Terry Smith - Fundsmith Investment Strategy & Portfolio Analysis

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

According to the SEC 13F filed on Aug 14, 2026, Terry Smith's Fundsmith portfolio reflects a quant / systematic investor approach across 41 reported 13F positions as of quarter-end Jun 30, 2026. Portfolio returns are distributed across holdings, with the top five positions representing approximately 30% of total exposure. The portfolio maintains structural breadth across 41 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 technology, healthcare, and consumer staples. The portfolio maintains moderate turnover, consistent with periodic rebalancing rather than a fully static book. Distinctive traits include Moderate Turnover, Broadly Diversified, Structurally Diversified.

Investment Style

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

Quant / Systematic Investor

Primary type: Quant / Systematic Investor

Traits: Moderate Turnover, Broadly Diversified, Structurally Diversified

Turnover profile

Active

Holding horizon

Moderate

Portfolio Construction

Concentration and position sizing in the latest filing.

Portfolio construction is lowly concentrated: top three names represent 20.0% of assets, top five 29.8%, and the largest single position is 7.0%.

Top 3 weight

20.0%

Top 5 weight

29.8%

Top 10 weight

52.5%

Largest position

7.0%

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

Sector Preferences

Where capital is allocated by sector.

Capital is tilted toward Technology and Healthcare, with 8 sectors represented in the latest filing.

Leading sectors: Technology, Healthcare, Consumer Defensive

View full sector allocation

Risk Framework

Concentration, diversification, and turnover tolerance.

This investor accepts low single-name risk (largest position 7.0%, top ten 52.5%) and high economic diversification (HHI 0.02). Turnover tolerance maps to a active profile.

Largest position

7.0%

Top 10 weight

52.5%

Max sector

31.7%

Diversification

High

Strategy Evolution

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

Mar 31, 2026 → Jun 30, 2026

  • Position count increased from 34 to 41 (+7 names).
  • Top-five concentration fell from 37.8% to 29.8%.
  • Dominant sector mix shifted from Healthcare, Technology to Technology, Healthcare.
  • Quarter-over-quarter portfolio weight turnover: 30.7%.

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

Similar Investors

Peer group with comparable portfolio behavior.

Similar-investor comparisons are coming soon.