Fundsmith (Terry Smith)

Background

Founded 2010 by Terry Smith on three principles: buy good companies, don't overpay, do nothing. Known for sustained low turnover (often single-digit annually) and explicit avoidance of sectors Smith views as fundamentally low-quality — banks, utilities, commodities, airlines, real estate.

Key People

• Terry Smith Founder, CEO, CIO

  Former sell-side analyst (Accounting for Growth, 1992); built Fundsmith around fundamental-quality screens.

Track Record / Style

Fundsmith Equity is among the best-performing UK-domiciled global equity funds over its lifetime. Long-running positions include Microsoft, Visa, Stryker, Philip Morris International, and Novo Nordisk. 2022 was a sharp drawdown year (growth + multiple compression) and 2023 began the recovery. Smith's annual letters are unusually transparent about errors and exited positions.