Terry Smith's Fundsmith Equity Fund reduced its position in Visa by 34.9% during the second quarter, according to a recent SEC filing. The firm sold approximately 1.08 million shares, lowering its total stake to 2.02 million shares valued at nearly $693 million as of June 30. Following the sale, Visa now constitutes 5.08% of Fundsmith's reported portfolio, down from 7.31%.
This trade was disclosed in a 13F filing, which reflects holdings as of the end of the second quarter and was made public on August 14. The sale comes during a period of significant strategic adjustment for Smith, who is known for his long-term, buy-and-hold approach. During the same quarter, Fundsmith also initiated a new position in Visa's competitor, Mastercard, with Smith noting that the two are "equally good businesses." This activity was part of a broader increase in portfolio turnover.