In a continuation of recent selling, Terry Smith's Fundsmith Equity Fund reduced its holding in Microsoft (MSFT) by 23.2% during the second quarter of 2026. According to its latest quarterly disclosure, the fund sold an estimated $180 million worth of shares, bringing its total position down from 2.08 million to 1.60 million shares. The stake was valued at approximately $595.6 million at the end of June.
This trade information is sourced from a 13F filing dated August 14, 2026, which discloses positions held as of June 30, 2026, and does not reflect real-time activity. The sale lowered Microsoft's weight in Fundsmith's portfolio from 6.00% to 4.36%. Earlier in 2026, Smith had expressed concerns over heavy AI-related capital expenditures by large tech companies, noting it could change their historically capital-light business models.