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 Labcorp Holdings Inc. (NYSE:LH) as one of the leading performance contributors. Labcorp Holdings Inc. (NYSE:LH) is a leading laboratory services company that operates through the Diagnostics Laboratories and Biopharma Laboratory Services segments. The one-month return of Labcorp Holdings Inc. (NYSE:LH) was -5.13%, and its shares gained 2.03% of their value over the last 52 weeks. On May 11, 2026, Labcorp Holdings Inc. (NYSE:LH) stock closed at $255.08 per share with a market capitalization of $20.92 billion.
Jensen Quality Mid Cap Fund stated the following regarding Labcorp Holdings Inc. (NYSE:LH) in its Q1 2026 investor letter:
“Other notable companies that contributed positively to Portfolio performance during the quarter were Labcorp Holdings Inc. (NYSE:LH) and The Toro Company (TTC). Along with Quest Diagnostics Incorporated, LH is one of the largest providers of diagnostic testing services in the U.S. LH performs over 6,500 different tests, ranging from routine preventative screenings, such as blood and urine tests, to specialized genomic profiling. The company is one of the Portfolio’s largest holdings due to their strong market position, economies of scale versus smaller competitors, and the stability of demand for its services. Over the long term, we believe LH should benefit from the continued aging of the U.S. population.”
Labcorp Holdings Inc. (NYSE:LH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 41 hedge fund portfolios held Labcorp Holdings Inc. (NYSE:LH) at the end of the fourth quarter, compared to 47 in the previous quarter. While we acknowledge the risk and potential of Labcorp Holdings Inc. (NYSE:LH) 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 Labcorp Holdings Inc. (NYSE:LH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Labcorp Holdings Inc. (NYSE:LH) and shared Diamond Hill Large Cap Fund’s views on the company last quarter. 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.
