Welcome

I AM A ...

I accept the Privacy Statement and I agree to comply with it. View our Privacy Statement.

This website uses cookies to better understand user behavior and provide the best experience. By continuing to use this website, you are consenting to the placement and retrieval of cookies on your computer by this website. Cookies will be stored for 90 days.

Never show this.

Holdings Update: Buy Amphenol

Jensen Investment Team Re-Enters Amphenol Holding

Know What You Own

Founded in 1932 as a developer of radio components, Amphenol (APH) is a designer and manufacturer of interconnect systems, sensors and fiber optic and coaxial cable.    

The investment case for Amphenol is largely unchanged from that of our 2008 purchase, based on the company’s strong competitive position in the global market for interconnect and sensor products. Interconnect and sensor systems are used in a broad variety of end markets and applications, including mobile devices, information technology systems, automotive design, and industrial manufacturing. These products are typically critical components to end product design, placing Amphenol in an advantageous location within the OEM (original equipment manufacturer) supply chain.

Outlook

We expect Amphenol to grow and create business value due to end market growth and technology leadership. End market activity is boosted by secular growth drivers including mobile device development, cloud computing, electronic vehicle manufacturing, and industrial automation. Amphenol’s manufacturing scale and reputation as a technology leader are beneficial in end markets with shorter product cycles and product design lead times.

We finished liquidating the Strategy’s previous Amphenol holding in December 2020 at a price of $65.71 due to elevated stock price valuation. Since that decision, Amphenol shares appreciated 15.23% but underperformed the S&P 500 Index by 5.62%. However, due to an improved growth outlook, we now view the shares as attractively valued and are pleased to resume a stake in what we consider a quality growth business.

Related Insights

Jensen News & Insights

Holdings Update
6 April 2022
Holdings Update: Buy Moody's
We added Moody’s Corporation to the Quality Growth Portfolio due in part to its global dominance in credit ratings, high customer retention rates, and high degree of recurring revenue. We expect Moody’s to grow and create business value.
false
Holdings Update
6 April 2022
Holdings Update: Sell GIS
The Jensen Investment Team sells the Quality Growth Strategy's remaining position of General Mills (GIS).
false
Insights
15 March 2022
Do Not Be Fooled by Earnings Adjustments
The magnitude of income statement differences between GAAP and non-GAAP figures can be substantial, and investors are largely on their own to determine the veracity and impact of the differences. In this article, Portfolio Manager Allen Bond discusses how to interpret them and what factors to focus on.
false
Company Highlight
7 March 2022
Company Highlight: Encompass Health
We added Encompass Health to the Jensen Quality Value Strategy in October 2017 due to its attractive valuation, competitive advantages, and growth prospects.
false
Company Highlight
7 March 2022
Company Highlight: Tractor Supply
Tractor Supply, the largest farm and ranch retailer in the U.S., has an impressive track record of delivering sustainable growth in a highly fragmented market. We added Tractor Supply to the Jensen Quality Value Strategy in August 2017.
false
Insights
7 March 2022
Quality Assurance: Why Encompass Health is a Standout Pick
Not many businesses can succeed in the healthcare industry, but Encompass Health is one of them. Discover what secret sauce this portfolio company used to become the fourth largest acute-care provider in the country.
true
Insights
7 March 2022
How Kevin Walkush Finds Quality Stocks Through an ESG Lens
Portfolio Manager Kevin Walkush discusses his views on quality investing and how he embraces ESG to find quality stocks.
true
Insights
7 March 2022
Tractor Supply: An Underappreciated Gem
Home Depot and Lowe’s may dominate home improvement. But in exurbs and rural communities, Tractor Supply is the go-to source for livestock and gardening products. Learn how Jensen zeroed in on Tractor Supply’s underappreciated appeal to a loyal customer base.
true

Strategy holdings are subject to change and should not be considered recommendations to buy or sell any security. For a listing of the Strategy’s current holdings, please click here.

The discussion of the specific security identified in this article is solely intended to illustrate the application of our investment approach. Our views expressed herein are subject to change and should not be construed as investment advice and are not designed or intended as a basis or determination for making any investment decision for any security. This information is current as of the date of this material and is subject to change at any time, based on the market and other conditions. Past performance is no guarantee of future results.

Jensen Investment Management, Inc. is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training.

© 2021 Jensen Investment Management.