Terry Smith’s flagship investment fund has ditched its stake in Starbucks, after the firm picked up a stake in the Seattle firm after its share price dropped at the start of the pandemic.
The buy-and-hold investment fund, started by the star fund manager nicknamed “the English Warren Buffett,” has now sold off its stake in the coffee seller, after its share price fell back below pre-Covid levels.
The sell-off comes after the £26bn fund, founded by English businessman Terry Smith in 2010, picked up a stake in Starbucks after the company’s share price plummeted in March 2020.
Shares in the coffee shop chain subsequently surged throughout 2020 and 2021, before declining sharply in the first six months of 2022.
The more than 30 per cent drop in Starbucks’ share price has comes as the lockdowns in China, scraps with unions, and the war in Ukraine have hit the firms’ profitability over the previous year.