Here’s Why Fundsmith Equity Fund Reestablished Its Stake in Intuit (INTU)

INTU -4.75% DX-Y.NYB +0.10%

Fundsmith, an investment management firm based in London, has released its annual 2025 investor letter for its “Fundsmith Equity Fund.” A copy of the letter can be downloaded here. The fund focuses on investing in equities globally. The T Class Accumulation shares where the firm invested returned 0.8% in 2025, compared to 12.8% for the MSCI World Index (‘Index’) in sterling with dividends reinvested. Since its inception, the fund has returned 1.7% p.a. more than the index. The fund attributed its underperformance during 2025 to index concentration, the growth of assets in Index Funds, and weakness in the dollar. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Fundsmith Equity Fund highlighted stocks such as Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management, payments and capital, compliance products, and services. The one-month return for Intuit Inc. (NASDAQ:INTU) was -1.18%, and its shares gained 5.49% over the last 52 weeks. On January 9, 2026, Intuit Inc. (NASDAQ:INTU) stock closed at $646.90 per share, with a market capitalization of $180.097 billion.

Fundsmith Equity Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its fourth quarter 2025 investor letter:

"We previously sold a position we held in Intuit Inc. (NASDAQ:INTU), the accounting and tax software company, after it acquired Mailchimp in 2021 because we felt that Mailchimp fell outside its circle of competence and they paid about three times the right price, something which they attempted to justify by pointing out that half the consideration paid was in Intuit shares. What this implied about their valuation seemed obvious to us. For a while after we sold the shares AI hype drove the price but latterly the poor performance of the Mailchimp acquisition has become evident and reflected in the share price. We have started to rebuild a stake in the hope that the management has learned from the debacle."

Intuit Inc (NASDAQ:INTU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the third quarter, which was 105 in the previous quarter. In the first quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, representing an increase of 18% year-over-year. While we acknowledge the potential of Intuit Inc. (NASDAQ:INTU) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared SGA U.S. Large Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.