Here’s What Made Jensen Quality Mid Cap Fund Pick Cadence Design Systems (CDNS)

1 hour ago 3

Soumya Eswaran

Tue, May 12, 2026 astatine 7:25 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 stocks specified arsenic Cadence Design Systems, Inc. (NASDAQ:CDNS). Cadence Design Systems, Inc. (NASDAQ:CDNS) is simply a planetary supplier of AI-driven software, hardware, and silicon intelligence spot products and solutions utilized for designing semiconductors. The one-month instrumentality of Cadence Design Systems, Inc. (NASDAQ:CDNS) was 24.57%, and its shares gained 14.29% of their worth implicit the past 52 weeks. On May 11, Cadence Design Systems, Inc. (NASDAQ:CDNS) banal closed astatine $364.20 per share, with a marketplace capitalization of $100.45 billion.

Jensen Quality Mid Cap Fund stated the pursuing regarding Cadence Design Systems, Inc. (NASDAQ:CDNS) successful its Q1 2026 capitalist letter:

"During the quarter, the Quality Mid Cap Investment Team initiated positions successful AON PLC (AON), The Sherwin-Williams Company (SHW), and Cadence Design Systems, Inc. (NASDAQ:CDNS). CDNS is simply a developer of bundle utilized to plan semiconductors. The institution was added to the Portfolio owed to its contracted revenues, precocious declaration renewal rates, beardown equilibrium sheet, and heavy patent portfolio, which makes it hard for imaginable competitors to participate its markets. We besides judge CDNS’s banal was attractively valued astatine the clip of purchase."

Cadence Design Systems, Inc. (CDNS) Benefits From Its Relationship With NVIDIA, Says Jim Cramer

Cadence Design Systems, Inc. (NASDAQ:CDNS) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 65 hedge money portfolios held Cadence Design Systems, Inc. (NASDAQ:CDNS) astatine the extremity of the 4th quarter, compared to 69 successful the erstwhile quarter. In Q1 2026, Cadence Design Systems, Inc. (NASDAQ:CDNS) generated gross of $1.474 billion, up 19% twelvemonth implicit year. While we admit the imaginable of Cadence Design Systems, Inc. (NASDAQ:CDNS) 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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