Morningstar Downgrades Sequoia Fund On Day Michael Pearson Gets Congressional Subpoena

Sequoia Fund, which is known to highly value management teams when evaluating stock picks for its long-only mutual fund, lost big on Valeant Pharmaceuticals, a company with some of the most significant management problems in recent memory. Sequoia Fund had a management shake-up of its own recently. This management reshuffling, and its concentrated bet on the management team at Valeant Pharmaceuticals, have led to a downgrade by investment research provider Morningstar.

Morningstar notes uncertainty as it downgrades Sequoia Fund, points to better days forthcoming

Morningstar recently changed their rating on the troubled...