Strategic Shifts: Fundsmith's Portfolio Adjustments in Q1 2026

Summary of Portfolio Changes

Fundsmith's portfolio value experienced a decline to $12.83 billion in the first quarter of 2026. This adjustment coincided with a reduction in the number of holdings, from 37 to 34. The firm's top five investments now represent approximately 38% of its total assets, indicating a concentrated approach to its highest-conviction positions.

Trimming of Significant Positions

During this period, Fundsmith engaged in notable reductions across several major holdings. Companies such as Marriott, Stryker, Waters, Visa, Alphabet, and Philip Morris saw their stakes trimmed. These moves suggest a strategy of active profit realization and recalibration of exposure within the portfolio.

Complete Divestitures

The first quarter of 2026 also marked the complete exit from several positions, including Intuit, Nike, Graco, and Oddity Tech. These divestments indicate a strategic reevaluation of these companies' roles within Fundsmith's long-term investment vision.

New Investment in Badger Meter

In contrast to the reductions and exits, Fundsmith initiated only one new stake in Badger Meter. This new acquisition was made at a relatively small weight, aligning with the firm's cautious and selective approach to adding new companies to its concentrated portfolio.

Continued Focus on High-Conviction Names

Overall, the adjustments made in Q1 2026 underscore Fundsmith's commitment to its core investment philosophy. The firm continues to prioritize the allocation of capital to companies in which it holds the strongest conviction, while also demonstrating a readiness to opportunistically reduce exposure and secure gains from established investments. This proactive management style allows Fundsmith to maintain a dynamic and strategically aligned portfoli