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Investment Blog Post
06/07/2018 - Investment Blog Post

Holdings Update: Sell Broadridge

The Jensen Investment Committee recently completed the sale of Broadridge due to the high valuation on the company’s stock and in keeping with our longstanding sell discipline.

We retain a positive view on Broadridge as a high quality company with a dominant position in the North American investor communications market.  The company provides the de facto platform on which corporate issuers connect with individual investors for proxy vote dissemination and tabulation.  Additionally, the company is a leading provider of trade processing software used by capital markets companies.  We expect Broadridge to benefit from continued growth in holdings of financial instruments and the company’s ability to use the data collected across its business to create value-added products to financial services companies.

We do not take lightly the decision to sell a fundamentally strong business such as Broadridge.  However, since our initial purchase in April of last year, Broadridge stock appreciated more than 70% and, as a result, all of our valuation metrics indicated that its stock was trading in excess of full value at the time of liquidation.

We will continue to closely monitor Broadridge, and should the stock become more attractively priced relative to business fundamentals, we may reintroduce a position in the future.


Fund holdings are subject to change and should not be considered recommendations to buy or sell any security. For a listing of the funds current holdings, please click here.