N-Q 1 nq.txt Sequoia Fund, Inc. 767 Fifth Avenue, Suite 4701 New York, NY 10153 (800) 686-6884 QUARTERLY REPORT For the Period Ended March 31, 2007 TO THE SHAREHOLDERS OF SEQUOIA FUND, INC.: Dear Shareholder: Sequoia Fund's results for the first quarter of 2007 are shown below with comparable results for the leading market indexes: SEQUOIA DOW JONES STANDARD & MARCH 31, 2007 FUND INDUSTRIALS POOR'S 500 ------- ----------- ---------- First Quarter 0.60% -0.33% 0.64% 1 Year 6.18% 13.83% 11.83% 5 Years (Annualized) 6.79% 5.86% 6.26% 10 Years (Annualized) 11.39% 8.60% 8.20% The performance shown above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. THE S&P 500 INDEX IS AN UNMANAGED, CAPITALIZATION-WEIGHTED INDEX OF THE COMMON STOCKS OF 500 MAJOR US CORPORATIONS. THE DOW JONES INDUSTRIAL AVERAGE IS AN UNMANAGED, PRICE-WEIGHTED INDEX OF 30 ACTIVELY TRADED BLUE CHIP STOCKS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND ASSUMES REINVESTMENT OF DIVIDENDS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. YEAR TO DATE PERFORMANCE AS OF THE MOST RECENT MONTH END CAN BE OBTAINED BY CALLING DST SYSTEMS, INC. AT (800) 686-6884. ---------- Based on activity to the date of this letter, the capital gains distributions will be approximately $11.75 per share. Of this amount, a distribution of $5.50 per share will be distributed in June and the balance in December. However, the actual capital gains distribution in December may well vary from this figure. We will do our best to keep you informed of any material changes in this amount. Sincerely, /s/ Richard T. Cunniff /s/ Robert D. Goldfarb /s/ David M. Poppe --------------------------- ----------------------- ------------------------ Richard T. Cunniff Robert D. Goldfarb David M. Poppe Vice Chairman President Executive Vice President May 15, 2007 SEQUOIA FUND, INC. STATEMENT OF INVESTMENTS MARCH 31, 2007 (UNAUDITED) COMMON STOCKS (91.54%) SHARES VALUE (a) ------------ -------------- AUTO PARTS (1.58%) 1,699,697 O'Reilly Automotive Inc. (b) $ 56,259,971 -------------- AUTOMOTIVE MANUFACTURING (4.07%) 95,028 Porsche AG (Germany) (c) 145,150,614 -------------- CASUALTY INSURANCE (11.65%) 19,031,652 Progressive Corporation 415,270,647 -------------- DIVERSIFIED COMPANIES (25.78%) 8,428 Berkshire Hathaway Inc. Class A (b) 918,567,720 86 Berkshire Hathaway Inc. Class B (b) 313,040 -------------- 918,880,760 -------------- EDUCATION (0.90%) 730,356 Apollo Group, Inc. (b) 32,062,628 FINANCE (1.12%) 376,378 MasterCard Inc. 39,986,399 FREIGHT TRANSPORTATION (5.47%) 2,997,624 Expeditors International Inc. 123,861,824 4,000,000 Knight Transportation Inc. 71,280,000 -------------- 195,141,824 -------------- INDUSTRIAL & CONSTRUCTION SUPPLIES (3.99%) 4,053,623 Fastenal Company 142,079,486 -------------- INSURANCE BROKERS (2.19%) 2,888,441 Brown & Brown Inc. 78,132,329 -------------- MEDICAL EQUIPMENT (0.12%) 120,075 Patterson Companies Inc. (b) 4,261,462 -------------- PROCESS CONTROL INSTRUMENTS (0.77%) 384,088 Danaher Corporation 27,443,088 -------------- RETAILING (22.60%) 4,999,694 Bed Bath & Beyond Inc. (b) 200,837,708 39,797 Costco Wholesale Corporation 2,142,670 1,840,388 Lowe's Companies, Inc. 57,953,818 2,212,730 Target Corporation 131,126,380 7,629,153 TJX Companies, Inc. 205,681,965 2,119,715 Walgreen Company 97,273,721 2,359,006 Wal-Mart Stores, Inc. 110,755,332 -------------- 805,771,594 -------------- TEXTILE - CARPETS (7.54%) 3,273,926 Mohawk Industries Inc. (b) 268,625,628 -------------- SHARES VALUE (a) ------------ -------------- VETERINARY DIAGNOSTICS (3.76%) 1,528,744 Idexx Laboratories Inc. (b) $ 133,963,836 -------------- TOTAL COMMON STOCKS $3,263,030,266 ============== PRINCIPAL AMOUNT VALUE (a) ------------ -------------- U.S. GOVERNMENT OBLIGATIONS (8.41%) $301,000,000 U.S. Treasury Bills due 4/19/07 through 5/24/07 $ 299,623,536 -------------- TOTAL U.S. GOVERNMENT OBLIGATIONS $ 299,623,536 ============== SUMMARY Common Stocks 91.54% $3,263,030,266 U.S. Government Obligations 8.41% 299,623,536 Net Cash & Receivables 0.05% 1,850,701 -------------- Net Assets $3,564,504,503 ============== Number of Shares Outstanding 23,195,097 ============== Net Asset Value Per Share $ 153.67 ============== (a) Securities traded on a national securities exchange or on a foreign 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 in accordance with NASDAQ Official Closing Price 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. Purchases and sales of foreign portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities are acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued. (b) Non-income producing. (c) The Fund is invested in preference shares of Porsche AG which possess the same economic interest as Porsche common stock but have no voting rights. 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. SEQUOIA FUND, INC. 767 FIFTH AVENUE, SUITE 4701 NEW YORK, NEW YORK 10153-4798 WEBSITE : www.sequoiafund.com DIRECTORS Richard T. Cunniff Robert D. Goldfarb David M. Poppe Vinod Ahooja Roger Lowenstein Francis P. Matthews C. William Neuhauser Sharon Osberg Robert L. Swiggett, Chairman of the Board 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 1 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 One Battery Park Plaza New York, New York 10004 This report has been prepared for the information of shareholders of Sequoia Fund, Inc.