Fundsmith cuts 40% stake in Alphabet in Q2 filing

Fundsmith, the London-based asset manager run by veteran stock picker Terry Smith, dumped roughly 40% of its Alphabet holdings during the second quarter of 2026. The sale amounted to approximately $634 million worth of GOOGL shares, according to the fund’s latest 13F filing. That’s not a one-off trim. It’s the third consecutive quarter of significant selling in a position Smith first built in early 2022. A pattern, not a pivot The Q2 reduction involved roughly 1.18 million shares of GOOGL leaving Fundsmith’s books. In Q4 2025, Fundsmith executed a roughly 44% cut to its Alphabet stake. In Q1 2026, it shaved off another 15%. Now another 40% is gone. Despite all the selling, Alphabet still accounts for somewhere between 4.6% and 6.6% of Fundsmith’s total portfolio, meaning it remains among the fund’s more prominent holdings. Fundsmith’s overall portfolio sits at approximately $13.65 billion spread across 41 securities. Why Smith is getting restless Fundsmith’s portfolio turnover exceeded 50% in the first half of 2026. The sustained trimming coincides with a period where Fundsmith’s returns have reportedly lagged behind key benchmarks, prompting a more hands-on approach to portfolio c...