SEQUOIA FUND, INC.
ILLUSTRATION OF AN ASSUMED INVESTMENT OF $10,000
With Income Dividends Reinvested and Capital Gains
Distributions Accepted in Shares

The table below covers the period from July 15, 1970 (the date Fund shares were first offered to the public) to June 30, 2005. This period was one of widely fluctuating common stock prices. The results shown should not be considered as a representation of the dividend income or capital gain or loss which may be realized from an investment made in the Fund today.

PERIOD ENDED: Value of
Initial
$10,000
Investment
Value of
Cumulative
Capital Gains
Distributions
Value of
Cumulative
Reinvested
Dividends
Total
Value of
Shares





July 15, 1970 $10,000 $— $— $10,000
May 31, 1971 11,750 184 11,934
May 31, 1972 12,350 706 451 13,507
May 31, 1973 9,540 1,118 584 11,242
May 31, 1974 7,530 1,696 787 10,013
May 31, 1975 9,490 2,137 1,698 13,325
May 31, 1976 12,030 2,709 2,654 17,393
May 31, 1977 15,400 3,468 3,958 22,826
Dec. 31, 1977 18,420 4,617 5,020 28,057
Dec. 31, 1978 22,270 5,872 6,629 34,771
Dec. 31, 1979 24,300 6,481 8,180 38,961
Dec. 31, 1980 25,040 8,848 10,006 43,894
Dec. 31, 1981 27,170 13,140 13,019 53,329
Dec. 31, 1982 31,960 18,450 19,510 69,920
Dec. 31, 1983 37,110 24,919 26,986 89,015
Dec. 31, 1984 39,260 33,627 32,594 105,481
Dec. 31, 1985 44,010 49,611 41,354 134,975
Dec. 31, 1986 39,290 71,954 41,783 153,027
Dec. 31, 1987 38,430 76,911 49,020 164,361
Dec. 31, 1988 38,810 87,760 55,946 182,516
Dec. 31, 1989 46,860 112,979 73,614 233,453
Dec. 31, 1990 41,940 110,013 72,633 224,586
Dec. 31, 1991 53,310 160,835 100,281 314,426
Dec. 31, 1992 56,660 174,775 112,428 343,863
Dec. 31, 1993 54,840 213,397 112,682 380,919
Dec. 31, 1994 55,590 220,943 117,100 393,633
Dec. 31, 1995 78,130 311,266 167,129 556,525
Dec. 31, 1996 88,440 397,099 191,967 677,506
Dec. 31, 1997 125,630 570,917 273,653 970,200
Dec. 31, 1998 160,700 798,314 353,183 1,312,197
Dec. 31, 1999 127,270 680,866 286,989 1,095,125
Dec. 31, 2000 122,090 903,255 289,505 1,314,850
Dec. 31, 2001 130,240 1,002,955 319,980 1,453,175
Dec. 31, 2002 126,630 976,920 311,226 1,414,776
Dec. 31, 2003 147,610 1,146,523 362,790 1,656,923
Dec. 31, 2004 154,270 1,200,687 379,159 1,734,116
June 30, 2005 150,000 1,205,711 368,663 1,724,374

The total amount of capital gains distributions accepted in shares was $660,876, the total amount of dividends reinvested was $116,740.

No adjustment has been made for any taxes payable by shareholders on capital gain distributions and dividends reinvested in shares.

To the Shareholders of Sequoia Fund, Inc.

Dear Shareholder:

Sequoia Fund's results for the second quarter of 2005 are shown below with comparable results for the leading market indexes:

To June 30, 2005 Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500



3 Months 0.45% -1.63% 1.37%
6 Months -0.56% -3.68% -0.81%
1 Year 0.84% 0.86% 6.32%
5 Years (Annualized) 10.07% 1.76% -2.37%
10 Years (Annualized) 14.13% 10.63% 9.94%

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.


We are providing you with a copy of the transcript of the Sequoia Fund annual meeting which was held on May 13th.

In our March report, we alerted our tax-paying shareholders that the current year's estimated capital gains distributions would be approximately $10 per share. Based on subsequent activity, we can now state that the capital gains distributions will be about $10.36 per share assuming no further gains or losses. Of this amount, a distribution of $3.40 per share was made in June and the balance will be distributed in December.

Sincerely,

Richard T. Cunniff
Robert D. Goldfarb
David M. Poppe
William J. Ruane
 


August 17, 2005
             


Shareholder Expense Example

As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2005 to June 30, 2005).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and will not help you determine the relative total costs of owning different funds.

   
Beginning
Account
Value
January 1, 2005
Ending
Account
Value
June 30,
2005
Expenses
Paid During
Period*
January 1, 2005
to June 30,
2005
   
 
 
Actual  
$ 1,000
 
$ 994.40
 
$ 4.95
Hypothetical
(5% return per year before Expenses)
 
$ 1,000
 
$ 1,019.84
 
$ 5.01

* Expenses are equal to the Fund's annualized expense ratio of 1.00%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

The table below shows the changes of the Fund's major positions for the period ended June 30, 2005:

Position  
% of assets
6/30/2005
% of assets
12/31/2004

   
 
Berkshire Hathaway  
 
34.2%
 
35.2%
Progressive Corp.  
 
15.0%
 
12.6%
TJX Companies Inc.  
 
8.0%
 
8.0%
Mohawk Industries  
 
7.7%
 
8.4%
Fastenal Company  
 
3.6%
 
3.6%
     
 
Top five positions  
 
68.5%
 
67.8%
     
 

SEQUOIA FUND, INC.
Schedule of Investments
June 30, 2005 (Unaudited)

COMMON STOCKS (89.23%)
Shares       Value
(Note 1)

     
    AUTO AND HOME SUPPLY STORES (1.45%)    
1,743,934   O'Reilly Automotive Inc.*   $51,986,672
       
    BANK HOLDING COMPANIES (0.01%)    
5,145   Mercantile Bankshares Corporation   265,122
       
    CASUALTY INSURANCE (15.02%)    
5,447,391   Progressive Corporation   538,256,705
       
    CHEMICAL DIAGNOSTIC SUBSTANCES (2.73%)    
1,568,532   IDEXX Laboratories Inc.*   97,766,600
       
    COMPUTER PROGRAMMING SERVICES (1.75%)    
2,142,576   GTECH Holdings Corporation   62,648,922
       
    DIVERSIFIED COMPANIES (34.22%)    
14,686   Berkshire Hathaway Inc. Class A*   1,226,281,000
59   Berkshire Hathaway Inc. Class B*   164,226
       
        1,226,445,226
       
    ELECTRONIC COMPUTER MANUFACTURING (2.13%)    
2,716,691   International Game Technology   76,474,852
       
    FREIGHT TRANSPORTATION (2.57%)    
1,852,528   Expeditors International of Washington, Inc.   92,274,420
       
    HOME FURNISHINGS (1.58%)    
1,695,158   Ethan Allen Interiors Inc.   56,804,745
       
    INDUSTRIAL & CONSTRUCTION SUPPLIES (3.61%)    
2,114,564   Fastenal Company   129,538,191
       
    INSURANCE AGENTS & BROKERS (1.86%)    
1,481,808   Brown & Brown Inc.    66,592,451
       
    MEDICAL & HOSPITAL EQUIPMENT (0.15%)    
123,201   Patterson Companies Inc.*   5,553,901
       
    MOTORCYCLES MANUFACTURING (0.42%)    
305,782   Harley Davidson, Inc.   15,166,787
       
    PROCESS CONTROL INSTRUMENTS (0.58%)    
394,085   Danaher Corporation   20,626,409
       
    RETAILING (13.41%)    
40,833   Costco Wholesale Corporation   $1,830,135
94,555   Petsmart Inc.   2,869,744
1,195,389   Tiffany & Company   39,160,944
11,707,716   TJX Companies, Inc.   285,082,885
1,079,103   Wal-Mart Stores Inc.   52,012,765
2,174,884   Walgreen Company   100,022,915
       
        480,979,388
       
    TEXTILE — CARPETS (7.73%)    
3,359,135   Mohawk Industries, Inc. †*   277,128,637
       
    TOTAL COMMON STOCKS ($1,093,358,129)   $3,198,509,028
       
PREFERRED STOCKS (2.05%)
   
         
    AUTOMOTIVE MANUFACTURING (2.05%)    
97,501
  Porsche AG — Preferred (Germany)  
73,332,647
       
    TOTAL PREFERRED STOCKS ($69,560,824)  
$73,332,647
       
Principal
Amount
       

       
    U.S. GOVERNMENT OBLIGATIONS (8.72%)    
$313,000,000   U.S. Treasury Bills due 07/07/05 through 08/25/05   312,361,514
       
    TOTAL U.S. GOVERNMENT OBLIGATIONS    
    (Cost $312,361,514)   312,361,514
       
    TOTAL INVESTMENTS (100%)††    
    (Cost $1,475,280,467)   $3,584,203,189
       

†† The cost for federal income tax purposes is identical.
* Non-income producing.
Refer to Note 7.

The accompanying notes form an integral part of these Financial Statements

 SEQUOIA FUND, INC.
Statement of Assets and Liabilities
June 30, 2005 (Unaudited)

ASSETS:  
     Investments in securities, at value (cost $1,475,280,467) (Note 1) $3,584,203,189
     Cash on deposit with custodian 1,653,176
     Receivable for capital stock sold 144,961
     Receivable for investments securities sold unsettled 3,649,357
     Dividends receivable  101,542
     Other assets 30,984

          Total assets 3,589,783,209

LIABILITIES:  
     Payable for capital stock repurchased 796,516
     Accrued investment advisory fee 3,049,946
     Accrued other expenses 171,299

          Total liabilities 4,017,761

Net assets applicable to 23,905,640 shares of capital stock outstanding (Note 4) $3,585,765,448

Net asset value, offering price and redemption price per share  $150.00

The accompanying notes form an integral part of these Financial Statements.

 SEQUOIA FUND, INC.
 Statement of Operations
Six Months Ended June 30, 2005 (Unaudited)

INVESTMENT INCOME:    
     Income:    
          Dividends:    
               Unaffiliated companies (net of $32,209 foreign tax withheld)   $4,456,805
               Affiliated companies (Note 7)   556,351
          Interest   4,313,004
          Other Income   16,994
   
                    Total income   9,343,154
   
     Expenses:    
          Investment advisory fee (Note 2)   18,247,319
          Legal and auditing fees   89,037
          Stockholder servicing agent fees   227,680
          Custodian fees   40,000
          Directors fees and expenses (Note 6)   129,710
          Other   96,954
   
                    Total expenses   18,830,700
     Less expenses reimbursed by Investment Adviser (Note 2)   509,000
   
                    Net expenses   18,321,700
   
                    Net investment (loss)   (8,978,546)
   
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:    
     Realized gain on investments:    
          Unaffiliated companies   218,641,887
          Affiliated companies (Note 7)   4,581,591
          Foreign currency transactions  
1,486
 
                    Net realized gain on investments and foreign currencies   $223,224,964
     Net (decrease) in unrealized appreciation on:    
          Investments   (237,039,482)
   
                    Net realized and unrealized (loss) on investments and foreign currencies   (13,814,518)
   
(Decrease) in net assets from operations   $(22,793,064)
   

The accompanying notes form an integral part of these Financial Statements.

SEQUOIA FUND, INC.
Statements of Changes in Net Assets

    Six Months
Ended
6/30/05
(Unaudited)
  Year
Ended
12/31/04
   
 
INCREASE IN NET ASSETS:        
     From operations:        
          Net investment (loss)   $(8,978,546)   $(14,191,740)
          Net realized gain   223,224,964   296,769,132
          Net (decrease) in unrealized appreciation   (237,039,482)   (106,708,915)
   
 
               Net (decrease)/increase in net assets from operations   (22,793,064)   175,868,477
     Distributions to shareholders from:        
          Net investment income   0   0
          Net realized gains   (79,968,582)   (5,637,360)
          Capital share transactions (Note 4)   (83,855,807)   (371,435,383)
   
 
               Total (decrease)   (186,617,453)   (201,204,266)
NET ASSETS:        
     Beginning of period   3,772,382,901   3,973,587,167
   
 
     End of period   $3,585,765,448   $3,772,382,901
   
 
NET ASSETS CONSIST OF:        
     Capital (par value and paid in surplus)   $1,324,773,304   $1,347,326,752
     Undistributed net realized gains (Note 5)   152,069,422   79,093,945
     Unrealized appreciation   2,108,922,722   2,345,962,204
   
 
               Total Net Assets   $3,585,765,448   $3,772,382,901
   
 

The accompanying notes form an integral part of these Financial Statements.

SEQUOIA FUND, INC.
Notes to Financial Statements

NOTE 1—SIGNIFICANT ACCOUNTING POLICIES:

Sequoia Fund, Inc. is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management company. The investment objective of the Fund is growth of capital from investments primarily in common stocks and securities convertible into or exchangeable for common stock. The following is a summary of significant accounting policies, consistently followed by the Fund in the preparation of its financial statements.

A.

Valuation of investments: Investments are carried at market value or at fair value as determined by the Board of Directors. Securities traded on a national securities exchange or on a foreign 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; listed securities and securities traded in the over-the-counter market 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 60 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.

 

Foreign currency: Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. 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. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Reported net realized foreign exchange gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the fair values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

B.

Accounting for investments: Investment transactions are accounted for on the trade date and dividend income is recorded on the ex-dividend date. The net realized gain or loss on security transactions is determined for accounting and tax purposes on the specific identification basis.

C.

Federal income taxes: It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its stockholders. Therefore, no federal income tax provision is required.

D.

Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

E.

General: Dividends and distributions are recorded by the Fund on the ex-dividend date. Interest income is accrued as earned.

NOTE 2—INVESTMENT ADVISORY CONTRACTS AND PAYMENTS TO INTERESTED PERSONS:

The Fund retains Ruane, Cunniff & Goldfarb Inc., as its investment adviser. Ruane, Cunniff & Goldfarb Inc. (Investment Adviser) provides the Fund with investment advice, administrative services and facilities.

Under the terms of the Advisory Agreement, the Investment Adviser receives a management fee equal to 1% per annum of the Fund's average daily net asset values. This percentage will not increase or decrease in relation to increases or decreases in the net asset value of the Fund. Under the Advisory Agreement, the Investment Adviser is obligated to reimburse the Fund for the amount, if any, by which the operating expenses of the Fund (including the management fee) in any year exceed the sum of 1 1/2% of the average daily net asset values of the Fund during such year up to a maximum of $30,000,000, plus 1% of the average daily net asset values in excess of $30,000,000. The expenses incurred by the Fund exceeded the percentage limitation during the six months ended June 30, 2005 and the Investment Adviser reimbursed the Fund $509,000.

For the six months ended June 30, 2005, there were no amounts accrued to interested persons, including officers and directors, other than advisory fees of $18,247,319 to Ruane, Cunniff & Goldfarb Inc. and brokerage commissions of $214,615 to Ruane, Cunniff & Goldfarb LLC, an affiliate of the Investment Adviser. Certain officers of the Fund are also officers of the Investment Adviser and the Fund's distributor. Ruane, Cunniff & Goldfarb LLC, the Fund's distributor, received no compensation from the Fund on the sale of the Fund's capital shares during the six months ended June 30, 2005.

NOTE 3—PORTFOLIO TRANSACTIONS:

The aggregate cost of purchases and the proceeds from the sales of securities, excluding U.S. government obligations, for the six months ended June 30, 2005 were $173,596,684 and $302,600,896, respectively. Included in proceeds of sales is $103,509,606 representing the value of securities disposed of in payment of redemptions in-kind, resulting in realized gains of $70,279,419.

At June 30, 2005 the aggregate gross unrealized appreciation and depreciation of securities were $2,113,430,550 and $4,507,828, respectively.

NOTE 4—CAPITAL STOCK:

At June 30, 2005 there were 100,000,000 shares of $.10 par value capital stock authorized. Transactions in capital stock for the six months ended June 30, 2005 and the year ended December 31, 2004 were as follows:

  2005 2004


  Shares Amount Shares Amount




Shares sold 386,447   $58,558,424 937,018 $142,174,969
Shares issued to stockholders on reinvestment of:          
     Net investment income  
     Net realized gains on Investments 438,708   65,757,953 31,351 4,737,104

 


  825,155   124,316,377 968,369 146,912,073
Shares repurchased 1,371,934   208,172,184 3,435,889 518,347,456

 


Net (decrease) (546,779)   $(83,855,807) (2,467,520) $(371,435,383)




NOTE 5—DISTRIBUTIONS TO SHAREHOLDERS:

Distributions to shareholders are determined in accordance with federal tax regulations and may differ from those determined for financial statement purposes. To the extent these differences are permanent such amounts are reclassified within the capital accounts based on federal tax regulations. During the six months ended June 30, 2005 permanent differences due to a net investment loss not deductible for tax purposes and realized gains on redemptions in kind not recognized for tax purposes resulted in a net decrease in net accumulated investment loss of $8,977,060 and undistributed net realized gains of $70,279,419 with a corresponding increase in paid in surplus of $61,302,359. These reclassifications had no effect on net assets.

The tax character of distributions paid during 2004 and 2005 was as follows:

  2005 2004


Distributions paid from:    
Ordinary income $— $—
Long-term capital gains 79,968,582 5,637,360


          Total distributions $79,968,582 $5,637,360


   
As of June 30, 2005, the components of distributable earnings on a tax basis were as follows:
   
Undistributed long-term gain  
$152,069,422
Unrealized appreciation  
2,108,922,722
 

 
$2,260,992,144
 

NOTE 6—DIRECTORS FEES AND EXPENSES:

Directors who are not deemed "interested persons" receive fees of $6,000 per quarter and $2,500 for each meeting attended, and are reimbursed for travel and other out-of-pocket disbursements incurred in connection with attending directors meetings. The total of such fees and expenses paid by the Fund to these directors for the six months ended June 30, 2005 was $129,710.

NOTE 7—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." The total value and cost of investments in affiliates at June 30, 2005 aggregated $277,128,637 and $153,805,857, respectively. The summary of transactions for each affiliate during the period of their affiliation for the six months ended June 30, 2005 is provided below:

  Purchases  Sales  


Realized
Dividend
Affiliate Shares Cost Shares Cost Gain Income







Ethan Allen Interiors Inc     159,901   $4,465,004   $828,794   $556,351
Mohawk Industries Inc     96,112   $4,319,196   3,752,797  
               
 
                  $4,581,591   $556,351


NOTE 8 — The interim financial statements have not been examined by the Fund's independent accountants and accordingly they do not express an opinion thereon.

NOTE 9—FINANCIAL HIGHLIGHTS:

  Six          
  Months          
  Ended Year Ended December 31,
  June 30,
 
2005
2004 2003 2002 2001 2000






Per Share Operating Performance (for a share outstanding throughout the period)          
Net asset value, beginning of Period $154.27 $147.61 $126.63 $130.24 $122.09 $127.27






Income from investment operations:          
Net investment income (loss)  (0.38) (0.58) (0.62) (0.41) 0.97 1.66
Net realized and unrealized gains (losses) on investments (0.49) 7.45 22.21 (3.03) 11.52 23.33






          Total from investment operations  (0.87) 6.87 21.59 (3.44) 12.49 24.99






Less distributions:          
Dividends from net investment income (0.00) (0.00) (0.00) (0.01) (0.97) (1.66)
Distributions from net realized gains (3.40) (0.21) (0.61) (0.16) (3.37) (28.51)






          Total distributions (3.40) (0.21) (0.61) (0.17) (4.34) (30.17)






Net asset value, end of period $150.00 $154.27 $147.61 $126.63 $130.24 $122.09






Total Return -0.6%† 4.7% 17.1% -2.6% 10.5% 20.1%
Ratios/Supplemental data          
Net assets, end of period (in millions) $3,585.8 $3,772.4 $3,973.6 $3,905.1 $4,230.1 $3,943.9
Ratio to average net assets:          
     Expenses 1.0%* 1.0% 1.0% 1.0% 1.0% 1.0%
     Net investment income -0.5%* -0.4% -0.5% -0.3% 0.8% 1.2%
Portfolio turnover rate  10%* 6% 3% 8% 7% 36%


  Not annualized
*
  Annualized

Other information

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 http://www.sec.gov. 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 http://www.sequoiafund.com/fund_reports.htm.

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 www.sequoiafund.com 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 www.sec.gov.

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
Sharon Osberg
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 & Chief Compliance Officer

INVESTMENT ADVISER

Ruane, Cunniff & Goldfarb Inc.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

DISTRIBUTOR

Ruane, Cunniff & Goldfarb LLC
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

CUSTODIAN

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