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.
If you’re looking for value stocks, and exclusive access to value-focused hedge fund managers, check out ValueWalk’s exclusive value newsletter, Hidden Value Stocks. Use code 15percent10 at checkout. Offer valid for next 10 subscribers or March 31, 2019, whichever comes first!
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.
This content is exclusively for paying members of Hedge Fund Alpha
Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha
Don’t have an account?
Subscribe now and get 7 days free!
