Animal Spirits Podcast with Jensen’s Kevin Walkush

February 2023

Talk Your Book: Investing in Quality Growth

Jensen Portfolio Manager Kevin Walkush joins Michael Batnick and Ben Carlson of the Animal Spirits Podcast to discuss quality growth investing, active management, and more.

From the podcast:

“An important element of our understanding of our businesses and our portfolio construction is rooted in valuation, so we think about what are the fundamentals driving the business. But equal to that is really the valuation. We don’t want to overpay. We certainly want to identify value in those pockets of value where we can really invest and apply more money to those opportunities.

When we think about valuation, we’re a DCF shop. And when we think about discounted cash flow, an important element is that cost of equity overall. And we do discounted cash flow-to-equity analysis. So, our discount rate is based on a risk-free rate and an equity risk premium. When we think about interest rates, very simply, when we think about impact evaluation, rising interest rates that we’ve been experiencing increase that cost of equity overall. And what we’re seeing then is valuations coming down as a result.”

~ Kevin Walkush, Portfolio Manager and Head of ESG

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

The company discussion is solely intended to illustrate the application of our investment approach and is not to be considered a recommendation by Jensen. The specific security identified is taken from a representative account of the Jensen Quality Growth Strategy and does not represent all of the securities purchased and sold for the Strategy. Our views expressed herein are subject to change and should not be construed as a recommendation or offer to buy or sell any security and are not designed or intended as a basis or determination for making any investment decision for any security. Our discussions should not be construed as an indication that an investment in a security has been or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of any security discussed herein.

Past performance is no guarantee of future results. The information contained herein represents management’s current expectation of how the Jensen Quality Growth Strategy will continue to be operated in the near term; however, management’s plans and policies in this respect may change in the future. In particular, (i) policies and approaches to portfolio monitoring, risk management, and asset allocation may change in the future without notice and (ii) economic, market and other conditions could cause the strategy and accounts invested in the strategy to deviate from stated investment objectives, guidelines, and conclusions stated herein.

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