The Valeant fallout at Ruane, Cunniff & Goldfarb[profile] continues to play out while catching the eye of business and investing journalists.

David Poppe Ruane, Cunniff & Goldfarb President

MarketWatch reports that yesterday Morningstar took the rating of RCF's flagship Sequoia Fund down two notches, from Gold to Bronze. The rating had been labeled as "under review."

Bloomberg reports that, per new RCF CEO David Poppe, the analyst who covered Valeant has followed former CEO Robert Goldfarb out the door. Though Poppe didn't name the departing analyst, Bloomberg points to Rory Priday as the likely analyst in question.

Meanwhile, the Wall Street Journal charts Valeant's importance to RCF's flagship Sequoia Fund over the past six years.

And MarketWatch columnist Chuck Jaffe wonders what lessons should be learned from the RCF's Valeant pain. He declares that "the real problem has been Sequoia's management stubbornness, infighting, and governance issues."

Poppe revealed last week that, after 45 years at the company, Goldfarb will retire on March 31. Goldfarb and Poppe had helmed RCF's Buffett-esque Sequoia Fund. The fund, which has a famously strong long-term track record versus the S&P, is down 11.6 percent year-to-date thanks for its big Valeant take. 

Edited by: Neil Anderson, Managing Editor


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