Annual Investor Day May 18, 2018

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Kimberly Miles
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1 Annual Investor Day May 18, 2018

2 Disclosure Please consider the investment objectives, risks and charges and expenses of Sequoia Fund, Inc. (the Fund ) carefully before investing. The Fund's prospectus contains this and other information about the Fund. You may obtain a copy of the prospectus at or by calling Please read the prospectus carefully before investing. Shares of the Fund are offered through the Fund s distributor, Ruane, Cunniff & Goldfarb LLC. Ruane, Cunniff & Goldfarb LLC is an affiliate of Ruane, Cunniff & Goldfarb L.P. and is a member of FINRA. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Fund may be offered only to persons in the United States and by way of a prospectus. Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment): Management Fees 1.00% Other Expenses 0.07% Total Annual Fund Operating Expenses 1.07%* * Does not reflect Ruane, Cunniff & Goldfarb L.P. s ( Ruane, Cunniff & Goldfarb ) contractual reimbursement of a portion of the Fund s operating expenses. This reimbursement is a provision of Ruane, Cunniff & Goldfarb s investment advisory agreement with the Fund and the reimbursement will be in effect only so long as that investment advisory agreement is in effect. For the year ended December 31, 2017, the Fund s annual operating expenses and investment advisory fee, net of such reimbursement, were 1.00% and 0.93%, respectively. The performance data for the Fund represents past performance and assumes reinvestment of dividends. Past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. The Fund s 1-year, 5-year and 10-year average annual total returns through March 31, 2018 were 15.28%, 6.52% and 7.72%, respectively. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end can be obtained by calling DST Systems, Inc. at (800) The Fund is non-diversified, meaning that it invests its assets in a smaller number of companies than many other funds. As a result, an investment in the Fund has the risk that changes in the value of a single security may have a significant effect, either negative or positive, on the Fund s net asset value per share. The S&P 500 Index is an unmanaged index of 500 stocks, which is representative of the U.S. stock market in general. The index does not incur expenses and is not available for investment.

3 Agenda Welcome Performance Portfolio Taxes Organization Conclusion Tribute Q&A 40 min 10 min 100 min 10:00am 12:30pm

4 Performance David Poppe

5 Return Under Investment Committee Total Return Annualized June 30, 2016 May 17, 2018* Year to Date Sequoia Fund 35.13% 17.37% 4.89% S&P % 17.15% 2.50% *See Disclosures on slide 2. Past performance does not guarantee future results.

6 Despite Holding More Cash Year Sequoia Average Cash % % 2018 YTD 7.7%

7 Earnings ($) It s Been a Multiple-Driven Market since P/E Multiple Expansion: Earnings Growth: Market Return: +84% +29% +113% Multiple S&P 500 Price S&P Earnings S&P PE Multiple 10 Source: Bloomberg & S&P as cited by Prof. Aswath Damodaran, NYU Stern School of Business

8 Top 10 Holdings: 5/17/2018 Company Weighting Holding Period (Yrs) IC Decision Alphabet 11.1% 8 Berkshire Hathaway 8.9% 29 Mastercard 7.2% 12 Carmax 7.1% 2 NEW Constellation Software 5.9% 4 Rolls-Royce 4.5% 11 Amazon 4.5% 1 NEW Charles Schwab 4.5% 2 NEW TJX 4.4% 18 Naspers 3.5% 1 NEW

9 Portfolio Update Chase Sheridan

10 Portfolio Characteristics Largest Holding Stocks Top 5 Top 10 6/30/ % 40.4% 59.6% 6/30/ % 36.7% 58.7% 5/17/ % 40.1% 61.5%

11 Software & Internet Stocks 6/30/2016 6/30/2017 5/17/2018 Alphabet 4.8% 6.5% 11.1% Constellation Software 3.4% * 4.8% * 5.9% Amazon - 1.3% 4.4% Naspers % Booking - 3.0% 3.2% Facebook % Total 8.2% 15.6% 30.5% S&P 500 Information Technology Sector Weight 25.8% Source: Bloomberg *Excludes Constellation bonds. In June 2016 and June 2017, we owned Constellation bonds amounting to 1.4% and 0.8% of the Sequoia portfolio, respectively.

12 Sales Trends 5-Year Sales Growth* 2018E Sales Growth 2019E Sales Growth Sequoia Fund 15% 16% 12% S&P 500 2% 6% 5% Source: Capital IQ & Bloomberg * , compound growth in sales per share, excluding Liberty Media which lacks a five year history. Includes only current constituents of the portfolio, including look-through revenue growth of Charter Communications and Tencent Holdings. Sales growth for foreign companies calculated using reported currency.

13 Valuation & Estimated Earnings Growth Price to Earnings 2018E 2019E Sequoia Fund * * 20.2x 17.0x S&P x 15.5x Sources: FactSet, Internal Estimates *Non-GAAP. Sequoia P/E based on RCG estimated earnings.

14 Taxes Trevor Magyar

15 Our Goal: Maximize Your Long-Term After-Tax Return Long-term pre-tax investment outcomes are the primary driver of your long-term after-tax return. Sequoia Fund remains one of the lowest-turnover, most highly taxefficient vehicles in the active mutual fund industry.

16 Investment Considerations Come First Two Refinements It pays to hold a profitable investment for more than one year to avoid punitive short-term capital gains. Because recognizing a gain produces a certain tax bill and an uncertain improvement in the Fund s future pre-tax return, it makes sense to limit turnover to those situations in which the anticipated positive impact on the Fund s pre-tax return is significant.

17 Putting Turnover Into Perspective 10-Year Compounded After-Tax Return (Assuming Market Return of 7.0%) * 8.0% 6.0% 4.0% 2.0% 0.0% Annual Turnover Gains at Long- Term Rates Pre-Tax Outperformance Annualized 4.6% 100% 0% 0bps 5.9% 0% 100% 0bps * All return calculations assume a 20.0% tax rate on realized long-term capital gains and a 35.0% tax rate on realized short-term gains. In the case 0% turnover, the return calculation assumes all the investments are sold and all associated gains are realized at the end of the 10-year period.

18 Putting Turnover Into Perspective 10-Year Compounded After-Tax Return (Assuming Market Return of 7.0%) * 8.0% 6.0% 4.6% 5.9% +130bps 8.1% Defer Gains +30bps 4.0% 2.0% 0.0% Annual Turnover 100% 0% 18% Avoid ST Gains +100bps Gains at Long- Term Rates 0% 100% 98% Pre-Tax Outperformance Annualized 0bps 0bps 265bps * All return calculations assume a 20.0% tax rate on realized long-term capital gains and a 35.0% tax rate on realized short-term gains. In the case 0% turnover, the return calculation assumes all the investments are sold and all associated gains are realized at the end of the 10-year period.

19 Putting Turnover Into Perspective 8.0% 6.0% 4.0% 2.0% 0.0% 10-Year Compounded After-Tax Return (Assuming Market Return of 7.0%) * 4.6% 5.9% 8.1% Annual Turnover 100% 0% 18% Gains at Long- Term Rates 0% 100% 98% Pre-Tax Outperformance Annualized 0bps 0bps 265bps * All return calculations assume a 20.0% tax rate on realized long-term capital gains and a 35.0% tax rate on realized short-term gains. In the case 0% turnover, the return calculation assumes all the investments are sold and all associated gains are realized at the end of the 10-year period.

20 Almost All Gains Have Been Long-Term Capital Gains Distributions over 20 Years* Sequoia Fund 2% Morningstar Category Average 25% 98% 75% Long-Term Short-Term Long-Term Short-Term Source: Morningstar. * averages for Sequoia Fund and the Morningstar Domestic Large Cap Growth fund category.

Recent Sales Have Included Large Deferred Gains Berkshire Hathaway TJX Danaher Fastenal Mohawk O'Reilly Idexx Mastercard Waters Dentsply Sirona Holding Period (in Years) for Securities Accounting for

21 Recent Sales Have Included Large Deferred Gains Berkshire Hathaway TJX Danaher Fastenal Mohawk O'Reilly Idexx Mastercard Waters Dentsply Sirona Holding Period (in Years) for Securities Accounting for 85% of the Fund's Net Realized Gains since RCG s Leadership Transition in 2016* *For fully exited positions, holding period defined as length of time between first purchase and final sale. For partially exited positions, holding period defined as length of time between first purchase and April 30, 2018.

22 Recent Turnover Within Long-Term Historical Range 40% Annual Portfolio Turnover* over 20 Years 35% 30% 25% 20% 15% 10% 5% 0% *Portfolio turnover is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets.

23 Turnover Radically Below Industry Average 120% Annual Portfolio Turnover* over 20 Years 100% 80% 60% 40% 20% 0% Sequoia Morningstar US Fund Large Growth Source: Morningstar. *Portfolio turnover is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets.

24 Organizational Update Arman Gokgol-Kline

25 Firm Overview $20 billion AUM 67 team members

26 Team 28 investment professionals Investment Committee Arman Gokgol-Kline 15 David Poppe 19 John Harris 15 Chase Sheridan 12 Trevor Magyar 11 Greg Alexander 33

27 Team 39 business professionals Business Leaders Patrick Dennis CFO Jen Rusk Talia IR/ BD Wendy Goodrich COO Michael Sloyer GC

28 New Websites

29 New Websites

30 Client Portal: Landing Page

31 New Client Reporting

32 Operational Improvements Upgrading Sequoia Fund user experience at DST DST Digital Investor Platform Sequoia Fund now available on multiple platforms

33 Conclusion John Harris

34 Conclusion So far, so good, but stay tuned it s still early, and we have much to prove. If you own companies that are better and faster-growing than the typical business, and if you mostly buy cheap and sell dear, you should outperform significantly. We are pleased that we ve kept up with a strong market and have a portfolio today that we like better than the one we had two years ago. While paying taxes is never enjoyable, what matters is maximizing after-tax performance not minimizing taxes. We remain among the most tax-efficient investment managers of which we are aware and we expect to stay that way. We have made very significant investments in our administrative infrastructure, leaving the back end of Ruane Cunniff stronger than ever. We have shown you a lot of numbers and information, but not everything that counts in our business can be counted, and nothing counts more than culture.

35 Annual Investor Day May 18, 2018

Ruane, Cunniff & Goldfarb Inc. 9 West 57 th Street Suite 5000 New York, NY Tel: (212) Fax: (212)

Ruane, Cunniff & Goldfarb Inc. 9 West 57 th Street Suite 5000 New York, NY 10019 Tel: (212) 832-5280 Fax: (212) 832-5298 July 31, 2017 Dear Sequoia Shareholders and Clients: Sequoia Fund generated a 3.98%