Sequoia Fund (SEQUX)

US stock investment can be done through mutual funds. One of the best U.S. Stock Funds is Sequoia fund. This domestic equity fund is rated 5 stars by Morningstar and is one of the oldest mutual fund. Details about the fund’s review can be found below.

Sequoia (MUTF: SEQUX)

This Sequoia fund is seeking long-term growth of capital. This large blend stock fund invests primarily on undervalued common stocks with potential for growth. While the fund typically invests in U.S. companies, it also may invest in foreign securities. It may invest in securities of issuers with any market capitalization. The fund is non-diversified.

SEQUX Fund Details
Sequoia fund details
  • Fund Inception Date: July 15, 1970
  • Ticker Symbol: SEQUX
  • CUSIP: 817418106 
  • Beta (3yr): 0.78
  • Rank in category (YTD): 1
  • Category: Large Blend
  • Distribution Rate: 0.22%
  • Net Assets: $ 4.38 billion
  • Sales Load: 0.0%
  • Expense Ratio: 1.00%
  • Capital Gains: N/A
  • Number of Years Up: 34 years
  • Number of Years Down: 6 years
Updated on 10/18/2011

Robert D. Goldfarb has been this fund’s manager since June 1998. This SEQUX fund was officially introduced to public in July 15, 1970. The expense ratio of this fund is 1.00% per year. This is a no-load fund; therefore it doesn’t charges any sales load fee. It does provide a small amount yield of 0.22%. This fund uses S&P 500 index as the fund’s benchmark.

If you want to buy this large blend fund, the minimum balance to invest is $5,000 for brokerage account and $2,500 for retirement (IRA) account. This top large blend domestic fund doesn’t have a minimum for subsequent investment. This fund can be purchased from 33 brokerages, such as Vanguard, JP Morgan, TD Ameritrade Inc, T Rowe Price, Schwab Retail, Scottrade TF, Bear Stearns, Pershing Fund Center, Ameriprise Brokerage, etc. This is the only fund offered by Sequoia Fund.

This Sequoia fund has gotten 5-stars rating from Morningstar as it since its inception, this top rated fund has recorded 34 years of positive return and 6 years of negative return. The highest achievement of 1-year total return was in 1997 with 43.20%. The worst 1-year total return was in year 2008 with -27.03%.This SEQUX fund has 11.28% YTD return and 5.85% of 5-year average return. Based on the load adjusted return, this fund has returned 24.00% over the past year and 5.96% over the past decade.

As of March 2011, the top 5 sectors of this Best US Stock Fund are Health Care (27.34%), Consumer Cyclical (23.17%), Industrials (21.75%), Financial Services (18.24%) and Technology (5.27%). The top holdings as of March 2011 are Cash & Cash Equivalents (21.16%), Valeant Pharmaceuticals International Inc (13.75%), Berkshire Hathaway Inc (9.33%), TJX Companies (5.98%) and Fastenal Company (5.49%).

According to the fund’s prospectus, investing in this fund involved Risks such as Market Risk, Value Investing Risk, Non-Diversification Risk, Foreign (Non-US) Risk, Currency Risk, Smaller Capitalization Risk, etc.

  • It has 5 stars and gold rating
  • The expense ratio is low
  • No yield
  • Limited to new investors
Disclosure: No Position

Other Top Rated US Equity Funds article:
Update on 12/3/2011:

The top 5 stocks of this fund as of July 2011 are Valeant Pharmaceuticals International Inc, Berkshire Hathaway Inc, TJX Companies, Fastenal Company and Idexx Laboratories.


Post a Comment