0001193125-14-426761.txt : 20141126 0001193125-14-426761.hdr.sgml : 20141126 20141126135153 ACCESSION NUMBER: 0001193125-14-426761 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140930 FILED AS OF DATE: 20141126 DATE AS OF CHANGE: 20141126 EFFECTIVENESS DATE: 20141126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEQUOIA FUND INC CENTRAL INDEX KEY: 0000089043 IRS NUMBER: 132663968 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-01976 FILM NUMBER: 141252899 BUSINESS ADDRESS: STREET 1: 767 FIFTH AVE STREET 2: SUITE 4701 CITY: NEW YORK STATE: NY ZIP: 10153-4798 BUSINESS PHONE: 2128325280 MAIL ADDRESS: STREET 1: 767 FIFTH AVE STREET 2: SUITE 4701 CITY: NEW YORK STATE: NY ZIP: 10153-4798 FORMER COMPANY: FORMER CONFORMED NAME: CIMARRON FUND INC DATE OF NAME CHANGE: 19700625 0000089043 S000012155 SEQUOIA FUND INC C000033159 SEQUOIA FUND INC SEQUX N-Q 1 d826903dnq.htm SEQUOIA FUND, INC. Sequoia Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number             811-01976                               

 

Sequoia Fund, Inc.

(Exact name of registrant as specified in charter)

 

9 West 57th Street, Suite 5000

New York, NY 10019

(Address of principal executive offices) (Zip code)

 

Robert D. Goldfarb

Ruane, Cunniff & Goldfarb Inc.

9 West 57th Street

Suite 5000

New York, New York 10019

(Name and address of agent for service)

Registrant’s telephone number, including area code:   (800) 686-6884

Date of fiscal year end:  December 31, 2014

Date of reporting period:  September 30, 2014

Item 1. Schedule of Investments.

The Schedule of Investments are attached herewith.

Sequoia Fund, Inc.

Schedule of Investments

September 30, 2014

(Unaudited)

Common Stocks (87.9%)

 

    Shares            Value(a)
    Advertising (0.8%)     
    929,021      Omnicom Group Inc.      $      63,972,386  
        

 

 

  
    Aerospace/Defense (6.5%)     
    942,616      Precision Castparts Corp.        223,286,878  
    23,044,104      Qinetiq Group plc (United Kingdom)        83,868,061  
    12,089,546      Rolls-Royce Holdings plc (United Kingdom)        189,030,836  
        

 

 

  
           496,185,775  
        

 

 

  
    Auto Parts (4.3%)     
    627,642      Advance Auto Parts, Inc.        81,781,753  
    1,650,465      O’Reilly Automotive, Inc. (b)        248,163,917  
        

 

 

  
           329,945,670  
        

 

 

  
    Biotechnology (1.2%)     
    2,065,604      Novozymes A/S — B Shares (Denmark)        89,619,150  
        

 

 

  
    Construction & Engineering (0.9%)     
    1,455,996      Jacobs Engineering Group Inc. (b)        71,081,725  
        

 

 

  
    Construction Equipment (0.1%)     
    479,500      Ritchie Bros. Auctioneers Inc. (Canada)        10,736,005  
        

 

 

  
    Crude Oil & Gas Production (0.1%)     
    178,601      Canadian Natural Resources Limited (Canada)        6,936,863  
        

 

 

  
    Dental Equipment (1.2%)     
    1,250,644      Sirona Dental Systems, Inc. (b)        95,899,382  
        

 

 

  
    Diversified Companies (12.6%)     
    2,998      Berkshire Hathaway, Inc. — Class A (b)        620,286,200  
    2,504,804      Berkshire Hathaway, Inc. — Class B (b)        346,013,625  
        

 

 

  
           966,299,825  
        

 

 

  
    Diversified Manufacturing (0.8%)     
    761,792      Danaher Corporation        57,880,956  
        

 

 

  
    Electrical & Mechanical Systems (0.4%)     
    771,799      Emcor Group, Inc.        30,841,088  
        

 

 

  
    Electronic Manufacturing Services (0.5%)     
    1,270,244      Trimble Navigation Ltd. (b)        38,742,442  
        

 

 

  
    Flooring Products (2.0%)     
    1,140,877      Mohawk Industries, Inc. (b)        153,813,037  
        

 

 

  
    Freight Transportation (0.0%)     
    77,653      Expeditors International, Inc.        3,151,159  
        

 

 

  

 

1

Sequoia Fund, Inc.

Schedule of Investments (Continued)

September 30, 2014

(Unaudited)

 

    Shares            Value(a)
    Healthcare (20.6%)     
    527,122      Perrigo Company plc (Ireland)      $ 79,168,453  
    11,281,224      Valeant Pharmaceuticals International, Inc. (Canada) (b)        1,480,096,589  
    430,615      West Pharmaceutical Services, Inc.        19,274,327  
    19,932      Zoetis, Inc.        736,487  
        

 

 

  
           1,579,275,856  
        

 

 

  
    Industrial & Construction Supplies (5.1%)     
    8,712,162      Fastenal Company        391,176,074  
        

 

 

  
    Industrial Gases (1.2%)     
    685,180      Praxair, Inc.        88,388,220  
        

 

 

  
    Industrial Machinery (0.9%)     
    3,500,367      IMI plc (United Kingdom)        69,797,380  
        

 

 

  
    Information Processing (2.9%)     
    2,974,345      MasterCard, Inc.        219,863,582  
        

 

 

  
    Insurance Brokers (0.5%)     
    1,119,143      Brown & Brown, Inc.        35,980,447  
        

 

 

  
    Internet Software & Services (2.5%)     
    161,452      Google, Inc. — Class A (b)        94,999,971  
    161,452      Google, Inc. — Class C (b)        93,215,927  
        

 

 

  
           188,215,898  
        

 

 

  
    Investment Banking & Brokerage (1.0%)     
    432,800      The Goldman Sachs Group, Inc.        79,449,096  
        

 

 

  
    IT Consulting & Other Services (1.1%)     
    464,967      International Business Machines Corp.        88,264,686  
        

 

 

  
    Precision Instruments (1.1%)     
    837,443      Waters Corp. (b)        83,007,350  
        

 

 

  
    Property and Casualty Insurance (0.7%)     
    31,041      Admiral Group plc (United Kingdom)        645,629  
    4,915,535      Hiscox Ltd. (Bermuda)        50,203,243  
    20,894      Verisk Analytics, Inc. — Class A (b)        1,272,236  
        

 

 

  
           52,121,108  
        

 

 

  
    Retailing (9.9%)     
    39,465      Costco Wholesale Corp.        4,945,754  
    848,687      Tiffany & Co.        81,737,045  
    10,208,405      TJX Companies, Inc.        604,031,324  
    890,120      Wal-Mart Stores, Inc.        68,067,476  
        

 

 

  
           758,781,599  
        

 

 

  
    Specialty Chemicals (0.7%)     
    1,527,051      Croda International plc (United Kingdom)        50,823,307  
        

 

 

  

 

2

Sequoia Fund, Inc.

Schedule of Investments (Continued)

September 30, 2014

(Unaudited)

 

    Shares    

        Value(a)
  Transportation Services (1.7%)     
3,234,324     World Fuel Services Corp.      $ 129,114,214  
      

 

 

  
  Veterinary Diagnostics (3.0%)     
1,969,714     Idexx Laboratories, Inc. (b)        232,091,401  
      

 

 

  
  Miscellaneous Securities(c) (3.6%)        276,682,202  
      

 

 

  
  Total Common Stocks (Cost $2,511,310,343)      $ 6,738,137,883  
      

 

 

  

U.S. Government Obligations (12.1%)

     

Principal

Amount

         
 $924,014,000     U.S. Treasury Bills, 0.005% - 0.030%
due 10/9/2014 through 11/28/2014,		      $ 924,010,925  
      

 

 

  
  TOTAL U.S. Government Obligations
(Cost $924,010,925)		        924,010,925  
      

 

 

  
  Total Investments (100.0%)
(Cost $3,435,321,268)††		      $ 7,662,148,808  
      

 

 

  

 

Summary             

Common Stocks

      87.9 %    $ 6,738,137,883   

U.S. Government Obligations

      12.1 %      924,010,925   

Net Cash & Receivables

      —        33,735   
    

 

 

  

Net Assets

      $ 7,662,182,543   
    

 

 

  

Number of Shares Outstanding

        34,673,820   
    

 

 

  

Net Asset Value Per Share

      $ 220.98   
    

 

 

  

 

 

††

The cost for federal income tax purposes is identical. At September 30, 2014, the aggregate gross tax basis unrealized appreciation and depreciation of securities were $4,261,073,433 and $34,245,893 respectively.

 

(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 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.

 

3

Sequoia Fund, Inc.

Schedule of Investments (Continued)

September 30, 2014

(Unaudited)

 

Securities traded on a foreign exchange are valued at the Official Closing Price on the last business day of the period on the principal exchange on which the security is primarily traded. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at the close of the New York Stock Exchange on that day.

U.S. Treasury Bills with remaining maturities of sixty days or less are valued at their amortized cost. U.S. Treasury Bills purchased having 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.

When reliable market quotations are insufficient or not readily available at time of valuation or when the Investment Adviser determines that the prices or values available do not represent the fair value of a security, such security is valued as determined in good faith by the Investment Adviser, in conformity with guidelines adopted by and subject to review by the Board of Directors.

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.

 

(b)

Non-income producing security.

 

(c)

“Miscellaneous Securities” include holdings in their initial period of acquisition that have not previously been publicly disclosed.

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. During the period ended September 30, 2014, there were no transfers into and out of Level 1 and 2 measurements in the fair value hierarchy. There were no level 3 securities held in the Fund during the quarter ended September 30, 2014.

 

4

Sequoia Fund, Inc.

Schedule of Investments (Continued)

September 30, 2014

(Unaudited)

 

The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2014:

 

Valuation Inputs

    Common Stocks      U.S.
Government
Obligations		      Total  

Level 1 - Quoted Prices

    $ 6,738,137,883         —       $ 6,738,137,883   

Level 2 - Other Significant Observable Inputs

      —       $ 924,010,925         924,010,925   
  

 

 

     

 

 

     

 

 

  

Total

    $ 6,738,137,883       $ 924,010,925       $ 7,662,148,808   
  

 

 

     

 

 

     

 

 

  

 

5

Item 2. Controls and Procedures.

 

  (a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective, as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

  (b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)  

    Sequoia Fund, Inc.

 

By (Signature and Title)*

  

  /s/ Robert D. Goldfarb

 

      Robert D. Goldfarb, President and Principal Executive Officer

      (principal executive officer)

 

Date

  

 11/25/2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*

  

  /s/ Robert D. Goldfarb

 

      Robert D. Goldfarb, President and Principal Executive Officer

      (principal executive officer)

 

Date

  

 11/25/2014

 

By (Signature and Title)*

  

  /s/ Paul J. Greenberg

 

      Paul J. Greenberg, Treasurer

      (principal financial officer)

 

Date

  

 11/25/2014

* Print the name and title of each signing officer under his or her signature.

EX-99.CERT 2 d826903dex99cert.htm 302 CERTIFICATIONS 302 Certifications

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the

Sarbanes-Oxley Act

I, Robert D. Goldfarb, President and Principal Executive Officer of Sequoia Fund, Inc., certify that:

 

1.

I have reviewed this report on Form N-Q of Sequoia Fund, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedule of investments included in this report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 
  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

Date: 11/25/2014                        

     

  /s/ Robert D. Goldfarb                                

  
   

By:

  

Robert D. Goldfarb, President and Principal

  
     

Executive Officer

  
     

(principal executive officer)

  

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the

Sarbanes-Oxley Act

I, Paul J. Greenberg, Treasurer of Sequoia Fund, Inc., certify that:

 

1.

I have reviewed this report on Form N-Q of Sequoia Fund, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the schedule of investments included in this report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  (a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  (d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 
  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

Date: 11/25/2014                        

     

  /s/ Paul J. Greenberg                            

  
   

By:

  

Paul J. Greenberg, Treasurer

  
     

(principal financial officer)