Terry Smith's Fundsmith Q2 2026 Portfolio Activity Reveals Strategic Shifts
Fundsmith CEO Terry Smith significantly reshaped his investment portfolio during the second quarter of 2026, adding high-growth positions while exiting several holdings.
As part of our ongoing coverage of Terry Smith's Fundsmith, we've analyzed the changes made to his portfolio during Q2 2026. The filing shows substantial buying and selling activity, with Terry Smith making significant adjustments across various sectors.
Smith demonstrated a clear preference for growth stocks in this quarter, initiating large purchases in several technology companies. UBER TECHNOLOGIES INC saw its position increased by 439%, representing one of the most significant additions to the portfolio during Q2.
In addition, Smith added positions in MASTERCARD INCORPORATED, which increased by 4401%, and TAIWAN SEMICONDUCTOR MANUFACTURER (TSM), boosted by 638%. Furthermore, the position in Netflix Inc. (NFLX INC) was also increased by a full 100%, indicating confidence in this popular streaming company.
Conversely, Terry Smith initiated the exit of several large holdings during Q2. The filing shows complete exits from VRTX, VRSN (likely a typo for VRTS or VRNT), and PAYC (possibly PYXR). These three companies were completely removed from the portfolio, representing significant selling activity.
Other notable sales included reductions in positions held by VISA INC, which decreased by 34.9%, and WATERS CORP (-29.2%), among others. The overall portfolio turnover rate appears high based on these changes.
The strategic buying in growth-oriented tech companies like UBER, MA, TSM, and NFLX suggests a continued focus by Smith on capitalizing on innovation and market leadership potential. This contrasts with the divestment of established players or those perceived differently at quarter-end last year.