Sequoia Fund Inc., a mutual fund hurt by a large bet on drugmaker Valeant Pharmaceuticals International Inc., is reopening to new investors, according to a new filing.

As of Friday, Sequoia is open to new investors that buy shares directly from the fund and to existing investors, according to the filing. It isn't available through other sales channels.

The fund's managers said in a letter to shareholders last week that they were "considering recommending to the board that Sequoia reopen in the proximate future."

Sequoia has suffered heavy withdrawals since late last year as shares in Valeant, once its largest holding, plunged.

Clients have pulled more than $780 million from the fund so far this year, according to research firm Morningstar Inc., and Sequoia had $5.3 billion in assets as of Thursday. Sequoia closed to most new investors in December 2013.

The fund, which has historical ties to Warren Buffett, was started in 1970 and places bets on undervalued companies. It has done better than the broader S&P since inception, but has lagged behind its peers recently. The fund lost 10.1% so far this year through Thursday, according to Sequoia's website.

David Poppe, the fund's lead portfolio manager, declined to comment.

Write to Sarah Krouse at sarah.krouse@wsj.com

(END) Dow Jones Newswires

April 29, 2016 12:05 ET (16:05 GMT)

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