Sequoia Fund, Inc.

767 Fifth Avenue, Suite 4701
New York, NY 10153
(800) 686-6884

QUARTERLY REPORT
For the Period Ended March 31, 2000

Dear Stockholder:

Sequoia Fund's results for the first quarter of 2000 are as shown below with the usual comparable data for the leading market indexes:

  Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500
3 months to 3/31/00 +0.1% -4.7% +2.3%

As we write, Sequoia is up 5.5% compared to year-to-date returns on the S&P 500 of -2.8%.

The annual meeting of Sequoia was held on April 14th in New York. Outstanding Investor Digest has prepared a summary of our comments at the meeting. We thought it would be useful to provide all of our stockholders with this review, which Outstanding Investor Digest kindly provided to us this year in the form of the enclosed reprint.

Sincerely,
 
Carley Cunniff
Executive Vice President
Richard T. Cunniff
Vice Chairman

May 30, 2000 Robert D. Goldfarb
President
William J. Ruane
Chairman

SEQUOIA FUND, INC.

STATEMENT OF INVESTMENTS

MARCH 31, 2000 (UNAUDITED)

COMMON STOCKS (76.3%)
Shares   Value (a)
  BANK HOLDING COMPANIES (13.5%)
5,958,662 Fifth Third Bancorp $375,395,706
323,700 Mercantile Bankshares Corporation 9,893,081
1,145,900 National Commerce Bancorp 21,199,150
4,142,300 US Bancorp 90,612,812
    497,100,749
  DIVERSIFIED COMPANIES (31.4%)
20,175 Berkshire Hathaway Inc. ClassA (c) 1,154,010,000
  INSURANCE (7.9%)
3,800,900 Progressive Corporation-Ohio (b) 289,105,956
  MANUFACTURING—MOTORCYCLES (4.0%)
1,848,900 Harley Davidson, Inc. 146,756,438
  PERSONAL CREDIT (1.8%)
1,765,000 Household International Inc. 65,856,563
  SERVICES (13.1%)
10,874,300 Freddie Mac 480,508,131
  Miscellaneous Securities (4.6%) 168,785,350
  TOTAL COMMON STOCKS $2,802,123,187

 

Principal
Amount
  Value (a)
U.S. GOVERNMENT OBLIGATIONS (22.5%)
$36,500,000 U.S. Treasury Bills due 4/13/00 through 5/11/00 $36,344,522
242,000,000 U.S. Treasury Notes, 5 1/2% due 8/31/2001 238,937,188
553,000,000 U.S. Treasury Notes, 6 1/8% due 12/31/2001 549,802,968
  TOTAL U.S. GOVERNMENT OBLIGATIONS $825,084,678
SUMMARY
Common Stocks 76.3% $2,802,123,187
U.S. Government Obligations 22.5% 825,084,678
Net Cash & Receivable 1.2% 43,895,168
Net Assets $3,671,103,033
Number of Shares Outstanding 28,817,103
Net Asset Value Per Share $127.39

(a)

Securities traded on a national securities exchange are valued at the last reported sales price on the principal exchange on which the security is listed on the last business day of the period; securities traded in the over-the-counter market are valued at the last reported sales price on the NASDAQ National Market System on the last business day of the period; securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the mean between the last reported bid and asked prices; U.S. Treasury Bills with remaining maturities of sixty days or less are valued at their amortized cost. U.S. Treasury Bills that when purchased have a remaining maturity in excess of sixty days are stated at their discounted value based upon the mean between the bid and asked discount rates until the sixtieth day prior to maturity, at which point they are valued at amortized cost.
(b) Affiliated Companies: Investment in portfolio companies 5% or more of whose outstanding voting securities are held by the Fund are defined in the Investment Company Act of 1940 as "affiliated companies."
(c) Non-income producing.

SEQUOIA FUND, INC.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
Website : www.sequoiafund.com

DIRECTORS
William J. Ruane
Richard T. Cunniff
Robert D. Goldfarb
Carol L. Cunniff
John M. Harding
Roger Lowenstein
Francis P. Matthews
C. William Neuhauser
Robert L. Swiggett

OFFICERS
William J. Ruane — Chairman of the Board
Richard T. Cunniff — Vice Chairman
Robert D. Goldfarb — President
Carol L. Cunniff — Executive Vice President
Joseph Quinones, Jr. — Vice President, Secretary & Treasurer

INVESTMENT ADVISER & DISTRIBUTOR
Ruane, Cunniff & Co., Inc.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

CUSTODIAN
The Bank of New York
MF Custody Administration Department
100 Church Street, 10th Floor
New York, New York 10286

REGISTRAR AND SHAREHOLDER SERVICING AGENT
DST Systems, Inc.
P.O. Box 219477
Kansas City, Missouri 64121

LEGAL COUNSEL
Seward & Kissel
One Battery Park Plaza
New York, New York 10004

This report has been prepared for the information of shareholders of Sequoia Fund, Inc.