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 Keysight Technologies, Inc. (NYSE:KEYS) as a notable contributor. Keysight Technologies, Inc. (NYSE:KEYS) designs and manufactures electronic design and test solutions for communications, electronics, and aerospace and defense (A&D) industries. On May 11, 2026, Keysight Technologies, Inc. (NYSE:KEYS) closed at $366.36 per share. One-month return of Keysight Technologies, Inc. (NYSE:KEYS) was 10.86%, and its shares gained 121.96% over the past 52 weeks. Keysight Technologies, Inc. (NYSE:KEYS) has a market capitalization of $62.83 billion.
Jensen Quality Mid Cap Fund stated the following regarding Keysight Technologies, Inc. (NYSE:KEYS) in its Q1 2026 investor letter:
“Keysight Technologies, Inc. (NYSE:KEYS), a manufacturer of instruments used in the design, simulation, manufacture and testing of electronic systems, was the largest contributor to Portfolio performance during the quarter. Specific products made by KEYS include oscilloscopes that measure and test voltage signals, signal generators that simulate wireless signals (such as 5G and Bluetooth), and power device analyzers that verify the electrical performance, yield, and reliability of semiconductors. We believe KEYS outperformed due to reporting strong sales, earnings, and order growth in each of the past four quarters as the company continues to benefit from the build-out of AI infrastructure. The company remains a core holding in the Portfolio due to its strong market share, diversified customer base, solid balance sheet, and attractive valuation.”
