Goldfarb Steps Down at Sequoia

Bob Goldfarb has

This was a mutual decision, but the fund board and others at the firm felt that decision making had become too centralized and others on the team needed to have more input in the investment process. Plus, there was a belief that senior members of the team were ready to take on greater responsibility. (Some of them have been with the firm since the Bill Ruane days.)

David Poppe will remain as sole manager of the fund. (He may add a comanager in the future.) He also plans to establish an investment committee with himself and three other senior members of the team. The plan is to make the process more collaborative, as well as to introduce checks and balances into the process. For example, the other three members of the investment committee could override Poppe on a buy/sell decision. The investment committee is also working to draft a set of rules around risk management.

With Goldfarb leaving the firm, the board will be down another person. With Tim Medley having joined the board on Monday, they would like to add another outside board member as well as an insider.

Previously: Valeant Stake Continues to Cost Sequoia Continued controversy with top-holding Valeant has dragged down long-term returns and led to outflows at this venerable fund.