Below is the list of $40 billion hedge fund’s top 5 stock picks. For a detailed discussion about Terry Smith’s investment philosophy and portfolio management strategy please see This $40 Billion Hedge Fund Loves These 10 Stocks.
5. Intuit Inc. (NASDAQ:INTU)
Fundsmith’s stake value: $2.4 billion
Percentage of Fundsmith’s portfolio: 5.85%
Number of hedge fund holders: 82
Fundsmith cut its stake in Intuit Inc. (NASDAQ:INTU) by 19% during the December quarter, yet it remains the fifth largest holding in its portfolio. Over the years, the London-based investment firm has held a stake in the company and it appears that it has benefited from its strategy. Shares of the financial services company soared by 22% in the last twelve months, enlarging five-year gains to over 300%. Intuit Inc. (NASDAQ:INTU) is a fast-growing company. The company posted total revenue of $2.6 billion in the December quarter, up 41% from the prior year.
Baron Funds, an asset management firm, mentioned a few stocks including Intuit. Here is what Baron Funds stated:
“Intuit Inc. is the leading provider of accounting and tax preparation software. Shares increased after the company reported quarterly results that beat Street estimates, with 22% revenue growth in the Small Business segment and record-high revenue from Credit Karma. The company closed the acquisition of MailChimp, which expands its product offering and is accretive to EPS. Management increased full-year guidance to reflect better organic growth and the contribution from MailChimp. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities. We have several investments in software companies that help businesses manage their financial processes and operations. Intuit Inc. provides accounting and payroll solutions for small businesses as well as tax preparation software for consumers and tax professionals.”