October 11, 2021
Dear Sequoia Shareholders and Clients:
For the third quarter of 2021, Sequoia Fund generated a total return of 1.03%1 net of fees, versus 0.58% for the Standard and Poor’s 500 Index. For the year to date through September 30, the Fund generated a total return of 17.25%, versus 15.92% for the Index.
During the quarter we opportunistically trimmed the Fund’s stake in Credit Acceptance (CACC, Financial) and added to holdings in Carmax (KMX, Financial), Facebook (FB, Financial), Prosus (XAMS:PRX, Financial), TSMC (TSM, Financial) and Wayfair (W, Financial). We also exited the Fund’s investments in Arista Networks (ANET, Financial), Fidelity National Information Systems (FIS, Financial), Hiscox (LSE:HSX, Financial) and Vivendi (XPAR:VIV, Financial). Universal Music Group (UMGNF, Financial) was spun out of Vivendi at the end of September, and we have since added to our holdings in UMG. We discuss the Fund’s activity in more detail in our latest quarterly video commentary available on our website.
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We have received positive early feedback on our new online content library, which is designed to enable existing and prospective shareholders and clients to learn more about our portfolio, process, and philosophy through a variety of media formats, including videos, podcasts, and print material. We recently added new material we hope you will enjoy. While we will continue to make some communications available on our public website, the content library is password-protected. Please email [email protected] to request access.
By now you should have received an invitation to our annual Investor Day scheduled to take place virtually on Thursday, November 4, 2021, at 10am. Details and registration for the virtual meeting are located on our website at www.ruanecunniff.com/events. We look forward to “seeing” you in November and really hope this is the last time we need to meet in an all-virtual format.
Sincerely,
The Ruane Cunniff (Trades, Portfolio) Investment Committee
Arman Gokgol-Kline
John Harris
Trevor Magyar
D. Chase Sheridan
- The 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 September 30, 2021 were 34.46%, 17.71% and 13.51%, 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).
