Falling stock valuations is causing Kornitzer Capital Management to reverse course and reopen its Buffalo Small Cap Fund. The move was a surprise, even for Kornitzer executives who just closed the fund in April.

The fund closed to new investors on April 15, 2002 and has outperformed the Lipper Small Cap Core Funds Index and the Russell 2000 Index on a one-year, three-year and since-inception basis as of June 30, 2002. Fund assets now stand at approximately $845 million.

"This is a decision our managers were not contemplating even two weeks ago. However, given the recent decline in the market, we now believe the time is right to reopen the Fund," said John Kornitzer, president of KCM.

"Market conditions and valuation levels have changed dramatically since the Fund was closed in April," said Tom Laming, chief equity strategist and co-manager of the Buffalo Small Cap Fund. "Reopening the Fund will give our investors the opportunity to take advantage of these changes."

The management team has made no changes regarding the expected number of holdings, the market cap of the holdings or the strategy of the Buffalo Small Cap Fund. The team will continue to target well-managed, financially strong companies that benefit from KCM's long-term trends approach.  

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