Jensen Quality Strategies

At Jensen, we search for quality companies by targeting exceptional business performance combined with endurance.

The Jensen Quality Universe™

The Jensen Quality Universe™ includes only those businesses that have produced a return on shareholder equity of 15% or greater in each of the past ten years, as determined by the Investment Team.

For those businesses that qualify, we have found the stamina of these quality businesses to be powerful; possessing sustainable competitive advantages and producing consistent earnings growth which, when compounded, can deliver tremendous value to shareholders. 

The ability to maintain these characteristics over time has generally resulted in increasing free cash flow well in excess of operating needs—which can be a prime indicator of a valuable investment.

Derived from this investible universe, the Jensen Quality Strategies share the same investment philosophy.

Quality Growth
Quality Value
Global Quality Growth

Quality Growth​

Uncompromising Quality

Jensen believes that sustainable competitive advantages and persistent, strong business performance yield long-term growth and capital appreciation.

All data as of June 30, 2020, *for the representative account

25-30

Portfolio Holdings Range

75%

Active Share*

15%

ROE Threshold

200

Qualifying Companies

Quality Value

Capturing quality down the cap spectrum

Jensen believes that investing in companies with solid competitive advantages and clearly identifiable catalysts should drive growth, profitability, and free cash flow. 

All data as of June 30, 2020, *for the representative account

25-30

Portfolio Holdings Range

$12B

Median Market Cap*

15%

ROE Threshold

260

Qualifying Companies

Global Quality Growth

Quality is location and domicile agnostic

Jensen believes that sustainable competitive advantages and persistent, strong business performance yield long-term growth and capital appreciation.

All data as of June 30, 2020 * for the representative account

25-30

Portfolio Holdings

85%

Active Share*

0 %
ROE Threshold

8

Countries Represented*

Featured Thinking

Bear Market Preparedness: Know What You Own

In times of market stress, it is crucial to ‘know what you own’ and focus on underlying, long-term business attributes. Using this framework, we can compare stock price reactions with our existing knowledge of each individual business to identify market over- and under-reactions.