Terry Smith - Fundsmith Investment Services Investment Strategy & Portfolio Analysis

How Fundsmith Investment Services allocates capital, manages risk, and constructs its portfolio — based on SEC 13F filings.

As of Mar 31, 2026, Terry Smith's Fundsmith Investment Services portfolio reflects a balanced investor approach across 24 reported 13F positions. Portfolio returns are led by Marriott International (~9% of total exposure), with the top five holdings representing approximately 40% of reported value. The portfolio maintains structural breadth across 24 positions, with economic weighting tilted toward digital asset and data-center infrastructure names. Exposure to high-growth and technology-oriented segments is elevated relative to peers, with performance weighted across healthcare, consumer staples, and consumer discretionary. The portfolio exhibits extremely low turnover, reinforcing a patient, conviction-led investment approach. Distinctive traits include Long-Term Holder, Structurally Diversified.

Investment Style

Value, growth, quality, and behavioral classification from latest 13F holdings.

Balanced Investor

Primary type: Balanced Investor

Traits: Long-Term Holder, Structurally Diversified

Turnover profile

Buy & Hold

Holding horizon

Long-Term

Portfolio Construction

Concentration and position sizing in the latest filing.

Portfolio construction is moderately concentrated: top three names represent 25.2% of assets, top five 39.6%, and the largest single position is 8.9%.

Top 3 weight

25.2%

Top 5 weight

39.6%

Top 10 weight

70.6%

Largest position

8.9%

Top holdings: Marriott International, Stryker Corporation, Waters Corporation, Alphabet Inc., Visa Inc. — view full holdings

Sector Preferences

Where capital is allocated by sector.

Capital is tilted toward Healthcare and Technology, with 7 sectors represented in the latest filing.

Leading sectors: Healthcare, Technology, Consumer Defensive

View full sector allocation

Risk Framework

Concentration, diversification, and turnover tolerance.

This investor accepts moderate single-name risk (largest position 8.9%, top ten 70.6%) and moderate economic diversification (HHI 0.02). Turnover tolerance maps to a buy & hold profile.

Largest position

8.9%

Top 10 weight

70.6%

Max sector

31.8%

Diversification

Moderate

Strategy Evolution

How the strategy changed between the two most recent filing periods.

Dec 31, 2025 → Mar 31, 2026

  • Position count decreased from 26 to 24 (-2 names).
  • Top-five concentration rose from 38.0% to 39.6%.
  • Largest holding changed from Stryker Corporation to Marriott International.
  • Quarter-over-quarter portfolio weight turnover: 7.1%.

For trade-level changes, see the Activity page. View activity.

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Terry Smith - Fundsmith Investment Services Investment Strategy | InsiderSet