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

QUARTERLY REPORT
For the Period Ended March 31, 2003

Dear Shareholder:

Sequoia Fund's results for the first quarter of 2003 are shown below with comparable results for the leading market indexes:

To March 31, 2003 Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500
3 Months -7.42% -3.46% -3.15%
1 Year -10.73% -21.43% -24.76%
5 Years (Annualized) 2.54% -0.14% -3.77%
10 Years (Annualized) 14.08% 11.10% 8.53%
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 Sequoia Fund annual meeting was held on May 9th in New York. Enclosed is a summary of our comments at the meeting. We thought it would be useful to provide all of our stockholders with this review.

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

Sincerely,

Richard T. Cunniff signature Robert D. Goldfarb signature
Richard T. Cunniff
Vice Chairman
Robert D. Goldfarb
President
David M. Poppe signature William J. Ruane signature
David M. Poppe
Executive Vice President
William J. Ruane
Chairman

July 17, 2003

SEQUOIA FUND, INC.

STATEMENT OF INVESTMENTS

MARCH 31, 2003 (UNAUDITED)

COMMON STOCKS (81.54%)

Shares Value (a)


BANK HOLDING COMPANIES (11.78%)
7,909,993 Fifth Third Bancorp $397,318,948
211,400 Mercantile Bankshares Corporation 7,174,916

404,493,864

BUILDING MATERIALS (2.66%)
3,244,100 Fastenal Company 91,451,179

DIVERSIFIED COMPANIES (33.16%)
17,854 Berkshire Hathaway Inc. Class A (c) 1,139,085,200

FREIGHT TRANSPORTATION (2.43%)
2,322,900 Expeditors International, Inc. 83,508,255

HOME FURNISHINGS (1.88%)
2,192,200 Ethan Allen Interiors, Inc. (b) 64,516,446

INSURANCE (11.43%)
6,621,500 Progressive Corporation 392,721,165

LAUNDRY SERVICES (0.36%)
376,400 Cintas Corporation 12,383,560

MANUFACTURING (1.60%)
1,916,000 Dover Corporation 46,405,520
218,400 Harley Davidson, Inc. 8,672,664

55,078,184

PROCESS CONTROL INSTRUMENTS (0.46%)
239,500 Danaher Corporation 15,749,520

RETAILING (10.08%)
49,600 Costco Wholesale Corporation (c) 1,489,488
1,453,000 Tiffany & Company 36,325,000
14,336,900 TJX Companies, Inc. 252,329,440
1,898,400 Walgreen Company 55,964,832

346,108,760

TEXTILE - CARPETS (5.70%)
4,083,200 Mohawk Industries Inc. (c) 195,748,608

TOTAL COMMON STOCKS $2,800,844,741


Principal
Amount

U.S. GOVERNMENT OBLIGATIONS (18.49%)
$635,500,000 U.S. Treasury Bills due 04/03/03 through 05/22/03 $635,027,338

TOTAL U.S. GOVERNMENT OBLIGATIONS $635,027,338


SUMMARY
Common Stocks 81.54% $2,800,844,741
U.S. Government Obligations 18.49% 635,027,338
Net Liabilities (0.03%) (629,106)

Net Assets $3,435,242,973


Number of Shares Outstanding 29,303,627


Net Asset Value Per Share $117.23


 

(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
David M. Poppe
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
David M. Poppe — 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.