Fundsmith, the fund managed by veteran investor Terry Smith, sold approximately 40% of its Alphabet stake during Q2 2026, divesting roughly $634 million worth of GOOGL shares. This marks the third consecutive quarter of significant selling, following a 44% cut in Q4 2025 and a 15% reduction in Q1 2026. Alphabet still represents between 4.6% and 6.6% of Fundsmith’s portfolio, which manages approximately $13.65 billion across 41 securities. The fund’s portfolio turnover exceeded 50% in the first half of 2026 amid reported underperformance against key benchmarks. Smith, whose framework focuses on return on capital employed and free cash flow generation, appears uncomfortable with Alphabet’s massive AI infrastructure capex spending.
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