IDEXX Laboratories joins Jensen Quality Growth Equity Composite as a new holding amid high customer retention and recurring revenue streams.
Jensen Investment Management added IDEXX Laboratories (IDXX) to its Quality Growth Equity Composite in Q2 2026, citing the company’s durable competitive advantages and high customer retention. The fund, which targets long-term growth in high-quality firms, underperformed the S&P 500’s 15.20% return, posting a 10.94% gain net of fees for the quarter.
US equities surged in Q2 2026, marking their strongest quarter in nearly six years, driven by easing geopolitical tensions, resilient consumer spending, and AI infrastructure investment. While AI and semiconductor stocks led the rally, Jensen’s performance lagged due to its focus on quality factors, with Industrials and Information Technology selections weighing on returns.
The fund’s portfolio remains balanced across quality compounders, AI beneficiaries, and defensive businesses. IDEXX, a provider of veterinary diagnostics and software, was highlighted as a newly added position with strong recurring revenue potential.