The key points from the 2024 FEF Semi-Annual Letter to Shareholders are:
- The Fundsmith Equity Fund (FEF) returned 9.3% in the first half of 2024, underperforming the MSCI World Index, which returned 12.7%.
- The underperformance was partly due to the concentration of returns in a few large tech stocks like Nvidia, which FEF does not hold.
- The top 5 positive contributors to FEF’s performance were Novo Nordisk, Meta Platforms, Microsoft, Alphabet, and Stryker.
- The top 5 detractors were L’Oréal, IDEXX, Nike, Brown-Forman, and Waters, mainly due to a downturn in pet owners visits to vets and troubles in the Chinese economy.
- FEF’s portfolio turnover was 3.7% in the first half, and the total cost of investment was 1.05%.
- During this period, FEF began accumulating positions in Texas Instruments and another undisclosed new company.
- The fund continues to invest with the aim of long-term superior performance adjusted for risk
