Here’s Terry Smith’s 2025-2026 Portfolio: Terry Smith’s Fundsmith Equity Fund, known for its disciplined approach, faced a challenging 2025, delivering a modest 0.8% return compared to the MSCI World Index’s 12.8%. The fund’s underperformance is attributed to three key factors: the dominance of the “Magnificent Seven” tech stocks, which now make up 39% of the S&P 500 and contributed 50% of its returns; the rise of passive index funds, which now hold over 50% of US equity fund assets; and a weake