Ruane, Cunniff & Goldfarb
| Company type | Private |
|---|---|
| Industry | Investment management |
| Founded | 1969 |
| Founder | William J. Ruane, Richard T. Cunniff, Robert Goldfarb |
| Headquarters | New York City , United States |
Area served | Global |
Key people | David Poppe (former CEO), Robert Goldfarb (former CEO) |
| Products | Sequoia Fund, Acacia Partners, Wishbone Partners, separately managed accounts |
| Website | www |
Ruane Cunniff LP, based in New York City, is an investment management firm established in 1969 by William J. Ruane, Richard T. Cunniff, and Robert Goldfarb.
The company is primarily recognized as the advisor and distributor for the Sequoia Fund (SEQUX), which has consistently ranked among the top performers on Wall Street since its launch in 1970.
Currently, Ruane Cunniff oversees close to $19 billion in assets, including those held within the Sequoia Fund, hedge fund vehicles such as Acacia Partners and Wishbone Partners, as well as separately managed accounts.
Management
At the conclusion of 2016, Robert Goldfarb stepped down after the Sequoia Fund experienced considerable losses that year. His successor, David Poppe, assumed the role of CEO but retired in 2018. Since then, management of the Sequoia Fund has been entrusted to a committee comprising four investment professionals.
Sequoia Fund
Established in 1970 by William J. Ruane and Richard T. Cunniff, the Sequoia Fund was created to handle investments from clients previously associated with Warren Buffett’s partnership following its closure in 1969. Buffett personally endorsed Ruane as an investment advisor to his former partners. Robert Goldfarb became part of the firm in 1971.
Warren Buffett commended Ruane’s stewardship, mentioning he was searching for "another Bill Ruane" when considering potential successors at Berkshire Hathaway.
Between 1970 and 2015, the Sequoia Fund delivered an annualized return of 14.65%, surpassing the S&P 500’s 10.93%. Morningstar reports that it outperformed comparable large-cap blend funds in 332 out of 333 rolling ten-year periods since inception. The fund closed its doors to new investors in 1982, reopened in 2008, but closed again in 2013 due to high demand. It briefly allowed new investors again in 2016 following setbacks related to Valeant Pharmaceuticals.
In 2016, a sharp drop in Valeant Pharmaceuticals stock caused a one-day loss of $1.26 billion for the fund; at year-end 2015, Valeant represented roughly 19% of Sequoia’s portfolio and had peaked at over 30%. This significant loss adversely affected both the fund’s performance and investor trust, resulting in Sequoia ranking below 97% of its peers that year. Co-managers Goldfarb and Poppe admitted this event diminished their standing as investors.
Despite this challenge, the Sequoia Fund continues to be regarded as a prominent example of disciplined leadership and enduring value investing within the asset management sector.
External links
- Official website of Sequoia Fund
- Bloomberg overview of Sequoia Fund
- Morningstar overview of Sequoia Fund
- Yahoo Finance overview of Sequoia Fund