Terry Smith - Fundsmith Investment Strategy (Jun 30, 2025)
As of Jun 30, 2025, the Fundsmith portfolio managed by Terry Smith demonstrates a sophisticated investment approach with 56 positions and an average holding period of 1509 quarters. The strategy focuses on Communication Services, Consumer Cyclical, Consumer Defensive, Financial Services, Healthcare, Industrials, Technology sectors with a typical position size of 3.7% of the portfolio.
The portfolio's risk management approach includes a maximum position size of 3.69% and sector diversification of 7%, exemplified by the case study of FACEBOOK (META). This strategic framework provides insights into Terry Smith's investment philosophy, risk management practices, and long-term value creation approach.
Investment Strategy Metrics
Key metrics revealing investment style, risk management, and performance characteristics
| Metric | Value | Category | Description |
|---|---|---|---|
| Holding Period | 4.1 years | Style | Average duration positions are maintained |
| Position Count | 56 | Style | Number of active positions in portfolio |
| Position Size | 3.7% | Risk | Typical allocation per position |
| Win Rate | 59.4% | Performance | Percentage of profitable positions |
| Average Return | 2511.5% | Performance | Mean return across positions |
| Sharpe Ratio | 0.16 | Performance | Return per unit of risk taken |
Investment Case Study: FACEBOOK (META)
3/31/2018 - 11/7/2025
Performance Metrics
Total Return: 118.46%
Holding Period: 2778 days
Max Position Size: $2,239,300.00
Position Weight: 6.40%
Key Events
Investment Thesis
Entry Context: Initial position established based on fundamental analysis
Sector Conditions: Favorable market conditions in the sector
- Market volatility
- Sector-specific risks
Key Learnings
- Position sizing is critical for portfolio management
- Important to monitor sector exposure