Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Sequoia Fund Investing Legend Bob Goldfarb Resigns

TedTed
edited March 2016 in Fund Discussions
FYI: Did he fall on his sword? The 71-year-old leader of the well-known investment product, which has underperformed 98 percent of its peers since January, is stepping down. Goldfarb’s 36-year tenure at the helm comes to a close after his mutual fund suffered huge losses — to the tune of 25 percent of the fund’s value since 2015 — following heavy investments in Valeant Pharmaceuticals International. Concern over the venerable fund’s reputation has prompted action, and Goldfarb will retire at the end of the month.
Regards,
Ted
http://www.ozy.com/presidential-daily-brief/pdb-68659/bowing-out-68669

Bloomberg Slant:
http://www.bloomberg.com/news/articles/2016-03-23/goldfarb-to-retire-from-sequoia-fund-after-valeant-losses

Shareholders Letter:
http://www.sequoiafund.com/Sequoia_clientletter.pdf

Comments

  • And the lesson is ... ?
  • edited March 2016
    And the analyst who was most involved with the Valeant investment now departs as well (though Sequoia won't say who, the prime suspect is analyst Rory Priday):
    http://www.bloomberg.com/news/articles/2016-03-24/ruane-cunniff-analyst-who-helped-champion-valeant-left-with-ceo

    @Charles Yes, indeed, I've been waiting for the answer to that one for over a month. One passage in the above suggests that a certain person of importance never learned a damn thing:
    At a board meeting last week, the directors realized that “we were at an untenable situation” because of Goldfarb’s “inability or unwillingness to sell the position,” Swiggett said. He declined to comment on whether the board forced Goldfarb to retire.
  • edited March 2016
    Peter Lynch had the right idea. Retired at 46 while on top the pack.

    Sequoia sure looks like a focused fund, inherently subject to higher highs and lower lows.
    Requires more patience to hang onto than most of us possess.
    "And when they stop smiling back - that's an earthquake."
    (Death of a Salesman, Arthur Miller)
Sign In or Register to comment.