Valeant Pharma Fallout Hitting Home For Sequoia
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Sequoia and its manager (Ruane Cunniff & Goldfarb) is one of Valeant Pharma's (NYSE: VRX) largest shareholders and defended the company, although two of Sequoia's board members resigned over the recent stock price fall for VRX.
Well - now investors of Sequoia are heading for the exits as the fund hangs onto shares of VRX. October was the biggest monthly outflow of the year, pulling $100 million from the fund. The fund was down 9% in October. Sequoia has been closed to new investors since 2013.
The recent weakness at Sequoia is turning out to be a quite a blemish on its long-term record, which is modeled after strategies that Buffett employs.