Sequoia News: Fund Reopens to New Investors

The timing of the decision is perhaps somewhat unusual, at least by historical standards. Value-oriented funds such as Sequoia often close to new investors late in a bull market when attractive opportunities may be in short supply. On the other hand, they often reopen to investors in the depths of a bear market when sentiment is negative but low-priced stocks may be plentiful. Indeed, Sequoia has followed this pattern in the past. The fund last reopened to new shareholders in 2008 during the credit crisis before closing again in December 2013 when the market was setting new highs. With U.S. markets not far from their highs currently, this reopening seems to break with past behavior.

The firm said in its letter that the decision to reopen would be driven by investors looking to buy shares after the fund had been hit hard by its massive stake in beleaguered