Fundsmith Investment Services LTD.
Fundsmith Investment Services Ltd. is a London-based asset management firm, founded in 2010 by Terry Smith. The firm manages a range of equity funds and investment trusts with a total AUM of £36 billion as of December 2023. Fundsmith serves individual investors, wealth managers, institutions, banks, prominent families, charities, and endowments. The company is known for its commitment to a transparent fee structure and long-term, high-conviction investment philosophy. Fundsmith typically maintains a lean staff; employee count is approximately 20-50, given the boutique nature of the operation. Terry Smith is the notable founder and CEO, often compared to Warren Buffett for his disciplined, fundamentals-based approach.
Investment Strategy
Fundsmith uses a long-term, buy-and-hold strategy, investing mainly in global equities of large-cap companies with strong returns on capital, sustainable competitive advantages, and simple, repeat-business models. The firm avoids banks, heavy cyclical sectors, and emerging tech firms, focusing instead on established, reliable businesses in sectors like consumer staples and healthcare. Fundsmith constructs concentrated portfolios of 20-30 stocks, selecting investments with decades-long track records and a high level of liquidity. Their goal is to compound shareholder capital by owning shares of companies with durable business models, strong cash flow, and the potential for above-market returns. The firm eschews complex financial engineering, high turnover, and speculation, preferring companies that have already proven their success.
Top Holdings
Equity Positions (26)
| Ticker | Security | Weight | Market Value | Shares | Avg Cost | Price | Change (QoQ) |
|---|---|---|---|---|---|---|---|
M META | META PLATFORMS INC | 11.42% | $843.8M | 1,143,226 | $240.05 | $738.09 | +$112.7M |
M MSFT | MICROSOFT CORP | 10.71% | $790.8M | 1,589,931 | $304.02 | $497.41 | +$126.0M |
S SYK | STRYKER CORPORATION | 8.73% | $645.1M | 1,630,554 | $269.90 | $395.63 | -$22.6M |
P PM | PHILIP MORRIS INTL INC | 6.88% | $508.3M | 2,790,907 | $94.65 | $182.13 | -$37.8M |
V V | VISA INC | 6.31% | $465.8M | 1,311,888 | $223.46 | $355.05 | -$27.4M |