Jensen Investment Management, an asset management company based in the US, released its fourth-quarter investor letter for “Jensen Quality Growth Equity Strategy”. A copy of the letter can be downloaded here. The S&P 500 Index continued its rally in Q4 2025, which started in 2022. The Jensen Quality Growth Equity Composite underperformed the Index in the fourth quarter. The Strategy returned -0.55% (net) in Q4 2025 Vs 2.66% for the Index. At the sector level, the portfolio’s relative underperformance was largely contributed to by the Industrials sector. The outperformance of low-quality stocks added to the relative underperformance from a quality perspective. Market concentration in mega-cap technology characterizes the current investment theme. The portfolio is well-positioned to capitalize on growth from AI and digital transformation, while maintaining its durability. The firm prioritizes holding companies that can generate economic value over multiple cycles, focusing on quality, cash generation, and durability for long-term shareholder returns. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Jensen Quality Growth Equity Strategy highlighted Motorola Solutions, Inc. (NYSE:MSI). Motorola Solutions, Inc. (NYSE:MSI) is a leading provider of public safety, government, defense, and enterprise security solutions. On March 05, 2026, Motorola Solutions, Inc. (NYSE:MSI) stock closed at $467.16 per share. One-month return of Motorola Solutions, Inc. (NYSE:MSI) was 10.65%, and its shares gained 10.41% over the past 52 weeks. Motorola Solutions, Inc. (NYSE:MSI) has a market capitalization of $77.808 billion.
Jensen Quality Growth Equity Strategy stated the following regarding Motorola Solutions, Inc. (NYSE:MSI) in its fourth quarter 2025 investor letter:
“During the quarter, the Quality Growth Investment Team initiated new positions in Amazon (AMZN), Broadcom (AVGO), and Motorola Solutions, Inc. (NYSE:MSI). Motorola Solutions specializes in mission critical radio networks used by first responders and government agencies. The company’s current iteration is the result of a 2011 split up which resulted in Motorola Solutions and Motorola Mobility. Motorola builds and maintains network infrastructure (i.e., radio towers and repeaters) and produces high-tech radio devices that are used by law enforcement, EMS/Fire, TSA, schools, military, and private enterprises. The company has a dominant position in the US first-responder market and has presence abroad including the UK, Europe, and Middle East.
While we have long viewed Motorola Solutions’ attributes as quality, the company’s relatively weak stock price year-to-date provided an entry point for us. The reasons for weakness are moderating top-line growth as well as the market digesting a historically large acquisition. In our view, the weakness is not due to a fundamental deterioration of competitive advantages, creating an opportunity for long-term investors to initiate a position. Although we have long liked the competitive advantages and fundamentals of the business, our model previously signaled that the stock was too expensive relative to intrinsic value. We believe Motorola Solutions should maintain its dominant position in its core radio business. The company’s investments into video and software adjacencies provide an avenue to boost topline growth and continued strong double digits EPS growth.”
Motorola Solutions, Inc. (NYSE:MSI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 64 hedge fund portfolios held Motorola Solutions, Inc. (NYSE:MSI) at the end of the fourth quarter, up from 51 in the previous quarter. While we acknowledge the risk and potential of Motorola Solutions, Inc. (NYSE:MSI) 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 Motorola Solutions, Inc. (NYSE:MSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Motorola Solutions, Inc. (NYSE:MSI) and shared a list of best video surveillance and private security stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
