Sequoia Bought More Facebook, Sold More Amazon in Third Quarter
2018-10-05 14:31:53.119 GMT
By Arie Shapira
(Bloomberg) -- The Sequoia Fund bought more shares of
Facebook Inc. in the third quarter, according to Ruane, Cunniff &
Goldfarb.
"We added slightly to our position in Facebook," Ruane’s
investment committee wrote in a letter dated Oct. 3. The fund,
which managed $4.5 billion as of August, had initiated a small
stake in the social-media giant during the first quarter, when
shares plunged in reaction to the Cambridge Analytica data
scandal.
New York-based Ruane also announced that partner and former
Chief Executive Officer David Poppe will retire at the end of
the year.
Facebook sank 15 percent in the third quarter on concerns
over slowing user growth stemming from a disappointing earnings
report. The underperformance was a stark contrast to the
strength exhibited by other members of the FAANG complex: Apple
Inc. surged 22 percent in the same period while Amazon.com Inc.
rose 18 percent.
Sequoia, the mutual fund seeking to rebound after holdings
in Bausch Health Companies Inc., formerly Valeant
Pharmaceuticals, dragged down returns in 2015 and 2016. The
fund’s largest position at the end of the third quarter was
Alphabet Inc., which accounts for almost 12 percent of the
portfolio, while Amazon is its sixth-largest holding, a stake
that it has been trimming over the past two quarters, according
to the quarterly letters.
Other reduced positions in the third quarter were
Mastercard Inc., TJX Companies Inc., Rolls-Royce Holdings and
Constellation Software Inc. The fund also took a new position at
the end of the quarter that it won’t disclose until all
purchases are complete.
To contact the reporter on this story:
Arie Shapira in New York at ashapira3@bloomberg.net
To contact the editors responsible for this story:
Chris Nagi at chrisnagi@bloomberg.net
Vincent Bielski, Melissa Karsh
2018-10-05 14:31:53.119 GMT
By Arie Shapira
(Bloomberg) -- The Sequoia Fund bought more shares of
Facebook Inc. in the third quarter, according to Ruane, Cunniff &
Goldfarb.
"We added slightly to our position in Facebook," Ruane’s
investment committee wrote in a letter dated Oct. 3. The fund,
which managed $4.5 billion as of August, had initiated a small
stake in the social-media giant during the first quarter, when
shares plunged in reaction to the Cambridge Analytica data
scandal.
New York-based Ruane also announced that partner and former
Chief Executive Officer David Poppe will retire at the end of
the year.
Facebook sank 15 percent in the third quarter on concerns
over slowing user growth stemming from a disappointing earnings
report. The underperformance was a stark contrast to the
strength exhibited by other members of the FAANG complex: Apple
Inc. surged 22 percent in the same period while Amazon.com Inc.
rose 18 percent.
Sequoia, the mutual fund seeking to rebound after holdings
in Bausch Health Companies Inc., formerly Valeant
Pharmaceuticals, dragged down returns in 2015 and 2016. The
fund’s largest position at the end of the third quarter was
Alphabet Inc., which accounts for almost 12 percent of the
portfolio, while Amazon is its sixth-largest holding, a stake
that it has been trimming over the past two quarters, according
to the quarterly letters.
Other reduced positions in the third quarter were
Mastercard Inc., TJX Companies Inc., Rolls-Royce Holdings and
Constellation Software Inc. The fund also took a new position at
the end of the quarter that it won’t disclose until all
purchases are complete.
To contact the reporter on this story:
Arie Shapira in New York at ashapira3@bloomberg.net
To contact the editors responsible for this story:
Chris Nagi at chrisnagi@bloomberg.net
Vincent Bielski, Melissa Karsh