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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 Fortinet, Inc. (NASDAQ:FTNT). Fortinet, Inc. (NASDAQ:FTNT) is a global provider of cybersecurity and convergence of networking and security solutions. The one-month return of Fortinet, Inc. (NASDAQ:FTNT) was -4.62%, and its shares lost 14.95% of their value over the last 52 weeks. On January 12, 2026, Fortinet, Inc. (NASDAQ:FTNT) stock closed at $78.66 per share, with a market capitalization of $60.274 billion.
Fundsmith Equity Fund stated the following regarding Fortinet, Inc. (NASDAQ:FTNT) in its fourth quarter 2025 investor letter:
“We bought Fortinet, Inc. (NASDAQ:FTNT) after its shares had suffered from a fall as it came down from the Covid related highs of revenue growth when its FortiGate firewall systems were deployed so that we could work from home. More recently it has suffered from some disappointment that it may have over-hyped the potential revenue from a renewal cycle.”
Fortinet, Inc. (NASDAQ:FTNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held Fortinet, Inc. (NASDAQ:FTNT) at the end of the third quarter, compared to 46 in the previous quarter. In Q3 2025, Fortinet, Inc.’s (NASDAQ:FTNT) total revenue grew by 14% year-over-year to $1.72 billion. While we acknowledge the potential of Fortinet, Inc. (NASDAQ:FTNT) 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 Fortinet, Inc. (NASDAQ:FTNT) and shared the list of oversold fundamentally strong stocks to buy. 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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