Warren Buffett

Investing: A felled Sequoia works to recover

Sequoia Fund (symbol SEQUX), a 46-year-old mutual fund with a once-great record and ties to Warren Buffett, is still reeling from huge losses it suffered because of a large and ultimately misplaced bet on drug maker Valeant Pharmaceuticals. As Valeant faced scrutiny over its business practices, its stock plunged 93 percent from August 2015 to June 2016; over the same period, Sequoia fell 34 percent, lagging Standard & Poor's 500-stock index by 31 percentage points.

The stumble underscored the risks of concentrated portfolios -- Sequoia normally holds only 20 to 40 stocks -- and stained an otherwise solid record. From the start of 2000 through July 2015, Sequoia earned 10.1...