Influential investor Terry Smith's firm, Fundsmith, initiated a new $358.89 million stake in AppLovin (APP) by purchasing 696,570 shares, giving it a 2.63% portfolio weight. This disclosure comes from a quarterly 13F filing with the SEC, reflecting positions held as of June 30, 2026, not a real-time trade. AppLovin is a mobile technology company that provides an AI-powered platform for app developers to market and monetize their applications.
The investment is a notable part of a significant strategic pivot for Smith, who is moving away from his long-held "buy good companies, don't overpay, do nothing" philosophy. In his H1 2026 letter to shareholders, Smith confirmed the purchase and highlighted AppLovin's powerful AI engine, AXON, as its competitive moat. This move is one of several in a broader portfolio overhaul where Smith has stated he will now "take more account of momentum."