RLLCF - Sequoia Fund 2023 Year-End Letter
2024-03-22 10:00:00 ET
Summary
- Sequoia Fund is a mutual fund that has been advised by Ruane Cunniff LP since its inception on July 15, 1970. The touchstone of our approach is the idea that a share of stock entitles its owner to an interest in the profits of a business enterprise.
- Sequoia Fund returned 27.83% in 2023, versus 26.29% for the S&P 500.
- Since the Investment Committee began managing the Fund in June of 2016, Sequoia and the S&P 500 have compounded at 11.25% and 13.59%, respectively.
- As usual, the Fund’s top ten holdings account for the majority of invested capital, totaling 59.2% at year-end, and to a significant extent, these ten holdings will likely drive the Fund’s long-term performance.
Dear Sequoia Shareholders:
Sequoia Fund's ( SEQUX ) results for the quarter and year ended December 31, 2023 appear below with the results of the S&P 500 Index ( SP500 , SPX ) for the same periods:
| Through December 31, 2023 |
| Sequoia Fund |
| S&P 500 Index |
| Fourth Quarter |
| 13.31% |
| 11.69% |
| 1 Year |
| 27.83% |
| 26.29% |
| 3 Years (Annualized) |
| 3.68% |
| 10.02% |
| 5 Years (Annualized) |
| 12.16% |
| 15.70% |
| 10 Years (Annualized) |
| 6.77% |
| 12.03% |
| Since Inception (Annualized)** |
| 13.18% |
| 11.12% |
| The performance data for the Fund shown above represents past performance and assumes reinvestment of dividends. Past performance does not guarantee future results. 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. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month- end can be obtained by calling SS&C GIDS, Inc. at (800) 686-6884. **Inception Date: July 15, 1970. |
Sequoia Fund returned 27.83% in 2023, versus 26.29% for the S&P 500. Since the Investment Committee began managing the Fund in June of 2016, Sequoia and the S&P 500 have compounded at 11.25% and 13.59%, respectively.
A year is nothing more than a year, but with that caveat, we are pleased to have slightly outperformed a market with unusually narrow leadership. Two thirds of the S&P 500's return for the year was attributable to seven stocks, collectively dubbed the "Magnificent Seven" by the popular business press, that now compose an unprecedented 28% of the Index. Much can be, and has been, said about this collection of impressive businesses and its staggering combined market capitalization. Here, we simply note that the Fund managed to edge out the Index last year despite only counting two of these seven stocks as holdings....
Sequoia Fund 2023 Year-End Letter