Large Holder Of Valeant Exited Stake Over Last Quarter Letter
July 13 2016 - 12:10AM
Dow Jones News
A mutual fund hurt by a large bet on Valeant Pharmaceuticals
International Inc. relinquished its stake in the drugmaker over the
last quarter, according to a new investor letter.
Sequoia Fund Inc. told investors in its letter Tuesday that it
no longer owned any shares of Valeant, a stock that at one time
accounted for more than 30% of its portfolio.
Sequoia suffered losses and client withdrawals this year as
Valeant faced questions about its business and accounting
practices. Sequoia was down 11.7% for the year to date through
Tuesday, according to its website.
The fund also disclosed a series of new bets made during the
second quarter. It bought shares in Chipotle Mexican Grill Inc.,
Charles Schwab Corp., Wells Fargo & Co. and CarMax Inc. Charles
Schwab is known for its low-cost funds tied to indexes, and the
managers of Sequoia said an industrywide shift to such funds
represents an opportunity for the brokerage firm.
Cash and Treasury bills accounted for 13% of Sequoia assets at
the end of June, while a longtime holding in Warren Buffett's
Berkshire Hathaway Inc. represented about 17% of the fund.
Sequoia reopened to new investors earlier this year after being
closed for most of its existence. The fund is available directly
through its manager, though its investment committee told clients
it is working with fund platforms run by Vanguard Group, Fidelity
Investments and Schwab to sell to new investors.
Sequoia added that it nominated former Microsoft Corp. General
Manager Peter Atkins as a new independent board member. The fund's
managers said they had known Mr. Atkins, who is now managing
director of investment fund Permian Partners, for several
years.
(END) Dow Jones Newswires
July 12, 2016 23:55 ET (03:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Berkshire Hathaway (NYSE:BRK.B)
Historical Stock Chart
From Aug 2024 to Sep 2024
Berkshire Hathaway (NYSE:BRK.B)
Historical Stock Chart
From Sep 2023 to Sep 2024