Overview
- Fundsmith reported a -2.9% return for the first half of 2026 and said it lagged the MSCI World Index by 14.1 percentage points.
- The firm recorded 51% portfolio turnover in H1 2026 and announced a tactical shift to more active, momentum-aware trading while keeping its core mantra of buying high-quality businesses and avoiding overpayment.
- Fundsmith disclosed new holdings in Uber Technologies and Mastercard as part of its repositioning and said these buys reflect durable business franchises rather than short-term AI excitement.
- The letter set out Fundsmith’s Uber thesis, citing strong two-sided network effects, rising cash from operations (turning positive in recent years), a global logistics scale of roughly 42 million trips and orders per day, and attractive mid-20s ROIC with a reported 7.4% free cash flow yield.
- Fundsmith described Mastercard as a payment-network franchise with long-term growth from bringing more adults into digital payments and said owning both Visa and Mastercard gives the fund durable exposure to the payments sector with a cited ROIC above 75% and a 4.5% free cash flow yield.