In a significant portfolio shift, renowned investor Terry Smith's Fundsmith established a new position in Mastercard during the second quarter of 2026. According to a delayed 13F filing made public on August 14, the firm acquired 1.25 million shares valued at approximately $639.46 million as of June 30. This new holding immediately constitutes a substantial 4.69% of Fundsmith's reported portfolio.
The investment was part of a broader overhaul of the fund's strategy, which saw unusually high turnover in the first half of the year. Smith commented that he considers Mastercard and competitor Visa to be "equally good businesses," and that owning both provides significant exposure to the payments sector without excessive single-stock risk. This move comes as Smith adapts his approach to consider market momentum more heavily.