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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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"Jensen Quality Mid Cap Fund's 2.38% Q2 return lagged the 13.69% benchmark as the fund avoided highly cyclical AI infrastructure stocks inconsistent with its quality criteria. The disciplined approach targets companies with 15%+ ROE for ten consecutive years, durable competitive advantages, and stable earnings."
Jensen Quality Mid Cap Fund returned 2.38% in Q2 2026 versus 13.69% for the MSCI US Mid Cap 450 Index, underperforming primarily due to not owning highly cyclical AI infrastructure beneficiaries that drove 24% of the benchmark's return. The fund's disciplined approach focuses exclusively on companies with 15%+ ROE for ten consecutive years, durable competitive advantages, strong balance sheets, and stable earnings. Top contributors included Levi Strauss, which benefited from denim category strength and direct-to-consumer growth, United Rentals, which is benefiting from AI data center construction, and Crown Holdings, which reported solid beverage can volume growth driven by European and Asia-Pacific strength. Detractors included Motorola Solutions due to soft LMR sales and higher tariff costs, Tractor Supply facing e-commerce competition and weakening pet food sales, and Kroger experiencing same-store-sales slowdown from price reductions to compete with Walmart and Costco. The portfolio holds 36 companies with 99% equity exposure. The near-term outlook remains constructive given resilient economic activity and healthy corporate fundamentals, though risks persist from uncertain Fed policy, subdued consumer sentiment, and potential geopolitical turmoil.
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