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 The TJX Companies, Inc. (NYSE:TJX). The TJX Companies, Inc. (NYSE:TJX) operates as an off-price apparel and home fashions retailer worldwide. On July 24, 2026, The TJX Companies, Inc. (NYSE:TJX) closed at $154.22 per share. One-month return of The TJX Companies, Inc. (NYSE:TJX) was 1.98%, and its shares gained 22.99% over the past 52 weeks. The TJX Companies, Inc. (NYSE:TJX) has a market capitalization of $170.36 billion with a 52-week trading range between $123.78 – $170.00.
Jensen Quality Growth Equity Strategy stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its Q2 2026 investor letter:
“The TJX Companies, Inc. (NYSE:TJX) is a leading global off-price apparel and home fashions retailer led by CEO and President Ernie Herrman, employing approximately 377,000 people worldwide, with key concepts including T.J. Maxx, HomeGoods, and Marshalls.
As the clear market leader in off-price retail, TJX benefits from significant scale, global sourcing, and longstanding vendor relationships that support strong inventory turnover, purchasing power, and continued market share gains. Its diversified store base and broad customer appeal drive durable earnings that have historically proven resilient across cycles, complemented by strong cash generation, modest leverage, and disciplined capital allocation. Valuation had long limited prospective returns, but improved confidence in long-term growth and margin expansion — particularly in international markets and HomeGoods — combined with recent share-price weakness, created an attractive entry point.
Looking ahead, we expect continued growth supported by market share gains, healthy customer traffic, store expansion, and consumer preference for value-oriented retailers, with margin opportunity from improving HomeGoods profitability, international execution, scale, and supply chain efficiencies. Longer term, TJX is well positioned to deliver durable earnings growth through global store expansion, deeper penetration of home categories, share gains from traditional retailers, and sustained free cash flow generation.”
The TJX Companies, Inc. (NYSE:TJX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held The TJX Companies, Inc. (NYSE:TJX) at the end of the first quarter which was 87 in the previous quarter. While we acknowledge the risk and potential of The TJX Companies, Inc. (NYSE:TJX) 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 The TJX Companies, Inc. (NYSE:TJX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The TJX Companies, Inc. (NYSE:TJX) and shared the list of stocks discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q2 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.
