(PUB) Investing 2016

7

April 2016

Morningstar FundInvestor

Data through March 31, 2016 FINRA members: For internal or institutional use only. Sequoia

Ticker SEQUX

Yield 0.0%

Total Assets $5,470 mil

Mstar Category Large Growth

Benchmark 1: Russell 1000 Growth TR USD Benchmark 2: S&P 500 TR USD Morningstar Analyst Rating 03-24-16 ´

Investment Style Equity

Historical Profile Return Risk Rating Below Avg Below Avg QQ Below Avg

7 7 7 7 7 7 7 7

20.0 25.0

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

15.0

Morningstar Pillars Process

∞ Positive ¶ Neutral ∞ Positive ∞ Positive ¶ Neutral

10.0

Performance

People Parent

Performance Quartile (within Category)

) & & ) & & * * ) ) ) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 03-16 152.75 139.12 95.27 109.90 129.29 145.50 168.31 222.92 235.00 207.26 183.85 8.34 8.40 -27.03 15.38 19.50 13.19 15.68 34.58 7.55 -7.29 -11.30 -0.73 -3.41 11.41 -21.83 2.78 10.55 0.42 1.09 -5.50 -12.96 -12.04 -7.45 2.91 9.97 -11.08 4.43 11.08 -0.33 2.19 -6.14 -8.68 -12.64 0.00 0.31 0.31 0.02 0.29 0.00 0.00 0.00 0.00 0.00 0.00 8.34 8.10 -27.33 15.36 19.21 13.19 15.68 34.58 7.55 -7.29 -11.30 0.00 0.45 0.42 0.02 0.31 0.00 0.00 0.00 0.00 0.00 0.00 15.60 27.12 6.72 0.00 1.65 0.82 0.00 3.40 4.54 10.51 0.00 1.00 1.00 1.00 1.05 1.04 1.03 1.03 1.02 1.03 1.03 . -0.50 0.30 0.30 0.01 0.00 -0.34 -0.26 -0.37 -0.26 -0.42 . 97 25 3 97 7 1 42 42 78 98 99

Price

History

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 „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 03-31-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

10.76 -4.95 6.48 3.20 15.68 10.77 3.50 7.60 9.09 34.58 1.78 -0.86 -0.65 7.28 7.55 7.67 1.98 -7.12 -9.09 -7.29

.

14

13

12

15

23

3

5

2

8

10

3,600 3,513 2,486 2,868 3,511 4,895 5,828 8,037 8,070 6,744 5,470

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 12-31-15 Total Stocks: 39 Share change since 09-30-15

-11.29

— — — —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

YTD Ret % % Assets — 19.31 7.91 8.33 10.79 6.92 7.99 6.20 20.77 5.28 7.45 4.92 -2.74 4.30 — 4.13 7.41 3.40 0.80 3.21 — 2.61 — 2.35 — 2.03 -1.94 1.86 — 1.82 -1.98 1.67 3.81 1.38 — 1.29 2.30 1.05 10.67 1.04

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

T Valeant Pharmaceuticals I Berkshire Hathaway Inc A

Hlth Care Finan Svcs Cnsmr Cyc Cnsmr Cyc

1 Yr 3 Yr 5 Yr

-23.62

3 Mo 6 Mo

-11.30 -12.04 -12.64 -19.36 -27.47 -27.84 -23.62 -26.14 -25.41 2.43 -11.18 -9.39 7.13 -5.25 -4.45 6.02 -2.26 -0.99 6.92 0.89 0.03

99 8,871 100 8,064 100 7,638 99 10,746 91 14,111 69 17,941 11 27,287

Low +Avg Q

2.43 7.13 6.02

TJX Companies Inc

-Avg QQ Low QQQ

-Avg

1 Yr

O'Reilly Automotive Inc

10 Yr Incept

Avg

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

Fastenal Co

Industrl

13.61

Berkshire Hathaway Inc B

Finan Svcs Finan Svcs

MasterCard Inc A

Other Measures

Standard Index

Best Fit Index

Precision Castparts Corp IDEXX Laboratories Inc Mohawk Industries Inc Constellation Software In Rolls-Royce Holdings PLC Sirona Dental Systems Inc

Industrl

Alpha

-2.1 0.45

-5.6 0.56

Hlth Care Cnsmr Cyc Technology

Beta

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

R-Squared

14

30

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

1.74 6.68 5.24

98 74 62

0.67 0.42 0.73

16 13 39

Standard Deviation

13.46

Industrl

Mean

2.43 0.24

Hlth Care

Sharpe Ratio

Alphabet Inc A Alphabet Inc C Waters Corp

Technology Technology

Potential Capital Gain Exposure: 55% of assets

Morningstar's Take by Kevin McDevitt, CFA 03-24-16 Sequoia's Morningstar Analyst Rating has been changed to Bronze following manager Bob Goldfarb's resignation and given revisions to the fund's process. Manager David Poppe and his team remain, however, and have the experience and skill to get the fund back on track. Goldfarb stepped down as comanager of this fund on March 23, 2016, following the implosion of the Valeant Pharmaceuticals VRX stake. This was a mutual decision, but the fund's board and others at the firm felt that decision-making had become too centralized and others on the team needed to have more input. Although this isn't how the firm envisioned this transition, it has been preparing for it for years, having added six analysts to the 12-person team during the past decade. Going forward, the team plans to introduce new risk controls to avoid future blowups. Poppe will establish an investment committee with himself and three senior analysts. The plan is to make the process more collaborative, as well as to introduce checks and balances. For example, the other three members of the investment committee could override Poppe on a buy/sell decision.

Hlth Care

Jacobs Engineering Group Miscellaneous Securities

Industrl

While the damage has been done, Valeant no longer dominates the portfolio. The fund sold 1.5 million shares in mid-March to raise cash and book capital losses. That, coupled with Valeant's nearly 70% year-to-date decline, means the position is now likely less than 7% of assets. The sale left the fund with $800 million in cash, or about 14.5% of assets. This gives the fund a bit of a buffer as it likely continues to deal with outflows, which were an estimated $300 million over the three months through February. Despite the Valeant disaster, this fund still has real strengths.Poppe isanexperienced investorwith talented analysts supporting him. However, even though they plan to stick with the firm's classic approach, their increased emphasis on risk control will change the fund's character. Although concentration brought risks, it was also a key to the fund's strong returns. How efforts to reduce risk will affect returns is an open question for now.

—

Danaher Corp

Industrl

Omnicom Group Inc

Cnsmr Cyc

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 45.6 Large 29.2 Mid 23.6 Small 1.6 Micro 0.0 Avg $mil: 35,531

Value Blend Growth

Large Mid Small

44.01 1.49 2.22 0.71 21.76 1.14 20.03 3.90 0.00 0.00 25.00 0.58 0.00 0.00 0.06 0.12 16.68 1.31 8.26 0.34 30.99 1.12 0.98 0.09 30.01 1.84 0.00 0.00

Value Measures

Rel Category

Price/Earnings 19.88

0.95 0.92 0.91 1.06 0.57 0.96 1.24 1.39 1.62 0.87

Price/Book Price/Sales

3.28 2.06

Price/Cash Flow 13.35 Dividend Yield % 0.75

Growth Measures

% Rel Category

Long-Term Erngs 12.00

Book Value

11.04 11.22

Composition - Net

Sales

Cash 5.2 Stocks 93.9 Bonds 0.9 Other 0.0 Foreign 29.8 (% of Stock)

Address:

Sequoia Fund Inc

Minimum Purchase: Min Auto Inv Plan:

$5000 $5000

Add: — IRA: $2500

Cash Flow 20.55 Historical Erngs 10.83

New York, NY 10153-4798

Add: —

800-686-6884

Sales Fees:

No-load

Web Address:

www.sequoiafund.com

Management Fee:

1.00%

Profitability

%

Inception:

07-15-70

Actual Fees:

Mgt:1.00% Dist:—

Return on Equity Return on Assets

24.68

Advisor:

—

Expense Projections: Income Distribution:

3Yr:$328 5Yr:$569 10Yr:$1259

8.92

Subadvisor:

None

Annually

Net Margin

11.36

A

ß ® Mutual Funds

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