following communication was mailed to Fund shareholders
and clients of the Adviser on October 28, 2015.
November 16, 2015, Sequoia Fund, Inc. made a long term capital
gains distribution to shareholders of record on
November 13, 2015. The distribution amount was
$7.98 per share.
The Fund’s investment objective is long-term growth
of capital. In pursuing this objective the Fund focuses on
investing in equity securities that it believes are undervalued
at the time of purchase and have the potential for growth.
A guiding principle is the consideration of equity securities,
such as common stock, as units of ownership of a business
and the purchase of them when the price appears low in relation
to the value of the total enterprise. No weight is given to
technical stock market studies. The balance sheet and earnings
history and prospects of each company are extensively studied
to appraise fundamental value. The Fund normally invests in
equity securities of U.S. and non-U.S. companies. The Fund
may invest in securities of issuers with any market capitalization.
The Fund typically sells the equity security of a company
when the company shows deteriorating fundamentals, its earnings
progress falls short of the investment adviser’s expectations
or its valuation appears excessive relative to its expected
Ordinarily, the Fund’s portfolio is invested in equity
securities of U.S. and non-U.S. companies. The Fund is not
required, however, to be fully invested in equity securities
and, in fact, usually maintains a portion of its total assets
in cash and securities generally considered to be cash equivalents,
including, but not limited to, short-term U.S. Government
securities. Depending upon market conditions, cash reserves
may be a significant percentage of the Fund’s net assets.
The Fund usually invests its cash reserves principally in
U.S. Government securities.