April 7, 1997
SUPPLEMENT TO
PROSPECTUS DATED
July 31, 1996
Buffalo Balanced Fund, Inc.
Buffalo Equity Fund, Inc.
Buffalo High Yield Fund, Inc.
Buffalo USA Global Fund, Inc.
RESTRICTED SECURITIES
Page 19
The paragraph under the caption
"Restricted Securities" should read as
follows:
Each Fund may purchase restricted securities that are not registered
for sale to the general public but which are eligible for resale to
qualified institutional investors under rule 144A of the Securities
Act of 1933. Under the supervision of the Fund's Board of Directors,
the Investment Counsel determines the liquidity of such investments by
considering all relevant factors. Provided that a dealer or
institutional trading market in such securities exists, these
restricted securities are not treated as illiquid securities for
purposes of a Fund's investment limitations. Each Fund may invest up
to 25% of its assets in Rule 144A securities deemed liquid by the
Fund's Investment Counsel. Certain restrictions applicable to each
Fund limit their investment in securities that are illiquid by
virtue of the absence of a readily available market or because of
legal or contractual restrictions on resale to no more than 10% of
each Fund's net assets. The prices realized from the sales of
these securities could be less than those originally paid by the Fund
or less than what may be considered the fair value of such securities.
