In a significant move, Terry Smith's Fundsmith reduced its holding in cybersecurity company Fortinet (FTNT) by 41% during the second quarter of 2026. According to regulatory filings, the firm sold 2.53 million shares, bringing its total position down to 3.63 million. This disclosure, made public on August 14, reflects portfolio changes that occurred before the reporting date of June 30.
The sale coincides with a widely reported strategic pivot from Smith, a renowned long-term, 'buy-and-hold' investor. [13] In the first half of 2026, Fundsmith announced it would incorporate momentum into its process, leading to a historic level of portfolio turnover. [13, 14] The reduction in Fortinet was part of a broader series of cuts to many of the fund's core holdings, occurring even as Fortinet posted strong quarterly financial results. [15, 2, 3]