QUARTERLY REPORT
For the Period Ended March 31, 2010

To the Shareholders of Sequoia Fund, Inc.:

As of this writing, the Sequoia Fund is up 5.08% year-to-date versus a decline of 1.71% for the S&P 500.

We recently held our annual investor day for Sequoia shareholders and other clients of Ruane, Cunniff & Goldfarb. The following comments were made by Bob Goldfarb at that meeting. A transcript of the question-and-answer portion of the meeting will be mailed to you with the second quarter report in August.

During the first quarter, we significantly reduced the size of our holding in Berkshire Hathaway. This sale of shares was atypical for us in that we knowingly sold a stock at a discount to its intrinsic value. The only times we have done this before were when we were fully invested and wanted to raise funds to buy another stock which we thought was selling at a greater discount. This was not the case here because prior to the Berkshire sale we had ample liquidity.

We reduced the size of the Berkshire position for two reasons. The principal one was the size of the position as a percentage of the portfolio. The second was the law of large numbers. Historically we always had a policy of owning up to 15% of the portfolio in a single stock if we felt that it was a compelling value. We made an exception for Berkshire for two reasons. First, Berkshire's broad diversification made it less subject to the risk inherent in a single business. Second was our strong belief in Warren Buffett's genius. However when that genius says that the future growth rate of his company's book value will be substantially less than its historic rate it behooves one to take heed.

The timing of the sale was driven by our belief that while Berkshire was still selling at a discount to its business value the run-up in the price of its shares in conjunction with their entry into the S&P 500 made that discount considerably less than it had been for some time.

After the sale Berkshire remains by far our largest holding. In other past situations in which we sold part of a holding Bill Ruane would say, "Let's sell it and hope that it goes up." Our expectation is that over time Berkshire's share price will increase further as its underlying value grows. We continue to have a large stake in that outcome.

We have enhanced the online services available to our shareholders through our website, www. sequoiafund.com. Now shareholders may check their account information online as well as purchase or redeem shares of the Fund. In addition, the following types of accounts may be opened through the website: individual, joint, TOD, and UGMA/UTMA accounts and Traditional and Roth IRAs. You may establish online transaction privileges by enrolling on the website. You automatically have the ability to establish these privileges, but you will be required to enter into a user's agreement through the website to enroll for the privileges. Transactions through the website are subject to the same investment minimums as other transaction methods. Please review the Fund's prospectus for more information about the online services as well as the limitations and risks relating to such services.

Sincerely,

May 24, 2010

FUND PERFORMANCE

Sequoia Fund's results for the first quarter of 2010 are shown below with comparable results for the leading market indexes:

The performance shown above represents past performance and does not guarantee future results. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance information shown.

FEES AND EXPENSES OF THE FUND
(UNAUDITED)

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)

The Fund does not impose any sales charges, exchange fees or redemption fees.

Annual Fund Operating Expenses (expenses that are deducted from Fund assets)

Annual Fund Operating Expenses

SEQUOIA FUND, INC.

SCHEDULE OF INVESTMENTS

MARCH 31, 2010 (UNAUDITED)

COMMON STOCKS (74.74%)

++ The cost for federal income tax purposes is identical. At March 31, 2010 the aggregate gross tax basis unrealized appreciation and depreciation of securities were $1,084,353,805 and $89,562,499, respectively.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2010:

* Represents U.S. Treasury Bills with remaining maturities of 60 days or less which are valued at their amortized cost.

Other information

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC's web site at http://www.sec.gov. The Fund's Form N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. For information regarding the operation of the SEC's Public Reference Room, call 1-800-SEC-0330. For a complete list of the Fund's portfolio holdings, view the most recent quarterly, semiannual or annual report on Sequoia Fund's web site at http://www.sequoiafund.com/fund_reports.htm.

You may obtain a description of the Fund's proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Visit Sequoia Fund's web site at www.sequoiafund.com and use the "Shareholder Information" link to obtain all proxy information. This information may also be obtained from the Securities and Exchange Commission's web site at www.sec.gov or by calling DST Systems, Inc. at (800) 686-6884.

SEQUOIA FUND, INC.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
(800) 686-6884
Website : www.sequoiafund.com

DIRECTORS

Richard T. Cunniff
Robert D. Goldfarb
David M. Poppe
Vinod Ahooja, Chairman of the Board
Roger Lowenstein
C. William Neuhauser
Sharon Osberg
Robert L. Swiggett

OFFICERS

Richard T. Cunniff	— Vice Chairman
Robert D. Goldfarb	— President
David M. Poppe	— Executive Vice President
Joseph Quinones, Jr.	— Vice President, Secretary, Treasurer & Chief Compliance Officer
Michael Valenti	— Assistant Secretary

INVESTMENT ADVISER

Ruane, Cunniff & Goldfarb Inc.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

DISTRIBUTOR

Ruane, Cunniff & Goldfarb LLC
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

CUSTODIAN

The Bank of New York
MF Custody Administration Department
One Wall Street, 25th 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 LLP
One Battery Park Plaza
New York, New York 10004