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 Aon plc (NYSE:AON) as a newly added position. Aon plc (NYSE:AON) is a professional services firm providing risk management, insurance brokerage, and human capital consulting solutions to organizations. On May 11, 2026, Aon plc (NYSE:AON) closed at $312.07 per share. One-month return of Aon plc (NYSE:AON) was -3.39%, and its shares lost 12.11% over the past 52 weeks. Aon plc (NYSE:AON) has a market capitalization of $66.65 billion.
Jensen Quality Mid Cap Fund stated the following regarding Aon plc (NYSE:AON) in its Q1 2026 investor letter:
“During the quarter, the Quality Mid Cap Investment Team initiated positions in Aon plc (NYSE:AON), The Sherwin-Williams Company (SHW), and Cadence Design Systems, Inc (CDNS). AON provides commercial insurance brokerage services and health insurance, employee benefits, and retirement plan consulting to corporate customers. The company also provides investment advisory services for fiduciaries and employers. We added AON to the Portfolio due to its attractive valuation, solid brand name recognition, economies of scale, and high customer renewal rates.”
Aon plc (NYSE:AON) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 70 hedge fund portfolios held Aon plc (NYSE:AON) at the end of the fourth quarter, compared to 76 in the previous quarter. While we acknowledge the risk and potential of Aon plc (NYSE:AON) 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 Aon plc (NYSE:AON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Aon plc (NYSE:AON) and shared the list of best value stocks to buy in 2026 according to Warren Buffett. 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.
