A top growth fund shop is shuttering its popular flagship mutual fund to nearly all new investors.

In a notice to investors, Ruane, Cunniff & Goldfarb [profiole] president Robert Goldfarb and executive vice president David M. Poppe revealed that the five-star, gold-rated Sequoia Fund closed today to new investors, unless existing shareholders or their family members open new accounts.

"This change will make Sequoia consistent with the separately managed portfolios under our management, where we stopped opening accounts for new clients earlier this year," Goldfarb and Poppe wrote. "The objective of this change is to restrict the inflow of funds under our management."

As the funds we manage grow, incremental investments must become larger if they are to generate meaningful returns. We believe there is some truth to the adage 'size is the enemy of performance,' and would like to maintain our ability to make investments in mid-sized companies that can provide meaningful returns to our shareholders.

The shop also revealed the move in an SEC filing. 

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