Ruane, Cunniff LP, an investment adviser managing Sequoia Strategy, recently released its Q4 2025 investor letter. The letter, which can be downloaded here, highlights the Strategy’s impressive performance, with a return of 9% in the fourth quarter compared to 2.7% for the S&P 500 Index. For the full year of 2025, Sequoia Strategy delivered a return of 21.9%, outperforming the Index’s 17.9%.
The firm’s investment approach focuses on high-quality, fundamentally and financially strong businesses at reasonable prices. Despite the volatility in the market, the Strategy remains concentrated while covering a diverse range of sectors, business styles, and regions. To gain insights into their key selections for 2025, let’s take a look at the Strategy’s top five holdings.
One of the notable stocks highlighted in the investor letter is Alphabet Inc. (NASDAQ:GOOG). As the parent company of Google, Alphabet offers various platforms and services through its Google Services, Google Cloud, and Other Bets segments. The stock significantly contributed to the Strategy’s performance in the fourth quarter.
Alphabet Inc. (NASDAQ:GOOG) closed at $323.10 per share on February 6, 2026, with a market capitalization of $3.91 trillion. Despite a one-month return of -4.18%, the stock has gained 72.32% of its value over the last 52 weeks.
The investor letter addressed concerns about Alphabet Inc. (NASDAQ:GOOG) entering 2025, including potential antitrust action and increased competition in the search business from generative AI. Despite the uncertainties, the firm decided to maintain its investment in Alphabet, citing the company’s fundamental strength and full-stack AI capabilities as factors that could help it navigate regulatory challenges and emerging competitive threats.
In conclusion, Ruane, Cunniff LP’s Sequoia Strategy’s performance in 2025 demonstrates the firm’s commitment to investing in high-quality businesses and maintaining a disciplined approach amidst market fluctuations. The Strategy’s top holdings, including Alphabet Inc. (NASDAQ:GOOG), reflect its confidence in companies with strong fundamentals and long-term growth potential.
