Sequoia Fund, Inc.

767 Fifth Avenue, Suite 4701
New York, NY 10153
(800) 686-6884

QUARTERLY REPORT
For the Period Ended March 31, 2001

Dear Stockholder:

Sequoia Fund's results for the first quarter of 2001 are as shown below with the usual comparable data for the leading market indexes:

  Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500
3 months to 3/31/01 -4.1% -8.0% -11.9%

As we write, Sequoia is up 3.3% compared to year-to-date returns on the S&P 500 of -5.0%.

The annual meeting of Sequoia was held on April 20th in New York. Outstanding Investor Digest has prepared a summary of our comments at the meeting. We thought it would be useful to provide all of our stockholders with this review which Outstanding Investor Digest kindly provided to us again this year in the form of the enclosed reprint.

We are also enclosing our Privacy Notice describing our policies relating to personal client information as required by the recently enacted Gramm-Leach-Bliley Act.

John M. Harding, a valued director of Sequoia since 1980, retired from the Board in May. We will miss John's wisdom and wry wit and wish him a relaxed and happy retirement. We are pleased to welcome our new director, Vinod Ahooja, whose impressive professional and personal experience in the financial and investment fields should be a valuable asset to the Fund shareholders.

May 30, 2001 Sincerely,
Carley Cunniff
Executive Vice President
Richard T. Cunniff
Vice Chairman
Robert D. Goldfarb
President
William J. Ruane
Chairman

 

 

SEQUOIA FUND, INC.
STATEMENT OF INVESTMENTS
MARCH 31, 2001 (UNAUDITED)

 

COMMON STOCKS (75.5%)

Shares   Value (a)
  BANK HOLDING COMPANIES (13.3%)  
8,710,393 Fifth Third Bancorp $465,461,626
243,300 Mercantile Bankshares Corporation 9,002,100
970,200 National Commerce Bancorp 24,073,087
    498,536,813
  CHEMICAL PRODUCTS (0.7%)  
1,439,800 MacDermid Inc. 26,031,584
  DEPARTMENT STORES (6.7%)  
7,893,800 TJX Companies, Inc. 252,601,600
  DIVERSIFIED COMPANIES (34.2%)  
19,661 Berkshire Hathaway Inc. Class A (c) 1,286,812,450
  HOME FURNISHINGS (2.2%)  
2,414,000 Ethan Allen Interiors, Inc. (b) 81,544,920
  INDUSTRIAL AND COMMERCIAL MACHINERY (2.9%)  
3,087,350 Dover Corporation 110,650,624
  INSURANCE (6.3%)  
2,430,500 Progressive Corporation-Ohio 235,880,025
  MANUFACTURING—MOTORCYCLES (0.7%)  
690,900 Harley Davidson, Inc. 26,219,655
  PERSONAL CREDIT (2.4%)  
1,532,200 Household International Inc. 90,767,528
  Miscellaneous Securities (6.1%) 231,979,974
  TOTAL COMMON STOCKS $2,841,025,173

 

Principal
Amount
   

Value (a)

U.S. GOVERNMENT OBLIGATIONS (24.1%)
$ 20,000,000 U.S. Treasury Bills due 5/17/01 $19,884,998
687,500,000 U.S. Treasury Notes, 6 1/8% due 12/31/2001 697,060,547
187,500,000 U.S. Treasury Notes, 6 3/8% due 01/31/2002 190,869,141
  TOTAL U.S. GOVERNMENT OBLIGATIONS $907,814,686

 

SUMMARY
Common Stocks 75.5% $2,841,025,173
U.S. Government Obligations 24.1% 907,814,686
Net Cash & Receivable 0.4% 11,191,975
Net Assets $3,760,031,834
Number of Shares Outstanding 32,725,717
Net Asset Value Per Share $114.90

 

(a) Securities traded on a national securities exchange are valued at the last reported sales price on the principal exchange on which the security is listed on the last business day of the period; securities traded in the over-the-counter market are valued at the last reported sales price on the NASDAQ National Market System on the last business day of the period; securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the mean between the last reported bid and asked prices; U.S. Treasury Bills with remaining maturities of sixty days or less are valued at their amortized cost. U.S. Treasury Bills that when purchased have a remaining maturity in excess of sixty days are stated at their discounted value based upon the mean between the bid and asked discount rates until the sixtieth day prior to maturity, at which point they are valued at amortized cost.
(b) Affiliated Companies: Investment in portfolio companies 5% or more of whose outstanding voting securities are held by the Fund are defined in the Investment Company Act of 1940 as "affiliated companies."
(c) Non-income producing.

 

SEQUOIA FUND, INC.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
Website : www.sequoiafund.com

DIRECTORS
William J. Ruane
Richard T. Cunniff
Robert D. Goldfarb
Carol L. Cunniff
Vinod Ahooja
Roger Lowenstein
Francis P. Matthews
C. William Neuhauser
Robert L. Swiggett

OFFICERS
William J. Ruane — Chairman of the Board
Richard T. Cunniff — Vice Chairman
Robert D. Goldfarb — President
Carol L. Cunniff — Executive Vice President
Joseph Quinones, Jr. — Vice President, Secretary & Treasurer

INVESTMENT ADVISER & DISTRIBUTOR
Ruane, Cunniff& Co., Inc.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

CUSTODIAN
The Bank of New York
MF Custody Administration Department
100 Church Street, 10th Floor
New York, New York 10286

REGISTRAR AND SHAREHOLDER SERVICING AGENT
DST Systems, Inc.
P.O. Box 219477
Kansas City, Missouri 64121

LEGAL COUNSEL
Seward & Kissel
One Battery Park Plaza
New York, New York 10004

This report has been prepared for the information of shareholders of Sequoia Fund, Inc.