<PAGE>
SEQUOIA Fund, Inc.
SEMI-ANNUAL REPORT
JUNE 30, 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 June 30, 2000. 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.
<TABLE>
<CAPTION>
VALUE OF VALUE OF VALUE OF
INITIAL CUMULATIVE CUMULATIVE TOTAL
$10,000 CAPITAL GAINS REINVESTED VALUE OF
PERIOD ENDED: INVESTMENT DISTRIBUTIONS DIVIDENDS SHARES
------------- ---------- ------------- --------- ------
<S> <C> <C> <C> <C>
July 15, 1970............... $ 10,000 $ -- $ -- $ 10,000
May 31, 1971................ 11,750 -- 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
June 30, 2000............... 123,600 661,313 282,339 1,067,252
</TABLE>
The total amount of capital gains distributions accepted in shares was
$329,005, the total amount of dividends reinvested was $95,580.
No adjustment has been made for any taxes payable by shareholders on capital
gain distributions and dividends reinvested in shares.
<PAGE>
TO THE SHAREHOLDERS OF
SEQUOIA FUND, INC.
Dear Shareholder:
Sequoia Fund's results for the second quarter of 2000 are shown below with
comparable results for the leading market indexes:
<TABLE>
<CAPTION>
Sequoia Dow Jones Standard &
Fund Industrials Poor's 500
To June 30, 2000 ---- ----------- ----------
<S> <C> <C> <C>
3 months -2.6% -4.0% -2.7%
6 months -2.6 -8.4 -0.4
</TABLE>
The first six months of 2000 were certainly a bizarre period for the
shareholders and management of the Sequoia Fund. From January 1st to March 10th
of 2000, the Fund declined by 18%, while the technology-laden NASDAQ rose 24%.
However, from March 10th through the date of this letter, Sequoia rebounded by
29%, while the NASDAQ declined by 26%. In our 30-year history, this is far and
away the most dramatic divergence between Sequoia and such a large sector of
the market over such a short period of time. Today, most of our holdings have
returned to what we believe are more sensible levels. Lo and behold, as we
write this letter, the Fund is up 4.9% year-to-date. This compares to the S&P
at +0.1%, the Dow at -4.3% and the NASDAQ at -7.5%.
The Fund is currently in a conservative posture, with about 30% of our
investments in two-year Treasuries yielding about 6 1/4%. This is certainly not
the first time we have held a sizeable cash reserve for future investments.
Indeed, we held large cash reserves during much of the 1980s and the early
1990s. Over the years we have found that investment patience is eventually
rewarded. At year-end 1993, for example, about one third of our assets were in
Treasuries and cash. This allowed us to make an aggressive move into financial
services stocks in 1994 when they became very attractively priced. These
positions were strong contributors to the Fund's performance in the latter half
of the 1990s.
Our current conservative posture is in no way an attempt to time the
market. It is simply the result of our usual stock-by-stock evaluation that has
led us to be sellers more often than buyers during the past several quarters.
After a bull market of unprecedented duration, stock market investors
increasingly demand that their funds remain fully invested in equities
regardless of market opportunities. In this environment, it is perhaps ironic
(and certainly little remarked) that, so far in 2000, cash has outperformed all
the major stock market indexes.
We believe the recipe for delivering superior long-term performance
requires equal parts of picking the right stocks and avoiding the wrong ones.
We were not even tempted to join the recent speculative frenzy in the dot.com
sector. But avoiding other, more subtle value traps is also critical, as well
as more analytically taxing. Today's volatile and multi-tiered market offers us
a variety of possible strategies for new investments.
Searching among the "old economy" stocks, we have identified and studied a
number of companies with fine historical track records selling at apparently
modest valuations. We have not infrequently concluded that, due to product
maturity, technological change or other competitive factors, these companies
are unlikely to sustain their enviable track records. As a result, their
current stock prices may appropriately reflect limited prospects for growth in
value over the long term. However, we have also identified companies with very
low price/earnings multiples, limited growth prospects (but also minimal
downside), earnings that are mostly cash, and the ability and willingness to
return this cash to shareholders through dividends or share repurchases. While
these companies may not be glamorous, the mathematics of their current
valuations can provide very attractive returns over time.
Our large cash reserve may permit us to capitalize on other occasionally
dysfunctional aspects of the current market environment. Investors often dump
the shares of a company or an entire industry sector indiscriminately based on
fears of an economic slowdown or in the wake of a strong company's shortfall,
however modest, from analysts' expectations. This can create potential buying
opportunities, although in any number of cases, even after severe price
declines, we have found these to be surprisingly marginal rather than
compelling opportunities, and often of very brief duration. Nevertheless, this
price volatility has permitted us to establish some new positions over the past
several quarters.
We do not normally provide you with an early estimate of Sequoia's year-end
capital gains distribution. However, due to the magnitude of this distribution
in 2000, we felt we should alert our tax-paying shareholders that it is likely
to be in excess of $20 per share, payable in December. At the 20% federal tax
rate on long-term capital gains, the federal tax due on a $20 capital gains
distribution, for example, would be $4.00 per share. We recommend that you keep
this in mind for your tax planning.
In closing, we highly recommend to our shareholders who are interested in
the general investment scene that you add PIONEERING PORTFOLIO MANAGEMENT by
David F. Swensen to your summer reading list. Swensen, Chief Investment Officer
at Yale University, provides a thoughtful and provocative overview of the
investment management process.
Sincerely,
<TABLE>
<S> <C>
/s/ Carley Cuniff /s/ Richard T. Cuniff
Carley Cunniff Richard T. Cunniff
/s/ Robert D. Goldfarb /s/ William J. Ruane
Robert D. Goldfarb William J. Ruane
</TABLE>
August 10, 2000
<PAGE>
SEQUOIA FUND, INC.
SCHEDULE OF INVESTMENTS
JUNE 30, 2000 (UNAUDITED)
COMMON STOCKS (66.11%)
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 1)
------ -------------- --------------
<C> <S> <C> <C>
BANK HOLDING COMPANIES (13.71%)
5,958,662 Fifth Third Bancorp.............. $ 89,279,910 $ 376,885,372
Mercantile Bankshares
249,700 Corporation...................... 2,610,505 7,444,181
1,145,900 National Commerce Bancorp........ 7,110,847 18,406,019
3,799,700 U.S. Bancorp..................... 48,179,594 73,144,225
-------------- --------------
147,180,856 475,879,797
-------------- --------------
DIVERSIFIED COMPANIES (31.26%)
Berkshire Hathaway Inc.
20,175 Class A*......................... 160,993,354 1,085,415,000
-------------- --------------
HOME FURNISHINGS (1.46%)
2,115,500 Ethan Allen Interiors Inc.+...... 53,478,605 50,772,000
-------------- --------------
INSURANCE (8.10%)
3,800,900 Progressive Corporation+......... 129,150,484 281,266,600
-------------- --------------
INDUSTRIAL AND COMMERCIAL MACHINERY (2.53%)
2,163,400 Dover Corporation................ 72,424,416 87,752,913
-------------- --------------
MANUFACTURING-MOTORCYCLES (1.32%)
1,191,850 Harley Davidson, Inc............. 7,824,981 45,886,225
-------------- --------------
PERSONAL CREDIT (2.00%)
1,667,200 Household International, Inc..... 21,044,799 69,293,000
-------------- --------------
SERVICES (3.90%)
3,344,600 Freddie Mac...................... 13,263,099 135,456,300
-------------- --------------
Miscellaneous Securities (1.83%). 63,842,533 63,696,212
-------------- --------------
TOTAL COMMON STOCKS.............. 669,203,127 2,295,418,047
-------------- --------------
<CAPTION>
PRINCIPAL
AMOUNT
------
<C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS
(33.89%)
U.S. Treasury Bills due 7/06/00
$ 42,000,000 through 8/17/00.................. 41,776,181 41,776,181
U.S. Treasury Notes, 5 1/2% due
242,000,000 08/31/01......................... 241,375,418 239,428,750
U.S. Treasury Notes, 6 1/8% due
763,500,000 12/31/01......................... 760,055,090 760,159,687
U.S. Treasury Notes, 6 3/8% due
135,500,000 01/31/02......................... 134,864,463 135,351,797
-------------- --------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS.................... 1,178,071,152 1,176,716,415
-------------- --------------
TOTAL INVESTMENTS (100%)++....... $1,847,274,279 $3,472,134,462
============== ==============
</TABLE>
-------------------
++ 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
<PAGE>
SEQUOIA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value (cost
$1,847,274,279) (Note 1)........................ $3,472,134,462
Cash on deposit with custodian.................... 399,136
Receivable for investment securities sold......... 15,011,547
Receivable for capital stock sold................. 320,476
Dividends and interest receivable................. 10,270,841
Other assets...................................... 24,946
-------------
Total assets.................................... 3,498,161,408
=============
LIABILITIES:
Payable for capital stock repurchased............. 260,418
Accrued investment advisory fee................... 3,161,349
Accrued other expenses............................ 88,066
-------------
Total liabilities............................... 3,509,833
-------------
Net assets applicable to 28,274,033 shares of
capital stock outstanding (Note 4).............. $3,494,651,575
=============
Net asset value, offering price and redemption
price per share................................. $123.60
=============
</TABLE>
The accompanying notes form an integral part of these Financial Statements.
<PAGE>
SEQUOIA FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends:
Unaffiliated companies...................... $ 9,472,261
Affiliated companies (Note 6)............... 494,117
Interest...................................... 28,624,881
------------
Total income.................................... 38,591,259
------------
Expenses:
Investment advisory fee (Note 2).............. 17,991,351
Legal and auditing fees....................... 42,808
Stockholder servicing agent fees.............. 193,641
Custodian fees................................ 40,000
Directors fees and expenses (Note 5).......... 97,538
Other......................................... 84,162
------------
Total expenses.................................. 18,449,500
Less expenses reimbursed by Investment Adviser
(Note 2)...................................... 383,000
------------
Net expenses.................................... 18,066,500
------------
Net investment income........................... 20,524,759
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Realized gain on investments:
Unaffiliated companies........................ 630,629,484
------------
Net realized gain on investments................ 630,629,484
Net decrease in unrealized appreciation on:
Investments................................... (764,759,790)
------------
Net realized and unrealized (loss) on
investments................................... (134,130,306)
------------
Decrease in net assets from operations............ $(113,605,547)
============
</TABLE>
The accompanying notes form an integral part of these Financial Statements.
<PAGE>
SEQUOIA FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
6/30/00 ENDED
(UNAUDITED) 12/31/99
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations:
Net investment income............... $ 20,524,759 $ 25,437,067
Net realized gain................... 630,629,484 146,273,356
Net (decrease) in unrealized
appreciation...................... (764,759,790) (969,232,109)
-------------- --------------
Net (decrease) in net assets from
operations...................... (113,605,547) (797,521,686)
Distributions to shareholders from:
Net investment income............... (12,811,957) (26,006,104)
Net realized gains.................. (284,685) (204,435,454)
Capital share transactions
(Note 4).......................... (275,529,572) (77,044,856)
-------------- --------------
Total (decrease).................. (402,231,761) (1,105,008,100)
NET ASSETS:
Beginning of period................... 3,896,883,336 5,001,891,436
-------------- --------------
End of period......................... $3,494,651,575 $3,896,883,336
============== ==============
NET ASSETS CONSIST OF:
Capital (par value and paid in
surplus)............................ $1,275,454,512 $1,506,881,082
Undistributed net investment income... 7,892,195 179,393
Undistributed net realized gains
(Note 3)............................ 586,444,685 202,888
Unrealized appreciation............... 1,624,860,183 2,389,619,973
-------------- --------------
Total Net Assets.................... $3,494,651,575 $3,896,883,336
============== ==============
</TABLE>
The accompanying notes form an integral part of these Financial Statements
<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
<PAGE>
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 six months ended June 30, 2000 and the
Investment Adviser reimbursed the Fund $383,000.
For the six months ended June 30, 2000, there were no amounts accrued to
interested persons, including officers and directors, other than advisory fees
of $17,991,351 and brokerage commissions of $844,288 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 six months ended June 30, 2000.
NOTE 3--PORTFOLIO TRANSACTIONS:
The aggregate cost of purchases and the proceeds from the sales of
securities, excluding U.S. government obligations, for the six months ended
June 30, 2000 were $112,425,607 and $734,616,740, respectively. Included in
proceeds of sales is $57,679,644 representing the value of securities disposed
of in payment of redemptions in-kind resulting in realized gains of
$44,103,002. As a result of the redemptions in-kind, net realized gains differ
for financial statements and tax purposes. These realized gains have been
reclassified from undistributed realized gains to paid in surplus in the
accompanying financial statements.
At June 30, 2000 the aggregate gross unrealized appreciation and
depreciation of securities were $1,637,151,367 and $12,291,184, respectively.
NOTE 4--CAPITAL STOCK:
At June 30, 2000 there were 100,000,000 shares of $.10 par value capital
stock authorized. Transactions in capital stock for the six months ended
June 30, 2000 and the year ended December 31, 1999 were as follows:
<TABLE>
<CAPTION>
2000 1999
------------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------- --------- ------------
<S> <C> <C> <C> <C>
Shares sold................ 362,887 $ 44,802,729 1,202,565 $176,388,982
Shares issued to stockholders
on reinvestment of:
Net investment income.... 66,535 8,782,617 145,003 18,304,561
Net realized gains on
Investments............ 1,900 250,835 1,296,655 184,338,802
---------- ------------- --------- ------------
431,322 53,836,181 2,644,223 379,032,345
Shares repurchased......... 2,775,925 329,365,753 3,151,477 456,077,201
---------- ------------- --------- ------------
Net (decrease)............. (2,344,603) $(275,529,572) (507,254) $(77,044,856)
========== ============= ========= ============
</TABLE>
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 six months ended June 30, 2000 was $97,538.
<PAGE>
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 June 30, 2000 aggregated $332,038,600 and $182,629,089,
respectively. The summary of transactions for each affiliate during the period
of their affiliation for the six months ended June 30, 2000 is provided below:
<TABLE>
<CAPTION>
PURCHASES SALES
---------------------- ------------ REALIZED DIVIDEND
AFFILIATE SHARES COST SHARES COST GAIN INCOME
--------- --------- ----------- ------ ---- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Progressive
Corporation....... -- -- -- -- -- $494,117
Ethan Allen Interiors 2,115,500 $53,478,605 -- -- -- --
--------
$494,117
========
</TABLE>
NOTE 7--The interim financial statements have not been examined by the Fund's
independent accountants and accordingly they do not express an opinion thereon.
NOTE 8--FINANCIAL HIGHLIGHTS:
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
-------- ------------------------------------------------
2000 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating
Performance (for a
share outstanding
throughout the period)
Net asset value,
beginning of Period$ 127.27 $ 160.70 $ 125.63 $ 88.44 $ 78.13 $ 55.59
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income. 0.72 0.84 0.39 0.08 0.38 0.31
Net realized and
unrealized gains
(losses) on
investments....... (3.93) (26.83) 43.07 38.10 16.41 22.62
-------- -------- -------- -------- -------- --------
Total from investment
operations..... (3.21) (25.99) 43.46 38.18 16.79 22.93
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends from net
investment income.. (0.45) (0.85) (0.37) (0.08) (0.38) (0.31)
Distributions from net
realized gains..... (0.01) (6.59) (8.02) (0.91) (6.10) (0.08)
-------- -------- -------- -------- -------- --------
Total
distributions... (0.46) (7.44) (8.39) (0.99) (6.48) (0.39)
-------- -------- -------- -------- -------- --------
Net asset value, end of
period.......... $ 123.60 $ 127.27 $ 160.70 $ 125.63 $ 88.44 $ 78.13
======== ======== ======== ======== ======== ========
Total Return...... -2.6%+ -16.5% 35.3% 43.2% 21.7% 41.4%
Ratios/Supplemental data
Net assets, end of period
(in millions)... $3,494.7 $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% 1.0%
Net investment
income........ 1.1%* 0.6% 0.3% 0.1% 0.4% 0.5%
Portfolio turnover
rate............ 52%* 12% 21% 8% 23% 15%
</TABLE>
-------------------
+ Not annualized
* Annualized
<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
Francis P. Matthews
C. William Neuhauser
Robert L. Swiggett
Roger Lowenstein
OFFICERS
<TABLE>
<S>
William J. Ruane
Richard T. Cunniff
Robert D. Goldfarb
Carol L. Cunniff
Joseph Quinones, Jr.
<S>
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
</TABLE>
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.
