Fundsmith Sells Intuit Shares and Critiques Unilever Strategy

Investment management firm Fundsmith reported a -2.9% return for the first half of 2026, underperforming the MSCI World Index by 14.1 percentage points. In its second-quarter investor letter, the firm attributed this performance to a market dominated by AI exuberance and passive index funds, prompting a shift toward a more active investment approach that incorporates momentum.

As part of this strategic shift, Fundsmith sold its holdings in Intuit Inc. The firm cited the poor acquisition of Mailchimp and Intuit's decision to report financial results excluding the subsidiary as primary reasons for the divestment. Fundsmith characterized this reporting method as a continuing state of denial regarding the acquisition's failure.

Fundsmith also criticized the leadership and corporate strategy of Unilever PLC. The firm noted that CEO Hein Schumacher was fired after 18 months and replaced by Fernando Fernandez. Fundsmith expressed concern over the spin-off of the ice cream business into the Magnum Ice Cream Company and the planned transfer of the remaining food business to McCormick, stating these actions contradicted earlier assurances that no further disposals were planned.