Holdings Update: Sell TJX Companies

A road leading through the forest, purple flowers grow on both sides of the road

The Jensen Investment Team Sells Position in TJX Companies

October 2023

The Jensen Investment Team has chosen to sell long-term holding TJX Companies (TJX) from the Jensen Quality Growth Strategy due to elevated stock price valuation.

TJX is a leading global off-price retailer. Off-price retailers take advantage of inefficiencies in the retail supply chain to purchase and sell merchandise at a discount to traditional retailers. Key TJX store concepts include T.J. Maxx, HomeGoods and Marshalls.       

We retain a positive view on TJX as a business. However, the stock price exceeded our estimate of full value and we began reducing the position in early 2023. We intend to closely monitor TJX 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.

© 2023 Jensen Investment Management.