Bill Ruane’s Sequoia Fund: Investing In The Early 1990s [Pt.4]

As I covered in the first part of this series, Bill Ruane's Sequoia Fund had a rough start to life when it was launched in 1970.

Q4 hedge fund letters, conference, scoops etc

Ruane set up the fund, with his partner, Richard Cunniff in 1970 as a favor to Warren Buffett who had asked Runae to take on his clients at Buffett Associates Ltd. after he decided to leave the money management business.

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The fund underperformed both the Dow Jones Industrial Average and S&P 500 in the first half of the 1970s but then staged a strong comeback during the second half of the decade. By September 30, 1980, the Sequoia fund had produced a total return for investors of 353.2% or 15.9% annualized, compared to just 8.4% annualized for the S&P 500 over the same time frame.


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