This Fund Exits Intuit (INTU) Amid Concerns of AI Disruption to TurboTax’s Moat

This Fund Exits Intuit (INTU) Amid Concerns of AI Disruption to TurboTax’s Moat

Mon, August 24, 2026 at 4:04 PM GMT+3 3 min read

• INTU +0.79%
• CL=F -1.42%

Guinness Global Innovators, an investment management company, recently released its Q2 2026 quarterly investor update for its "Guinness Global Innovators Fund". You can download the letter here. The Guinness Global Innovators Fund focuses on investing in global companies that benefit from innovation in technology, communication, globalization, and management strategies. In the second quarter of 2026, the Guinness Global Innovators Fund returned 13.8% in GBP, compared with 13.0% for the MSCI World Index and 13.1% for the IA Global sector average. Easing Middle East tensions, falling oil prices, and renewed enthusiasm for artificial intelligence helped reverse much of the caution seen earlier in the year, with investors rotating back toward growth stocks and AI infrastructure beneficiaries. The Fund benefited from its overweight position in the Information Technology sector, while its overweight position in Communication Services detracted. Avoiding weaker Utilities, Materials, and Energy also supported relative performance. Also, please check the Fund's top five holdings to see its best picks for 2026.

In its second-quarter 2026 investor letter, Guinness Global Innovators Fund highlighted Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) provides financial management, payments and capital, compliance, and marketing products and services. On August 21, 2026, Intuit Inc. (NASDAQ:INTU) closed at $367.00 per share. The one-month return of Intuit Inc. (NASDAQ:INTU) was 20.76%, and its shares lost -44.14% over the past 52 weeks. Intuit Inc. (NASDAQ:INTU) has a market capitalization of $100.4 billion with a 52-week trading range between $252.84 - $705.08.

Guinness Global Innovators Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q2 2026 investor letter:

"We initially bought Intuit Inc. (NASDAQ:INTU) for its market-leading position in mission-critical tax and accounting software, a deeply embedded QuickBooks platform with significant switching costs, and a strong consumer brand in TurboTax. QuickBooks' c.80% market share, high customer retention and accountant-led distribution created a durable competitive advantage, while Intuit's expanding ecosystem across payments, payroll, lending, Mailchimp, and tax services provided a clear runway for long-term growth and further monetisation. Toward the end of 2025 and in early 2026, markets became increasingly concerned with the 'Saaspocalypse', the implications of AI disruption of the software sector, causing sentiment on the stock to sour. While Intuit continued to deliver resilient results overall, its most recent earnings print changed the thesis for us. Revenue and earnings were modestly ahead of consensus, but the quarter was overshadowed by disappointing TurboTax performance, where revenue growth of 7% fell short of expectations (c.8%) and paid DIY returns declined sharply, particularly among price-sensitive, lower-income filers. This reignited concerns that Intuit's pricing power and share at the lower end of the tax market may be more vulnerable than previously anticipated..." (Click here to read the full text)

Intuit Inc. (NASDAQ:INTU) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the first quarter which was 91 in the previous quarter. While we acknowledge the potential of Intuit Inc. (NASDAQ:INTU) 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 Intuit Inc. (NASDAQ:INTU) and shared Eagle Capital Managements' insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.