Q2 2025 – Sequoia Fund Letter

Sequoia Fund outperformed the S&P 500 by 340 basis points in the second quarter of 2025, posting a 14.35% net return versus 10.94% for the index. Year to date through June 30, the fund returned 19.65% net of fees, ahead of the index's 6.20%. The investment committee opportunistically added to positions in ICON and Universal Music Group while trimming Credit Acceptance, Liberty Broadband, Jacobs, Meta, and UnitedHealth. These sales funded new investments the managers plan to disclose once purchases are complete. The fund's top holdings remain concentrated in Rolls-Royce Holdings (14.2% of assets), Constellation Software (7.8%), and Liberty Media Formula One (7.4%), alongside positions in Universal Music Group (7.2%), Charles Schwab (5.9%), and Alphabet (5.2%). The fund's 1-year, 5-year, and 10-year average annual returns through June 30 were 28.12%, 14.94%, and 8.95%, respectively.