Jensen Investment Managementa US-based asset management company, published its Q1 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 the first quarter of 2026, lagging the 0.60% return of 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 growth in AI investment weighed on the index, boosting some stocks but hurting others, especially software and business services stocks that face concerns about AI disruption. Energy stocks rose after the Iran war, challenging performance. The fund’s process focuses on high-quality companies with an ROE greater than 15% over ten years, indicating sustained advantages. Quarterly performance benefited from underweights in financial and communications services and higher exposure to the industrial sector, while underweight exposure in the energy and utilities sectors and overweight in consumer discretionary detracted from performance. Review the Fund’s top five holdings to learn about its key picks for 2026.
In its Q1 2026 investor letter, Jensen Quality Mid Cap Fund highlighted Aon plc (NYSE:AON) as a newly added position. Aon plc (NYSE:AON) is a professional services company providing risk management, insurance broking and human capital consulting solutions to organizations. On May 11, 2026, Aon plc (NYSE:AON) closed at $312.07 per share. Aon plc (NYSE:AON)’s monthly performance was -3.39% and its stock lost 12.11% over the past 52 weeks. Aon plc (NYSE:AON) has a market capitalization of $66.65 billion.
Jensen Quality Mid Cap Fund stated the following regarding Aon plc (NYSE:AON) in its Q1 2026 investor letter:
“During the quarter, the Quality Mid Cap investment team initiated positions in aon plc (NYSE:AON), The Sherwin-Williams Company (SHW) and Cadence Design Systems, Inc (CDNS). AON provides commercial insurance brokerage and health insurance, employee benefits and retirement plan consulting services to corporate clients. The company also offers investment advisory services to fiduciaries and employers. We added AON to the portfolio due to its attractive valuation, strong brand recognition, economies of scale and high customer renewal rates.”
Aon plc (NYSE:AON) isn’t on our list of the 40 most popular stocks among hedge funds heading into 2026. According to our database, 70 hedge fund portfolios held Aon plc (NYSE:AON) at the end of the fourth quarter, up from 76 in the prior quarter. While we recognize the potential of Aon plc (NYSE:AON) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.