Jensen Investment Management, an asset management company based in the US, released its first-quarter 2025 investor letter for the “Jensen Quality Mid Cap Fund”. A copy of the letter is available to download here. The Jensen Quality Mid Cap Fund aims for long-term growth. The Fund returned -2.53% in Q1 2026, lagging the 0.60% return for the MSCI US Mid Cap 450 Index. Mid-cap stocks were flat in the quarter due to inflation, war, high energy prices, and cautious consumer spending. Rapid AI investment growth impacted the Index, boosting some stocks but hurting others, especially software and business services stocks facing AI disruption concerns. Energy stocks surged after the Iran War, challenging performance. The fund’s process focuses on high-quality companies with a 15%+ ROE for ten years, indicating sustained advantages. Quarterly performance benefited from underweights in the Financials and Communications Services and higher exposure to the Industrials sector, while underweight exposure in the Energy and Utilities sectors and overweight in Consumer Discretionary hurt performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Jensen Quality Mid Cap Fund highlighted stocks like Broadridge Financial Solutions, Inc. (NYSE:BR). Broadridge Financial Solutions, Inc. (NYSE:BR) is a financial technology company that provides investor communications and solutions for the financial services industry. On May 11, 2026, Broadridge Financial Solutions, Inc. (NYSE:BR) closed at $149.13 per share. One-month return of Broadridge Financial Solutions, Inc. (NYSE:BR) was -5.98%, and its shares lost 37.16% over the past 52 weeks. Broadridge Financial Solutions, Inc. (NYSE:BR) has a market capitalization of $17.25 billion.
Jensen Quality Mid Cap Fund stated the following regarding Broadridge Financial Solutions, Inc. (NYSE:BR) in its Q1 2026 investor letter:
“The largest detractor from Portfolio performance during the quarter was Broadridge Financial Solutions, Inc. (NYSE:BR), a diversified provider of outsourcing solutions to financial services companies and publicly traded corporations. Specific solutions offered by BR include the distribution of proxy materials and the tabulation of proxy votes as well as the composition and filing of required SEC disclosures, such as annual reports and prospectuses. BR also provides security trade processing services and prepares, prints and delivers monthly statements, compliance notices, and tax forms on behalf of banks, broker-dealers, and wealth and asset managers. We believe BR’s stock underperformed due primarily to investor concerns regarding the potential disintermediation of the company’s business by AI based competitors. As previously discussed, this concern permeated the markets throughout the quarter and negatively impacted a number of software and business services stocks. In our opinion, these fears are unfounded with respect to BR as many of the company’s services are legally mandated, mission-critical and subject to constant audits and regulatory reviews, making them very difficult to replicate. BR remains a core Portfolio holding due to its strong market position, economies of scale, high client retention ratio, and attractively valued stock.”
Broadridge Financial Solutions, Inc. (NYSE:BR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge fund portfolios held Broadridge Financial Solutions, Inc. (NYSE:BR) at the end of the fourth quarter, compared to 41 in the previous quarter. While we acknowledge the risk and potential of Broadridge Financial Solutions, Inc. (NYSE:BR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Broadridge Financial Solutions, Inc. (NYSE:BR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Broadridge Financial Solutions, Inc. (NYSE:BR) and shared the list of best information technology services stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.
