Here’s Why Broadridge Financial Solutions (BR) Traded Down in Q1

1 hour ago 4

Soumya Eswaran

Tue, May 12, 2026 astatine 7:48 AM CDT 4 min read

Jensen Investment Management, an plus absorption institution based successful the US, released its first-quarter 2025 capitalist missive for the “Jensen Quality Mid Cap Fund”. A transcript of the missive is disposable to download here. The Jensen Quality Mid Cap Fund aims for semipermanent growth. The Fund returned -2.53% successful Q1 2026, lagging the 0.60% instrumentality for the MSCI US Mid Cap 450 Index. Mid-cap stocks were level successful the 4th owed to inflation, war, precocious vigor prices, and cautious user spending. Rapid AI concern maturation impacted the Index, boosting immoderate stocks but hurting others, particularly bundle and concern services stocks facing AI disruption concerns. Energy stocks surged aft the Iran War, challenging performance. The fund's process focuses connected high-quality companies with a 15%+ ROE for 10 years, indicating sustained advantages. Quarterly show benefited from underweights successful the Financials and Communications Services and higher vulnerability to the Industrials sector, portion underweight vulnerability successful the Energy and Utilities sectors and overweight successful Consumer Discretionary wounded performance. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, Jensen Quality Mid Cap Fund highlighted stocks similar Broadridge Financial Solutions, Inc. (NYSE:BR). Broadridge Financial Solutions, Inc. (NYSE:BR) is simply a fiscal exertion institution that provides capitalist communications and solutions for the fiscal services industry. On May 11, 2026, Broadridge Financial Solutions, Inc. (NYSE:BR) closed astatine $149.13 per share. One-month instrumentality of Broadridge Financial Solutions, Inc. (NYSE:BR) was -5.98%, and its shares mislaid 37.16% implicit the past 52 weeks. Broadridge Financial Solutions, Inc. (NYSE:BR) has a marketplace capitalization of $17.25 billion.

Jensen Quality Mid Cap Fund stated the pursuing regarding Broadridge Financial Solutions, Inc. (NYSE:BR) successful its Q1 2026 capitalist letter:

"The largest detractor from Portfolio show during the 4th was Broadridge Financial Solutions, Inc. (NYSE:BR), a diversified supplier of outsourcing solutions to fiscal services companies and publically traded corporations. Specific solutions offered by BR see the organisation of proxy materials and the tabulation of proxy votes arsenic good arsenic the creation and filing of required SEC disclosures, specified arsenic yearly reports and prospectuses. BR besides provides information commercialized processing services and prepares, prints and delivers monthly statements, compliance notices, and taxation forms connected behalf of banks, broker-dealers, and wealthiness and plus managers. We judge BR’s banal underperformed owed chiefly to capitalist concerns regarding the imaginable disintermediation of the company’s concern by AI based competitors. As antecedently discussed, this interest permeated the markets passim the 4th and negatively impacted a fig of bundle and concern services stocks. In our opinion, these fears are unfounded with respect to BR arsenic galore of the company’s services are legally mandated, mission-critical and taxable to changeless audits and regulatory reviews, making them precise hard to replicate. BR remains a halfway Portfolio holding owed to its beardown marketplace position, economies of scale, precocious lawsuit retention ratio, and attractively valued stock."

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