Sequoia Fund, which is known to highly value management teams when evaluating stock picks for its long-only mutual fund, lost big on Valeant Pharmaceuticals, a company with some of the most significant management problems in recent memory. Sequoia Fund had a management shake-up of its own recently. This management reshuffling, and its concentrated bet on the management team at Valeant Pharmaceuticals, have led to a downgrade by investment research provider Morningstar. Morningstar notes uncertainty as it downgrades Sequoia Fund, points to better days forthcoming Morningstar recently changed their rating on the troubled mutual fund following losses in 2015 (-7.3%) and…
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- Morningstar notes uncertainty as it downgrades Sequoia Fund, points to better days forthcoming
- New Sequoia Fund management plan to implement risk controls, a first for the long-only stock picker
- Quality management teams were big factor in Sequoia Fund decisions, but Valeant management team appears not to be the shining example of excellence
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