As a former member of the board of the Sequoia Fund, I am less than objective on the question of ‘what is your favorite mutual fund.’. Nonetheless, Sequoia it is. During the two-three years prior to 2016, the fund built up a outsized position in Valeant—it may have been 30% of the fund—and after making manager changes, the position was sold in the 2nd quarter of 2016. Today the five member investment committee adheres to a diversified approach—the fund holds around twenty-five positions—and holds steady to a philosophy of buying advantaged businesses that can be expected to have nice increases in intrinsic value over the years. Investment results since changes were put in place 2nd quarter of 2016 are returns slightly ahead of the S&P 500. This performance should continue for a long time.
Comments
As a former member of the board of the Sequoia Fund, I am less than objective on the question of ‘what is your favorite mutual fund.’. Nonetheless, Sequoia it is. During the two-three years prior to 2016, the fund built up a outsized position in Valeant—it may have been 30% of the fund—and after making manager changes, the position was sold in the 2nd quarter of 2016. Today the five member investment committee adheres to a diversified approach—the fund holds around twenty-five positions—and holds steady to a philosophy of buying advantaged businesses that can be expected to have nice increases in intrinsic value over the years. Investment results since changes were put in place 2nd quarter of 2016 are returns slightly ahead of the S&P 500. This performance should continue for a long time.
Post: What’s your favorite actively managed fund—if any?
Link to comment from September 18, 2021