The investors who run this employee-owned firm stay within a clear circle of competence. Since its 1988 founding, all the firm’s strategies have focused on historically profitable stocks with still-strong growth prospects and reasonable valuations. The firm does not rampantly proliferate products or chase trends and has launched only three strategies in its history: Jensen Quality Growth in 1992, Jensen Quality Value in 2010, and Jensen Global Quality Growth in 2020.
Proactive succession planning, excellent personnel retention, close fundholder alignment, and a prevailing team-first attitude form the foundation of Jensen's culture. The firm has managed generational change well. Its founding investors have taken their leave since 2004, but Jensen, which requires all investment personnel to give at least a year's notice before retiring, found capable replacements well in advance. Its management team still has one of the highest five-year retention rates and average tenures in the industry. Each team member has money in the firm's strategies, and most own shares of the advisor. Average industry expense ratios have fallen faster than they have at this firm's funds, but its fees are not exorbitant. Investors run this firm like they invest—with discipline.