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Sequoia Strategy

The Sequoia Strategy is a concentrated, value-oriented equity strategy that invests primarily in domestic mid- and large-capitalization companies. We evaluate investments with the mindset of a long-term business owner, focusing exclusively on things we believe we can understand, like the quality of a business franchise, the competence of a management team, and the competitive structure of an industry, rather than factors that we consider inherently unpredictable, like the direction of the economy or the sentiment of the stock market. While we research and own a wide range of businesses, we prefer high-quality companies run by outstanding management teams that can grow their earnings attractively over long periods of time. In all our investments, we aim to create a margin of safety by purchasing our interest in a business for a discount to our estimate of its intrinsic value, and we aim to capitalize on the depth of our research by concentrating our capital in a small and carefully selected group of companies.

Performance Summary

Net Returns through March 31, 2024

YEAR TO DATE1 YEAR3 YEARS*5 YEARS*10 YEARS*SINCE INCEPTION*
Sequoia Strategy9.8%31.5%4.1%11.1%7.2%13.4%
Standard & Poor’s 50010.6%29.9%11.5%15.1%13.0%11.3%

*Average Annual Total Return. Inception Date is July 15, 1970. The performance returns for the Composite are presented net of investment advisory fees and transaction costs and all other fees and expenses that a client paid in connection with RCG’s investment advisory services and reflect the reinvestment of dividends and other income / earnings, but do not reflect the deduction of custodial fees paid by the client. The performance returns also reflect cash flows into and out of accounts. The net performance returns are calculated using the highest annual advisory fee of 1% per annum, applied monthly. The performance presented does not represent the return of any one individual investor. The performance of a client account may differ from that of the Composite due to account size, client-specific guidelines or restrictions, tax considerations, cash flows into and out of the account, the timing of transactions and other factors. The S&P 500 Index is an unmanaged capitalization-weighted index of the common stocks of 500 major U.S. companies. The Index does not incur expenses. It is not possible to invest directly in the Index.

GIPS Composite Report

Top 10 Holdings

As of March 31, 2024

7.5%

6.9%

6.8%

6.8%

5.8%

5.6%

4.9%

4.9%

4.9%

4.3%

All data is as of March 31, 2024. The top ten positions are calculated as a percentage of total net assets and exclude cash and cash equivalents. The holdings are those of a representative account in the Composite that RCG believes closely reflects the Sequoia Strategy. Client account holdings may differ from those of the representative account due to account size, client-specific guidelines or restrictions, tax considerations and other factors. The representative account’s holdings are subject to change and are not recommendations to buy or sell any security. The percentages are of total assets.

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