities Fund (the “Fund”), a series of the Gator Series Trust (the “Trust”), notified shareholders that, pursuant to various considerations and approvals by the Trust’s Board of Trustees (the “Board”), the Trust expected that, subject to approval by the shareholders of the Fund, the Fund would be entering into a transaction with BPV Family of Funds (the “BPV Trust”) for the purpose of reorganizing the Fund into BPV Small Cap Fund (the “Transaction”). The Fund had prepared, with the assistance of the BPV Trust, a draft proxy statement regarding the Transaction, which was filed on Form N-14 with the Securities and Exchange Commission on December 14, 2015, in anticipation of finalizing the same for a shareholder meeting. However, the Trust was informed on January 15, 2016, that BPV Capital Management, LLC (“BPV”), the investment adviser to the BPV Trust, had determined not to go forward with the Transaction.
In light of the foregoing, effective immediately, the Trust has terminated the public offering of the Fund’s shares and will discontinue the Fund’s operations and liquidate no later than March 21, 2016 (the “Closing Date”). Shares of the Fund are no longer available for purchase.
The Board, in consultation with the Fund’s investment adviser, Gator Capital Management, LLC (the “Adviser”), determined by written consent dated January 20, 2016 (the “Written Consent”) to discontinue the Fund’s operations based on, among other factors, the Adviser’s belief that it would be in the best interests of the Fund and its shareholders to discontinue the Fund’s operations. Through the date of the Fund’s liquidation, currently scheduled to take place on the Closing Date, the Adviser will continue to waive fees and reimburse expenses of the Fund, as necessary, in order to maintain the Fund’s fees and expenses at their current level, as specified in the Prospectus.
In the Written Consent, the Board of Trustees directed that: (i) all of the Fund’s portfolio securities be liquidated to cash in an orderly manner on or before the Closing Date; and (ii) all outstanding shareholder accounts on the Closing Date be closed and the proceeds of each account be sent to the shareholder’s address of record or to such other address as directed by the shareholder including special instructions that may be needed for Individual Retirement Accounts (“IRAs”) and qualified pension and profit sharing fund accounts. As a result of the liquidation of the Fund’s portfolio securities described above, the Fund’s normal exposure to investments will be reduced and eventually eliminated. Accordingly, shareholders should not expect the Fund to achieve its stated investment objective.
Shareholders may continue to freely redeem their shares on each business day during the Fund’s liquidation process. The distribution of proceeds from the closing of shareholder accounts remaining on the Closing Date will be considered for tax purposes a sale of Fund shares by shareholders, and shareholders should consult with their own tax advisors to ensure its proper treatment on their income tax returns. In addition, shareholders invested through an IRA or other tax-deferred account should consult the rules regarding the reinvestment of these assets. In order to avoid a potential tax issue, shareholders may choose to authorize a direct transfer of their retirement account assets to another tax-deferred retirement account before the Fund liquidates. Typically, shareholders have 60 days from the date of the liquidation to invest the proceeds in another IRA or qualified retirement account; otherwise the liquidation proceeds may be required to be included in the shareholder’s taxable income for the current tax year.
If you have any questions regarding this Supplement, please call (813)-282-7870.
Investors Should Retain this Supplement for Future Reference

A December press release describing the acquisition of the Berwyn Funds’ investment advisor is here.

TriState Capital Holdings, Inc. (NASDAQ: TSC) entered into a definitive asset-purchase agreement to acquire The Killen Group, Inc. (TKG), an investment management firm and the advisor to The Berwyn Funds.

http://www.bloomberg.com/news/articles/2016-01-19/husky-suspends-dividend-cuts-spending-as-oil-rout-deepens
http://www.bloomberg.com/news/articles/2016-01-19/oil-giants-start-losing-safety-net-as-refining-margins-squeezed

"Global refining margins, the estimated profit from turning oil into gasoline and diesel, fell 34 percent in the fourth quarter, the steepest decline in eight years, to $13.20 a barrel, data on BP Plc’s website show. Every $1 drop cuts BP’s pretax adjusted earnings by $500 million a year, according to its website.
The companies face a squeeze on processing profits as a mild winter curbs demand for heating oil and diesel, creating huge stockpiles in the U.S. and Europe. That’s a reverse from the past two years, a period when refining earnings doubled, and kicks away one of the remaining buffers for integrated oil giants grappling with crude prices at a 12-year low.
“It’s a bit of a double whammy, lower oil prices and refining margins starting to weaken,” said Iain Reid, an analyst at Macquarie Capital Ltd. in London. “The safety net is still there, but there are some holes in it now.”

This game is a long way from being over, and I don't think the oil majors are immune. It may just take a little while until they are impacted. Already, we see income-- both operating and net--- taking a hit with most of them, and if things like refining margins decline to ziltch.... well, are dvd cuts really off the table? Buy those "juicy" yields (aren't they always) and be the bag holder later. No need to rush in; patience could be richly rewarded here.

Latest memo from Howard Marks: What Does the Market Know?
From Howard Marks (Oaktree Cap) Memos from Howard Marks 01/19/2016 © 2007-2016 Oaktree Capital Management, L.P. All rights reserved.
My buddy Sandy was an airline pilot. When asked to describe his job, he always answers, “hours of boredom punctuated by moments of terror.” The same can be true for investment managers, for whom the last few weeks have been an example of the latter. We’ve seen bad news and prices cascading downward. Investors who thought stocks were priced right 20% ago and oil $70 ago now wonder if they aren’t risky at their new reduced prices.
In Thursday’s (Jan 14th) memo, “On the Couch,” I mentioned the two questions I’d been getting most often: “What are the implications for the U.S. and the rest of the world of China’s weakness, and are we moving toward a new crisis of the magnitude of what we saw in 2008?” Bloomberg invited me on the air last Friday morning to discuss the memo, and the anchors mostly asked one version or another of a third question: “does the market’s decline worry you?” That prompted this memo in response.
The answer lies in a question: “what does the market know?” Is the market smart, meaning you should take your lead from it? Or is it dumb, meaning you should ignore it? Here’s what I wrote in “It’s Not Easy” in September and included in “On the Couch”:
Especially during downdrafts, many investors impute intelligence to the market and look to it to tell them what’s going on and what to do about it. This is one of the biggest mistakes you can make. As Ben Graham pointed out, the day-to-day market isn’t a fundamental analyst; it’s a barometer of investor sentiment. You just can’t take it too seriously. Market participants have limited insight into what’s really happening in terms of fundamentals, and any intelligence that could be behind their buys and sells is obscured by their emotional swings. It would be wrong to interpret the recent worldwide drop as meaning the market “knows” tough times lay ahead.
The rest of this memo will be about fleshing out this theme (meaning you can stop reading here if you’ve had enough or are short on time).
https://www.oaktreecapital.com/insights/howard-marks-memos

@junkster, the problem you are alluding to of indiscriminate falling tide for all biotechs regardless of their financial situation has to do with most of the money flowing through sector funds and ETFs which don't do much due diligence but just depend on diversification. So all of them go up or all of them go down depending on capital flow. When is the last time someone complained why all biotechs were going up even though many of them were just in clinical stage with a risk of completely going under?
I have also mentioned earlier that doing sufficient due dilugence on these companies is beyond the capability of most retail investors or even funds because of the games they play and the difficulty of judging the health of their pipeline and prospects. Most of them are one trick ponies with a lumpy all or nothing return for their products and the availability of cheap money has prevented the larger ones from building a diversified and healthy pipeline since valuations for acquisitions has exploded.

Herro's guru status has always puzzled me. OAKEX has seemed like a so-so offering from an otherwise great shop, whose performance always seems to be overlooked when Herro is trotted out to do an interview somewhere.

+1. I think (and the charts show) that he did well against the benchmark when int'l was hot in the 'noughties, around '02-'07, and he got a lot of media play then; I remember him on at least one magazine cover back in those days. Of course his risk-adjusted performance hasn't been anything to brag about, but maybe the thundering journalistic herd just kept following him based on his gains in favorable markets.

RSIVX WBMAX ARIVX PRPFX AQRNX MFLDX WAFMX SFGIX I just hope GPMCX is not the next.

Not arguing with your overall point, but I don't think WAFMX and SFGIX deserve to be on that list. Sure, they've lost a good amount of money on an absolute basis, but they have still performed much better than the rest of the emerging markets sector. Folks that "jumped on the bandwagon" for these funds are still better off than if they had put their money in almost any other emerging markets fund.

Completely agree and I apologize. They are five star funds and I can understand long term investors being in them. I just have a thing about holding losers over a long period of time as I want my capital compounding on a *consistent* basis. I realize though 3 years is not a "long period of time" for most investors. Unlike most here, I don't have a salary or pension to fall back on during the lean times.

Consistent with capital preservation is a phrase in lot of equity fund prospectuses too. Now I am ass dissapointed with rsivx as anyone, but let's not quote this and perpetuate the notion rsivx is a cash substitute.

"RiverPark Strategic Income Fund seeks high current income and capital appreciation consistent with the preservation of capital..."
I bailed on this fund about six months ago when it was clear that the managers would not be able to satisfy the capital preservation aspect in the prospectus. It proved to be the correct move for me.

I customarily wait for year-end pay-outs and then, after the New Year, re-jigger. I like to feed profit from aggressive funds into more conservative funds. (Trim MSCFX for example, and put the proceeds in MAPOX. But not this year. No profit in MSCFX.)
"what is the best way to change your asset allocation, slowly over a period of a year or two or drastic changes over a period of a few months? I know it's not the best time to make those changes, but maybe I should wait for the market to settle down."
If you've any funds that generated profits from the past few years, find yourself an excellent bond fund that can serve as your CORE--- even if it's not labelled as such. I own DLFNX, but the big, fat sister--- DLTNX--- performs better, even through the recent fecal couple of weeks. Put profit into a core-bond fund, out of high yield. But don't necessarily CLOSE your HY positions.
Or, look at the whole thing as a longer-term process of DCA-ing into more ideal funds for your own Big Picture. Right now seems a decent time to buy. Or get into some good, currently cheap blue-chip individual stocks. Apple at these prices looks like a steal.
http://www.morningstar.com/stocks/xnas/aapl/quote.html
http://www.morningstar.com/funds/XNAS/DLTNX/quote.html
http://www.morningstar.com/funds/XNAS/DLFNX/quote.html
http://www.morningstar.com/funds/xnas/dodix/quote.html
http://www.morningstar.com/funds/XNAS/FTBFX/quote.html

Thanks for the input. Yes, I own DODIX, PIMIX and DBLTX as core bond funds. I do have a few funds with profits but have to be careful with large capital gains that have accumulated. I do understand your logic, however.

Obviously, the past few weeks have been a reality check for investors who thought they had the proper asset allocation for their portfolio but were wrong. I consider myself part of that group. Multiple years of gains can make one complacent and oblivious to the downside, especially when it hits hard. I have a fairly large portfolio (just about 7 figures) and my asset allocation is about 40% equities, 50% bonds and 10% cash. However, I realize that my equity portion is too aggressive and my bond weighting is geared more toward high yield bonds. So, my equity portion feels more like 60% equities, which is way too high for me given that my goal first and foremost is a low risk, income oriented portfolio. With a million dollars in my portfolio, I would be happy with 3-5% returns on average over the next 15 years, when I hope to retire.
My question is - what is the best way to change your asset allocation, slowly over a period of a year or two or drastic changes over a period of a few months? I know it's not the best time to make those changes, but maybe I should wait for the market to settle down.

A quick thought ... Selling and buying activity usually generates commissions, fees, tax revenue, etc. Good for the brokerage house and exchanges. Just think for a moment if most all investors sold out and then had to buy back in that would generate a lot of revenue for banks, brokerages, advisors, exchanges and, for some, taxes to pay on realized capital gains. For them probally a good thing and for me, as an investor, a bad thing.
I might trim some allocations form time-to-time but selling completely out, probally not a good thing, for me, to do.