<PAGE>
SEQUOIA FUND, INC.
ANNUAL REPORT
December 31, 1999
Dear Shareholder:
Sequoia Fund's results for the fourth quarter and full year 1999 are shown
below with comparable results for the leading market indexes:
Sequoia Dow Jones Standard &
1999 Fund Industrials Poor's 500
Fourth Quarter + 1.3% +11.7% +14.9%
Year -16.5 27.3 21.0
As we stated in our third quarter report, 1999 has been a serious disappointment
for Sequoia Fund shareholders, including ourselves. The market value of Sequoia
shares declined 16.5% during the year. To date in 2000 as we write you, the
momentum has continued and Sequoia is down an additional 9%. This means that
Sequoia has retreated to a share value roughly equivalent to early 1998 when,
after a three year run during which our stocks compounded at a 35% annual rate,
we warned that Sequoia's performance was borrowing from the future. We didn't
know how right we were.
In light of our recent results, we have had to take a good hard look at
ourselves and our investment approach and ask, "Should we be doing something
differently?"
Our longstanding approach to investing has been based on a few core principles.
First, we try to own common stocks of high quality companies with good earnings
growth prospects. We look for superior returns on invested capital, and we look
for the returns to be sustainable well into the future. It's the last part of
this requirement that is particularly tricky to assess.
Second, we try to buy these companies at prices we believe underestimate their
real value. This criterion dramatically narrows the field of potential
candidates, as great companies are usually already recognized by the market.
Third, when we find the first two elements together, we want to own a lot of the
stock. And finally, we hope to hold these investments for many years as long as
the fundamentals remain sound and earnings prospects remain favorable. We will
generally hold an investment even if it faces some short-term challenges, or if
its "sector" falls out of favor, or if it gets a bit ahead of itself. We will
sell some or all of a position if we feel its valuation has reached levels which
appear excessive relative to likely earnings prospects. These simple principles
have served us well over the past 30 years, although we had a tendency to leave
a fair amount of money on the table. As a result, in recent years we adopted a
tolerance for holding stocks at higher valuation levels than in the past. This
evolution contributed to our outsized results in 1997 and 1998, but also was a
factor in our unusually poor results in 1999.
Between our important positions in Progressive Corporation and the Geico and
General Re subsidiaries of Berkshire Hathaway, the Fund had a big investment in
the auto insurance and general property/casualty reinsurance businesses going
into 1999. The decline in market values of Progressive and Berkshire accounted
for about 80% of the decline in the Fund's net asset value during the year.
While we were well aware of cyclical profit pressures in auto insurance and had
low expectations for near term reinsurance results, we underestimated the
severity of the cycle and perhaps overestimated the ability of our companies'
earnings to withstand the effects of the various industry pressures. However,
we also believe that the market remains excessively fixated on Progressive's and
Berkshire's next few quarters, ignoring both companies' superb track records and
excellent long term opportunities.
A number of our shareholders have written us in frustration with our lack of
direct technology investments. We are all mind-numbingly aware that technology
stocks comprise the current & and virtually only -- area of market excitement
today and have accounted for almost all the gains in the market indexes in 1999
and 2000 to date. Some shareholders have accused us of "smugness" in our
staunch agnosticism in this area. Quite the contrary! Rather, we find it
extremely daunting to analyze businesses characterized by rapid technological
change with their resultant shorter periods of predictable competitive
advantage. And generally these companies trade at very high valuations which
implicitly assume that dramatic growth and very high profit levels will continue
uninterrupted in almost flawless perpetuity, in sharp contrast to almost all
economic history. That requires a sense of certainty that we simply cannot
muster.
Investors abandon valuation considerations in investing from time to time. You
might be interested to read the following commentary by Benjamin Graham in
reviewing stock market behavior leading up to 1929: "The notion that the
desirability of a common stock was entirely independent of its price seems
incredibly absurd. Yet the new era theory led directly to this thesis..Instead
of judging the market price by established standards of value, the new era based
its standards of value upon the market price. Hence all upper limits
disappeared, not only upon the price at which a stock could sell, but even upon
the price at which it would deserve to sell..The results of such a doctrine
could not fail to be tragic." (Emphasis ours.) These comments were written
66 years ago in Security Analysis, 1934 edition. Ironically enough in view of
today's market conditions, the title of the chapter is "The New-Era Theory".
More recently, a highly respected figure in the investment community, Bob Kirby,
caustically summarized much of what is going on currently in the stock market
with two rules for investing in today's "new era": "Rule 1) Any stock that has
tripled during the past 12 months is a serious purchase candidate; and Rule 2)
Any stock that has been flat for the past month or two or - God forbid - has
gone down, is immediately sold." Needless to say, our investment approach is
not in sync with current conditions, but we will not abandon proven standards
just to be with the crowd.
So where is Sequoia today? Our portfolio consists of a relatively small number
of very fine, high growth companies. These companies have significant
competitive advantages in their markets, high returns on capital, abundant
reinvestment opportunities, management teams with talent and integrity and
outstanding track records. Some of them are experiencing what we believe to be
short term business difficulties, others are hitting on all cylinders.
We have never had any success in forecasting either Sequoia's or the stock
market's short term performance. However, our sense of valuation has proven to
be a good barometer over longer periods of time. We feel quite strongly that
our combined portfolio holdings will generate compound annual earnings growth
well into the double-digits as far out as we can see. We believe that the
current prices of our holdings, in the aggregate, significantly undervalue these
prospects. In 1998 we warned that our exceptional gains in recent years were
borrowing from future performance. With our underperformance in 1999 and thus
far in 2000, we believe we have more than repaid this debt. The combination of
attractive current valuations and strong earnings prospects for our portfolio
companies should produce very satisfactory results over the next five years.
Sincerely,
February 17, 2000
<PAGE>
SEQUOIA FUND, INC.
ILLUSTRATION OF AN ASSUMED INVESTMENT OF $ 10,000
With Income Dividends Reinvested and Capital Gains
Distributions Accepted in Shares
The table below covers the period from July 15, 1970 (the date Fund shares were
first offered to the public) to December 31, 1999. This period was one of
widely fluctuating common stock prices. The results shown should not be
considered as a representation of the dividend income or capital gain or loss
which may be realized from an investment made in the Fund today.
Value of Value of Value of
Initial Cumulative Cumulative Total
$10,000 Capital Reinvested Value of
PERIOD ENDED: Investment Distributions Dividends Shares
- ------------ ---------- ------------- ---------- ---------
July 15, 1970 $ 10,000 $0 $0 $10,000
May 31, 1971 11,750 0 184 11,934
May 31, 1972 12,350 706 451 13,507
May 31, 1973 9,540 1,118 584 11,242
May 31, 1974 7,530 1,696 787 10,013
May 31, 1975 9,490 2,137 1,698 13,325
May 31, 1976 12,030 2,709 2,654 17,393
May 31, 1977 15,400 3,468 3,958 22,826
Dec. 31, 1977 18,420 4,617 5,020 28,057
Dec. 31, 1978 22,270 5,872 6,629 34,771
Dec. 31, 1979 24,300 6,481 8,180 38,961
Dec. 31, 1980 25,040 8,848 10,006 43,894
Dec. 31, 1981 27,170 13,140 13,019 53,329
Dec. 31, 1982 31,960 18,450 19,510 69,920
Dec. 31, 1983 37,110 24,919 26,986 89,015
Dec. 31, 1984 39,260 33,627 32,594 105,481
Dec. 31, 1985 44,010 49,611 41,354 134,975
Dec. 31, 1986 39,290 71,954 41,783 153,027
Dec. 31, 1987 38,430 76,911 49,020 164,361
Dec. 31, 1988 38,810 87,760 55,946 182,516
Dec. 31, 1989 46,860 112,979 73,614 233,453
Dec. 31, 1990 41,940 110,013 72,633 224,586
Dec. 31, 1991 53,310 160,835 100,281 314,426
Dec. 31, 1992 56,660 174,775 112,428 343,863
Dec. 31, 1993 54,840 213,397 112,682 380,919
Dec. 31, 1994 55,590 220,943 117,100 393,633
Dec. 31, 1995 78,130 311,266 167,129 556,525
Dec. 31, 1996 88,440 397,099 191,967 677,506
Dec. 31, 1997 125,630 570,917 273,653 970,200
Dec. 31, 1998 160,700 798,314 353,183 1,312,197
Dec. 31, 1999 127,270 680,866 286,989 1,095,125
The total amount of capital gains distributions accepted in shares was $328,919,
the total amount of dividends reinvested was $91,708.
No adjustment has been made for any taxes payable by shareholders on capital
gain distributions and dividends reinvested in shares.
2
<PAGE>
SEQUOIA FUND, INC.
Schedule of Investments
December 31, 1999
COMMON STOCKS (78.49%)
Value
Shares Cost (Note 1)
- ------ ---- --------
BANK HOLDING COMPANIES (14.72%)
5,958,662 Fifth Third Bancorp $ 89,279,910 $ 437,216,824
323,700 Mercantile Bankshares
Corporation 3,339,925 10,338,169
1,145,900 National Commerce Bancorp 7,110,847 25,997,606
4,142,300 U. S. Bancorp 52,341,868 98,638,519
------------ ---------------
152,072,550 572,191,118
------------ ---------------
DIVERSIFIED COMPANIES (29.11%)
20,175 Berkshire Hathaway Inc.
Class A* 160,993,354 1,131,817,500
------------ ---------------
INSURANCE (7.15%)
3,800,900 Progressive Corporation-Ohio+ 129,150,484 277,940,812
----------- ---------------
MANUFACTURING - MOTORCYCLES (7.87%)
4,777,500 Harley Davidson, Inc. 64,205,363 306,058,594
------------ --------------
PERSONAL CREDIT (1.69%)
1,765,000 Household International Inc. 22,208,717 65,746,250
------------ ---------------
SERVICES (15.29%)
12,632,900 Freddie Mac 52,356,710 594,535,856
------------ ---------------
Miscellaneous Securities (2.66%)
77,319,946 103,416,169
------------ --------------
TOTAL COMMON STOCKS $658,307,124 $3,051,706,299
-------------- --------------
3
<PAGE>
SEQUOIA FUND, INC.
Schedule of Investments
December 31, 1999
(continued)
Principal Value
Amount Cost (Note 1)
--------- ---- -------
U.S. GOVERNMENT OBLIGATIONS(21.51%)
$ 16,700,000 U.S. Treasury Bills due
2/10/00 through 2/17/00 $ 16,602,315 $ 16,602,315
259,000,000 U.S. Treasury Notes,
5 5/8% due 4/30/2000 259,563,663 259,000,000
152,000,000 U.S. Treasury Notes,
5 3/8% due 7/31/2000 152,555,707 151,620,000
236,000,000 U.S. Treasury Notes,
5 1/2% due 8/31/2001 235,386,594 233,381,875
176,000,000 U.S. Treasury Notes,
6 1/8% due 12/31/2001 175,917,613 175,642,500
------------- -------------
TOTAL U.S. GOVERNMENT OBLIGATIONS 840,025,892 836,246,690
------------- -------------
TOTAL INVESTMENTS (100%)++ $1,498,333,016 $3,887,952,989
============== ==============
++ The cost for federal income tax purposes is identical.
* Non-income producing.
+ Refer to Note 6.
The accompanying notes form an integral part of these Financial Statements.
4
<PAGE>
SEQUOIA FUND, INC.
Statement of Assets and Liabilities
December 31, 1999
ASSETS:
Investments in securities, at value
(cost $1,498,333,016) (Note 1) $3,887,952,989
Cash on deposit with custodian 151,513
Receivable for capital stock sold 745,819
Dividends and interest receivable 12,167,586
Other assets 42,354
--------------
Total assets 3,901,060,261
==============
LIABILITIES:
Payable for capital stock repurchased 756,260
Accrued investment advisory fee 3,316,830
Accrued other expenses 103,835
--------------
Total liabilities 4,176,925
--------------
Net assets applicable to 30,618,636
shares of capital stock outstanding
(Note 4) $3,896,883,336
==============
Net asset value, offering price and
redemption price per share $127.27
=======
The accompanying notes form an integral part of these Financial Statements.
5
<PAGE>
SEQUOIA FUND, INC.
Statement of Operations
Year Ended December 31, 1999
INVESTMENT INCOME:
Income:
Dividends:
Unaffiliated companies $ 20,010,750
Affiliated companies (Note 6) 1,020,643
Interest 49,835,874
Total income 70,867,267
Expenses:
Investment advisory fee (Note 2) 45,280,173
Legal and auditing fees 80,263
Stockholder servicing agent fees 371,584
Custodian fees 80,000
Directors fees and expenses (Note 5) 187,184
Other 159,996
--------------
Total expenses 46,159,200
Less expenses reimbursed by Investment Adviser (Note 2) 729,000
Net expenses 45,430,200
Net investment income 25,437,067
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain on investments:
Unaffiliated companies 90,205,636
Affiliated companies (Note 6) 56,067,720
Net realized gain on investments 146,273,356
Net decrease in unrealized appreciation on:
Investments (969,232,109)
Net realized and unrealized gain (loss) on investments (822,958,753)
Decrease in net assets from operations $ (797,521,686)
The accompanying notes form an integral part of these Financial Statements.
6
<PAGE>
SEQUOIA FUND, INC.
Statements of Changes in Net Assets
Year Ended December 31,
1999 1998
----------- ------------
INCREASE (DECREASE) IN NET ASSETS:
From operations:
Net investment income $ 25,437,067 $ 11,736,732
Net realized gains 146,273,356 431,381,943
Net (decrease)/increase in unrealized
appreciation (969,232,109) 859,089,190
-------------- --------------
Net (decrease)/increase in net assets
from operations (797,521,686) 1,302,207,865
Distributions to shareholders from:
Net investment income (26,006,104) (10,988,302)
Net realized gains (204,435,454) (238,181,010)
Capital share transactions (Note 4) (77,044,856) 276,288,024
-------------- --------------
Total (decrease)/increase (1,105,008,100) 1,329,326,577
NET ASSETS:
Beginning of year 5,001,891,436 3,672,564,859
-------------- --------------
End of year $3,896,883,336 $5,001,891,436
============== ==============
NET ASSETS CONSIST OF:
Capital (par value and paid in surplus) $1,506,881,082 $1,483,849,808
Undistributed net investment income 179,393 748,430
Undistributed net realized gains 202,888 158,441,116
Unrealized appreciation 2,389,619,973 3,358,852,082
-------------- --------------
Total Net Assets $3,896,883,336 $5,001,891,436
============== ==============
The accompanying notes form an integral part of these Financial Statements.
7
<PAGE>
SEQUOIA FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Sequoia Fund Inc. is registered under the Investment Company Act of 1940, as
amended, as a non-diversified, open-end management company. The investment
objective of the Fund is growth of capital from investments primarily in common
stocks and securities convertible into or exchangeable for common stock. The
following is a summary of significant accounting policies, consistently followed
by the Fund in the preparation of its financial statements.
A. Valuation of investments: Investments are carried at market value or at
fair value as determined by the Board of Directors. Securities traded on a
national securities exchange are valued at the last reported sales price on the
principal exchange on which the security is listed on the last business day of
the period; securities traded in the over-the-counter market are valued at the
last reported sales price on the NASDAQ National Market System on the last
business day of the period; listed securities and securities traded in the
over-the-counter market for which no sale was reported on that date are valued
at the mean between the last reported bid and asked prices; U.S. Treasury Bills
with remaining maturities of 60 days or less are valued at their amortized cost.
U.S. Treasury Bills that when purchased have a remaining maturity in excess of
sixty days are stated at their discounted value based upon the mean between the
bid and asked discount rates until the sixtieth day prior to maturity, at which
point they are valued at amortized cost.
B. Accounting for investments: Investment transactions are accounted for on
the trade date and dividend income is recorded on the ex-dividend date. The net
realized gain or loss on security transactions is determined for accounting and
tax purposes on the specific identification basis.
C. Federal income taxes: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its stockholders.
Therefore, no federal income tax provision is required.
D. Use of Estimates: The preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
E. General: Dividends and distributions are recorded by the Fund on the
ex-dividend date. Interest income is accrued as earned.
NOTE 2--INVESTMENT ADVISORY CONTRACTS AND PAYMENTS TO INTERESTED PERSONS:
The Fund retains Ruane, Cunniff & Co., Inc. as its investment adviser. Ruane,
Cunniff & Co., Inc. (Investment Adviser) provides the Fund with investment
advice, administrative services and facilities.
Under the terms of the Advisory Agreement, the Investment Adviser receives a
management fee equal to 1% per annum of the Fund's average daily net asset
values. This percentage will not increase or decrease in relation to increases
or decreases in the net asset value of the Fund. Under the Advisory Agreement,
the Investment Adviser is obligated to reimburse the Fund for the amount, if
any, by which the operating expenses of the Fund (including the management fee)
in any year exceed the sum of 1-1/2% of the average daily net asset values of
the Fund during such year up to a maximum of $30,000,000, plus 1% of the average
daily net asset values in excess of $30,000,000. The expenses incurred by the
Fund exceeded the percentage limitation during the year ended December 31, 1999
and the Investment Adviser reimbursed the Fund $729,000.
For the year ended December 31, 1999, there were no amounts accrued to
interested persons, including officers and directors, other than advisory fees
of $45,280,173 and brokerage commissions of $131,970 to Ruane, Cunniff & Co.,
Inc. Certain officers of the Fund are also officers of the Investment Adviser
and the Fund's distributor. Ruane, Cunniff & Co., Inc., the Fund's distributor,
received no compensation from the Fund on the sale of the Fund's capital shares
during the year ended December 31, 1999.
NOTE 3--PORTFOLIO TRANSACTIONS:
The aggregate cost of purchases and the proceeds from the sales of securities,
excluding U.S. government obligations, for the year ended December 31, 1999 were
$79,494,572 and $188,079,320,respectively. Included in proceeds of sales is
$118,049,125 representing the value of securities disposed of in payment of
redemptions in-kind resulting in realized gains of $100,076,130. As a result of
the redemptions in-kind net realized gains differ for financial statement and
tax purposes. These realized gains have been reclassified from undistributed
realized gains to paid in surplus in the accompanying financial statements.
At December 31, 1999 the aggregate gross unrealized appreciation and
depreciation of securities were $2,393,399,175 and $3,779,202, respectively.
8
<PAGE>
NOTE 4--CAPITAL STOCK:
At December 31, 1999 there were 100,000,000 shares of $.10 par value
capital stock authorized. Transactions in capital stock were as follows:
1999 1998
Shares Amount Shares Amount
----------------------- -----------------------
Shares sold 1,202,565 $ 176,388,982 2,164,908 $ 319,175,918
Shares issued to
stockholders on
reinvestment of:
Net investment income 145,003 18,304,561 54,399 7,959,038
Net realized gain on
investments 1,296,655 184,338,802 1,470,593 215,201,334
2,644,223 379,032,345 3,689,900 542,336,290
Shares repurchased 3,151,477 456,077,201 1,796,644 266,048,266
Net (Decrease)/Increase (507,254) $ (77,044,856) 1,893,256 $ 276,288,024
NOTE 5--DIRECTORS FEES AND EXPENSES:
Directors who are not deemed "interested persons" receive fees of $6,000 per
quarter and $2,500 for each meeting attended, and are reimbursed for travel and
other out-of-pocket disbursements incurred in connection with attending
directors meetings. The total of such fees and expenses paid by the Fund to
these directors for the year ended December 31, 1999 was $187,184.
NOTE 6--AFFILIATED COMPANIES:
Investment in portfolio companies 5% or more of whose outstanding voting
securities are held by the Fund are defined in the Investment Company Act of
1940 as "affiliated companies." The total value and cost of investments in
affiliates at December 31, 1999 aggregated $277,940,812 and $129,150,484,
respectively. The summary of transactions for each affiliate during the period
of their affiliation for the year ended December 31, 1999 is provided below:
Purchases Sales Realized Dividend
Affiliate Shares Cost Shares Cost Gain Income
Progressive Corp
- - Ohio -- -- 551,600 $19,431,378 $56,067,720 $1,020,643
9
<PAGE>
NOTE 7--FINANCIAL HIGHLIGHTS:
Year Ended December 31,
1999 1998 1997 1996 1995
Per Share Operating Performance (for a
share outstanding throughout each year)
Net asset value, beginning
of year $160.70 $125.63 $88.44 $78.13 $55.59
------ ------ ------ ------ ------
Income from investment
operations:
Net investment income 0.84 0.39 0.08 0.38 0.31
Net realized and unrealized
gains (losses) on investments (26.83) 43.07 38.10 16.41 22.62
------- ------ ------ ------ ------
Total from investment
operations (25.99) 43.46 38.18 16.79 22.93
------- ------ ------ ------ ------
Less distributions:
Dividends from net investment
income (0.85) (0.37) (0.08) (0.38) (0.31)
Distributions from net
realized gains (6.59) (8.02) (0.91) (6.10) (0.08)
------ ------ ------ ------ ------
Total distributions (7.44) (8.39) (0.99) (6.48) (0.39)
------ ------ ------ ------ ------
Net asset value, end of year $127.27 $160.70 $125.63 $88.44 $78.13
====== ======= ====== ====== ======
Total Return -16.5% 35.3% 43.2% 21.7% 41.4%
Ratios/Supplemental data
Net assets, end of year
(in millions) $3,896.9 $5,001.9 $3,672.6 $2,581.0 $2,185.5
Ratio to average net assets:
Expenses 1.0% 1.0% 1.0% 1.0% 1.0%
Net investment income 0.6% 0.3% 0.1% 0.4% 0.5%
Portfolio turnover rate 12% 21% 8% 23% 15%
10
<PAGE>
Report of Independent Accountants
To the Board of Directors and Shareholders of
Sequoia Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Sequoia Fund, Inc. (the "Fund") at December 31, 1999, and the results
of its operations, the changes in its net assets and the financial
highlights for the year then ended, in conformity with accounting
principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of
these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audit, which included confirmation of securities at December
31, 1999 by correspondence with the custodian, provides a
reasonable basis for the opinion expressed above. The financial
statements of the Fund for the year ended December 31, 1998, including
the financial highlights for each of the four years in the period
then ended, were audited by other independent accountants whose report
dated January 15, 1999 expressed an unqualified opinion on those
financial statements.
PricewaterhouseCoopers LLP
New York, New York
January 14, 2000
11
<PAGE>
CHANGE IN INDEPENDENT ACCOUNTANTS
On August 13, 1999, McGladrey & Pullen, LLP ("McGladrey") resigned as
independent accountants of the Fund pursuant to an agreement by
PricewaterhouseCoopers LLP ("PwC") to acquire McGladrey's
investment company practice. The McGladrey partners and professionals
serving the Fund at the time of the acquisition joined PwC.
The reports of McGladrey on the financial statements of the Fund during
the past two fiscal years contained no adverse opinion or disclaimer of
opinion, and were not qualified or modified as to uncertainty, audit
scope or accounting principles.
In connection with its audits for the two most recent fiscal years and
through August 13, 1999, there were no disagreements with McGladrey on
any matter of accounting principle or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not
resolved to the satisfaction of McGladrey, would have caused it to make
reference to the subject matter of disagreement in connection with its
report.
On September 13, 1999 the Fund, with the approval of its Board of
Directors and its Audit Committee, engaged PwC as its independent
accountants.
12
<PAGE>
SEQUOIA FUND, INC.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
Website : www.sequoiafund.com
DIRECTORS
William J. Ruane
Richard T. Cunniff
Robert D. Goldfarb
Carol L. Cunniff
John M. Harding
Roger Lowenstein
Francis P. Matthews
C. William Neuhauser
Robert L. Swiggett
OFFICERS
William J. Ruane - Chairman of the Board
Richard T. Cunniff - Vice Chairman
Robert D. Goldfarb - President
Carol L. Cunniff - Executive Vice President
Joseph Quinones, Jr. - Vice President, Secretary &
Treasurer
INVESTMENT ADVISER & DISTRIBUTOR
Ruane, Cunniff & Co., Inc.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
CUSTODIAN
The Bank of New York
MF Custody Administration Department
100 Church Street, 10th Floor
New York, New York 10286
REGISTRAR AND SHAREHOLDER
SERVICING AGENT
DST Systems, Inc.
P.O. Box 219477
Kansas City, Missouri 64121
LEGAL COUNSEL
Seward & Kissel
One Battery Park Plaza
New York, New York 10004
This report has been prepared for the information of shareholders of Sequoia
Fund, Inc.
