How Sequoia Fund's Valeant Mistake Upended a Top Performance
- Fund's other top investments soared in the past 12 months
- O'Reilly Automotive, TJX both gained more than 20 percent
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The managers of the Sequoia Fund built a reputation as stellar stock pickers over 45 years. It took one year and a single bad stock pick, Valeant Pharmaceuticals International Inc., to tarnish it.
Just how bad a mistake was holding on to the stock as it tumbled? David Poppe, the manager of the fund, said in an April 19 letter to shareholders that Valeant was responsible for more than 100 percent of the fund’s 11.3 percent loss in the first three months of 2016.