Skip to Content
Fund Spy

A Preview of Sequoia's Coming Attractions

Greater diversification means a host of new names.

Mentioned: , , , , , , , , ,

 Sequoia (SEQUX) has gradually transformed itself during the past decade. We've chronicled its evolution from one of the most concentrated equity funds into a more diversified offering. Ten years ago, the portfolio included just 15 stocks with more than 95% of assets in the fund's top 10 holdings--nearly a third in  Berkshire Hathaway (BRK.B) alone. A decade later, the number of holdings has tripled and the top 10 holdings claim just 52% of assets. It has gone from being easily one of the most concentrated funds to not even making the large-blend category's most-concentrated 10%.

Much of this transformation has occurred in the past three years. In mid-2009, the fund still had just 25 holdings. However, comanagers Bob Goldfarb and David Poppe have added 11 new stocks since June 2011 alone. These additions owe in part to the firm's aggressive analyst hiring. The staff has doubled since 2006, giving the team ample new capacity. Although the team follows a generalist model, several new hires bring expertise in technology, an area the fund had avoided in decades past.

Kevin McDevitt has a position in the following securities mentioned above: SEQUX. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.