In a significant portfolio shift, Terry Smith's Fundsmith cut its stake in Philip Morris International by over 43% during the second quarter of 2026. According to a quarterly disclosure filed with the SEC on August 14, the firm sold approximately 2.2 million shares, reducing its position from 5.11 million to 2.91 million. As with all 13F filings, this report reveals trades that occurred in the quarter ending June 30, not necessarily in real-time.
The sale comes amid a notable strategic change for the high-profile manager. In the first half of 2026, Smith reportedly abandoned his long-held "do nothing" buy-and-hold philosophy in favor of a more active approach to portfolio management. This has led to unusually high portfolio turnover. Earlier in the year, Smith had described Philip Morris as a holding valued for its leadership in reduced-risk smoke-free products.