"With approximately $17.1 billion in assets under management as of the latest filings, Fundsmith continues to pare back its portfolio to maintain concentration in his top conviction stocks. One notable move was in Alphabet ( NASDAQ:GOOG )( NASDAQ:GOOGL | GOOGL Price Prediction), where the fund reduced its stake by over 44% in the fourth quarter, selling about 2.8 million shares of the class A stock."
"Alphabet had been dominating the market in early 2026, building on its 66% gain in 2025. However, the momentum reversed following Anthropic's Jan. 30 announcement of 11 open-source plugins for its Claude Cowork AI platform. This triggered what analysts called the "SaaS-pocalypse," a broad sell-off in software-as-a-service stocks driven by fears that AI agents could erode traditional SaaS value propositions by automating workflows and reducing the need for human-managed tools."
"Alphabet's decline accelerated after its Feb. 4 fourth quarter earnings report, which showed strong results : revenue rose 18% to $113.8 billion, and net income increased 30% to $34.5 billion. Google Cloud revenue surged 48% to $17.7 billion, fueled by AI infrastructure demand. Despite these positives, the stock dropped sharply due to guidance for 2026 capital expenditures of $175 billion to $185 billion - nearly double the 2025 level - to support AI investments."
Fundsmith, managing about $17.1 billion, has been selling stocks to concentrate holdings in top conviction names. The fund reduced its Alphabet stake by over 44% in the fourth quarter, selling roughly 2.8 million Class A shares. Alphabet surged in 2025 but lost momentum in early 2026 after Anthropic released open-source plugins for Claude Cowork, triggering a broad SaaS sell-off driven by fears that AI agents could automate workflows and erode SaaS value. Alphabet reported strong Q4 results with 18% revenue growth to $113.8 billion and Google Cloud revenue up 48% to $17.7 billion, but guided to much higher 2026 capex.
Read at 24/7 Wall St.
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