Sequoia Fund is a mutual fund advised by Ruane, Cunniff & Goldfarb L.p., which was launched back in 1970. Bill Ruane and Rick Cunniff co-founded Sequoia Fund hoping to be able to beat the market with their great investment picks carefully researched before investing. The fund uses a long-only investment strategy and mainly invest in mid and large-cap companies. According to its recently published Investor Letter for the first quarter of 2019, Sequoia gained 14.68% net of fees, compared to 13.65% for the Standard & Poors’s 500 Index in the same period. You can download a copy of the fund’s Q1 Investor Letter below.
Among other things in the letter, the fund stated:
“Material activity during the quarter included a new investment that we will discuss when complete, along with the sale of our positions in Electronic Arts and Koninklijke Vopak.
“Vopak was a small position that ultimately delivered the Fund a small but market-beating profit. While the to expectation, with management over us increasingly concerned about the company’s framework for allocating capital. In addition, our strong preference—price permitting—is to own faster-growing companies where a strong upward progression of earnings turns the passage of time into an asset rather than a liability. We have had good luck finding new opportunities that fit over the past year, with buying a dollar for 75 cents, we prefer where possible to pay 90 cents for a dollar that can multiply in value over time. “
If you are interested in more details from Sequoia Fund’s Q1 2019 Investor Letter, you can download a copy of it here: