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 Sherwin-Williams Company (NYSE:SHW) as a newly added position. The Sherwin-Williams Company (NYSE:SHW) is a leading manufacturer and distributor of paint, coatings, and related products to professional, industrial, commercial and retail customers. On May 11, 2026, The Sherwin-Williams Company (NYSE:SHW) closed at $312.70 per share. One-month return of The Sherwin-Williams Company (NYSE:SHW) was -6.26%, and its shares lost 12.17% over the past 52 weeks. The Sherwin-Williams Company (NYSE:SHW) has a market capitalization of $77.12 billion.
Jensen Quality Mid Cap Fund stated the following regarding The Sherwin-Williams Company (NYSE:SHW) in its Q1 2026 investor letter:
“During the quarter, the Quality Mid Cap Investment Team initiated positions in AON PLC (AON), The Sherwin-Williams Company (NYSE:SHW), and Cadence Design Systems, Inc (CDNS). Sherwin-Williams develops, manufactures, and sells paint and coating products. SHW was purchased as a result of its strong market share, well-known brands, economies of scale, and attractively priced stock.”
The Sherwin-Williams Company (NYSE:SHW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 83 hedge fund portfolios held The Sherwin-Williams Company (NYSE:SHW) at the end of the fourth quarter, up from 63 in the previous quarter. While we acknowledge the risk and potential of The Sherwin-Williams Company (NYSE:SHW) 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 Sherwin-Williams Company (NYSE:SHW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Sherwin-Williams Company (NYSE:SHW) and shared the list of best basic materials stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
