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Investment Blog Post
04/10/2017 - Investment Blog Post

Holdings Update – Sell T. Rowe

In March 2017, Jensen’s investment team initiated the sale of T. Rowe Price Group, Inc. (TROW) from the portfolio. TROW is based in Baltimore, MD and provides investment management services primarily through sponsored U.S. mutual funds. TROW was originally purchased for the Jensen Quality Growth strategy in July 2005, and since then the stock has significantly outperformed the S&P 500 Index.

Initially we purchased TROW due to the company’s strong track record in investment management, clear strategy, low debt, and high returns on capital. We reduced our position in TROW significantly in early 2014, as we became more concerned about the company’s future prospects and strategy. Today, we believe the company was underinvested in its business for too long, given the rapidly changing dynamic in the investment management industry. While recent management changes at TROW may be a catalyst for the future we have less confidence in the clarity of the company’s short to medium term prospects.


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.