Ruane Cunniff Launches Sequoia ETF

Ruane Cunniff's move to offer its Sequoia strategy via an ETF is motivated by the increasing popularity and tax benefits of actively managed ETFs. The ETF structure allows taxable investors to defer capital gains taxes as long as they hold the ETF shares. This mirrors the tax treatment of individual stocks, where taxes are primarily incurred upon selling shares at a profit. Ruane Cunniff LP was founded in 1969 by William Ruane and Richard Cunniff, joined early on by Robert Goldfarb. The firm is known for its value investing approach, influenced by Benjamin Graham and William Ruane's friendship with Warren Buffett. Buffett even recommended Ruane to his partners when he closed his own investment partnership. The Sequoia Fund, managed by Ruane Cunniff, was launched in 1970. From its inception to 2015, it generated an annualized return of 14.65%, outperforming the S&P 500's 10.93%. Morningstar data showed that Sequoia Fund beat its large-cap blend-category peers in 332 out of 333 rolling 10-year periods from 1970. As of December 31, 2024, Ruane Cunniff managed approximately $9.4 billion in assets. The firm's investment philosophy centers on identifying high-quality businesses at attractive prices and holding them for the long term. The top holdings in the Sequoia Fund include Alphabet, Charles Schwab, and Liberty Media.