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 KLA Corporation (NASDAQ:KLAC). KLA Corporation (NASDAQ:KLAC) designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. On July 24, 2026, KLA Corporation (NASDAQ:KLAC) closed at $210.52 per share. One-month return of KLA Corporation (NASDAQ:KLAC) was -24.38% and its shares gained 128.05% over the past 52 weeks. KLA Corporation (NASDAQ:KLAC) has a market capitalization of $275 billion with a 52-week trading range between $83.22 – $307.37.
Jensen Quality Growth Equity Strategy stated the following regarding KLA Corporation (NASDAQ:KLAC) in its Q2 2026 investor letter:
“KLA Corporation (NASDAQ:KLAC), a provider of semiconductor manufacturing technology, continued to post strong results in the second quarter, benefitting from secular demand for its process control systems, as demand increases alongside rising chip complexity and reshoring supply chains. Fundamentally, the company benefits from underlying financial strength, high customer demand, good revenue visibility via its backlog, and bullish long-term forward guidance and visibility. KLA was our top performer in the quarter, as investor enthusiasm increased during the period alongside strong results and thesis drivers.”
KLA Corporation (NASDAQ:KLAC) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held KLA Corporation (NASDAQ:KLAC) at the end of the first quarter which was 67 in the previous quarter. While we acknowledge the risk and potential of KLA Corporation (NASDAQ:KLAC) 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 KLA Corporation (NASDAQ:KLAC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered KLA Corporation (NASDAQ:KLAC) and shared Bristol US Equity Strategy’s optimistic view on the stock. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
