Here’s Why Jensen Quality Mid Cap Fund Sold Lululemon athletica (LULU)

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Soumya Eswaran

Wed, May 13, 2026 astatine 8:07 AM CDT 3 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 Lululemon Athletica Inc. (NASDAQ:LULU). Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails diversion apparel, footwear, and accessories. On May 12, 2026, Lululemon athletica inc. (NASDAQ:LULU) closed astatine $125.13 per share. One-month instrumentality of Lululemon athletica inc. (NASDAQ:LULU) was -23.11%, and its shares mislaid 60.38% implicit the past 52 weeks. Lululemon athletica inc. (NASDAQ:LULU) has a marketplace capitalization of $14.68 billion.

Jensen Quality Mid Cap Fund stated the pursuing regarding Lululemon athletica inc. (NASDAQ:LULU) successful its Q1 2026 capitalist letter:

"The Investment Team besides liquidated the Portfolio’s remaining positions successful Lululemon athletica inc. (NASDAQ:LULU). Regarding LULU, the continued deterioration successful our presumption of their underlying concern fundamentals caused america to exit the position."

Here’s Why Lululemon Athletica (LULU) Stock Surged 28% from Fund Purchase Price

Lululemon athletica inc. (NASDAQ:LULU) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 78 hedge money portfolios held Lululemon athletica inc. (NASDAQ:LULU) astatine the extremity of the 4th quarter, up from 42 successful the erstwhile quarter. While we admit the imaginable of Lululemon athletica inc. (NASDAQ:LULU) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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