Jensen investment management is an investment management firm founded by Jensen brothers based in Lake Oswego, Oregon. They are known for their conservative, value-focused investment style with a rigorous bottom-up research process. This article reviews key aspects of their investment strategies and performance track record.
Focus on undervalued companies with strong fundamentals
Jensen investment tends to invest in undervalued, profitable companies with strong fundamentals and consistent track records. They avoid overvalued growth companies and instead look for temporarily undervalued companies that can generate shareholder value over long term.
Rigorous bottom-up research process
Jensen employs a rigorous bottom-up research process focused on quantitative and qualitative analysis to identify companies meeting their investment criteria. This includes assessing management quality, long-term prospects etc.
Concentrated portfolios
Jensen portfolios tend to be concentrated with low turnover, reflecting their conviction in identified investment ideas. Their flagship Jensen Quality Growth Fund has typically held around 25-30 stocks.
Strong long-term performance
Jensen’s investment strategies have generated strong absolute and risk-adjusted returns over the long term. For example, their Quality Growth Fund has outperformed S&P 500 index over 15/20/25 year periods.
In summary, Jensen investment strategies reflect a conservative, value-focused approach centered around rigorous bottom-up research. Their proven track record of long term outperformance highlights the merits of their investment philosophy and process.