Holdings Update: Sell VF Corporation
During the first quarter of 2021, the Investment Team sold VF Corporation (VFC) from the Jensen Quality Growth Model Portfolio (“Model Portfolio”).
VF sells apparel, footwear, and accessories through over 30 brands including The North Face®, Vans®, Timberland®, Dickies®, and Supreme® with a focus on outdoor and lifestyle designs. VF possesses considerable competitive advantages, including well-known brands, proven design and innovation capabilities, and large economies of scale.
Additionally, VF has strengths in revenue diversification, a solid balance sheet, effective management, and what the Investment Team considers to be top-ranking ESG risk factors. VF has remained a relatively small position in the Model Portfolio, and due to extraordinary challenges retailers have faced during the coronavirus pandemic, the Investment Team elected to sell the position in VF and focus on other opportunities.
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