Jensen 13F (2026 Q1): A Strict-Quality Fund Trims Megacap Tech

A fund built on one demanding rule

Jensen Investment Management runs one of the most disciplined quality screens in the business. Its flagship Quality Growth strategy will only consider companies that have earned a return on equity of at least 15% in each of the past ten or more consecutive years, an unusually strict bar that automatically excludes cyclicals, turnarounds, and most younger businesses. What survives the screen is a short list of consistently profitable, high-return franchises, and the firm builds a concentrated portfolio from that pool. Its 2026Q1 13F, about $5.07 billion across 84 positions, is a clean expression of that philosophy, dominated by businesses that have cleared a decade-long profitability test.

The top of the book is a roster of megacap quality: Microsoft at 8.55%, Alphabet at 8.21%, Apple at 7.98%, Nvidia at 5.61%, and Amazon at 5.01%, followed by Mastercard, KLA Corporation, Stryker, Eli Lilly, and Sherwin-Williams. Every one is a durable, high-return compounder, exactly what a ten-year ROE filter is designed to surface.

Concentrated, and currently de-risking technology

The book is meaningfully concentrated, with the five largest names accounting for a large share of value, but the notable story this quarter is what the firm did with its technology exposure. Jensen trimmed across its biggest tech and semiconductor holdings: Apple by 19% of shares, Nvidia by 28%, KLA by 13%, and Microsoft by 12%, while adding modestly to Amazon. After a long run in megacap technology, that pattern reads as deliberate de-risking, taking weight out of the names that had grown largest and richest, even within a portfolio that still believes in their quality.

Reading the asset decline honestly

There is no way to discuss this filing without addressing the headline number: reported value fell about 20% on the quarter and has halved over two years, from roughly $12.2 billion to $5.07 billion. A decline that large and sustained, combined with the broad share-count reductions across nearly every major holding, points to persistent net outflows rather than market losses alone, this is money leaving the strategy, not just prices falling. That context matters, because it means the share-count trims are partly a function of meeting redemptions, not purely active calls. The cleaner signal is relative: the firm cut technology harder than the rest of the book, which suggests genuine de-risking on top of the flow-driven selling.

What a strict-quality filing tells you

The value of watching a manager like Jensen is the screen itself. Every name in the portfolio has demonstrated a decade or more of high returns on equity, so the holdings function as a vetted list of proven compounders, businesses that have done the hard thing, earning high returns consistently, rather than promising to. When you read this 13F, the most useful takeaway is not the asset total, which is being driven by flows, but the composition and the relative moves: a concentrated book of ten-year-quality survivors, with the manager currently easing off its most-stretched technology positions. For investors who prize durable quality, that is a meaningful tell.

You can review the full 84-position book, the quarter-over-quarter changes, and the longer history on the Jensen Investment Management filer page.