Fundsmith, a London-based investment management company, has published its 2025 annual investor letter for its “Fundsmith Equity Fund.” A copy of the letter can be downloaded here. The fund focuses on investing in stocks globally. The T Class Accumification shares in which the company 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 outperformed the index by 1.7% annually. The fund attributed its underperformance through 2025 to index concentration, asset growth in index funds and a weak dollar. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q4 2025 investor letter, Fundsmith Equity Fund highlighted stocks like Novo Nordisk A/S (NYSE:NVO). Novo Nordisk A/S (NYSE:NVO) is engaged in the research and development, manufacturing and distribution of pharmaceutical products. Novo Nordisk A/S (NYSE:NVO)’s monthly performance was 16.76% and its stock lost 30.50% of its value in the last 52 weeks. On January 9, 2026, shares of Novo Nordisk A/S (NYSE:NVO) closed at $58.81 per share, with a market capitalization of $263.8 billion.
Fundsmith Equity Fund stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its Q4 2025 investor letter:
“Novo Nordisk A/S (NYSE:NVO) managed to reaffirm my belief that you should never say “Things can’t get any worse.” The company has converted a leading market position in what is likely the most exciting drug development in about three decades to a secondary position and has failed to prevent illegal generic competition in its core US market.
Novo Nordisk A/S (NYSE:NVO) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 50 hedge fund portfolios held Novo Nordisk A/S (NYSE:NVO) at the end of the third quarter, up from 45 in the previous quarter. While we recognize the potential of Novo Nordisk A/S (NYSE:NVO) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.