October 11, 2023
Dear Sequoia Fund shareholders:
For the third quarter of 2023, Sequoia Fund generated a negative return of 0.08% 1 net of fees, versus a negative 3.27% for the Standard and Poor’s 500 Index. For the year to date through September 30, Sequoia Fund generated a total return of 12.82% net of fees, versus 13.07% for the Index.
There was little activity in the portfolio this past quarter save for small trims in our holdings in CarMax (KMX, Financial) and Constellation Software (TSX:CSU, Financial). We discuss our portfolio in more detail in our Q3 video commentary, available next week on our website.
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In response to the upcoming expiry of our existing lease, we’re excited to announce that we will be relocating our New York office to 45 Rockefeller Plaza before the end of the year. In the process, we have made a significant investment in the future of the firm. Our new space will be bigger, more modern, more functional and more collaborative, with amenities for our team that we see as central to attracting top-tier talent and maintaining a vibrant, world-class business and investing operation. We look forward to hosting you in our new space in the new year.
Finally, please save the date for our annual investor day that will take place on Thursday, May 16, 2024 in New York City. More details will follow in our year-end letter.
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 September 30, 2023 were 22.76%, 6.49% and 6.37%, 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 SS&C GIDS, 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).
