Terry Smith's Portfolio: Heavyweights in Healthcare & Tech
Terry Smith's Fundsmith Investment Services portfolio, as of March 31, 2026, is dominated by significant holdings in healthcare and technology sectors.
Top Holdings Analysis
Fundsmith Investment Services' portfolio managed by Terry Smith, as of March 31, 2026, is characterized by a select group of large-cap holdings. The top ten positions by value represent a significant portion of the total portfolio, with Marriott International (MAR) leading at $392 million, followed closely by Johnson & Johnson (JNJ) at $389 million, Waters Corporation (WAT) at $327 million, Alphabet (GOOGL) at $326 million, and Visa (V) at $310 million. These five stocks alone account for nearly 39% of the portfolio's value, highlighting a concentrated approach.
High Concentration in Key Sectors
The portfolio demonstrates a clear bias towards specific sectors. Healthcare is the most heavily represented sector, with six of the top ten holdings falling within this category. Collectively, healthcare stocks constitute approximately 42% of the portfolio's value. Technology follows closely, with three top ten holdings (ADP, IDEXX, META) making up about 13% of the portfolio. Consumer Cyclical (Marriott) and Communication Services (Alphabet, META) each represent around 8.9% and 7.4% respectively, while Financial Services (Visa) accounts for about 7.0%.
Recent Changes in Holdings
Several holdings show significant changes in their share count from the previous period. Alphabet (GOOGL) saw a substantial reduction of 41.72% in its share count, while META Platforms experienced a sharp decline of 33.7%. Conversely, companies like Marriott International (MAR) and Striker Corporation (SYK) saw modest reductions of 18.07% and 23.68% respectively. These changes reflect strategic adjustments by the portfolio manager, potentially indicating confidence in certain sectors while reducing exposure in others.
Portfolio Strategy and Allocations
The portfolio's strategy appears focused on investing in established, large-cap companies, particularly within the Healthcare and Technology sectors. The high allocation to Healthcare (42%) suggests a belief in the sector's resilience and growth potential, despite recent declines in some holdings like JNJ and SYK. Similarly, the significant allocation to Technology indicates confidence in digital transformation trends. The inclusion of consumer cyclical (Marriott) and communication services (Alphabet, META) adds diversification, albeit still within specific growth narratives. The strategy involves concentrated holdings, indicating a conviction-based approach rather than broad market exposure.
The portfolio's structure, with its heavy weighting towards large, fundamentally sound companies in key growth sectors, suggests a long-term investment horizon. The manager appears willing to allow significant capital appreciation from these core holdings, while simultaneously making strategic reductions in positions perceived as overvalued or less aligned with the current investment thesis. The focus remains on quality and sector leadership, even as the composition evolves based on performance and market dynamics.