The $4.5 billion Sequoia Fund (SEQUX) is up 12% this year and has an average annual return of 6% over 10 years, proving its worth as a reliable, all-weather fund. S&P Capital IQ gave it its top award in the domestic equity, multi-cap category this year, based on its strong, risk-adjusted track record under current management, for owning securities that it views as incurring relatively limited risk, and because it has relatively modest expenses versus its peers.
Morningstar also give the fund its highest ratings at five stars and says "co-managers Bob Goldfarb and David Poppe prize companies with sustainable competitive advantages and talented management teams that are effective capital allocators. The portfolio has traditionally been quite concentrated, but they take a prudent approach."Among the fund's top holdings in its 34-stock portfolio are: specialty pharmaceutical firm Valeant Pharmaceuticals (VRX), diverse holding company Berkshire Hathaway (BRK.B), discount clothing retailer TJX Cos. (TJX), construction and maintenance products distributor Fastenal (FAST), and medical diagnostic products maker Idexx Laboratories (IDXX).