April 13, 2021
Dear Sequoia Shareholders and Clients:
For the first quarter of 2021, Sequoia Fund generated a total return of 8.61%1, net of fees, versus 6.17% for the Standard and Poor's 500 Index.
During the quarter we trimmed the Fund's stakes in a2 Milk (ASX:A2M, Financial), Arista Networks (ANET, Financial), Berkshire Hathaway (BRK.B, Financial), Eurofins Scientific (XPAR:ERF, Financial), Hiscox (LSE:HSX, Financial), Mastercard (MA, Financial), Taiwan Semiconductor (TSM, Financial), Topicus.com (TSXV:TOI) (a spin-off from Constellation Software) and Wayfair (W, Financial) and added to our holdings in Credit Acceptance (CACC), Facebook (FB) and Liberty Broadband (LBRDA). We also initiated two new positions: Anthem (ANTM), one of the nation's largest health benefits companies, and Micron (MU), a leading producer of memory semiconductors. As usual, we will discuss both in our year-end letter.
Clients and shareholders have asked about our return-to-work policy, and while we don't have a definitive date yet, we expect to return to the office sometime during the third quarter—hopefully sooner rather than later. Like the rest of the world, we have gotten much more adept at staying productive from home, but we remain committed to an office-based work model and view in-person interaction as essential to collaboration, cohesion, learning and the long-term development of talent and culture, the two core assets of our business. When we officially open back up again, we very much look forward to seeing you in person.
Finally, in case you missed the note at the end of our fourth quarter letter, we remind you that we have shifted the date of our annual Investor Day from mid-May to Thursday, November 4, 2021. Further details will be available over the coming months and while we hope to see many of you in person, we will offer a virtual participation option as well.
Sincerely,
The Ruane Cunniff (Trades, Portfolio) Investment Committee
Arman Gokgol-Kline
John Harris
Trevor Magyar
D. Chase Sheridan
1The performance data for the Fund shown above represents past performance and assumes reinvestment of dividends. Past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The Fund's 1-year, 5-year and 10-year average annual total returns through March 31, 2021 were 72.09%, 16.24% and 11.59%, respectively. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end can be obtained by calling DST Systems, Inc. at (800) 686-6884.
Disclosures
Please consider the investment objectives, risks and charges and expenses of Sequoia Fund Inc. (the "Fund") carefully before investing. The Fund's prospectus and summary prospectus contain this and other information about the Fund and are available at www.sequoiafund.com or by calling 1-800-686-6884. Please read the prospectus and summary prospectus carefully before investing. Shares of the Fund are distributed by Foreside Financial Services, LLC (Member FINRA).
