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 The Toro Company (NYSE:TTC) as a notable contributor. Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) designs, manufactures, markets, and sells professional turf maintenance equipment and services. On May 11, 2026, The Toro Company (NYSE:TTC) closed at $94.96 per share. One-month return of The Toro Company (NYSE:TTC) was -2.72%, and its shares gained 25.11% over the past 52 weeks. The Toro Company (NYSE:TTC) has a market capitalization of $9.26 billion.
Jensen Quality Mid Cap Fund stated the following regarding The Toro Company (NYSE:TTC) in its Q1 2026 investor letter:
“Other notable companies that contributed positively to Portfolio performance during the quarter were Labcorp Holdings, Inc. (LH) and The Toro Company (NYSE:TTC). TTC is a well-known manufacturer of lawn mowers and leaf and snow blowers. The business is characterized by strong brand names, solid market positions, and an extensive dealer network that would be difficult for new market entrants to replicate. Currently, TTC is benefiting from the AI infrastructure build-out as the company’s trenchers are being used to dig conduits and lay fiber optic cables and power transmission lines that support new data centers.”
The Toro Company (NYSE:TTC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 42 hedge fund portfolios held The Toro Company (NYSE:TTC) at the end of the fourth quarter, up from 29 in the previous quarter. The Toro Company (NYSE:TTC) generated net sales of $1.04 billion in Q1 2026, up 4.2% from prior year and better than expected. While we acknowledge the risk and potential of The Toro Company (NYSE:TTC) 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 Toro Company (NYSE:TTC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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.
