
Ruane, Cunniff & Goldfarb Inc. Sequoia Q3 2016 Letter

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Chris Hohn the founder and manager of TCI Fund Management was the star speaker at this year's London Value Investor Conference, which took place on May 19th. The investor has earned himself a reputation for being one of the world's most successful hedge fund managers over the past few decades. TCI, which stands for The Read More
- Q3 2016 hedge fund letters
- Q2 2016 hedge fund letters
- Q1 2016 hedge fund letters
Dear Clients and Shareholders:
The third quarter of 2016 was characterized by a return to normalcy after a tumultuous first half. The Sequoia Fund returned 3.56% vs. a 3.85% return for the S&P 500 Index1. At quarter’s end our cash position stood at 10.2%, reflecting the relatively full valuations we find in the marketplace.
Today our portfolio trades at a modest premium to the S&P 500. If we are correct about the growth trajectory of our portfolio, one of two things will happen: Sequoia will outperform the Index or Sequoia’s PE multiple premium to the Index will diminish. Ultimately, earnings growth drives stock prices, and while we are concerned about sustainability of the market multiple, we are confident our companies can continue to grow.
/span>See performance disclosures below.
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