This article is part of a series that provides an ongoing analysis of the changes made to Fundsmith’s 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 5/15/2023. Please visit our Tracking Terry Smith’s Fundsmith 13F Portfolio series to get an idea of their investment philosophy and our last update for the fund’s moves during Q4 2022.
This quarter, Fundsmith’s 13F portfolio value increased ~6% from $21.90B to $23.17B. The number of holdings increased from 38 to 40. The top three holdings are at ~25% while the top five are close to ~37% of the 13F assets: Microsoft, Philip Morris International, Stryker Corp, IDEXX Labs, and Estee Lauder.
Note: Their flagship Fundsmith Equity Fund (2010 inception) has returned 16% annualized compared to 11.1% for the MSCI World Index. Last year was their first down year since inception – negative 13.8%.
New Stakes:
Graco Inc. (GGG), Marriott International (MAR), and Mastercard Inc. (MA): These three very small (less than ~0.20% of the portfolio each) stakes were established this quarter.
Stake Disposals:
Adobe Inc. (ADBE): the ADBE position was 3.24% of the portfolio purchased in Q1 2022 at prices between ~$412 and ~$564. The disposal this quarter was at prices between ~$321 and ~$392. The stock currently trades at ~$415. They realized losses.
Stake Increases:
Microsoft Corp. (MSFT): MSFT is currently the largest position at 11.24% of the portfolio. The stake was built during the five-year period from 2013 to 2018 at prices between ~$27 and ~$115. There was a ~23% selling in Q1 2022 at prices between ~$276 and ~$335. The stock currently trades at ~$333. The last two quarters saw minor trimming while this quarter saw a marginal increase.
McCormick (MKC): MKC is a sizable 5.56% of the portfolio position built during the 2018-19 timeframe at prices between ~$50 and ~$86. The time period since had also seen minor buying. There was an ~18% reduction in Q1 2022 at prices between ~$92 and ~$104. The stock currently trades at ~$87. The last four quarters saw only minor adjustments.
Note: they have a ~7.8% ownership stake in the business.
Visa Inc. (V): Visa is a 5.46% of the portfolio position established over the last decade through consistent buying in most years. The build-up happened at prices between ~$30 and ~$245. Q1 2022 saw an ~18% reduction at prices between ~$191 and ~$235. The stock currently trades at ~$225. The last four quarters have seen only minor adjustments.
Automatic Data Processing (ADP): The 2013-19 timeframe saw consistent buying in ADP at prices between ~$52 and ~$173. Q1 2020 saw a ~40% reduction at prices between ~$112 and ~$181 while in the next quarter there was a ~70% increase at prices between ~$128 and ~$160. Since then, the activity has been minor. Q1 2022 saw a ~22% reduction at prices between ~$196 and ~$245. The stock is now at ~$212 and the stake is at ~5.32% of the portfolio. The last four quarters have seen only minor adjustments.
PepsiCo (PEP): The 5.24% PEP stake was built over the last decade through consistent buying during most quarters. The buying happened at prices between ~$65 and ~$170. There was a ~25% reduction in Q1 2022 at prices between ~$154 and ~$176. The stock is now at ~$184. Last quarter saw a ~7% trimming while this quarter there was a marginal increase.
Meta Platforms (META): The 5.18% META stake was built in 2018 at prices between ~$125 and ~$210. The stake remained steady since, although adjustments were made in most quarters. There was a ~20% reduction in Q1 2022 at prices between ~$187 and ~$339. The stock currently trades at ~$262. The last four quarters have seen only minor adjustments.
Waters Corp. (WAT): WAT is a ~5% of the portfolio stake built during the 2015-2017 timeframe at prices between ~$115 and ~$200. The next two years also saw incremental buying. There was a ~23% selling in H1 2020 at prices between ~$175 and ~$240. Since then, the activity has been minor. There was a ~18% reduction in Q1 2022 at prices between ~$307 and ~$365. The stock currently trades at ~$261. The last four quarters have seen only minor adjustments.
Note: they have a ~7.6% ownership stake in Waters Corp.
Mettler-Toledo (MTD): The 3.71% MTD stake was purchased during H1 2022 at prices between ~$1098 and ~$1675 and the stock currently trades at ~$1348. The last few quarters saw only minor adjustments.
Alphabet Inc. (GOOG) (GOOGL): GOOG is a 3.41% of the portfolio position purchased in Q4 2021 at prices between ~$133 and ~$151. There was a ~9% trimming next quarter. The stock currently trades below their purchase price range at ~$125. The last four quarters saw only minor adjustments.
Brown-Forman (BF.B): BF.B is a 3.39% of the portfolio stake built in 2019 at prices between ~$45 and ~$68. 2021 saw a ~50% stake increase at prices between ~$67 and ~$81 while in Q1 2022 there was a ~28% selling at prices between ~$62 and ~$72. The stock is now at $61.58. The last few quarters saw only minor adjustments.
Note: They have a ~5% ownership stake in the business.
Church & Dwight (CHD): The 3.22% CHD position was built during the three quarters through Q2 2021 at prices between ~$72 and ~$93. There was a ~28% selling in Q1 2022 at prices between ~$95 and ~$104. The stock currently trades at ~$94. The last four quarters have seen only minor adjustments.
Otis Worldwide (OTIS): OTIS is a 2.29% of the portfolio stake established during Q3 2022 at prices between ~$64 and ~$82 and the stock currently trades at the top of that range ~$82. The last two quarters saw only minor adjustments.
Apple Inc. (AAPL) and Procter & Gamble (PG): AAPL is a ~1% of the portfolio position built this quarter at prices between ~$125 and ~$166 and the stock currently trades above that range at ~$175. The 1.10% PG stake was built at prices between ~$137 and ~$154 and it now goes for ~$145.
Home Depot (HD), Johnson & Johnson (JNJ), and Zoetis Inc. (ZTS): These very small (less than ~0.20% of the portfolio each) positions were increased this quarter.
Stake Decreases:
Philip Morris International (PM): The 6.91% PM stake was established during the last decade through consistent buying every quarter. Pricing ranged between ~$60 and ~$120. Q1 2022 saw a ~20% reduction at prices between ~$89 and ~$112. The stock is now at ~$91. The last four quarters have seen only minor adjustments.
Stryker Corp. (SYK): SYK is a 6.77% of the portfolio position purchased during the last decade through consistent buying every quarter at prices between ~$50 and ~$275. There was a ~20% reduction in Q1 2022 at prices between ~$245 and ~$278. The stock currently trades at ~$273. The last four quarters have seen only minor adjustments.
IDEXX Labs (IDXX): IDXX is a 6.37% of the portfolio position established during the 2015-16 timeframe at prices between ~$63 and ~$120. Since then, the position has remained relatively steady although adjustments were made in most quarters. There was a ~15% trimming in Q1 2022 at prices between ~$466 and ~$631. That was followed with a similar reduction this quarter at prices between ~$406 and ~$515. The stock currently trades at ~$469.
Note: They have a ~4.5% ownership stake in the business.
Estee Lauder (EL): The 5.77% EL stake was established in 2016 at prices between ~$75 and ~$95. 2018 saw a two-thirds stake increase at prices between ~$125 and ~$158. Since then, the activity has been minor. There was a ~20% selling in Q1 2022 at prices between ~$250 and ~$372. The stock currently trades at ~$194. The last few quarters have seen minor trimming.
Kept Steady:
Nike Inc. (NKE): The 3.56% NKE stake was built in H1 2020 at prices between ~$67 and ~$105. There was minor buying in most quarters since. Q1 2022 saw a ~23% reduction at prices between ~$118 and ~$166. The stock is now at ~$108.
Amazon.com Inc. (AMZN): The ~3% AMZN stake was built in H2 2021 at prices between ~$160 and ~$186. Next quarter saw a ~20% selling at prices between ~$136 and ~$170. The stock is now below their purchase price ranges at ~$120.
Cognex (CGNX), Edwards Lifesciences (EW), Equifax Inc. (EFX), Fortinet Inc. (FTNT), IDEX (IEX), IPG Photonics (IPGP), Masimo (MASI), MSCI Inc. (MSCI), Paycom Software (PAYC), Qualys Inc. (QLYS), Rollins Inc. (ROL), Sabre Corp. (SABR), VeriSign Inc. (VRSN), and Verisk Analytics (VRSK): These very small (less than ~0.70% of the portfolio each) stakes were kept steady this quarter.
Note: they have a ~7% ownership stake in Sabre Corp.
The spreadsheet below highlights changes to Fundsmith’s 13F holdings in Q1 2023:
Source: John Vincent. Data constructed from Fundsmith’s 13F filings for Q4 2022 and Q1 2023.
This article was written by
John Vincent
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Focused on analyzing 13F reports & building tools to help DIY investors generate absolute returnsthrough exploiting inefficiency, volatility, and momentum.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, BF.B, GOOGL, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
FAQs
How many holdings does Fundsmith have? ›
Fundsmith has disclosed a total of 40 security holdings in their (2023 Q1) SEC 13F filing(s) with portfolio value of $23,174,347,212.
What stocks does Fundsmith hold? ›- Microsoft.
- Novo Nordisk.
- L'Oréal.
- IDEXX.
- Stryker.
- LVMH.
- Philip Morris.
- Meta Platforms.
- Microsoft.
- Novo Nordisk.
- L'Oréal.
- LVMH.
- Meta Platforms.
- Philip Morris.
- Stryker.
- IDEXX.
BlackRock
BlackRock (BLK) is the largest investment firm in the world. It manages $8.6 trillion in assets as of Dec. 31, 2022.
Fundsmith is one of the UK's most popular investment funds. Run by portfolio manager Terry Smith, it was launched in late 2010. So it has been around for over 12 years now. Since its inception, the fund has performed very well, delivering returns of about 16% a year (to the end of April).
What stock is Warren Buffett investing in? ›| Company (Ticker) | Sector | Rank |
|---|---|---|
| Apple (AAPL) | Information Technology | 1 |
| Bank of America (BAC) | Finance | 2 |
| Chevron (CVX) | Energy | 3 |
| Cola-Cola (KO) | Consumer Staples | 4 |
| Stock | Number of Shares Owned | Share Count Increase Over Q4 2022 |
|---|---|---|
| Bank of America (NYSE:BAC) | 1,055,603,406 | +2.25% |
| Citigroup (NYSE:C) | 55,244,797 | +0.16% |
| HP (NYSE:HPQ) | 120,952,818 | +15.8% |
| Markel (NYSE:MKL) | 471,661 | +0.87% |
How Fundsmith delivered a 440% return over a decade: The rise of Terry Smith's mega fund - and the rivals you could invest in. This weekend marks ten years since Fundsmith Equity was launched and it has delivered a whopping 440 per cent return for its day one investors.
What is the stock price forecast for Fundsmith? ›If you are looking for funds with good return, Fundsmith Equity T Acc can be a profitable investment option. Fundsmith Equity T Acc quote is equal to 6.156 USD at 2023-06-15. Based on our forecasts, a long-term increase is expected, the "Fundsmith Equity T Acc" fund price prognosis for 2028-06-07 is 9.172 USD.
How good is Fundsmith Equity? ›With a strong track record under industry stalwart Terry Smith, the £22.8billion Fundsmith Equity has consistently topped lists of most-bought funds and is a regular fixture on best-buy lists. Since its launch in 2010 the fund has returned nearly 500 per cent, or 15.5 per cent annualised.
What is the long-term performance of Fundsmith? ›
Fundsmith Equity returned 25.6% in 2019, 18.3% in 2020 and 22.1% in 2021. Even the most optimistic investor couldn't expect 20% annualised returns to continue indefinitely.
Who is the richest person from investing? ›- Warren Buffett. Net worth: $103 Billion. Founder & CEO of Berkshire Hathaway. ...
- Jim Simons. Net worth: $28.6 Billion. ...
- Ken Griffin. Net worth: $27 Billion. ...
- Ray Dalio. Net worth: $22 Billion. ...
- Carl Icahn. Net worth: $17.5 Billion.
Warren Edward Buffett (/ˈbʌfɪt/ BUF-it; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway.
What is the richest investment company in the world? ›Why does Orman recommend a Roth IRA? Orman has recommended a Roth IRA for the remainder of your retirement savings after maxing out your match because she believes most people are better off using this type of account rather than a 401(k) alone. A Roth IRA defers your tax savings until later.
How is Fundsmith Equity performing? ›Highly volatile global markets hit almost all sectors and industries which resulted in a period of underperformance for the fund. In 2022 the Fundsmith Equity fund returned negative growth of -14.97% with the sector averaging -11.60%.
What is the best fund to invest in now? ›| Fund Name | 3-year Return (%)* | 5-year Return (%)* |
|---|---|---|
| SBI Magnum Gilt Fund Direct-Growth | 5.63% | 8.88% |
| ICICI Prudential Constant Maturity Gilt Fund Direct-Growth | 4.67% | 8.88% |
| Nippon India Gilt Securities Fund Direct-Growth | 4.81% | 8.70% |
| Kotak Gilt Investment Direct-Growth | 5.37% | 8.69% |
- CCK. ▲2.37%
- BAC. ▼0.61%
- BRK.B. ▼0.44%
- AAPL. ▼0.59%
- INTC. ▲1.54%
- VZ. ▲0.05%
- UL. ▲1.07%
- CRM. ▼0.08%
| Stock | YTD Total Returns Through June 6 |
|---|---|
| Walt Disney Co. (DIS) | 6.1% |
| PayPal Holdings Inc. (PYPL) | -8.7% |
| EOG Resources Inc. (EOG) | -10.9% |
| Grupo Aeroportuario del Sureste SAB de CV (ASR) | 26.1% |
- Ares Capital. You won't find Ares Capital (ARCC 0.16%) listed in any of Berkshire Hathaway's (BRK.A -0.46%) (BRK.B -0.44%) regulatory filings disclosing its holdings. ...
- Crown Castle. Buffett also has a position in Crown Castle (CCI -1.95%) through Berkshire's NEAM subsidiary. ...
- Golub Capital BDC. ...
- Viatris. ...
- Vitesse Energy.
What is Warren Buffett buying 2023? ›
In the first quarter of 2023, Warren Buffett's Berkshire Hathaway bought three new stocks – Capital One Financial, Diageo ADR, and Vitesse Energy. Berkshire Hathaway increased its stake in seven others: Apple, Bank of America, Occidental Petroleum, HP, Citigroup, Paramount Global, and Markel.
What 5 stocks does Warren Buffett own? ›- Apple (AAPL) – $151.0 billion.
- Bank of America (BAC) – $29.5 billion.
- American Express (AXP) – $25.0 billion.
- Coca-Cola – $24.8 billion.
- Chevron (CVX) – $21.6 billion.
Share of Berkshire's Portfolio
Apple is the world's most valuable public company and Warren Buffet's largest stock holding.
Fundsmith is a global equity fund meaning it can invest in companies listed all over the world. A concentrated product (it holds around 20-30 stocks), it only invests in high-quality businesses that meet strict investment criteria.
What is a good 10 year investment return? ›Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market.
How do you know if a stock will go up? ›We want to know if, from the current price levels, a stock will go up or down. The best indicator of this is stock's fair price. When fair price of a stock is below its current price, the stock has good possibility to go up in times to come.
What is well stock price forecast? ›Welltower Inc (NYSE:WELL)
The 16 analysts offering 12-month price forecasts for Welltower Inc have a median target of 86.50, with a high estimate of 111.00 and a low estimate of 70.00. The median estimate represents a +6.68% increase from the last price of 81.08.
Stock Price Forecast
The 15 analysts offering 12-month price forecasts for Prudential Financial Inc have a median target of 89.00, with a high estimate of 114.00 and a low estimate of 68.00. The median estimate represents a +7.19% increase from the last price of 83.03.
- Short-term certificates of deposit. ...
- Money market funds. ...
- Treasury bills, notes, bonds and TIPS. ...
- Corporate bonds. ...
- Dividend-paying stocks. ...
- Preferred stocks. ...
- Money market accounts. ...
- Fixed annuities.
Can you take money out of Fundsmith? ›
Withdrawals. If you wish to make an ad-hoc withdrawal, please complete a Form of Renunciation. If you wish to withdraw a portion of your investment on a regular basis as 'income', please use the Regular Withdrawal Form.
Which equity fund is best? ›| Scheme Name | Expense Ratio | 5Y Return (Annualized) |
|---|---|---|
| Quant Mid Cap Fund | 0.63% | 22.01% p.a. |
| Quant Flexi Cap Fund | 0.58% | 21.27% p.a. |
| PGIM India Midcap Opportunities Fund | 0.42% | 20.49% p.a. |
| Motilal Oswal Midcap Fund | 0.75% | 18.92% p.a. |
According to the data, 69% to 84% of retail investors lose money.
Should long term investors hold? ›Holding stocks for the long-term can help you ride the highs and lows of the market, benefit from lower tax rates, and tend to be less costly.
How do fundsmith make money? ›Fundsmith employs a long-term, buy-and-hold investment philosophy. Its funds seek to own concentrated portfolios of quoted businesses that will compound in value over the years, chosen on the basis of company fundamentals, defensible competitive advantages, and attractive valuation.
Which ETF has the largest number of holdings? ›The largest U.S. ETF is the SPDR S&P 500 ETF Trust SPY with $408.14B in assets.
How many holdings does VDE have? ›- Holdings Count114.
- Total Assets7.44B.
- Top 10 Percentage67.75%
- Asset ClassEquity.
- CategorySector.
- RegionNorth America.
The largest hedge funds in the world include Citadel, Bridgewater, AQR, and D.E. Shaw.
What is the largest hedge fund company? ›In 1975, Bridgewater Associates was founded by Ray Dalio in his Manhattan apartment. Today Bridgewater is the largest hedge fund in the world and Dalio has a personal fortune of approximately $19 billion.
What is the highest yielding ETF? ›| Symbol | Name | Dividend Yield |
|---|---|---|
| HCOM | Hartford Schroders Commodity Strategy ETF | 41.06% |
| BNDD | KraneShares Quadratic Deflation ETF | 40.27% |
| SARK | AXS Short Innovation Daily ETF | 38.32% |
| HEWJ | iShares Currency Hedged MSCI Japan ETF | 37.08% |
What is the oldest ETF in the world? ›
SPDR is an acronym for the Standard & Poor's Depositary Receipts, the former name of the ETF. It is designed to track the S&P 500 stock market index. This fund is the largest and oldest ETF in the world.
What is the oldest ETF stock? ›SPDR S&P 500 ETF (SPY)
The State Street SPDR S&P 500 ETF is not only the oldest U.S. listed exchange-traded fund, but it also typically has both the largest assets under management (AUM) and highest trading volume of all ETFs.
The average price target for VDE is $142.72. This is based on 753 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $165.66 ,the lowest forecast is $121.59.
How do I see all holdings in an ETF? ›How It Works. The ETF Database Stock Exposure Tool allows investors to quickly identify all U.S.-listed equity ETFs with significant exposure to a particular security. Simply enter a ticker symbol (e.g. GOOG) into the search box above, and the tool will direct you to ETFs with significant holdings in that stock.
How often does VDE pay dividends? ›VDE has a dividend yield of 4.09% and paid $4.62 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 24, 2023.
Does Warren Buffett own a hedge fund? ›Warren Buffett, the Oracle of Omaha, is one of the most respected investors in the world. His hedge fund, Berkshire Hathaway (NYSE: BRK. A), is known for its long-term approach to investing in high-quality companies.
Who is the smartest hedge fund manager ever? ›James Harris Simons (born 25 April 1938) is an American mathematician, billionaire hedge fund manager, and philanthropist. He is the founder of Renaissance Technologies, a quantitative hedge fund based in East Setauket, New York.
Who is the best fund manager in the world? ›Great money managers are the rock stars of the financial world. While Warren Buffett is a household name to many, to stock geeks, the names of Benjamin Graham, John Templeton, and Peter Lynch are cause for extended discourses on investment philosophies and performance.
What is the best hedge fund in 2023? ›Bridgewater Associates, Renaissance Technologies, Two Sigma Investments, D.E. Shaw & Co., and Millennium Management are among the top-performing hedge funds of 2023. Investors who are interested in hedge funds can consider these funds as potential investment options.
What is the best performing hedge fund in the world? ›Citadel is now the most successful hedge fund ever after it made $16 billion last year — the biggest annual windfall on record. The Miami-based fund, founded and run by Ken Griffin, topped the 2022 ranking of the world's best-performing hedge funds based on estimates from LCH Investments NV.
What hedge fund has the best returns? ›
The big winner of 2022 was Ken Griffin's Citadel Investments, which topped LCH Investments 2022 top hedge fund list by returning $65.9 billion in gains since inception and beating Ray Dalio's Bridgewater Associates - the largest hedge fund in the world in terms of net asset value.