Fund Spy

A Masterful High-Quality Growth Fund

Dan Culloton
The following is our latest Fund Analyst Report for Jensen Quality Growth (JENSX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

Jensen Quality Growth still deserves a Morningstar Analyst Rating of Silver because its reach does not exceed its grasp.

The team running this fund knows its circle of competence and doesn’t leave it. Its members won’t look at any stock that doesn’t have at least $1 billion in market capitalization and hasn’t achieved 15% return on equity or better in 10 consecutive years. The managers cast their lines into a higher quality pond from the start--one that’s easy replicable by anyone with a historical stock database. The managers’ forte, however, is discerning which historically profitable firms have the business models, market positions, balance sheets, and management teams to fuel steady earnings and cash flow growth for years; and which trade at discounts to their estimates of intrinsic value.

Dan Culloton does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.