Sequoia Fund picks up Facebook stake despite “unquestionable sins”

The Sequoia Fund has bought a stake in scandal-stricken Facebook despite its share price slumping in recent weeks.

In a note to investors, Ruane, Cunniff & Goldfarb, the mutual fund’s manager, said it purchased a “small” stake in Facebook towards the end of the first quarter.

“Though Facebook has unquestionably committed sins for which it must now atone, we believe it remains a far more competitively advantaged, economically attractive and faster-growing enterprise than the average American business,” it said.

Read more: Facebook says data of up to 2.7m Europeans may have been improperly shared

The firm noted the fact that Facebook controls four social media platforms with more than a billion global users each: Instagram, WhatsApp, Facebook Messenger and, of course, Facebook.

“Though doing so will involve substantial cost, we believe the company will take necessary steps over the coming months and years to restore the damaged trust of its users and advertisers,” Ruane, Cunniff & Goldfarb said.

Some analysts have noted that the recent drop in Facebook’s share price presented an opportunity for investors to buy in.

Facebook boss Mark Zuckerberg will testify before the US congress this week after the company revealed tens of millions of users may have had their personal data improperly shared with political consultancy Cambridge Analytica.

The Sequoia Fund said it also had holdings in US companies including Alphabet, Amazon and Berkshire Hathaway.

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