Author Topic: Sequoia Fund Investor Day Transcript  (Read 28025 times)

Phaceliacapital

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Re: Sequoia Fund Investor Day Transcript
« Reply #20 on: August 30, 2016, 06:55:01 AM »
I'm just amazed to see that one single investment caused them to move from outperform to under perform over 1 yr, 5 yr & 10 year time frame compared to S&P 500.

Despite having a full time analyst allocated to VRX ...
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fareastwarriors

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Re: Sequoia Fund Investor Day Transcript
« Reply #21 on: August 30, 2016, 09:54:59 AM »
every Fund is getting killed (saw Chou's thread)... is there any mutual fund worth investing in?

Jurgis

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Re: Sequoia Fund Investor Day Transcript
« Reply #22 on: August 30, 2016, 10:10:53 AM »
every Fund is getting killed (saw Chou's thread)... is there any mutual fund worth investing in?

That's pretty much the situation. Fund argument is pretty much that they will outperform eventually - when market crashes??? - but I am not aware of any funds that are clearly worth investing into with expectation of outperformance.

I thought a bit of getting into Sequoia this year as they opened to investors. But did not act and not sure it's worth doing it.

If you're bearish, it's likely better to just adjust your allocation yourself rather than invest in value fund and expect that it will do better in market downturn... Edit: OTOH with 20-40% non-stock allocation, you're likely to underperform index as well, so... you might do as well with some value fund maybe... or not... :)

Just my thoughts though. I may be wrong. :)
« Last Edit: August 30, 2016, 10:19:22 AM by Jurgis »
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longinvestor

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Re: Sequoia Fund Investor Day Transcript
« Reply #23 on: August 30, 2016, 10:11:59 AM »
every Fund is getting killed (saw Chou's thread)... is there any mutual fund worth investing in?

No.

The low cost index fund that eschews unneeded (frictional ) activity is the better choice.

I wish to see fees paid after performance. They will all run away.

stahleyp

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Re: Sequoia Fund Investor Day Transcript
« Reply #24 on: August 30, 2016, 10:25:31 AM »
is the reason they don't/won't do the fees after performance due to the 1940 investment act?
Paul

undervalued

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Re: Sequoia Fund Investor Day Transcript
« Reply #25 on: August 30, 2016, 11:21:11 AM »
Thanks for posting the transcript. I guess the lesson here is to remind everyone Bernard Baruch saying ―nobody ever went broke taking a profit. And that during downturn, stock price went crazy to the low side where you can really outperform over the long term.
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benhacker

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Re: Sequoia Fund Investor Day Transcript
« Reply #26 on: August 30, 2016, 11:45:48 AM »
Quote
is the reason they don't/won't do the fees after performance due to the 1940 investment act?

Mostly yes, but also it's a terrible feast / famine business (the RIA) if it's 100% performance based.  I think most rational investors wouldn't generally support a pure performance fee if they want longevity in their investment manager (some will of course).
Ben Hacker
Beaverton, Oregon - USA

intothebreach

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Re: Sequoia Fund Investor Day Transcript
« Reply #27 on: August 30, 2016, 12:23:12 PM »
The one question I would have like to hear about did not get asked: If the directors that resigned did so over the VRX concentration, were they not doing their job of governance, and thus of looking out for investors? If so, has Sequoia considered or will Sequoia consider asking them back? Probably never going to happen due to politics or burned bridges, but still would have liked that as a question...

John Hjorth

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Re: Sequoia Fund Investor Day Transcript
« Reply #28 on: August 30, 2016, 12:32:51 PM »
The one question I would have like to hear about did not get asked: If the directors that resigned did so over the VRX concentration, were they not doing their job of governance, and thus of looking out for investors? If so, has Sequoia considered or will Sequoia consider asking them back? Probably never going to happen due to politics or burned bridges, but still would have liked that as a question...

Totally agree with intothebreach here. After reading the transcript, exactly this question was for me unanswered.
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VersaillesinNY

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Re: Sequoia Fund Investor Day Transcript
« Reply #29 on: March 01, 2017, 03:59:40 PM »