Annual Investor Day

May 18, 2018

Disclosure
Please consider the investment objectives, risks and charges and expenses of Sequoia Fund, Inc. (the “Fund”) carefully before investing. The Fund's prospectus
contains this and other information about the Fund. You may obtain a copy of the prospectus at www.sequoiafund.com or by calling 1-800-686-6884. Please read
the prospectus carefully before investing. Shares of the Fund are offered through the Fund’s distributor, Ruane, Cunniff & Goldfarb LLC. Ruane, Cunniff &
Goldfarb LLC is an affiliate of Ruane, Cunniff & Goldfarb L.P. and is a member of FINRA.

An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Shares of the Fund may be offered only to persons in the United States and by way of a prospectus. Annual Fund Operating Expenses (expenses that you
pay each year as a percentage of the value of your investment):
Management Fees 1.00%
Other Expenses 0.07%
Total Annual Fund Operating Expenses 1.07%*

* Does not reflect Ruane, Cunniff & Goldfarb L.P.’s (“Ruane, Cunniff & Goldfarb”) contractual reimbursement of a portion of the Fund’s operating expenses. This
reimbursement is a provision of Ruane, Cunniff & Goldfarb’s investment advisory agreement with the Fund and the reimbursement will be in effect only so long
as that investment advisory agreement is in effect. For the year ended December 31, 2017, the Fund’s annual operating expenses and investment advisory fee, net
of such reimbursement, were 1.00% and 0.93%, respectively.

The performance data for the Fund represents past performance and assumes reinvestment of dividends. Past performance does not guarantee future results.
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. The Fund’s 1-year, 5-year and 10-year average annual total returns through March 31, 2018 were 15.28%, 6.52% and 7.72%, respectively.
Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end can be obtained by
calling DST Systems, Inc. at (800) 686-6884.

The Fund is non-diversified, meaning that it invests its assets in a smaller number of companies than many other funds. As a result, an investment in the Fund
has the risk that changes in the value of a single security may have a significant effect, either negative or positive, on the Fund’s net asset value per share.

The S&P 500 Index is an unmanaged index of 500 stocks, which is representative of the U.S. stock market in general. The index does not incur expenses and is
not available for investment.

One or more slides presented at the Annual Investor Day have been omitted from this presentation version.
Agenda

Welcome 10:00am
Performance
Portfolio
40 min
Taxes
Organization
Conclusion
Tribute 10 min

Q&A 100 min 12:30pm

Performance
David Poppe
Return Under Investment Committee…

Total Return Annualized

June 30, 2016 – May 17, 2018* Year to Date

Sequoia Fund 35.13% 17.37% 4.89%

S&P 500 34.65% 17.15% 2.50%

*See “Disclosures” on slide 2. Past performance does not guarantee future results.
Despite Holding More Cash…

Year Sequoia Average Cash

2016 13.1%

2017 8.6%

2018 YTD 7.7%

 …It’s Been a Multiple-Driven Market since 2011
290 22

P/E Multiple Expansion: +84%

Earnings Growth: +29% 20
240
Market Return: +113%
18
Earnings ($)

190

Multiple
16

140
14

90
12

40 10
2011 2012 2013 2014 2015 2016 2017
S&P 500 Price S&P Earnings S&P PE Multiple

Source: Bloomberg & S&P as cited by Prof. Aswath Damodaran, NYU Stern School of Business
Top 10 Holdings: 5/17/2018

Company Weighting Holding Period (Yrs) IC Decision

Alphabet 11.1% 8
Berkshire Hathaway 8.9% 29
Mastercard 7.2% 12
Carmax 7.1% 2 NEW
Constellation Software 5.9% 4
Rolls-Royce 4.5% 11
Amazon 4.5% 1 NEW
Charles Schwab 4.5% 2 NEW
TJX 4.4% 18
Naspers 3.5% 1 NEW
Portfolio Update
Chase Sheridan
Portfolio Characteristics

Largest
Stocks Top 5 Top 10
Holding

6/30/2016 29 17.4% 40.4% 59.6%

6/30/2017 24 11.3% 36.7% 58.7%

5/17/2018 21 11.1% 40.1% 61.5%

 Software & Internet Stocks

6/30/2016 6/30/2017 5/17/2018

Alphabet 4.8% 6.5% 11.1%
Constellation Software 3.4%* 4.8% * 5.9%
Amazon - 1.3% 4.4%
Naspers - - 3.5%
Booking - 3.0% 3.2%
Facebook - - 2.4%

Total 8.2% 15.6% 30.5%

S&P 500 Information Technology Sector Weight 25.8%

*Excludes Constellation bonds. In June 2016 and June 2017, we owned Constellation bonds
Source: Bloomberg amounting to 1.4% and 0.8% of the Sequoia portfolio, respectively.
 Valuation & Estimated Earnings Growth

Price to Earnings

2018E 2019E

* *
Sequoia Fund 20.2x 17.0x

S&P 500 17.0x 15.5x

Sources: FactSet, Internal Estimates *Non-GAAP. Sequoia P/E based on RCG estimated earnings.
Taxes
Trevor Magyar
Our Goal: Maximize Your Long-Term After-Tax Return

• Long-term pre-tax investment outcomes are the primary driver of your

long-term after-tax return.

• Sequoia Fund remains one of the lowest-turnover, most highly tax-

efficient vehicles in the active mutual fund industry.
Investment Considerations Come First – Two Refinements

• It pays to hold a profitable investment for more than one year to avoid
punitive short-term capital gains.

• Because recognizing a gain produces a certain tax bill and an

uncertain improvement in the Fund’s future pre-tax return, it makes
sense to limit turnover to those situations in which the anticipated
positive impact on the Fund’s pre-tax return is significant.
Putting Turnover Into Perspective

10-Year Compounded After-Tax Return

(Assuming Market Return of 7.0%) *

8.0%
5.9%
6.0%
4.6%
4.0%

2.0%

0.0%
Annual Turnover 100% 0%
Gains at Long-
Term Rates 0% 100%
Pre-Tax 0bps 0bps
Outperformance
Annualized
* All return calculations assume a 20.0% tax rate on realized long-term capital gains and a 35.0% tax rate on realized short-term gains.
In the case 0% turnover, the return calculation assumes all the investments are sold and all associated gains are realized at the end of the 10-year period.
Putting Turnover Into Perspective

10-Year Compounded After-Tax Return

(Assuming Market Return of 7.0%) *
8.1% Defer Gains
8.0%
+30bps
5.9%
6.0%
4.6% +130bps
4.0%

2.0%

0.0% Avoid ST Gains

Annual Turnover 100% 18% +100bps
0%
Gains at Long-
Term Rates 0% 100% 98%
Pre-Tax 0bps 0bps 265bps
Outperformance
Annualized
* All return calculations assume a 20.0% tax rate on realized long-term capital gains and a 35.0% tax rate on realized short-term gains.
In the case 0% turnover, the return calculation assumes all the investments are sold and all associated gains are realized at the end of the 10-year period.
Putting Turnover Into Perspective

10-Year Compounded After-Tax Return

(Assuming Market Return of 7.0%) *
8.1%
8.0%
5.9%
6.0%
4.6%
4.0%

2.0%

0.0%
Annual Turnover 100% 0% 18%
Gains at Long-
Term Rates 0% 100% 98%
Pre-Tax 0bps 0bps 265bps
Outperformance
Annualized
* All return calculations assume a 20.0% tax rate on realized long-term capital gains and a 35.0% tax rate on realized short-term gains.
In the case 0% turnover, the return calculation assumes all the investments are sold and all associated gains are realized at the end of the 10-year period.
 Almost All Gains Have Been Long-Term

Capital Gains Distributions over 20 Years*

Morningstar
Sequoia Fund
Category Average

2%

25%

98% 75%
Long-Term Short-Term Long-Term Short-Term
Source: Morningstar. *1998-2017 averages for Sequoia Fund and the Morningstar Domestic Large Cap Growth fund category.
Recent Sales Have Included Large Deferred Gains
Holding Period (in Years) for Securities Accounting for 85% of the Fund's
Net Realized Gains since RCG’s Leadership Transition in 2016*
Berkshire Hathaway

TJX

Danaher

Fastenal

Mohawk

O'Reilly

Idexx

Mastercard

Waters

Dentsply Sirona

0 5 10 15 30
20
*For fully exited positions, holding period defined as length of time between first purchase and final sale.
For partially exited positions, holding period defined as length of time between first purchase and April 30, 2018.
Recent Turnover Within Long-Term Historical Range

Annual Portfolio Turnover* over 20 Years

40%

35%

30%

25%

20%

15%

10%

5%

0%

*Portfolio turnover is computed by taking the lesser of purchases or sales

(excluding all securities with maturities of less than one year) and dividing by average monthly net assets.
 Turnover Radically Below Industry Average

Annual Portfolio Turnover* over 20 Years

120%

100%

80%

60%

40%

20%

0%

Sequoia Morningstar US Fund Large Growth

*Portfolio turnover is computed by taking the lesser of purchases or sales

Source: Morningstar. (excluding all securities with maturities of less than one year) and dividing by average monthly net assets.
Organizational Update
Arman Gokgol-Kline
Firm Overview

$20 billion AUM

67 team members
Team

• 28 investment professionals
Investment Committee

Arman Gokgol-Kline 15 David Poppe 19

John Harris 15 Chase Sheridan 12

Trevor Magyar 11 Greg Alexander 33

Team

• 39 business professionals

Business Leaders

IR/
Patrick Dennis CFO Jen Rusk Talia
BD

Wendy Goodrich COO Michael Sloyer GC

New Websites

www.sequoiafund.com
New Websites

www.ruanecunniff.com
Client Portal: Landing Page
New Client Reporting
Operational Improvements

• Upgrading Sequoia Fund user experience at DST

• DST Digital Investor Platform
• Sequoia Fund now available on multiple platforms
Conclusion
John Harris
Conclusion

• So far, so good, but stay tuned – it’s still early, and we have much to prove.
• If you own companies that are better and faster-growing than the typical business, and if
you mostly buy cheap and sell dear, you should outperform – significantly.
• We are pleased that we’ve kept up with a strong market and have a portfolio today that
we like better than the one we had two years ago.
• While paying taxes is never enjoyable, what matters is maximizing after-tax performance
– not minimizing taxes.
• We remain among the most tax-efficient investment managers of which we are aware –
and we expect to stay that way.
• We have made very significant investments in our administrative infrastructure, leaving
the “back end” of Ruane Cunniff stronger than ever.
• We have shown you a lot of numbers and information, but not everything that
counts in our business can be counted, and nothing counts more than culture.
Annual Investor Day
May 18, 2018