Holdings Update: Sell Moody’s

The Jensen Investment Team Sells Position in Moody’s (MCO)

April 2024

The Jensen Investment Team elected to sell portfolio holding Moody’s (ticker: MCO) from the Jensen Quality Growth Strategy due to elevated stock price valuation.

Founded in 1909, Moody’s is a global risk assessment firm focused on helping clients make better decisions. The company is best known for its investor services business and is a global leader in the issuance of credit ratings. Moody’s also boasts a growing analytics business, which provides credit opinions, private company information and commercial real estate data.

We retain a positive view of Moody’s as a business. However, the stock price exceeded our estimate of full value and we began reducing the position in 2023. We intend to closely monitor Moody’s and may consider reestablishing a position based on improvement in the company’s valuation, fundamentals and/or risk characteristics.

Please click here to view a list of the Jensen Quality Growth Strategy’s current holdings.

Strategy holdings are subject to change and should not be considered recommendations to buy or sell any security.

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.

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