Sequoia Fund Reopens After 25 Years
Legendary Sequoia fund reopened May 1st, 2008 after more than 25 years. Since closing on December 21, 1982 Sequoia managers Ruane, Cunniff, and Goldfarb claim assets under management have declined from $5 billion to $3.8 billion, prompting the fund to reopen to new investors. Buffett followers will recognize the Sequoia Fund as being the fund Buffett recommended to to the investors in his partnership after he liquidated it in 1969 due to a lack of bargains in the go-go 60′s stock market. Short of Berkshire Hathaway stock, Sequoia Fund shares are the closest you can get to Buffett’s unique mix of value and growth investing style.
The Sequoia Fund has consistently garnered above-average returns with below-average risk at a reasonable price. While a 1% expense ratio may seem a bit steep to passive investors, it’s rare this caliber of active management is on sale at any price. This reopening represent an excellent opportunity for active investors to get into a winning mutual fund at a fair price.
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