(PUB) Investing 2015

6

Data through August 31, 2015 Sequoia

Ticker

Status Yield Total Assets

Mstar Category

SEQUX Closed 0.0% $9,318 mil

Large Growth

Morningstar Analyst Rating 08-25-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating High Below Avg Highest

97% 82% 84% 77% 74% 84% 82% 87% 87%

Œ

Manager Change Partial Manager Change

10.0 14.0 18.0 22.8 26.8

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Neutral

Investment Values of Fund Investment Values of S&P 500

People Parent Price

¶

Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 08-15

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

139.12 152.75 155.45 154.27

258.24 235.00 222.92 168.31 145.50 129.29 109.90 95.27

NAV

4.66 -6.22 -1.64 0.00 4.66 0.00 0.21 1.00 -0.40 99

7.78 2.87 2.52 0.00 7.78

8.34 -7.45 -0.73 0.00 8.34

-27.03 8.40

15.38

19.50

13.19 11.08 10.55

15.68 -0.32

34.58

7.55 -6.14 -5.50 0.00 7.55 0.00 4.54 1.00 -0.26 78

10.96 13.84 15.79

Total Return %

2.91 -3.41 0.31

-11.08 9.97 -21.83 11.41

4.44 2.79 0.29

2.19 1.10 0.00

+/-S&P 500

0.42 0.00

+/-Russ 1000Gr Income Return % Capital Return %

0.31

0.02

0.00

0.00

-27.34 8.09

15.36

19.21

13.19

15.68

34.58

10.96

24

97

25

3

97

7

1

42

42

1

Total Rtn % Rank Cat

Pillar Spectrum Positive

0.00

0.00

0.45

0.42 6.72 1.00 0.30

0.02 0.00 1.01 0.01

0.31 1.65 1.00 0.00

0.00 0.82 1.00 -0.34

0.00 0.00 1.00 -0.26

0.00 3.40 1.00 -0.37

0.00 2.53

Income $

§ Negative

¶ Neutral

10.64 1.00 -0.50

15.60 1.00 -0.50

27.12

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

1.00 0.30

. . .

Performance 08-31-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

6

8

14

13

12

15

23

3

5

2

8

2011 2012 2013 2014 2015

10.44 1.06 10.76 -4.95 10.77 3.50 1.78 -0.86 7.67 1.98

-9.92 12.58 13.19 6.48 3.20 15.68 7.60 9.09 34.58

3,573

3,600

3,513

2,486

2,868

3,511

4,895

5,828

8,037

8,070

8,816

.

Portfolio Analysis 06-30-15 Share change since 03-15 Total Stocks:42 Sector

Rating and Risk Time Load-Adj

-0.65 7.28

7.55

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

. . .

Period Return % Rtn vs Cat

Valeant Pharmaceuticals TJX Companies Inc Berkshire Hathaway Inc C Berkshire Hathaway Inc C O’Reilly Automotive Inc MasterCard Inc Class A Precision Castparts Corp IDEXX Laboratories Inc Mohawk Industries Inc Rolls-Royce Holdings PLC Sirona Dental Systems In Google Inc Class A Constellation Software I Google Inc Class C Capit Fastenal Co Waters Corp

Hlth care 106.4 79.95 26.01

1 Yr 3 Yr 5 Yr

19.13 19.38 19.30 10.53 14.56

Trailing

Total

+/-

+/- Russ %Rank Growth of

Cnsmr Cyc 21.5

7.91

.

Return% S&P 500 1000Gr

Cat

$10,000

High High High

Avg Low Low

Finan Svs 17.3 -5.31 7.16 Finan Svs 17.3 -4.94 4.21

3 Mo 6 Mo 1 Yr

-2.15 3.77 2.64 7.96

6.00 8.92

6 9,785 1 10,264 1 11,913 3 17,014 4 24,166 3 27,215 1 41,094

10 Yr Incept

Industrl

23.8 -10.22 4.19

19.13 18.65 14.91

Cnsmr Cyc 30.9 24.76 4.14 Finan Svs 29.9 13.60 2.98 Hlth care 38.8 -1.90 2.82 Cnsmr Cyc 31.3 29.76 2.46 Hlth care 33.1 18.78 1.31 Hlth care 24.7 18.43 1.21 Technology 32.7 23.89 1.04 Technology 68.5 49.46 1.03 Technology 30.8 17.77 1.03 Hlth care 129.9 15.13 1.01 Hlth care 43.9 25.29 0.98 Basic Mat 22.2 -10.80 0.96 Finan Svs 10.8 6.44 0.94 Industrl 18.1 -19.06 2.93 Industrl . -4.98 1.98

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

19.38 5.07 19.30 3.43 10.53 3.38 9.88 6.12

4.23 4.64 2.67

Other Measures

Standard Index

Best Fit Index R3000 Growth

S&P 500

Alpha

6.4

5.6

.

Beta

0.86

0.86

R-Squared

65

71

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 18.95 2 0.36 14 18.95 2 0.29 16 9.75 3 0.71 57 Potential Capital Gain Exposure: 63% of assets Morningstar’s Take by Kevin McDevitt, CFA 08-25-15 The Sequoia team’s faith in its top holding has been richly rewarded. Recall that Valeant Pharmaceuticals’ shares VRX, which claimed 26% of the March 2015 portfolio, struggled through the first seven months of 2014 as the company waged a high-profile takeover battle for Allergan AGN, which it eventually lost. The market believed that Valeant would not be able to grow at an attractive rate without Allergan. But managers Bob Goldfarb and David Poppe contended that the company still enjoyed good organic growth prospects. The market has come around to their perspective, more than doubling the share price during the 12 months through July 2015. Given its position size, Valeant’s revival has had an outsized impact on the fund’s results. After muddling along for the prior three years, it has gained 29.5% annualized through July 2015, which is nearly triple the S&P 500’s 11.2% return. The fund has traditionally lagged its benchmark in the latter stages of a bull market, but Valeant’s surge has broken that trend. The fund has also benefitted from Berkshire Hathaway’s

Standard Deviation

10.19 19.38

Mean

Sharpe Ratio

1.80

Perrigo Co PLC Novozymes A/S B

Praxair Inc

BRK.B recently announced acquisition of top-10 holding Precision Castparts PCP. But having 26% of assets in one company creates significant stock-specific risk. It’s the fund’s largest single position since Berkshire, which is still 11.4% of assets, and claimed 28.7% of the portfolio in December 2006. But Valeant arguably carries more risk than Berkshire. As a conglomerate, Berkshire was diversified across a number of industries and maintained a stronger balance sheet. Valeant is focused on pharmaceuticals and has a highly leveraged balance sheet with a debt/capital ratio of 82.5%. Goldfarb and Poppe are comfortable, though, with both Valeant’s balance sheet and valuation. They believe that synergies and cost savings within recent acquisitions and strong growth prospects make the balance sheet stronger than it may appear while keeping the shares reasonably priced. Their ability to see and capitalize on such developments helps the fund retain a Morningstar Analyst Rating of Gold.

Goldman Sachs Group Inc

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 56.5 Large 22.3 Mid 19.8 Small 1.4 Micro 0.0 Avg $mil: 47,820

Value Blnd Growth

Large Mid Small

Cyclical 38.70 BasicMat 2.02 CnsmrCyc17.79 FinanSvs 18.89 Real Est 0.00 Sensitive 18.79 CommSrvs 0.00 Energy 0.07 Industrl 13.55 Technlgy 5.17 Defensive42.52 CnsmrDef 0.93 Hlthcare 41.59 Utilities 0.00

. .

h r t y u j i o p a k s d f

4 2

. 25 18 . 21 19 . . .

.

. . .

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

3 0

.

25.72 3.80 2.53 16.19 0.62 10.68 10.70 11.29 19.29 11.29

1.44 1.32 1.40 1.62 0.47 0.79 1.04 1.41 1.49 0.51

. 19 14

7 5

. . .

1 0

. 39 23 . . .

% Rel Category

Composition - Net

Cash 15.5 Stocks 84.5 Bonds 0.0 Other 0.0 Foreign 41.1

Address:

Sequoia Fund Inc New York, NY 10153-4798 800-686-6884 www.sequoiafund.com

Minimum Purchase: Min Auto Inv Plan:

Closed Closed No-load 1.00% 3Yr:$328 Annually

Add: . Add: .

IRA: .

Profitability

% Rel Category

Sales Fees:

Return on Equity Return on Assets Net Margin

23.60 8.30 12.65

1.13 0.85 0.90

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

(% of Stock)

07-15-70

Actual Fees:

Mgt:1.00% Dist: .

Ruane, Cunniff & Goldfarb Inc

Expense Projections: Income Distribution:

5Yr:$569 10Yr:$1259

None

N/A

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor timely. Pastperformance is no guarantee of future results.Access updated reportsat Toorder reprints, call312-696-6100. mfb.morningstar.com.

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