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

QUARTERLY REPORT
For the Period Ended March 31, 2002

Dear Shareholder:

Sequoia Fund's results for the first quarter of 2002 are as shown below with the usual comparable data for the leading market indexes:

To March 31, 2002 Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500



3 Months 0.96% 4.32% 0.26%
1 Year 16.30% 7.17% 0.20%
5 Years (Annualized) 16.18% 11.44% 10.15%
10 Years (Annualized) 16.88% 14.85% 13.23%

The S&P 500 Index is an unmanaged, capitalization-weighted index of the common stocks of 500 major US corporations. The Dow Jones Industrial Average is an unmanaged, price-weighted index of 30 actively traded blue chip stocks. The performance data quoted represents past performance and assumes reinvestment of dividends. 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 annual meeting of Sequoia was held on April 19th 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.

We are also enclosing our Privacy Notice describing our policies relating to personal client information as required by the Gramm-Leach-Bliley Act.

Sincerely,

Carley Cunniff
Executive Vice President
Richard T. Cunniff
Vice Chairman
Robert D. Goldfarb
President
William J. Ruane
Chairman

July 31, 2002

 

SEQUOIA FUND, INC.

STATEMENT OF INVESTMENTS

MARCH 31, 2002 (UNAUDITED)

COMMON STOCKS (77.4%)
Shares Value (a)


BANK HOLDING COMPANIES (14.0%)
8,710,393 Fifth Third Bancorp $587,777,320
243,300 Mercantile Bankshares Corporation 10,525,158

598,302,478

BUILDING MATERIALS (3.5%)
1,963,000 Fastenal Company (b) 147,853,160

DIVERSIFIED COMPANIES (32.6%)
19,661 Berkshire Hathaway Inc. Class A (c) 1,397,897,100

HOME FURNISHINGS (2.1%)
2,414,000 Ethan Allen Interiors, Inc. (b) 91,876,840

INSURANCE (9.4%)
2,430,500 Progressive Corporation 404,969,910

LAUNDRY SERVICES (0.5%)
414,400 Cintas Corporation 20,661,984

MANUFACTURING (2.3%)
2,109,900 Dover Corporation 86,505,900
240,500 Harley Davidson, Inc. 13,258,765

99,764,665

PROCESS CONTROL INSTRUMENTS (0.4%)
263,700 Danaher Corporation 18,727,974

PERSONAL CREDIT (2.0%)
1,532,200 Household International Inc. 87,028,960

RETAILING (7.4%)
54,600 Costco Wholesale Corporation (c) 2,174,172
7,893,800 TJX Companies, Inc. 315,830,938

318,005,110

Miscellaneous Securities (3.2%) 134,899,000

TOTAL COMMON STOCKS $3,319,987,181


 

Principal
Amount
Value (a)


U.S. GOVERNMENT OBLIGATIONS (22.6%)
$969,000,000 U.S. Treasury Bills due 04/04/02 through 05/16/02 $967,839,902

TOTAL U.S. GOVERNMENT OBLIGATIONS $967,839,902


SUMMARY
Common Stocks 77.4% $3,319,987,181
U.S. Government Obligations 22.6% 967,839,902
Net Cash & Receivable 0.0% 2,190,318

Net Assets $4,290,017,401


Number of Shares Outstanding 32,626,151


Net Asset Value Per Share $131.49


(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
Vinod Ahooja
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.