Jensen Quality Growth Equity Divested Amphenol (APH) Due to Elevated Valuation

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 Amphenol Corporation (NYSE:APH). Amphenol Corporation (NYSE:APH) is a leading manufacturer of electrical, electronic, and fiber optic connectors. On March 06, 2026, Amphenol Corporation (NYSE:APH) stock closed at $131.87 per share. One-month return of Amphenol Corporation (NYSE:APH) was -8.55%, and its shares gained 113.42% over the past 52 weeks. Amphenol Corporation (NYSE:APH) has a market capitalization of $162.097 billion.

Jensen Quality Growth Equity Strategy stated the following regarding Amphenol Corporation (NYSE:APH) in its fourth quarter 2025 investor letter:

"During the quarter, the Quality Growth Investment Team liquidated positions in Accenture (ACN), Amphenol Corporation (NYSE:APH), and Zoetis (ZTS) from the Portfolio.

Amphenol is a designer and manufacturer of interconnect systems, sensors and broadband cable. In our view, the company benefits from a strong competitive position across a diverse range of end markets. In 2025, Amphenol shares rallied in response to accelerating financial results in its data center end market, fueled by AI-related demand. We trimmed shares throughout the year and ultimately sold the position due to heightened stock price valuation. We continue to closely monitor the stock and could reestablish a position should its valuation improve."

Amphenol Corporation (NYSE:APH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 103 hedge fund portfolios held Amphenol Corporation (NYSE:APH) at the end of the fourth quarter, up from 89 in the previous quarter. Amphenol Corporation (NYSE:APH) reported record sales in Q4 2025, reaching $6.439 billion, reflecting an increase of 49% in US dollars compared to Q4 2024. While we acknowledge the potential of Amphenol Corporation (NYSE:APH) 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 Amphenol Corporation (NYSE:APH) and shared a list of best performing S&P 500 stocks in the last 10 years. 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.