The table below covers the period from July 15, 1970 (the date Fund shares were first offered to the public) to June 30, 2011. 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 $10,000 Investment||Value of Cumulative Reinvested Capital Gains Distributions||Value of Cumulative Reinvested Dividends||Total Value
|July 15, 1970||$||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|
|Dec. 31, 2005||155,450||1,331,529||382,059||1,869,038|
|Dec. 31, 2006||152,750||1,496,788||375,422||2,024,960|
|Dec. 31, 2007||139,120||1,713,258||342,768||2,195,146|
|Dec. 31, 2008||95,270||1,265,238||241,397||1,601,905|
|Dec. 31, 2009||109,900||1,459,533||278,860||1,848,293|
|Dec. 31, 2010||129,290||1,745,828||333,509||2,208,627|
|June 30, 2011||144,310||1,948,646||372,253||2,465,209|
The total amount of capital gains distributions reinvested in shares was $1,441,638. The total amount of dividends reinvested was $130,082, including return of capital distributions reinvested of $5,294.
No adjustment has been made for any taxes payable by shareholders on capital gain distributions and dividends reinvested in shares.
Sequoia Funds results for the second quarter of 2011 are shown below with comparable results for the S&P 500 Index:
|To June 30, 2011||Sequoia Fund||Standard & Poors 500*|
|5 Years (Annualized)||5.53||%||2.94||%|
|10 Years (Annualized)||6.12||%||2.72||%|
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 investors 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.
We are providing you with a copy of the transcript of the Ruane, Cunniff & Goldfarb Inc./Sequoia Fund, Inc. Annual Investor Day 2011 meeting that was held on May 20th.
|Richard T. Cunniff
|Robert D. Goldfarb
|David M. Poppe
Executive Vice President
August 19, 2011
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
|Total Annual Fund Operating Expenses*||1.04||%|
* Does not reflect Ruane, Cunniff & Goldfarb Inc.s (Ruane, Cunniff & Goldfarb) contractual reimbursement of a portion of the Funds operating expenses. This reimbursement is a provision of Ruane, Cunniff & Goldfarbs 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, 2010, the Funds annual operating expenses net of such reimbursement were 1.00%.
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, 2011 to June 30, 2011).
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 $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period.
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and will not help you determine the relative total costs of owning different funds.
January 1, 2011
|Hypothetical (5% return per year less expenses)||$||1,000||$||1,019.84||$||5.01|
* Expenses are equal to the Funds 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).
|As of June 30, 2011||Percent of
|U.S. Government Obligations||19.53|
|Industrial & Construction Supplies||5.70|
|Internet Software & Services||1.87|
|IT Consulting and Other Services||1.87|
|Investment Banking and Brokerage||1.32|
The table below shows the changes of the Funds major positions for the period ended June 30, 2011:
|Position||% of assets
|% of assets
|Valeant Pharmaceuticals International||13.4||%||9.2||%|
|TJX Companies Inc.||5.9||%||6.3||%|
|933,743||Omnicom Group Inc.||$|
|947,406||Precision Castparts Corp.||155,990,398|
|23,161,200||Qinetiq Group plc (United Kingdom)||44,863,244|
|12,376,114||Rolls-Royce Group plc (United Kingdom)||128,092,780|
|AUTO PARTS (5.74%)
|2,449,400||Advance Auto Parts, Inc.||143,265,406|
|1,656,139||OReilly Automotive Inc. *||108,493,666|
|CONSTRUCTION EQUIPMENT (0.95%)
|1,520,736||Ritchie Bros. Auctioneers Incorporated||41,805,033|
|CRUDE OIL & GAS PRODUCTION (0.17%)
|179,508||Canadian Natural Resources Limited||7,514,205|
|DIVERSIFIED COMPANIES (9.90%)
|3,273||Berkshire Hathaway Inc. Class A *||380,011,665|
|700,326||Berkshire Hathaway Inc. Class B *||54,198,229|
|DIVERSIFIED MANUFACTURING (0.92%)
|ELECTRONIC MANUFACTURING SERVICES (0.07%)
|77,500||Trimble Navigation Limited *||3,072,100|
|FLOORING PRODUCTS (3.63%)
|2,656,923||Mohawk Industries Inc. *||159,388,811|
|FREIGHT TRANSPORTATION (0.30%)
|256,500||Expeditors International Inc.||13,130,235|
|418,000||Becton, Dickinson and Company||36,019,060|
|11,320,000||Valeant Pharmaceuticals International Inc.||588,187,200|
|INDUSTRIAL & CONSTRUCTION SUPPLIES (5.70%)
|INDUSTRIAL GASES (0.89%)
|INFORMATION PROCESSING (2.05%)
|INSURANCE BROKERS (0.66%)
|1,124,830||Brown & Brown Inc.||28,863,138|
|INTERNET SOFTWARE & SERVICES (1.87%)
|162,271||Google Inc. *||82,170,789|
|INVESTMENT BANKING & BROKERAGE (1.32%)
|435,000||The Goldman Sachs Group Incorporated||57,894,150|
|IT CONSULTING & OTHER SERVICES (1.87%)
|477,000||International Business Machines Corp.||81,829,350|
|LABORATORY SUPPLIES (0.07%)
|19,247||Mettler-Toledo International Inc. *||3,246,391|
|PROPERTY AND CASUALTY INSURANCE (0.97%)
|6,237,236||Hiscox Ltd. (United Kingdom)||41,926,700|
|21,000||Verisk Analytics, Inc. *||727,020|
|RENEWABLE ENERGY (2.18%)
|343,000||First Solar, Inc. *||45,368,610|
|449,780||SMA Solar Technology AG (Germany)||50,090,199|
|39,666||Costco Wholesale Corporation||3,222,466|
|4,934,190||TJX Companies, Inc.||259,193,001|
|949,032||Wal-Mart Stores, Inc.||50,431,560|
|VETERINARY DIAGNOSTICS (4.47%)
|2,526,848||Idexx Laboratories Inc. *||195,982,331|
|Miscellaneous Securities (3.94%) (a)||172,515,097|
|TOTAL COMMON STOCKS (Cost $1,810,831,172)||$||3,517,619,184|
|$857,000,000||U.S. Treasury Bills, 0.010% 0.034% due 7/14/2011 through 11/3/2011||$||856,949,791|
|TOTAL U.S. GOVERNMENT OBLIGATIONS
|TOTAL INVESTMENTS (99.73%)
|OTHER ASSETS LESS LIABILITIES (0.27%)||11,663,812|
|NET ASSETS (100.00%)||$||4,386,232,787|
|||Refer to Note 8.|
|||The cost for federal income tax purposes is identical.|
|(a)||Miscellaneous Securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.|
Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three broad levels listed below:
|Level 1 ||quoted prices in active markets for identical securities|
|Level 2 ||other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)|
|Level 3 ||significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments)|
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. During the period ended June 30, 2011, there were no significant transfers into and out of Level 1 and 2 measurements in the fair value hierarchy.
The following is a summary of the inputs used to value the Funds investments as of June 30, 2011:
|Valuation Inputs||Common Stocks||U.S.
|Level 1 Quoted Prices||$||3,517,619,184||$||339,952,400||$||3,857,571,584|
|Level 2 Other Significant Observable Inputs *||||516,997,391||516,997,391|
* Represents U.S. Treasury Bills with remaining maturities of 60 days or less which are valued at their amortized cost.
The accompanying notes are an integral part of these Financial Statements.
|Investments in securities, at value (cost $2,667,804,952) (Note 1)||$||4,374,568,975|
|Cash on deposit with custodian||5,832,991|
|Receivable for capital stock sold||4,006,691|
|Receivable for investment securities sold||4,702,259|
|Payable for capital stock repurchased||1,078,787|
|Payable for investment securities purchased||451,215|
|Accrued investment advisory fee||3,620,734|
|Accrued other expenses||145,695|
|Net assets applicable to 30,395,054 shares of capital stock outstanding (Note 4)||$||4,386,232,787|
|Net asset value, offering price and redemption price per share||$||144.31|
|NET ASSETS CONSIST OF
|Capital (par value and paid in surplus) $.10 par value stock,
100,000,000 shares authorized
|Undistributed net realized gains on investments (Note 5)||27,091,433|
|Total net assets||$||4,386,232,787|
The accompanying notes form an integral part of these Financial Statements.
|Dividends, net of $981,754 foreign tax withheld||$||15,019,886|
|Investment advisory fee (Note 2)||19,985,506|
|Legal and auditing fees||85,265|
|Stockholder servicing agent fees||327,774|
|Directors fees and expenses (Note 6)||140,960|
|Less expenses reimbursed by Investment Adviser (Note 2)||578,000|
|Net investment loss||(4,791,987||)|
|REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
|Realized gain (loss) on
|Affiliated companies (Note 8)||31,112,078|
|Foreign currency transactions||(72,240||)|
|Net realized gain on investments and foreign currencies||36,768,747|
|Net increase (decrease) in unrealized appreciation on
|Affiliated companies (Note 8)||(143,561,700||)|
|Net increase in unrealized appreciation on investments||387,798,660|
|Net realized and unrealized gain on investments and foreign currencies||424,567,407|
|Net increase in net assets from operations||$||419,775,420|
The accompanying notes form an integral part of these Financial Statements.
|INCREASE/(DECREASE) IN NET ASSETS
|Net investment loss||$||(4,791,987||)||$||(28,404||)|
|Net realized gain on investments and foreign currencies||36,768,747||154,230,924|
|Net increase in unrealized appreciation on investments||387,798,660||406,099,002|
|Net increase in net assets from operations||419,775,420||560,301,522|
|Distributions to shareholders from
|Net realized gains||||(43,650,447||)|
|Return of capital||||(8,344,749||)|
|Capital share transactions (Note 4)||478,742,728||111,636,350|
|Beginning of period||3,487,714,639||2,867,771,963|
|End of period (including undistributed net investment income of $0 and $0, respectively)||$||4,386,232,787||$||3,487,714,639|
The accompanying notes form an integral part of these Financial Statements.
Sequoia Fund, Inc. (the Fund) is registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment 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 under the supervision of the Board of Directors. 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 the 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 last reported sales price 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 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.
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.
Foreign currencies: 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 difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds 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. Interest income is accrued as earned. Premiums and discounts on fixed income securities are amortized over the life of the respective security. 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 Funds 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 of America 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.|
|F.||Indemnification: The Funds officers, directors and agents are indemnified against certain liabilities that may arise out of performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of indemnification clauses. The Funds maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss thereunder to be remote.|
The Fund retains Ruane, Cunniff & Goldfarb Inc. as its investment adviser. Ruane, Cunniff & Goldfarb Inc. (the 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 Funds 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 contractually obligated to reimburse the Fund for the amount, if any, by which the operating expenses of the Fund (including the investment advisory 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, 2011 and the Investment Adviser reimbursed the Fund $578,000. Such reimbursement is not subject to recoupment by the Investment Adviser.
For the six months ended June 30, 2011, there were no amounts accrued or paid to interested persons, including officers and directors, other than advisory fees of $19,985,506 to Ruane, Cunniff & Goldfarb Inc. and brokerage commissions of $193,046 to Ruane, Cunniff & Goldfarb LLC, the Funds distributor. Certain officers of the Fund are also officers of the Investment Adviser and the Funds distributor. Ruane, Cunniff & Goldfarb LLC received no compensation from the Fund on the sale of the Funds capital shares during the six months ended June 30, 2011.
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, 2011 were $427,128,799 and $78,553,117, respectively. Included in proceeds of sales is $13,041,776 representing the value of securities disposed of in payment of redemptions in-kind, resulting in realized gains of $9,716,555.
At June 30, 2011 the aggregate gross tax basis unrealized appreciation and depreciation of securities were $1,730,606,237 and $23,842,214, respectively.
At June 30, 2011 there were 100,000,000 shares of $.10 par value capital stock authorized. Transactions in capital stock for the six months ended June 30, 2011 and the year ended December 31, 2010 were as follows:
|Shares issued to stockholders on reinvestment of
|Net realized gains on investments||||||283,070||35,256,313|
|Return of capital||||||53,730||6,750,472|
|Net increase (decrease)||3,418,182||$||478,742,728||881,369||$||111,636,350|
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, 2011 permanent differences primarily due to a net investment loss not deductible for tax purposes, realized gains on redemptions in kind not recognized for tax purposes and different book and tax treatment of net realized losses on foreign currency transactions resulted in a net decrease in net accumulated investment loss of $4,791,987 and undistributed net realized gains on investments of $9,644,314 with a corresponding increase in paid in surplus of $4,852,327. These reclassifications had no effect on net assets.
There were no distributions paid during the six months ended June 30, 2011. The tax character of distributions paid during the year ended December 31, 2010 was as follows:
|Distributions paid from
|Long-term capital gains||$||43,650,447|
|Return of capital||8,344,749|
As of June 30, 2011, the components of distributable earnings on a tax basis were as follows:
|Undistributed long-term gain||$||27,091,433|
The Fund recognizes the tax benefits or expenses of uncertain tax positions only when the positions are more likely than not to be sustained assuming examination by tax authorities. Management has reviewed the Funds tax positions taken on federal income tax returns for all open years (tax years ended December 31, 2007 through December 31, 2010) and has concluded that no provision for unrecognized benefits or expenses is required in these financial statements.
Directors who are not deemed interested persons receive fees of $10,000 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, 2011 was $140,960.
The interim financial statements have not been examined by the Funds independent registered public accounting firm and accordingly they do not express an opinion thereon.
Portfolio companies 5% or more of whose outstanding voting securities are held by the Fund are defined in the Investment Company Act of 1940 as affiliated companies. As of December 31, 2010, the Fund held one investment which was an affiliated company as defined above. The summary of transactions for the affiliate during the six months ended June 30, 2011 is provided below:
|Idexx Laboratories Inc.||||||713,730||$||20,541,120||$||31,112,078|||
As of June 30, 2011, the Fund had no investments in companies that would be deemed to be affiliated companies.
Accounting principles generally accepted in the United States of America require the Fund to recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed as of the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made. Management has evaluated subsequent events through the issuance of these financial statements and has noted no such events.
In May 2011, the Financial Accounting Standards Board issued ASU No. 2011-04 Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and the International Financial Reporting Standards (IFRSs). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact these amendments may have on the Funds financial statements.
|Six Months Ended June 30, 2011
|Year Ended December 31,|
|Per Share Operating Performance (for a share outstanding throughout the period)
|Net asset value, beginning of period||$||129.29||$||109.90||$||95.27||$||139.12||$||152.75||$||155.45|
|Income from investment operations
|Net investment income (loss)||(0.17||)||0.00||(a)||0.00||(a)||0.40||0.46||(0.70||)|
|Net realized and unrealized gains (losses) on investments||15.19||21.35||14.65||(37.11||)||13.48||13.60|
|Total from investment operations||15.02||21.35||14.65||(36.71||)||13.94||12.90|
|Dividends from net investment income||||||(0.02||)||(0.42||)||(0.45||)|||
|Distributions from net realized gains||||(1.65||)||(0.00||)(a)||(6.72||)||(27.12||)||(15.60||)|
|Return of capital||||(0.31||)|||||||||
|Net asset value, end of period||$||144.31||$||129.29||$||109.90||$||95.27||$||139.12||$||152.75|
|Net assets, end of period
|Ratio of expenses to average net assets
|Before expense reimbursement||1.03||%||1.04||%||1.05||%||1.04||%||1.03||%||1.03||%|
|After expense reimbursement||1.00||%||1.00||%||1.01||%||1.00||%||1.00||%||1.00||%|
|Ratio of net investment income (loss) to average net assets||(0.24||)%||(0.00||)%||0.01||%||0.33||%||0.29||%||(0.46||)%|
|Portfolio turnover rate||4||%||23||%||15||%||12||%||13||%||14||%|
|(a)||Represents less than $0.01 per share.|
Please consider the investment objectives, risks and charges and expenses of the Fund carefully before investing. The Funds 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 Funds website at http://www.sequoiafund.com. Please read the prospectus carefully before investing.
Shares of the Fund are offered through the Funds 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 SECs web site at http://www.sec.gov. The Funds Form N-Q may also be reviewed and copied at the SECs Public Reference Room in Washington, DC. For information regarding the operation of the SECs Public Reference Room, call 1-800-SEC-0330. For a complete list of the Funds portfolio holdings, view the most recent quarterly, semiannual or annual report on Sequoia Funds web site at http://www.sequoiafund.com/fund-reports.htm.
You may obtain a description of the Funds 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 Funds 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 Commissions web site at www.sec.gov or by calling DST Systems, Inc. at (800) 686-6884.
Richard T. Cunniff
Robert D. Goldfarb
David M. Poppe
Roger Lowenstein, Chairman of the Board
C. William Neuhauser
Robert L. Swiggett
|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
|Michael Valenti||||Assistant Secretary|
Ruane, Cunniff & Goldfarb Inc.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
Ruane, Cunniff & Goldfarb LLC
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
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