The Sequoia Strategy Composite Q4 2024 Letter30 Jan 2025 22:04
The Sequoia Strategy Composite Q4 2024 Letter
Rolls Royce
Rolls-Royce (OTCPK:RYCEF)(OTCPK:RYCEY) is a good example. At the end of 2019, its share price stood at 234 pence (US $3.11). Several months later, in the depths of the pandemic, the share price reached a low of 39 pence (US $0.50). Fast forward to today, and the shares are at an all-time high of 612 pence (US $7.56), up 17-fold from the bottom and up over two-and-a-half-fold from year-end 2019. Rolls-Royce is now the Fund’s single largest holding.
To be sure, Rolls-Royce endured an unusually challenging set of circumstances over the past few years. The global pandemic reduced global flying hours by 90%. The financial pain was acute, and near-term business visibility was extremely low. However, it was obvious, or should have been, that the situation was temporary. Flying hours would eventually recover and with them Rolls-Royce’s business. This is precisely what has happened. We submit that the market simply got Rolls-Royce wrong at the bottom.
https://seekingalpha.com/article/4752505-the-sequoia-strategy-composite-q4-2024-letter