PepsiCo (PEP) is in the Crosshairs of Weight Loss Drugs

Group 1 - Fundsmith Equity Fund reported a return of 0.8% for its T Class Accumulation shares in 2025, significantly underperforming the MSCI World Index which returned 12.8% [1] - The fund's underperformance was attributed to index concentration, the growth of assets in Index Funds, and weakness in the dollar [1] - Since inception, the fund has outperformed the index by 1.7% per annum [1] Group 2 - PepsiCo, Inc. (NASDAQ:PEP) experienced a one-month return of -5.99% and a 52-week loss of 2.48% [2] - As of January 12, 2026, PepsiCo's stock closed at $141.36 per share, with a market capitalization of $193.533 billion [2] - Fundsmith highlighted concerns regarding the impact of weight loss drugs on PepsiCo's snack business and the challenges faced by the alcoholic drinks sector due to changing drinking habits among Generation Z and cannabis legalization [3] Group 3 - PepsiCo is not among the 30 Most Popular Stocks Among Hedge Funds, with 68 hedge fund portfolios holding its stock at the end of Q3 2025, unchanged from the previous quarter [4] - While PepsiCo is recognized for its investment potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]