Q2 2026 – Sequoia Fund Letter

Sequoia Fund returned 11.67% net of fees in the second quarter of 2026, trailing the S&P 500's 15.20% gain. Year to date through June 30, the fund posted a negative 0.64% return versus the index's 10.21% advance. During the quarter, the investment committee added modestly to positions in Bio-Techne, SAP, and ICON Plc, and initiated a new position to be disclosed at year-end. The team funded these purchases by trimming holdings in Sunbelt Rentals and Elevance Health, and exiting completely from Amentum Holdings, Liberty Broadband, and Credit Acceptance Corp. The fund is progressing toward reorganization into an actively managed ETF later in 2026, pending a shareholder vote scheduled for July 27. If approved, the conversion will occur in mid-October, with direct shareholders required to transfer shares to an eligible brokerage account by September 15. The fund's top holdings remain concentrated in Rolls-Royce (13.0%), Alphabet (9.2%), and Liberty Media Formula One (7.3%).