Recommended by Warren Buffett, this top hedge fundโs betting on Rolls-Royce shares6 Aug 2024 01:26
What is the Sequoia Fund?
The Sequoia Fund was launched in 1970 by Bill Ruane and Rick Cunniff. Those names might not mean a lot to most people, but the first name might ring a bell with investors who have a sharp eye for detail.
Bill Ruane was a friend of Warren Buffett, having met at a Ben Graham investing seminar. When Buffett closed his investment partnership in 1969, Ruane was the person he advised his associates to invest with.
The Sequoia Fund is very much committed to the same approach investors might associate with Buffett. According to its website:
โBill Ruane and Rick Cunniff launched Sequoia in 1970 because they believed that a carefully selected and intensively researched collection of businesses, purchased at attractive prices and help for the long term, would outperform the stock market over timeโ.
The fund is set up for the long term and has been effective on that basis. A ยฃ10,000 investment in Sequoia in 1970 would be worth ยฃ8.46m today, whereas a similar investment in the S&P 500 would have a market value of ยฃ3.24m.
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