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Holdings Update

Jensen Investment Team Sells Position in UPS

September 2023

The Jensen Investment Team recently completed the sale of United Parcel Service (UPS) shares from the Quality Growth Strategy to take advantage of better opportunities within the Portfolio and from our bench of investment candidates. 

First added to the Portfolio in 2012, UPS is a global leader in package delivery and logistics. We made the decision to exit the position based on our valuation of the stock and our view that better opportunities exist in our investable universe. In our opinion the company still has a strong brand, economies of scale, technological superiority, good management team and solid returns on capital, but we have managed the position downward in the Portfolio over time due to our concerns on the company’s economic sensitivity, profit margin challenges and, as of late, its increased debt levels.

We intend to closely monitor UPS and may consider reestablishing a position based on improvement in the company’s valuation, fundamentals and 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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