Jensen Quality Growth Equity is Holding Marsh & McLennan (MRSH) with Conviction

Jensen Investment Management, an asset management company based in the US, released its fourth-quarter investor letter for “Jensen Quality Growth Equity Strategy”. A copy of the letter can be downloaded here. The S&P 500 Index continued its rally in Q4 2025, which started in 2022. The Jensen Quality Growth Equity Composite underperformed the Index in the fourth quarter. The Strategy returned -0.55% (net) in Q4 2025 Vs 2.66% for the Index. At the sector level, the portfolio’s relative underperformance was largely contributed to by the Industrials sector. The outperformance of low-quality stocks added to the relative underperformance from a quality perspective. Market concentration in mega-cap technology characterizes the current investment theme. The portfolio is well-positioned to capitalize on growth from AI and digital transformation, while maintaining its durability. The firm prioritizes holding companies that can generate economic value over multiple cycles, focusing on quality, cash generation, and durability for long-term shareholder returns. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Jensen Quality Growth Equity Strategy highlighted Marsh & McLennan Companies, Inc. (NYSE:MRSH). Marsh & McLennan Companies, Inc. (NYSE:MRSH) is a professional service company specializing in advisory services and insurance solutions. On March 05, 2026, Marsh & McLennan Companies, Inc. (NYSE:MRSH) stock closed at $185.00 per share. One-month return of Marsh & McLennan Companies, Inc. (NYSE:MRSH) was -0.02%, and its shares lost 21.44% over the past 52 weeks. Marsh & McLennan Companies, Inc. (NYSE:MRSH) has a market capitalization of $90.633 billion.

Jensen Quality Growth Equity Strategy stated the following regarding Marsh & McLennan Companies, Inc. (NYSE:MRSH) in its fourth quarter 2025 investor letter:

"Microsoft (MSFT) and Marsh & McLennan Companies, Inc. (NYSE:MRSH) were the leading individual detractors in the quarter. Marsh & McLennan (changing name to simply 'Marsh' in January 2026) was another key detractor from fourth quarter performance. While recent earnings and outlook have decelerated over the past year, results have fallen within our range of expectations. As we've studied the business over time, history shows it to be highly resilient across Property & Casualty pricing and broader economic cycles, with underlying value creation driven by high returns on capital well in excess of cost of capital and ample free cash flow generation, in part due to the capital-light nature of the business. We believe the long term investment thesis remains intact and expect patience to ultimately be rewarded over a full market cycle."

Marsh & McLennan Companies, Inc. (NYSE:MRSH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 69 hedge fund portfolios held Marsh & McLennan Companies, Inc. (NYSE:MRSH) at the end of the fourth quarter, up from 66 in the previous quarter. While we acknowledge the potential of Marsh & McLennan Companies, Inc. (NYSE:MRSH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Marsh & McLennan Companies, Inc. (NYSE:MRSH) and shared a list of best performing long term stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.