Ruane Cunniff has a decorated history dating back to 1969 and has links to Warren Buffett. Long focused on just the Sequoia strategy, which incepted in 1970, the firm now manages USD 19 billion across Sequoia and four private partnerships, though all offerings follow the same general philosophy, balancing quality and valuation through exhaustive bottom-up research.
While the advisor’s disastrous investment in Valeant Pharmaceuticals in 2015-16 cast a shadow on its storied past, it remains a strong steward and has made necessary adjustments to the team structure and risk management. For instance, the firm introduced an investment committee structure in 2016, allowing multiple inputs for investment ideas and improving oversight while reducing key-person risk. The same members also comprise the management committee, so the firm’s strategic direction remains investment led.
The changes reinforce other longstanding strengths. Manager investment is strong, and nearly all portfolio managers are partners in the firm, helping to align their interests with end investors. The firm has a solid approach to sourcing, developing, and retaining talent via a junior analyst program, ensuring cultural and job fit. And while Sequoia is currently open to investors, Ruane Cunniff has a history of closing the fund when capacity is constrained.