Jensen Investment Management, an asset management company based in the US, released its second-quarter 2026 investor letter for the “Jensen Quality Growth Equity Strategy”. A copy of the letter is available to download here. The fund seeks long-term growth by investing in high-quality companies with durable competitive advantages. It returned 10.94% net of fees in Q2 2026, trailing the 15.20% return for the S&P 500 Index. US equities posted their strongest quarter in nearly six years as easing Iran-related tensions, improving financial conditions, resilient consumer spending, and continued AI infrastructure investment lifted markets. AI and memory-related semiconductor stocks led the rally, while lower-quality and momentum stocks outperformed the quality factors central to Jensen’s strategy. Quarterly performance benefited from favorable stock selection in Communication Services and no exposure to Energy and Utilities, while selection in Industrials and Information Technology hurt relative returns. The Portfolio remains balanced across quality compounders, AI beneficiaries, and defensive businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Jensen Quality Growth Equity Strategy highlighted Abbott Laboratories (NYSE:ABT). Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells health care products worldwide. On July 24, 2026, Abbott Laboratories (NYSE:ABT) closed at $103.06 per share. One-month return of Abbott Laboratories (NYSE:ABT) was 7.04%, and its shares lost 18.43% over the past 52 weeks. Abbott Laboratories (NYSE:ABT) has a market capitalization of about $179.51 billion, with a 52-week trading range between $81.97 – $137.49.
Jensen Quality Growth Equity Strategy stated the following regarding Abbott Laboratories (NYSE:ABT) in its Q2 2026 investor letter:
“Abbott Laboratories (NYSE:ABT) detracted from performance during the quarter following adecline in the stock price after Q1 earnings. Management lowered full-year guidance to reflect dilution from the Exact Sciences acquisition, while select businesses, including Nutrition and portions of Diagnostics, experienced near-term headwinds. The stock was also pressured by ongoing uncertainty surrounding NEC litigation related to its preterm infant formula, which continues to weigh on investor sentiment. These headwinds overshadowed otherwise strong results, led by high-single-digit organic growth in both Medical Devices and Established Pharma segments, which together represent over 62% of Q1 sales.”
Abbott Laboratories (NYSE:ABT) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Abbott Laboratories (NYSE:ABT) at the end of the first quarter which was 71 in the previous quarter. While we acknowledge the potential of Abbott Laboratories (NYSE:ABT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Abbott Laboratories (NYSE:ABT) and shared a list of best monopoly stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.