Jensen Investment Management, an asset management company based in the US, released its first-quarter 2025 investor letter for the “Jensen Quality Mid Cap Fund”. A copy of the letter is available to download here. The Jensen Quality Mid Cap Fund aims for long-term growth. The Fund returned -2.53% in Q1 2026, lagging the 0.60% return for the MSCI US Mid Cap 450 Index. Mid-cap stocks were flat in the quarter due to inflation, war, high energy prices, and cautious consumer spending. Rapid AI investment growth impacted the Index, boosting some stocks but hurting others, especially software and business services stocks facing AI disruption concerns. Energy stocks surged after the Iran War, challenging performance. The fund’s process focuses on high-quality companies with a 15%+ ROE for ten years, indicating sustained advantages. Quarterly performance benefited from underweights in the Financials and Communications Services and higher exposure to the Industrials sector, while underweight exposure in the Energy and Utilities sectors and overweight in Consumer Discretionary hurt performance. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Jensen Quality Mid Cap Fund highlighted Genpact Limited (NYSE:G). Genpact Limited (NYSE:G) is a leading professional services firm that offers business process outsourcing and information technology services. On May 12, 2026, Genpact Limited (NYSE:G) closed at $31.25 per share. One-month return of Genpact Limited (NYSE:G) was -13.77%, and its shares lost 27.71% over the past 52 weeks. Genpact Limited (NYSE:G) has a market capitalization of $5.29 billion.
Jensen Quality Mid Cap Fund stated the following regarding Genpact Limited (NYSE:G) in its Q1 2026 investor letter:
“Genpact Limited (NYSE:G) was the Portfolio’s second largest detractor from performance during the quarter. The company provides business process outsourcing (BPO) and IT services to customers in the banking, financial services, insurance, manufacturing, and healthcare industries. After outperforming in the fourth quarter of 2025, Genpact’s stock traded down during the first quarter of 2026 as it was swept up in similar AI disintermediation fears that also negatively impacted BR’s stock. Like BR, we believe these concerns are misplaced. Rather than being disrupted by AI, Genpact is leveraging it to enhance its value proposition and deepen client relationships. The company has developed a proprietary AI-enabled platform and delivery model that helps clients move from pilot programs to scaled, production-level deployment. Importantly, Genpact’s competitive advantage lies in its “’last-mile execution,” embedding AI directly into complex, domain specific workflows where its deep process knowledge and operational expertise are difficult to replicate. This approach is already producing tangible results, including meaningful cost reductions and automation gains for clients, and reinforces Genpact’s positioning as a key partner in enterprise AI adoption. Genpact remains a core holding in the Portfolio due to its contracted revenue streams, customized product offerings, high recurring revenues, solid market position, and attractively valued stock.”
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