Sequoia Fund, Inc.   9 West 57th Street, Suite 5000
New York, NY 10019-2701
(800) 686-6884

For the Quarter Ended March 31, 2014


To the Shareholders of Sequoia Fund, Inc.:

As of this writing, the Sequoia Fund is up 0.52% year-to-date versus 2.98% for the S&P 500 Index.

On March 23, our co-founder and longtime vice chairman Richard T. Cunniff passed away at the age of 91. Rick was the consummate stock analyst, a true gentleman and a proud veteran of World War II. He and William J. Ruane met in 1950 at Kidder, Peabody & Co. and together they launched their own investment firm in 1969. They opened Sequoia Fund the following year.

All of us at the Fund are proud of the investment track record Bill and Rick built over their careers. We’re just as proud to have known them personally. Rick was a man of great integrity and patriotism, possessed of a quick wit and a ready smile. He was a generous mentor to younger colleagues and a friend to many of his clients. He and Bill left us with much to be thankful for, and to live up to.


As of the date of this letter, the capital gains distribution will be approximately $4.10 per share. Of this amount, a distribution of $2.52 per share will be distributed in June and the balance in November. We will do our best to keep you informed of any material changes to the November distribution due to sales activity through October 31, 2014. IRS regulations dictate that capital gain distributions are determined by transactions from November 1 of one year to October 31 of the following year.


Robert D. Goldfarb
  David M. Poppe
Executive Vice President


May 21, 2014



Sequoia Fund's results for the first quarter of 2014 are shown below with comparable results for the S&P 500 Index:

To March 31, 2014     Sequoia
      S & P 500*  
3 Months     1.78 %      1.81 % 
1 Year     23.66 %      21.86 % 
5 Years (Annualized)     21.96 %      21.16 % 
10 Years (Annualized)     8.47 %      7.42 % 

The performance shown above represents past performance and does not guarantee future results. The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance information shown.

* The S&P 500 Index is an unmanaged, capitalization-weighted index of the common stocks of 500 major US corporations. The performance data quoted represents past performance and assumes reinvestment of distributions.
  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. Year to date performance as of the most recent month end can be obtained by calling DST Systems, Inc. at (800) 686-6884.



This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)

The Fund does not impose any sales charges, exchange fees or redemption fees.

Annual Fund Operating Expenses (expenses that are deducted from Fund assets)

Annual Fund Operating Expenses

Management Fees     1.00 % 
Other Expenses     0.02 % 
Total Annual Fund Operating Expenses*     1.02 % 
* Does not reflect Ruane, Cunniff & Goldfarb Inc.'s (“Ruane, Cunniff & Goldfarb”) contractual reimbursement of a portion of the Fund’s operating expenses. This reimbursement is a provision of Ruane, Cunniff & Goldfarb’s investment advisory agreement with the Fund and the reimbursement will be in effect only so long as that investment advisory agreement is in effect. For the year ended December 31, 2013, the Fund’s annual operating expenses and advisory fee, net of such reimbursement, were 1.00% and 0.98%, respectively.







Shares     Value (a)
       ADVERTISING (0.82%)           
932,215     Omnicom Group Inc.     $ 67,678,809  
       AEROSPACE/DEFENSE (6.63%)           
945,856     Precision Castparts Corp.       239,074,563  
23,123,314     Qinetiq Group plc (United Kingdom)       87,082,401  
12,355,869     Rolls-Royce Group plc (United Kingdom)       221,231,834  
       AUTO PARTS (3.94%)           
629,800     Advance Auto Parts, Inc.       79,669,700  
1,656,139     O’Reilly Automotive Inc. (b)       245,754,466  
       BIOTECHNOLOGY (1.10%)           
2,072,704     Novozymes A/S – B Shares (Denmark)       91,147,158  
       CONSTRUCTION & ENGINEERING (0.57%)           
743,100     Jacobs Engineering Group Inc. (b)       47,186,850  
       CONSTRUCTION EQUIPMENT (0.44%)           
1,510,348     Ritchie Bros. Auctioneers Incorporated       36,444,697  
       CRUDE OIL & GAS PRODUCTION (0.08%)           
179,214     Canadian Natural Resources Limited       6,876,441  
       DENTAL EQUIPMENT (1.14%)           
1,254,944     Sirona Dental Systems Inc. (b)       93,706,668  
       DIVERSIFIED COMPANIES (10.74%)           
3,163     Berkshire Hathaway Inc. – Class A (b)       592,588,208  
2,347,092     Berkshire Hathaway Inc. – Class B (b)       293,316,087  
       DIVERSIFIED MANUFACTURING (0.70%)           
764,411     Danaher Corporation       57,330,825  
       ELECTRICAL & MECHANICAL SYSTEMS (0.44%)           
774,451     EMCOR Group Inc.       36,236,562  
1,274,610     Trimble Navigation Limited (b)       49,544,091  
       FLOORING PRODUCTS (1.89%)           
1,144,800     Mohawk Industries Inc. (b)       155,669,904  
       FREIGHT TRANSPORTATION (0.08%)           
173,246     Expeditors International Inc.       6,865,739  
       HEALTHCARE (19.31%)           
528,934     Perrigo Company plc (Ireland)       81,804,932  
11,320,000     Valeant Pharmaceuticals International Inc. (b)       1,492,315,600  
432,094     West Pharmaceutical Services, Inc.       19,033,741  
20,000     Zoetis Incorporated       578,800  


Shares     Value (a)
       INDUSTRIAL & CONSTRUCTION SUPPLIES (4.15%)           
6,939,397     Fastenal Company     $ 342,251,060  
       INDUSTRIAL GASES (1.09%)           
687,535     Praxair, Inc.       90,046,459  
       INDUSTRIAL MACHINERY (1.03%)           
3,512,399     IMI plc (United Kingdom)       85,372,370  
       INFORMATION PROCESSING (2.70%)           
2,984,570     MasterCard Inc.       222,947,379  
       INSURANCE BROKERS (0.42%)           
1,122,991     Brown & Brown Inc.       34,543,203  
       INTERNET SOFTWARE & SERVICES (2.19%)           
162,006     Google Inc. – Class A (b)       180,557,307  
       INVESTMENT BANKING & BROKERAGE (0.86%)           
434,287     The Goldman Sachs Group Incorporated       71,157,925  
       IT CONSULTING & OTHER SERVICES (1.11%)           
477,000     International Business Machines Corp.       91,817,730  
       PRECISION INSTRUMENTS (1.10%)           
840,323     Waters Corporation (b)       91,099,416  
       PROPERTY AND CASUALTY INSURANCE (0.70%)           
31,149     Admiral Group plc (United Kingdom)       741,533  
4,932,433     Hiscox Ltd. (United Kingdom)       56,081,758  
20,965     Verisk Analytics, Inc. – Class A (b)       1,257,061  
       RETAILING (9.32%)           
39,600     Costco Wholesale Corporation       4,422,528  
851,605     Tiffany & Co.       73,365,771  
10,268,380     TJX Companies, Inc.       622,777,247  
893,180     Wal-Mart Stores, Inc.       68,265,747  
       SEMICONDUCTORS (0.02%)           
27,750     Linear Technology Corporation       1,351,148  
       SPECIALTY CHEMICALS (0.79%)           
1,532,299     Croda International plc (United Kingdom)       65,036,899  
       TIRES (0.51%)           
2,683,865     Pirelli & Co. SPA (Italy)       42,150,100  
       TRANSPORTATION SERVICES (1.74%)           
3,250,448     World Fuel Services Corp.       143,344,757  
       VETERINARY DIAGNOSTICS (2.91%)           
1,976,485     Idexx Laboratories Inc. (b)       239,945,279  
       Miscellaneous Securities (0.64%) (c)       52,450,255  
       TOTAL COMMON STOCKS (COST $2,122,233,092)     $ 6,582,121,008  



Principal Amount     Value (a)
    U.S. Treasury Bills, 0.04% – 0.15%
  due 4/10/2014 through 5/8/2014
    $ 1,573,969,467  
  (COST $1,573,969,467)
    $ 1,573,969,467  
       TOTAL INVESTMENTS (99.94%)
  (COST $3,696,202,559) ++
    $ 8,156,090,475  


Common Stocks     79.76 %    $ 6,582,121,008  
U.S. Government Obligations     19.07 %      1,573,969,467  
Net Cash & Receivables     1.17 %      96,723,661  
Net Assets   $ 8,252,814,136  
Number of Shares Outstanding     36,372,699  
Net Asset Value Per Share   $ 226.90  
++ The cost for federal income tax purposes is identical. At March 31, 2014, the aggregate gross tax basis unrealized appreciation and depreciation of securities were $4,460,247,380 and $359,464, respectively.
(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 in accordance with NASDAQ Official Closing Price 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.

Securities traded on a foreign exchange are valued at the Official Closing Price on the last business day of the period on the principal exchange on which the security is primarily traded. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at the close of the New York Stock Exchange on that day.

U.S. Treasury Bills with remaining maturities of sixty days or less are valued at their amortized cost. U.S. Treasury Bills purchased having 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.

When reliable market quotations are insufficient or not readily available at time of valuation or when the Investment Adviser determines that the prices or values available do not represent the fair value of a security, such security is valued as determined in good faith by the Investment Adviser, in conformity with guidelines adopted by and subject to review by the Board of Directors.

Purchases and sales of foreign portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities are acquired or sold.

(b) Non-income producing.
(c) “Miscellaneous Securities” include holdings that have been held for not more than one year and have not previously been publicly disclosed.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 –  quoted prices in active markets for identical securities
Level 2 –  other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 –  significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)


The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the quarter ended March 31, 2014, there were no significant transfers into and out of Level 1 and 2 measurements in the fair value hierarchy. There were no Level 3 securities held in the Fund during the quarter ended March 31, 2014.

The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2014:

Valuation Inputs     Common
      U.S. Government Obligations       Total  

Level 1 – 

Quoted Prices

  $ 6,582,121,008              $ 6,582,121,008  

Level 2 – 

Other Significant Observable Inputs

        $ 1,573,969,467       1,573,969,467  
Total   $ 6,582,121,008     $ 1,573,969,467     $ 8,156,090,475  




Other information

Please consider the investment objectives, risks and charges and expenses of the Fund carefully before investing. The Fund's prospectus contains this and other information about the Fund. You may obtain year to date performance as of the most recent month end, and a copy of the prospectus by calling 1-800-686-6884, or on the Fund’s website at Please read the prospectus carefully before investing.

Shares of the Fund are offered through the Fund’s distributor, Ruane, Cunniff & Goldfarb LLC. Ruane, Cunniff & Goldfarb LLC is an affiliate of Ruane, Cunniff & Goldfarb Inc. and is a member of FINRA. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

The Fund may be offered only to persons in the United States and by way of a prospectus. This should not be considered a solicitation or offering of any product or service to investors residing outside of the United States.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC's web site at The Fund's Form N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. For information regarding the operation of the SEC's Public Reference Room, call 1-800-SEC-0330. For a complete list of the Fund's portfolio holdings, view the most recent quarterly, semiannual or annual report on Sequoia Fund's web site at

You may obtain a description of the Fund's proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Visit Sequoia Fund's web site at and use the “Shareholder Information” link to obtain all proxy information. This information may also be obtained from the Securities and Exchange Commission's web site at or by calling DST Systems, Inc. at (800) 686-6884.


9 West 57th Street, Suite 5000
New York, New York 10019-2701
(800) 686-6884


Robert D. Goldfarb
David M. Poppe
Roger Lowenstein
C. William Neuhauser
Sharon Osberg, Chairperson of the Board
Robert L. Swiggett


Robert D. Goldfarb  —  President
David M. Poppe  —  Executive Vice President
Todd G. Ruoff  —  Executive Vice President & Secretary
Paul J. Greenberg  —  Treasurer
Michael Sloyer  —  Chief Compliance Officer
Michael Valenti  —  Assistant Secretary


Ruane, Cunniff & Goldfarb Inc.
9 West 57th Street, Suite 5000
New York, New York 10019-2701


Ruane, Cunniff & Goldfarb Inc.
9 West 57th Street, Suite 5000
New York, New York 10019-2701


The Bank of New York
MF Custody Administration Department
One Wall Street, 25th Floor
New York, New York 10286


DST Systems, Inc.
P.O. Box 219477
Kansas City, Missouri 64121


Seward & Kissel LLP
One Battery Park
Plaza New York, New York 10004