Sequoia Fund, or sometimes known better as Ruane, Cunniff & Goldfarb, is out with their fourth quarter 2012 shareholder letter. The managers of the famous value mutual fund have some interesting insights on current investment opportunities. In contrast to many other good money managers (pundits excluded), Sequoia Fund is pretty bearish and notes that they have trouble finding equities trading at compelling valuations. Below is a brief excerpt from the 2012 shareholder letter followed by the full shareholder letter in scribd:
Given the huge run up in equities since early 2009, we are no longer finding compelling valuations, either
for our existing holdings or for new ideas we are researching. Our current portfolio seems fairly valued today. That said, anyone who has paid attention over the past 15 years knows equities can trade at extreme levels, both of overvaluation and undervaluation.