David Poppe
FOLLOWRuane, Cunniff & Goldfarb (Sequoia Fund)
Buffett-lineage concentrated value fund with high transparency and strong philosophical alignment, though scarred by the Valeant debacle.
Modern Concentrated Investors
Current Portfolio
2025-Q4 · 48 positions · Filed 2026-02-13
| # | Ticker | Value | Weight |
|---|---|---|---|
| 1 | GOOGL | $680.7M | 10.6% Est. ~10.1% of total Conviction |
| 2 | SCHW | $559.0M | 8.7% Est. ~8.3% of total |
| 3 | FWONB | $540.9M | 8.4% Est. ~8.0% of total |
| 4 | CAPITAL ONE | $501.2M | 7.8% Est. ~7.4% of total |
| 5 | ELV | $498.7M | 7.8% Est. ~7.4% of total |
| 6 | ICE | $437.9M | 6.8% Est. ~6.5% of total |
| 7 | TAIWAN SEMICONDUCTOR | $432.0M | 6.8% Est. ~6.4% of total |
| 8 | GOOG | $358.5M | 5.6% Est. ~5.3% of total |
| 9 | ICLR | $306.1M | 4.8% Est. ~4.5% of total |
| 10 | MNESP | $290.1M | 4.5% Est. ~4.3% of total |
| 11 | ACN | $253.1M | 4.0% Est. ~3.8% of total |
| 12 | UNH | $246.3M | 3.9% Est. ~3.7% of total |
| 13 | CREDIT ACCEP | $237.8M | 3.7% Est. ~3.5% of total |
| 14 | ALGN | $190.9M | 3.0% Est. ~2.8% of total |
| 15 | BRK-A | $158.9M | 2.5% Est. ~2.4% of total |
| 16 | META | $157.8M | 2.5% Est. ~2.3% of total |
| 17 | LBRDP | $89.5M | 1.4% Est. ~1.3% of total |
| 18 | BRK-A | $86.8M | 1.4% Est. ~1.3% of total |
| 19 | TECH | $86.2M | 1.4% Est. ~1.3% of total |
| 20 | CHARTER COMMUNICATIONS | $75.6M | 1.2% Est. ~1.1% of total |
Allocation
Recent Changes
2025-Q4 vs 2025-Q3Portfolio +6.1%
| Action | Ticker | Shares Change | Value Change |
|---|---|---|---|
| NEW | ACN | +943K | +$253.1M Est. bought $234.02–$274.66 |
| NEW | ALGN | +1.2M | +$190.9M Est. bought $125.79–$165.43 |
| NEW | INVESCO EXCHANGE | +11K | +$439.3K |
| NEW | VANGUARD INTL | +1K | +$201.2K |
| SOLD | N0731H103 | -42K(-100%) | $-222.8K |
| SOLD | BLK | -186(-100%) | $-216.9K |
| SOLD | KMX | -4K(-100%) | $-200.5K |
| INCREASED | GLIBK | +164K(+44%) | +$6.1M |
| INCREASED | MNESP | +106K(+6%) | $-3.3M Est. bought $45–$45 |
| INCREASED | NFLX | +5K(+764%) | $-234.7K Est. bought $92.71–$124.14 |
| INCREASED | LITHIA MTRS | +333(+12%) | +$155.0K |
| INCREASED | VANGUARD INDEX | +31(+1%) | +$29.2K |
| INCREASED | VANGUARD STAR | +137(+3%) | +$20.8K |
| INCREASED | KASPI KZ | +400(+11%) | +$18.1K |
| DECREASED | GOOGL | -182K(-8%) | +$107.8M |
| DECREASED | TAIWAN SEMICONDUCTOR | -460K(-24%) | $-93.5M |
| DECREASED | CAPITAL ONE | -30K(-1%) | +$55.2M |
| DECREASED | GOOG | -112K(-9%) | +$52.9M |
| DECREASED | SCHW | -721K(-11%) | $-44.0M |
| DECREASED | FWONB | -78K(-1%) | $-40.8M |
| DECREASED | CREDIT ACCEP | -42K(-7%) | $-32.3M |
| DECREASED | ELV | -26K(-2%) | +$30.7M |
| DECREASED | LBRDP | -33K(-2%) | $-29.6M |
| DECREASED | CHARTER COMMUNICATIONS | -11K(-3%) | $-27.2M |
| DECREASED | ICE | -39K(-1%) | $-24.3M |
| DECREASED | META | -5K(-2%) | $-21.4M |
| DECREASED | UNH | -12K(-2%) | $-15.6M |
| DECREASED | AMTM | -30K(-1%) | +$11.4M |
| DECREASED | LBRDP | -16K(-2%) | $-10.9M |
| DECREASED | ICLR | -21K(-1%) | +$8.4M |
| DECREASED | TECH | -8K(-1%) | +$4.2M |
| DECREASED | BRK-A | -6K(-2%) | $-3.3M |
| DECREASED | BRK-A | -2(-2%) | $-1.4M |
| DECREASED | J | -3K(-31%) | $-541.8K |
| DECREASED | GLIBK | -2K(-2%) | $-166.2K |
| DECREASED | STLA | -2K(-6%) | +$23.5K |
Score Breakdown
Investment Philosophy & Portfolio Style
Philosophy
Classic concentrated value investing in the Buffett/Munger tradition. Views shares as ownership stakes in businesses, not trading instruments. Focuses on business quality, competitive advantages, and management competence. Holds positions for years and often decades. The fund's own website states they research businesses 'with the idea of owning them for many years — and often decades.' Non-diversified fund structure allows meaningful concentration. Ignores macroeconomic predictions and market timing. Emphasis on understanding what they own rather than predicting what they cannot control.
Portfolio Style
Highly concentrated. Typically 20-30 holdings. Top 10 positions represent 60-70% of fund assets. Non-diversified mutual fund structure (explicit in prospectus). Very low turnover — holds positions for years. Historically had enormous single-stock concentration (30%+ in Berkshire Hathaway at times, and the ill-fated 30%+ in Valeant). Post-Valeant, has maintained concentration but with better risk management. Current top holdings include Alphabet, Berkshire Hathaway, Meta, and other quality compounders.
Background
CEO and portfolio manager at Ruane, Cunniff & Goldfarb, the advisory firm for the Sequoia Fund. The fund was originally founded in 1970 by Bill Ruane and Rick Cunniff, colleagues of Warren Buffett. Buffett himself recommended Ruane to investors when he closed his partnership. The Sequoia Fund has one of the longest and most distinguished track records in the mutual fund industry. Poppe took over leadership after navigating the fund through the Valeant Pharmaceuticals debacle (2015-2016) when the fund's massive Valeant position collapsed. Under his leadership, the fund has refocused on its traditional concentrated value approach.
Track Record
Mixed but long. Since 1970 inception, the Sequoia Fund has generated strong long-term returns, roughly matching or slightly outperforming the S&P 500 over the full period. However, the Valeant disaster in 2015-2016 was a major blemish — the fund lost roughly 25% in a year primarily due to Valeant, which fell from $260 to under $30. This triggered significant outflows, board changes, and a restructuring of the firm. Post-Valeant (2017-present), performance has recovered and the fund has regained credibility. The Valeant episode is a case study in concentration risk and the danger of abandoning core principles.
Notable Holdings
Current: Alphabet, Berkshire Hathaway, Meta Platforms, UnitedHealth Group, Danaher, Charles Schwab, Constellation Software. Historical: massive Valeant position (2010-2016), long-term Berkshire Hathaway position. The current portfolio reflects a return to quality-business-focused investing.
Transparency & Integrity
Transparency(Score: 9/10)
High. As a registered mutual fund, Sequoia Fund provides regular shareholder letters, full portfolio disclosure, semi-annual reports, and an annual investor meeting. The shareholder letters are well-written and intellectually honest. The fund was transparent about the Valeant mistake. This level of disclosure is among the best in the industry.
Integrity(Score: 6/10)
Mixed. The fund's Buffett-lineage and long history suggest strong integrity. However, the Valeant episode raised serious questions: the firm's previous leadership concentrated 30%+ in a company that was later revealed to have accounting irregularities and predatory drug pricing. Some critics argue the firm's due diligence failed badly. Post-Valeant leadership under Poppe has restored credibility, but the incident remains a significant mark. The firm handled the crisis transparently, which partially redeems the integrity assessment.
Relevance to Us
High. Sequoia Fund's philosophy is deeply aligned with ours: concentrated, long-term, business-owner mentality, Buffett/Munger intellectual lineage. Their focus on understanding businesses rather than predicting markets matches our approach. The Valeant episode is a cautionary tale directly relevant to our methodology — it shows what happens when concentration risk meets due diligence failure. Their current portfolio includes companies we analyze (Meta, Alphabet, Berkshire). The fund's transparency through shareholder letters provides genuine analytical value.