Jensen Investment Management, an asset management company based in the US, released its second-quarter 2026 investor letter for the “Jensen Quality Growth Equity Strategy”. A copy of the letter is available to download here. The fund seeks long-term growth by investing in high-quality companies with durable competitive advantages. It returned 10.94% net of fees in Q2 2026, trailing the 15.20% return for the S&P 500 Index. US equities posted their strongest quarter in nearly six years as easing Iran-related tensions, improving financial conditions, resilient consumer spending, and continued AI infrastructure investment lifted markets. AI and memory-related semiconductor stocks led the rally, while lower-quality and momentum stocks outperformed the quality factors central to Jensen’s strategy. Quarterly performance benefited from favorable stock selection in Communication Services and no exposure to Energy and Utilities, while selection in Industrials and Information Technology hurt relative returns. The Portfolio remains balanced across quality compounders, AI beneficiaries, and defensive businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Jensen Quality Growth Equity Strategy highlighted IDEXX Laboratories, Inc. (NASDAQ:IDXX) as a newly added position. IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products for the companion animal veterinary, livestock and poultry, dairy, and water testing industries. On July 24, 2026, IDEXX Laboratories, Inc. (NASDAQ:IDXX) closed at $544.32 per share. The one-month return of IDEXX Laboratories, Inc. (NASDAQ:IDXX) was 1.57%, and its shares lost 4.57% over the past 52 weeks. IDEXX Laboratories, Inc. (NASDAQ:IDXX) has a market capitalization of $42.94 billion with a 52-week range between $518.55 – $769.98.
Jensen Quality Growth Equity Strategy stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its Q2 2026 investor letter:
“IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops veterinary diagnostic tests and testing equipment, integrated veterinary practice management software, and products for water and livestock testing. Founded in 1983 and headquartered in Westbrook, Maine, the company is led by CEO Mike Erickson, PhD, who succeeded Jay Mazelsky in 2026; Mazelsky remains on the board as Executive Chairman. IDEXX enjoys durable competitive advantages driven by a large installed base of instruments with high switching costs, resulting in 99% customer retention and approximately 90% recurring revenue, reinforced by intellectual property, a strong innovation record, and research and development (R&D)-driven barriers to entry. Recurring revenue and a focus on acute rather than optional veterinary tests reduce sensitivity to economic cycles, and the company maintains a very low-debt balance sheet. Weak share-price performance in 2026, amid a rotation toward cyclical technology names, created a favorable entry point. Near-term, pet and veterinary purchasing decisions are likely to remain pressured by inflation and high fuel prices; longer-term, we see IDEXX continuing to generate consistent revenue and earnings growth with returns on capital well above the cost of capital, compounding shareholder value over time.”
IDEXX Laboratories, Inc. (NASDAQ:IDXX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held IDEXX Laboratories, Inc. (NASDAQ:IDXX) at the end of the first quarter which was 58 in the previous quarter. While we acknowledge the risk and potential of IDEXX Laboratories, Inc. (NASDAQ:IDXX) 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 IDEXX Laboratories, Inc. (NASDAQ:IDXX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered IDEXX Laboratories, Inc. (NASDAQ:IDXX) and shared a list of best pet care stocks to buy for consistent recurring revenue. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
Co-Founder and Research Director at Insider Monkey
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
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Co-Founder and Research Director at Insider Monkey
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