Q2 2026 – Sequoia Fund Letter

Performance: Sequoia trailed badly in H1 2026: roughly flat year-to-date net of fees against a double-digit gain for the S&P 500, with Q2 also behind the Index. Trailing 1-year return was barely positive versus a 10-year average annual return above 12%. Buys: The managers added modestly to Bio-Techne, SAP and ICON Plc, plus a new position they will only name in the year-end letter, "a new position that we will disclose in our year-end letter." Sells: Funded by trimming Sunbelt Rentals and Elevance Health and fully exiting Amentum Holdings, Liberty Broadband and Credit Acceptance. Concentration: Highly non-diversified: Rolls-Royce is by far the largest weight at 13% of assets, with Alphabet, Liberty Media–Formula One, Universal Music Group and Eurofins Scientific rounding out the top five. Heavy tilt toward non-US and European-listed names. ETF conversion: The mutual fund is being reorganized into an actively managed ETF, with a shareholder vote July 27, 2026 and conversion targeted for mid-October. Shareholders holding directly with the transfer agent must move shares to an eligible brokerage account by September 15, 2026. Bottom line: Ruane Cunniff is running a concentrated, industrial- and media-heavy book that has lagged the S&P 500 sharply this year, rotating capital from cyclicals and financials into life sciences, research services and software while converting the vehicle to an ETF.