ELV - Sequoia Strategy 2023 Year-End Letter
2024-03-22 05:45:00 ET
Summary
- Sequoia Fund's investment objective is long-term growth of capital. In pursuing this objective, it focuses on investing in equity securities that the advisor believes are undervalued at the time of purchase and have the potential for growth.
- Sequoia returned 26.3% in 2023, versus 26.3% for the S&P 500.
- Since the Investment Committee began managing the Strategy in June of 2016, Sequoia and the S&P 500 have compounded at 10.9% and 13.6%, respectively.
- Decades of experience has taught us that business fundamentals, and therefore intrinsic value, can evolve in surprising ways - over time, owning high quality companies trading for attractive valuations should result in enviable returns. T.
Dear Clients:
Sequoia Strategy Composite’s (“Sequoia” or “the Strategy”) 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:
| Net Returns Through December 31, 2023 |
| Sequoia Strategy Composite |
| S&P 500 Index |
| Fourth Quarter |
| 12.3% |
| 11.7% |
| 1 Year |
| 26.3% |
| 26.3% |
| 3 Years (Annualized) |
| 3.7% |
| 10.0% |
| 5 Years (Annualized) |
| 12.0% |
| 15.7% |
| 10 Years (Annualized) |
| 6.4% |
| 12.0% |
| Since Inception (Annualized)** |
| 13.3% |
| 11.1% |
| The performance returns for the Sequoia Strategy Composite are presented net of investment advisory fees and transaction costs and all other fees and expenses that a client paid in connection with RCG’s investment advisory services and reflect the reinvestment of dividends and other income / earnings, but do not reflect the deduction of custodial fees paid by the client. The performance returns also reflect cash flows into and out of accounts. The net performance returns are calculated using the highest annual advisory fee of 1% per annum, applied monthly. The performance presented does not represent the return of any one individual investor. ** Inception Date: July 15, 1970. |
Sequoia returned 26.3% in 2023, versus 26.3% for the S&P 500. Since the Investment Committee began managing the Strategy in June of 2016, Sequoia and the S&P 500 have compounded at 10.9% and 13.6%, respectively.
A year is nothing more than a year, but with that caveat, we are pleased to have kept pace with 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 Strategy managed to perform in line with the Index last year despite only counting two of these seven stocks as holdings....
Sequoia Strategy 2023 Year-End Letter